The Ministry of Economy, Trade and Industry (METI) has opened a second call for its Global South feasibility-study and small-scale demonstration subsidy. Applications run from 2 October to 23 October 2026, and the guidelines require submissions to arrive by noon on the closing day.
What it pays for
The money covers part of the cost of overseas feasibility studies and small-scale demonstrations by Japanese companies on infrastructure and similar projects. The ceilings are per project: ¥100mn for a feasibility study and ¥500mn for a demonstration. The subsidy rate is up to one-half of eligible costs, or up to two-thirds for small and medium-sized enterprises. The program is separate from the large-scale demonstration and Ukraine-reconstruction strands of the same fiscal-year budget.
| Track | Subsidy ceiling | Project period |
|---|---|---|
| Feasibility study | ¥100mn | Up to 12 months, ending by 30 April 2028 |
| Small-scale demonstration | ¥500mn | Up to 18 months, ending by 31 October 2028 |
The two-thirds rate has exclusions. An SME falls back to one-half if a corporation with capital of ¥500mn or more (other than an SME) owns all its shares, directly or indirectly, if its average taxable income over the last three filed years exceeds ¥1.5bn, or if it is an overseas local entity. SMEs must also file a separate eligibility form, and outsourcing to large companies is generally capped at 40%. The guidelines say about 65 projects will be selected across both tracks.
Where and what
The program defines the Global South as ASEAN, Southwest Asia, Central Asia and the Caucasus, the Middle East, Africa, Latin America and Pacific island nations, among others. Applicants unsure whether a target country qualifies are told to ask the secretariat. Projects must fall under green transformation, digital transformation or economic security, and must be expected to win orders or reach commercialisation within five years of the project's end. The guidelines state that the program funds neither research and development nor capital investment. Projects that sell or provide products or services paid for with eligible expenses during the project period are excluded if the revenue at least covers the applicant's own share of costs.
The ministry says the aim is to use the growth of those markets to revive domestic industry, open new markets for Japanese companies hit by US tariffs, and reduce dependence on single countries for supply.
Timing and cash flow
The guidelines expect grant decisions around March to April 2027. A feasibility study may run up to 12 months from the month after the decision, ending no later than 30 April 2028. A demonstration may run up to 18 months, ending no later than 31 October 2028. Payment is made after the project ends, on a settled basis, in principle. Interim payments are possible in some cases, but advance payments are not.
An online briefing is set for 7 October at 14:00, with registration by email due by 16:00 on 6 October. Applications can be filed through the jGrants portal, which requires a GBizID Prime account. Applicants who cannot use jGrants, or prefer a data-transfer service, are told to contact the secretariat, and joint applicants cannot use jGrants and must also contact the secretariat. TOPPAN runs the secretariat and, in principle, cannot apply or serve as a subcontractor.