from All Africa
The Nation (Nairobi)
By Godffrey Olali
Nairobi
The Japanese Government will soon roll out an ambitious plan aimed at bringing rapid development in Africa.
The plan will be laid bare at a key meeting bringing together more than 2,000 delegates from Africa and Asia later this month.
In Kenya, Japan plans to fund the construction of Mombasa Port container terminal whose work only awaits approval from a consultant.
Tokyo has also promised to send $20 million (Sh1.2 billion) to Kenya for resettling Internally Displaced Persons (IDPs) and buying farm inputs like fertiliser.
The summit, the Fourth Tokyo International Conference on African Development (TICAD), will be held between May 28 and 30, with its key priorities being boosting economic growth in Africa, human security, tackling environmental issues and climatic change.
According to the Japanese Ambassador to Kenya, Mr Shigeo Iwatani, the delegates will discuss underlying challenges facing the continent, such as implementation of the Millennium Development Goals (MDGs), the looming food crisis, poverty eradication, regional integration and infrastructure development.
"This will be the biggest event on Africa in Japan where we will demonstrate to African countries and the world, that Japan together with other actors like non governmental organizations, private companies and individuals are concerned with the happenings in the continent," said Mr, Iwatani, the Ambassador during an interview with the Nation in his Nairobi office.
Japan, he added, is trying to attract stake-holders including the international community to join "our efforts" in bringing hope and opportunity to the African continent.
The objective of the TICAD conference is to come up with a road map on how to approach issues in Africa for the next five years and adopt a declaration, action plan and a follow- p mechanism.
He added: "We also aim to mobilise the knowledge and resources of the international community to support recent political and economic developments in Africa thereby consolidating sustainable growth."
TICAD is a post-cold war policy forum for African development initiated by Japan in 1993 with partners like the United Nations, United Nations Development Programme and the World Bank.
The first TICAD session provided an important opportunity to renew public awareness towards Africa. It's usually held after every five years.
The major areas
According to Mr Iwatani, one of the major areas to be tackled during the three-day summit, to be held in the city of Yokohama, the major areas will be helping African countries to achieve the Eight MDGs such as education for all, eradication of poverty, gender equality, women empowerment, reduction of child mortality and access to medical services.
Others include combating HIV/Aids, Malaria and other diseases, improving maternal health, environmental sustainability and to develop global partnership.
To achieve this, he says, Japan aims at ensuring peace building efforts within the human security concept, improving health, sanitation, education and empowering people.
"We have provided innovative ideas which we will follow to the letter," says the envoy, who added that Tokyo has vowed to tackle poverty in Africa by boosting economic development and infrastructure with an aim to bringing more foreign investors.
The diplomat praised African leaders for coming up with key institutions such us the New Partnership for African Development (NEPAD) and African Peer Review Mechanism (APRM), which were created after the first TICAD conference in 1993.
He said the institutions under the umbrella of African Union (AU) have stimulated development, growth and good governance in Africa.
Mr Iwatani said that he was impressed by the improved post-cold war relationship between Africa and Japan.
"In the Japanese Parliament, already we have a large body of MPs under the auspices of the Japan - Africa Friendship Parliamentarian Association (JAFP), who regularly visit Africa and interact with leaders."
"After the cold war period, African countries have continued getting aid from Japan and I believe we will continue with the mutual relationship. This is why all African countries are invited to attend the 4th TICAD conference."
During the first TICAD conference, only five African heads of state attended, but the number has since been improving after every five years, a move which shows that Japan and African countries have been keen to solidify their relationship.
The Motto of this year's event will be: "Towards a Vibrant Africa; A continent of Hope and Opportunity."
The summit comes few weeks only after Japan's recent announcement that several African countries will benefit from its grand plan to build 1,000 schools and train about 100,000 African teachers to enhance their abilities in the classroom over the next five years.
The country's foreign minister Masahiko Koumura said Japan's experiences in Central America and in African countries such as Kenya have shown that enhancing teachers' classroom abilities in maths and science plays a decisive role in achieving high standards of education.
Reiterated Mr Iwatani during the interview: "We will try to address the needs of individual countries, but I reckon many African states are in dire need since it's open knowledge that education is the key tool to fight poverty."
