Differentiate Japan’s aid to Africa from China’s in terms of quality

Last weekend saw the leaders of Japan and some 50 African nations gather for the Sixth Tokyo International Conference on African Development in Nairobi. They adopted the Nairobi Declaration, calling for economic structural reforms and reinforcing measures against communicable diseases as its main pillars.

In his keynote speech, Prime Minister Shinzo Abe pledged a total of $30 billion (about Bt1 trillion) in investments for Africa from the public and private sectors over a period of three years through 2018, and to develop human resources, including about 10 million engineers. “The time has come to make the best of Japan’s capabilities, Japanese companies’ capabilities,” Abe emphasised.

Blessed with rich natural resources and a rapidly growing population, Africa is referred to as “the final frontier” of the world economy, leading many countries to compete to make investments in the continent.

But in recent years Africa has faced such challenges as declining prices for natural resources, the spread of Ebola and other diseases, frequent civil wars and terrorism. The continent is a long way from eradicating poverty and achieving social stability.

The Nairobi Declaration enshrines “economic diversification” for Africa as a means of preventing over-reliance on exports of raw materials. It is essential to promote investment in high-quality infrastructure and foster human resources through the prudent use of Japanese expertise, thereby encouraging self-sustained development.

Many Japanese business corporations and associations joined the conference, being held for the first time in Africa, and discussed concrete investment projects. The Japanese business community has high expectations for Africa as a potentially huge market.

Twenty-two Japanese firms and business associations signed memorandums on a total of 73 projects. It is highly significant that the range of cooperation is diverse, covering geothermal power generation, agricultural development, hospital construction and malaria control measures.

Abe announced a plan to launch the “Japan-Africa Public and Private Economic Forum” as a permanent platform in which members of the Japanese Cabinet, together with top executives from Japan’s major business associations and corporations, will visit Africa once every three years. It is imperative for Japan and Africa to maintain close cooperation and pursue mutual benefits.

In December, China announced a plan to offer $60 billion in aid to Africa over a period of three years. This figure is double Japan’s. But there is strong criticism that China’s assistance will not lead to fostering personnel and technical transfers because China places priority on profits for its firms and procurement of resources.

In addition to construction of infrastructure with an emphasis on quality, it is essential for Japan to provide know-how on the maintenance and operation of infrastructure and offer elaborate programs to foster local experts, thereby differentiating its assistance from China’s.

Abe has come out with an India-Pacific initiative of making the Pacific and Indian oceans “peaceful seas governed by the rule of law”. Maintaining a rules-based maritime order and the necessity of reforming the UN Security Council were also incorporated in the Nairobi Declaration.

Both of these points were made with China in mind. From the viewpoint of encouraging China to exercise restraint and avoid self-centred behaviour, Japan must build a strategic relationship with African countries.