Japan expected to pledge over $32b for projects in Africa

Japanese Prime Minister Shinzo Abe speaks at a Ticad VI side event in Nairobi on August 26, 2016. PHOTO | SIMON MAINA | AFP 

By ALLAN OLINGO

In Summary

• In the previous meeting in Yokohama, Japan, the Asian nation pledged $20 billion. This has seen it fund several projects across various sectors.
• Ahead of the meeting, African countries agreed to speak with one voice in pushing for more investments in health and skills development, as well as social-economic infrastructure projects. 
• The Draft Nairobi declaration report seen by The EastAfrican puts emphasis on skills development, science, technology and innovation especially for the youth.

African countries expect Japan to pledge more than $32 billion for industrialisation, water, security, education and health projects at the sixth Tokyo International Conference on African Development (Ticad) meeting in Nairobi this weekend.

Kenya’s Foreign Affairs Cabinet Secretary Amina Mohamed said Ticad VI would be dealing with “a number of critical issues pertinent to Africa.”

“The key areas are the overall continental economic growth agenda; Africa’s infrastructure development programme; agriculture and farming; peace and security as well as, questions of social inclusivity. So far we expect more than 60 memoranda of understanding to be signed between Japan and African governments during the forum, highlighting one of the biggest potential benefits the African business leaders will obtain from the summit,” said Ms Mohamed during an interview ahead of the meeting.

In the previous meeting in Yokohama, Japan, the Asian nation pledged $20 billion. This has seen it fund several projects across various sectors.

Ahead of the meeting, African countries agreed to speak with one voice in pushing for more investments in health and skills development, as well as social-economic infrastructure projects. 

“Despite Japan, the international community and African countries having steadily implemented the six-pillar Yokohama 2013-17 action plan, some areas have lagged behind and we are calling for greater support in these areas,” says a report to African Missions by a Kenyan official.

These issues are at the core of the Nairobi Declaration that delegates to Ticad VI are expected to adopt. The document will outline goals to be achieved by the next Ticad in 2019.

The Draft Nairobi declaration report seen by The EastAfrican puts emphasis on skills development, science, technology and innovation especially for the youth.

While drafting the document, the ministers who met in Djibouti in March and later in the Gambia in June proposed several additions that included uplifting health systems on the continent, to combat both communicable and non communicable diseases through capacity development and technology and collaborations with pharmaceutical industries.

“Emphasis on maternal and reproductive issues; tackling violent extremism and radicalisation and cross-border security and maritime security was also added to the document,” the ministerial briefing reads.

Three years ago, Japan announced the Yokohama declaration package that included $14 billion official development aid and $6.5 billion support for infrastructure. Since then, Japan has channelled billions of dollars on various areas within the region and continent at large. For instance on health, it spent $184 million in the Ebola outbreak in West Africa.

On energy, predominant market players Toshiba, Fuji Electric, Mitsubishi Hitachi Power Systems, Fuji Electric and Toyota Tsusho have made significant investments in the continent.

The region and continent will also be eyeing further infrastructure projects and a plan involving funding for more than 60 major infrastructure projects across the continent has been prepared and will be discussed at the Ticad VI summit in Nairobi.

In infrastructure development, the plan has singled out Kenya’s port of Mombasa, Nacala port in Mozambique and Cote d’Ivoire.

In September last year, Uganda received $199.3 million for Kampala roads development, while Tanzania received $59.78 billion in development aid targeted at health and agriculture

In Mozambique, Tokyo has invested $255 million in the construction of Nacala port, touted to be the deepest port in southern Africa. It is expected to be operational by 2018. With this port, it is expected that Japan Oil, Gas and Metals National Corporation will invest a further $2 billion in Mozambique’s gas sector, with a possible extension to Tanzania.

Terrorism, which has greatly affected Kenya, Nigeria and Uganda where Boko Haram and al-Shabaab have accelerated attacks, will also be a key focus. Early this month, Japan gave $120 million in aid to boost counter-terrorism efforts in Africa. The fund is geared towards increasing education opportunities to vulnerable youth to prevent them from being lured into joining extremist groups.

John Maxwell, managing partner of Linklaters’ Japan, a think-tank that tracks investments, said that in 2015 alone, Japanese investors accounted for $3.5 billion of the $4.2 billion of project funds that Asian nations poured into Africa to improve roads, water and sanitation and build oil and gas pipelines.

“Japan has made slow but significant inroads in growing its influence across the continent. This underpins why many are expecting African countries to remain significant investment destinations for Japanese capital over the next decade,” said Mr Maxwell, adding that Nigeria, South Africa and Mozambique have attracted the most project financing from the Asian nation