Japan’s private sector will invest US $20 billion over three years in Africa. , Assurance to this effect was given by Japanese Prime Minister Shinzo Abe at the Tokyo International Conference on African Development (TICAD) being held in Yokohama. Japanese investments will be mostly channelized towards development of infrastructure and human resource development of the continent. It may be noted that at the 6th TICAD held in Nairobi in 2013, Japan committed US$ 30 billion to be invested over five years. Japanese premier did not spell out the names of the companies investing in Africa.
With this commitment, Japan also is gearing up towards becoming a major investor in Africa, along with China, US, Russia and of late Britain.www.trendsnafrica.com carried a story yesterday about British investment plans in Africa, which I will be mostly focused in Ethiopia and will spill over to other countries in a significant manner later.
Japan will also train 3,000 people over a period of six years under the human resource development program. The rationale is that these people who get trained with the Japanese help can contribute to promoting Japan-Africa business relations and in running business enterprises in Africa. Countries where this program will be held have not been announced. African experts are of the opinion that the skills that are going to be imparted to the youngsters should be tailor-made to the requirements of the region, where mounting unemployment is major reason for anti-establishment activities.
According to Japan’s ministry of foreign affairs, it had invested US$20 billion in the continent from 2016-2018, which does not match up with the huge investments being made by China. Surpassing the quantum of investments from countries like France, India and the United States, China has, over the years, intensified its investments in sectors like railways, road construction, manufacturing and production electronics and TV sets. Japan’s foreign direct investment in Africa in 2017 was US$9 billion, which is only a fraction of China’s at US$ 43 billion in the continent in the same year. In trade also, China is far ahead. In 2018, with the trade volume of China in Africa clocked at US$ 204 billion, according to China’s ministry of commerce, while Japan’s total import and export volume was only US$ 17 billion. Japan has upped its economic engagements with Africa in the recent times leveraging its cordial relations with the countries in the region. Last year, Japan has invested in Kenya in the geothermal power generation sector. Also, it has provided broadcasting equipment to Botswana to enhance host country’s digital footprint. Japan is likely to join hands with foreign states such as France, India, and the United States to promote a more inclusive type of development within the continent.