In terms of balance of trade between Japan and Africa, he says, the continent leads.
"The trade balance is in favour of Africa because we import oil and mineral resources. In Africa, Nigeria is Japan's biggest oil supplier while Kenya, Ethiopia and Tanzania provide the Asian giant with the biggest chunk of coffee and tea."
Japan has also vowed to help Africa to combat it's perennial conflicts by boosting African Union peace keeping efforts.
On climate change, Mr Iwatani said he is saddened by the fact that the African continent has been the main victim of this deadly phenomenon.
He says after the controversial Kyoto Protocol, the world must to come up with a new strategy of tackling deadly emission which should be reduced by half by the year 2050.
He says his country has already initiated a concept; Cool Earth Programme; where Japan alone will pump $10 billion and establish an international account so that countries can contribute money to the kitty.
On African regional integration, the envoy sees prospects but he encourages member countries to solve perennial cross-border conflicts and bickering.
He adds that Japan is keen on ensuring sustainability of East African Community initiative.
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Hey not sure if you looked into this but what do you know about the relations between Japan and Africa, or Singapore and Japan? I've read this really great article and would like your thoughts and comments.
Japan Leads the Way in Africa’s Economic Development
01 Sep 2008
In the last 15 years, Japan has emerged as the global leader in the development of Africa. By doing so, it has also strengthened its bilateral relations with the continent and has secured economic benefits for both parties.
A major way Japan has spearheaded the task of invigorating Africa’s economy is through the Tokyo International Conference on African Development (TICAD). The TICAD is a conference in Tokyo held every five years to improve relations between Africa and its development partners. The first TICAD, TICAD I, took place in 1993, and the most recent, TICAD IV, wrapped up at the end of May of 2008. At all four conferences, Japan has reinforced its long-term commitment to promoting peace and economic stability in Africa.
During TICAD I, Japan took the lead in producing the “Tokyo Declaration on African Development,” a document that aimed to encourage high-level policy dialogue between Africa and its development partners. Japan remained optimistic about Africa's potential though many other of Africa's development partners began to lose interest. At the end of TICAD I, several prospects appeared promising, though almost nothing was guaranteed.
Five years later, TICAD II generated the “Tokyo Agenda for Action,” which was much more action-oriented than the Tokyo Declaration on African Development. This document called for poverty reduction and a push for Africa’s integration into the global economy. TICAD III drew over 1,000 African delegates including the Chairperson of the African Union, Thabo Mbeki. This conference analyzed the achievements of TICAD over the past 10 years and developed future goals for African development.
TICAD IV took place from May 28-30 2008. Japan's Prime Minister Yasuo Fukuda met with representatives from 51 African countries, 22 donor nations, and 55 international organizations. In all, more than 3,000 people participated in TICAD IV making it the most heavily attended TICAD of the four. The conference aimed to boost economic growth, ensure human security, and address environmental issues in Africa.
The conference recognized that the key to Africa's growth is the development of the continent’s infrastructure. History has proven that improvements in transportation infrastructure attract more private investments. Japan has targeted Africa's infrastructure as the main area it will develop, pledging $4 billion in Official Development Assistance (ODA) loans by the end of 2012. Increasing ODA loans will encourage Japanese private-sector investment in Africa. Furthermore, Japan will double its grant aid and technical cooperation in the next five years. The Japanese government will also establish a fund at the Japan Bank for International Cooperation that aims to double investment in Africa.
At the conference, Prime Minister Fukuda also tracked Africa’s economic progress over the past decade. Sub-Saharan Africa's economy grew at a rate of 5% from 2004-2007 and reached 6% in late 2007. Japan will look to further increase Africa's economic growth by helping the continent double its rice output to 28 million tons by 2018. Furthermore, Japan will give a significant portion of a $100 million global emergency food assistance package to Africa.
Africa has long complained that though it contributes very few greenhouse gases, it must still suffer the effects of global warming. Africa only contributes about 3.8% of the world’s greenhouse gas emissions. By taking the lead on climate change initiatives, Japan has indirectly assisted in resolving Africa’s environmental problems. Japan’s “Cool Earth 50,” introduced in 2007, aims to reduce greenhouse gas emissions by 50% by 2050. Japan has also led the way in the creation of the $10 billion Climate Change Fund. In addition, Japan automakers have made a push to produce cleaner, more fuel-efficient cars including many hybrid models.
