As the United States under President Donald Trump is disengaging from its responsibilities to the world, Africa can look forward to Japan to bridge the investment gap. Japan has helped build roads, bridges and rural power networks in Ghana and other African countries. It’s also contributed to agricultural and social services projects in the country. Between 2008 and 2013 the Japanese government built 1,321 schools in Africa, while improving 4,778 medical facilities, and providing safe water to more than ten million people.
Japan’s Prime Minister Shinzo Abe has pledged African leaders a further $30 billion contribution over three years under a public-private partnership, aimed at boosting growth and encouraging Japanese companies to invest in the continent. The sum includes $10 billion in infrastructure investment. “This is an investment that has faith in Africa’s future, an investment for Japan and Africa to grow together,” said Mr. Abe at the opening of the sixth Tokyo International Conference on African Development (TICAD VI) with the United Nations Development Program.
Japan launched the summit more than two decades ago, with the conviction that Africa’s socio-economic transformation is central to global stability and prosperity. TICAD summits have been held every five years in Japan since the inaugural meeting in 1993. This year, TICAD VI took place in Nairobi, Kenya – the first TICAD on African soil. The forum has a proven track record of improving social and economic conditions in Africa through providing grants and technical assistance – and it’s gone from strength to strength.
“Our investment is not for short-term profit,” Japanese ambassador to Kenya Mr. Toshitsugu Uesawa said in a symposium on Higher Education in Nairobi recently, ahead of TICAD VI. Instead, the summit “will be a springboard” for Africa’s development agenda, he said, stressing that Japan’s investment in Africa is geared towards improving the lives of African people.
Japanese Prime Minister Shinzo Abe
Africa-Japan trade is worth a modest $25 billion but Africa is rich in resources and has a large consumer market waiting to be tapped into. Key opportunities for growth exist in sectors including finance, agri-business, manufacturing, energy and technology. Since 2013, Japan has poured hundreds of millions of dollars into private sector investments. These include the processing and distribution of farm products in Mozambique, Ghana, Cameroon and Senegal, and a joint venture in Nigeria that manufactures and distributes instant noodles.
Another Japanese–African joint venture is developing ammonia, urea and other petrochemicals. Japanese assistance is also providing clean water for villages, expanding rice production, and generating income for small farmers, including women and young people. Japan is investing in Africa’s resources as well. The Japanese trading house Mitsui now holds a 20% stake in a Mozambique gas field and Japan is the biggest importer of Nigeria’s liquefied natural gas. In addition, Japanese cars including Toyota, Nissan and Mitsubishi are being assembled and sold on the continent.
Africa hopes this year’s TICAD VI meeting will be a turning point for attracting more Japanese private sector investment into the continent, on the back of booming collective growth. More than 200 Japanese businesses and their chief executives took part in events during the meeting, including the plenary and thematic sessions and side events, giving them a firsthand look at the vast potential of businesses in Africa.
On the face of it, Africa and Japan might not have a lot in common. Geographically separated by thousands of miles, Japan is one of the world’s most advanced economies – the third largest in the world. It’s high-tech and disciplined, with a shrinking population. Africa, on the other hand, is the world’s second most populous continent, with its population set to double to a staggering two billion by 2050. Rapidly changing and made up of more than 50 countries beset with poverty, inequality, chaos and unpredictable.
Japan is seen as a strong and loyal friend to Africa as the ties that bind these two places are rock solid. It’s considered a nation that provides top quality expertise and keeps its promises. And with Africa’s future widely considered bright and promising, there’s boundless scope for this relationship to prosper.
