Japan offers billions at Africa investment conference
By Kestér Kenn Klomegâh
During its Eighth Tokyo International Conference on African Development (TICAD8), Japan offers $30 billion to be spent over three years as financial support for development of critical sectors, and a focus on three pillars: economy, society, peace and stability with a view to accelerating Japanese investment in Africa.
Japanese
Prime Minister Fumio Kishida, speaking over live video from Tokyo after
testing positive for Covid-19 days earlier, said that "Japan will
invest both public and private funds worth $30 billion over the next
three years across Africa. To improve the lives of Africans, we will
provide up to $5 billion in co-financing with the African Development
Bank.
Japan's
initiative "includes up to $1 billion in a new special quota to be
established by Japan to promote debt consolidation reforms" in Africa,
the Japanese premier said. He also pledged $300 million in co-financing
with the African Development Bank to boost food production, vowing to
help African countries weather grain shortages caused by the war in
Ukraine, a major wheat producer.
Kishida
announced that Japan would appoint a special envoy to the Horn of
Africa, where a long and devastating drought in parts of Ethiopia, Kenya
and Somalia has prompted the UN's weather agency to warn this week of
an unprecedented humanitarian catastrophe.
In
West Africa, Kishida said Japan would pump $8.3 million into the
troubled but gold-rich Liptako-Gourma tri-border area between Mali,
Niger and Burkina Faso that has been ravaged by jihadist attacks in
recent years. The aid will aim to "develop good cooperation between
residents and local authorities" and help improve administrative
services for the area's five million residents.
It
wants to create an environment where African people can live in peace
and security so they can develop. Japan would use its place on the
United Nations Security Council next year to push for a permanent
African seat on the world body.
The
pledge come as China cements its influence on the continent with its
"Belt and Road" infrastructure initiative, and as experts express
concern about the long-term sustainability of some African nations'
borrowing from Beijing.
The
summit held at a time when the African Continental Free Trade Area
(AfCFTA) has chosen eight countries to start implementing the idea of a
shared market without trade barriers, an opportunity for Japan to be the
first foreign power to access the continent as a single free market.
This,
Japan hopes, will help it catch up with China, the EU, and the US who
have been active in the continent in the recent past, deepening business
relations. The US-Africa Business Summit in Morocco in July attracted
450 US companies, 17 government agencies, and 213 business deals were
signed. FDI from the US to Africa stood at $44.8 billion in 2021.
FDI
as the model for engagement with Africa. While there have been concerns
over the reduction of China’s financial commitments in Africa from $60
billion in 2018 to $40 billion in 2021, China’s move this past week of
waiving debt from 17 African countries weighs favorably for the Asian
giant.
There
is growing interest to invest in Africa, with FDI to African countries
doubling last year to hit a record $83 billion, though investment flows
to the continent accounted for only 5.2% of global FDI, up from 4.1% in
2020. Last February, however, the EU committed to invest $170 billion in
Africa, positioning itself as the most valuable business partner for
the continent.
Tokyo
could also take advantage of its 2019 Partnership on Sustainable
Connectivity and Quality Infrastructure with the EU, with trilateral
business initiatives being actively discussed as cooperative schemes
through which to facilitate joint Japan-EU-African private investment.
The
African Development Bank said in its report that Japan's $5 billion
financial cooperation is under the fifth phase of the Enhanced Private
Sector Assistance for Africa initiative (EPSA) from 2023 to 2025.
The
funds consist of $4 billion under the existing window, and an
additional up to $1 billion that will be provided under a new Special
Window. Japan will establish this Special Window to support countries
that are making progress in the enhancement of debt transparency and
sustainability, and other reforms, thereby making steady and significant
improvement in their debt situations.
Given
the importance of food security, Japan and the African Development Bank
will add agriculture and nutrition as a priority area under EPSA 5. As a
result, EPSA 5 will cover 1) electricity, 2) connectivity 3) health, 4)
agriculture and nutrition as priority areas in order to address key
challenges in Africa.
Japan
and the African Development Bank will join forces to support countries
that address enormous challenges, including food security, climate
change, health, digitalization, and debt issues. These initiatives help
to mobilize the private sector, create job opportunities and positively
impact on millions of lives across Africa.
The
eighth Tokyo International Conference on African Development (TICAD8)
took place amid a "complex" international environment caused by the
coronavirus pandemic and the war in Ukraine, the Japanese foreign
ministry said. Since their inception in 1993, the TICAD conferences,
co-sponsored by the United Nations, World Bank and African Union, have
generated 26 development projects in 20 African countries, largely
funded by the Japan International Cooperation Agency (JICA).
Host
country Tunisia is among the countries bearing the brunt of global
supply chain disruptions and price spikes unleashed by these two
factors, since it is heavily import dependent and is not an energy
player. A slick promotional video said the conference aims to promote
"African development led by African people" during the summit.
In
his opening speech, Tunisian President Kais Saied urged delegates to
"search together for ways for African peoples to achieve the hopes and
dreams of the first generation after independence." Praising Japan's
strong track record of development and "preserving" its culture, he said
that "the world cannot continue as it was. With all its wealth and
assets, Africa cannot watch its people live through poverty."
Senegalese
President Macky Sall, the current chairman of the 55-member African
Union, paid tribute to Africa's "partnership" with Japan, praising
"concrete results in the agriculture, health, education and water"
sectors. He also urged a suspension of interest on debt owed to G20
countries, calling for a seat for the continent at the next G20 summit.
"Without security there can be no development," Sall said and called for
a greater role for African peacekeepers in resolving conflicts.
In
a final statement, the conference participants voiced "deep concern
(over) the negative socio-economic impact" of the Ukraine crisis, saying
it had created food insecurity in Africa. "(We) reiterate the repeated
calls for the resumption of the export of cereals, grains and
agricultural products as well as fertilisers to global markets in order
to relieve the African population," the declaration read.
The
Japan-Africa summit was held in Tunis, capital of Tunisia. The Tokyo
International Conference on African Development (TICAD) is held every
three years either in Japan or an African country. The Japanese
delegation was headed by Foreign Minister Yoshimasa Hayashi, with about
5,000 participants in attendance. There were 48 representatives of
African countries, including at least 20 Heads of State or Government,
according to Tunisian diplomatic sources. *This article was facilitated by Kelvin Dewey in Tokyo, Japan and with news agency reports.
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Japan offers billions at Africa investment conference
By Kestér Kenn Klomegâh During its Eighth Tokyo International Conference on African Development (TICAD8), Japan offers $30 billion to be spent over three years as financial support for development of critical sectors, and a focus on