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Portuguese infrastructure giant has 80% of its sales in Africa and Latin America. Japanese construction giants are also leaving Japan, with its declining population, for the rest of the world.
I recently went to Portugal and Spain on a business trip. Portugal was a great opportunity to meet with 3XPGlobal, with whom we are working to launch a social impact fund called the SHIKKAI Fund, and Ghana's toll road PPP partner, Mota Engil, Spain's partner in the Uraga project, Ocean Capital Partners and leading Spanish infrastructure companies to discuss the global state of infrastructure and future initiatives.
I will talk about the projects we are working on with each of these companies at another time, but every time I meet with them, what I feel is the shrewdness of the Portuguese and Spanish companies.
As you all know, Spain and Portugal were once the dominant nations in the world. Portugal built a maritime empire based on global maritime trade during the Age of Exploration from the late 15th to the early 17th century. Similarly, Spain annexed Portugal in 1580. With the silver and gold it obtained from the “New Continent”, it strengthened its military power and expanded its colonies around the world.
Spain, once known as the "land where the sun never sets," has also declined with the rise of the Netherlands and the United Kingdom. It is still a major player in the European Union (EU), but not at the center of it. Japan competed with the U.S. for economic supremacy at one time, but as we have seen, it has been a disaster since the bursting of its bubble economy. In terms of its long-term declining trend, it is similar to Portugal and Spain.
However, as I became more deeply involved with local business owners, I began to think that I should learn from their greed to attack foreign markets.
Portugal's population is just over 10 million, not far from the population of Tokyo. Spain, with 49 million people, has less than half the population of Japan. As such, domestic demand in the country cannot be expected to grow much, so companies basically have no choice but to earn money overseas if they want to grow.
In fact, 80% of Portuguese infrastructure construction giant Mota Engil's 2024 sales of about 1.1 trillion yen come from Latin America and Africa, and it continues to grow sales in these regions after 2020.
When we look at where the revenue is generated, the main sources are the former colonial countries where the respective languages are spoken. For Portugal, it is Brazil, Angola, and Mozambique. For Spain, it would be Latin American countries, the Philippines, and Morocco.
Index Strategy signed an MOU (Memorandum of Understanding) for a toll road PPP with Mozambique at TICAD 9 this year. 3XP Global, our partner, is a former sovereign nation and is very deeply embedded in the political and business circles in Mozambique.
I understand that there is a critical view of these situations where companies from former colonial powers are feeding into former colonies. The people of each country may have different feelings about colonial rule, and I understand the concern that this may result in a delay in the development of industry in the former colonies.
However, 3XP Global and Mota Engil are working on behalf of their home countries to develop the social infrastructure that is essential for economic growth in Latin America and Africa, where population growth continues. Moreover, this infrastructure development takes into account social impact, which is different from past periods of economic growth.
I think Japanese construction companies should stop sticking to Japan, where the population is decreasing, and actively develop overseas markets like Spanish and Portuguese companies. Overseas business comes with risks. If you are afraid of this, you will not be able to compete globally.
The Index Group, with the spirit of SHIKKAI and diligence in mind, will develop project management for infrastructure PPPs worldwide in collaboration with companies in Spain, Portugal, France, and other countries that share our philosophy. Our vision is to become the No. 1 project management company in infrastructure PPP. We hope you will look forward to working with us.
[Published on January 23, 2026］
*This report is a partially edited version of a report published on LinkedIn on December 22, 2025.
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