In the next five years, Japan will train 100,000 people as health workers who will travel to African countries that suffer from a shortage of health care. Japan has also pledged $560 million to the Global Fund to fight AIDS, Tuberculosis, and Malaria, about $330 million of which will go directly to Africa.
The TICAD conferences have given Japan tremendous opportunities to strengthen diplomatic and economic ties with Africa. As a resource-rich continent, Africa can offer Japan many precious metals that the country needs for its high-tech industries. Africa is home to 89% of the world's platinum, 60% of its diamonds, 34% of its chrome, 37% of its zirconium, and 53% of its cobalt. Because the Japan Bank for International Cooperation is providing $490 million to co-sponsor a nickel mining project in Madagascar, Japan’s Sumitomo Corporation will have the right to purchase 30,000 tons of nickel annually. In addition, Japan will begin to import platinum, nickel and cobalt from Botswana.
With strong bilateral ties with Africa, Japan also has Africa’s support as it seeks a permanent seat on the UN Security Council. The African countries account for 25% of the UN General Assembly. Africa’s support has been crucial to Japan winning the Asian non-permanent Security Council seat in 1996 and the election of Shigeru Oda to the UN International Court of Justice. If it is to secure Africa’s political support and imports of raw materials, it is in Japan’s best interest to continue to assist Africa in its economic development. As long as Japan continues to invest in Africa and solidify ties with it though future TICAD conferences, both parties will continue to gain significant benefits.
Here's the other
Japan, Singapore CRE Investors Brave Liquidity Crunch
MBA (8/30/2007)
Large-lot deals and office sector activity spurred Japan and Singapore into a strong first half of the year, as the current global liquidity crisis does not appear to stall real estate investment in Asia.
Japan and Singapore, with collective investment amount in large-lot deals during the first and second quarters, accounted for more than half of the regional total, and international institutions and real estate investment trusts continued their activity throughout the region, according to research from CB Richard Ellis International.
Research analysts said investors remained “overwhelmingly positive” toward the Japanese real estate market with nine consecutive quarters of economic expansion and an annualized real growth rate of 3.3 percent during the first quarter the year.
Indeed, Reuters reported earlier this month that New York-based private investors, The Blackstone Group, will open a real estate office in Tokyo to look for deals in Japan's property market, and Bloomberg reported Farifield, Conn.-based GE Real Estate could increase its Japanese property holdings by more than 60 percent this year to reach $8.6 billion. GE Real Estate has been in Japan since 1998.
“Japan has been ready for global investments for a long time. Now, it is coming to fruition and a lot of investment will go to Japan,” said Raymond Mobrez Ph.D, director at www.asiaecon.org, Los Angeles, Calif.
The combined value of the first quarter’s 10 largest investment deals totaled $6.9 billion in U.S. currency, including the acquisition of a portfolio of industrial properties by Tokyo-based Secured Capital Japan and DLJ Real Estate Capital Partners at a price of nearly $1.4 billion.
Meanwhile, Fitch Ratings, New York, reported that the losses from subprime exposure in certain Japanese banks would be "comfortably absorbed" by a portion of the bank's annual earnings.
“None [of the banks] should see its solvency threatened from this factor alone, as the exposures are only a small fraction of the banks' equity,” Fitch said. “The large Japanese banks have sponsored and provided liquidity commitments to a number of conduits; to fulfill these commitments they may need to raise liquidity in yen and dollars, although these banks are unlikely to encounter difficulties raising the necessary liquidity, given the limited size of these commitments versus their balance sheets [up to 5 percent].”
“There is more order in the financial infrastructure in Japan than in any other nation in Asia,” Mobrez said.
CBRE International said Japanese REITs remained dominant players, adding to their portfolios in Tokyo and the rest of Japan. However, with the financial markets pricing a further interest rate increase, the report said that the 10-year Japanese Government Bonds yield increased from a 1.6 percent average in April to a 1.9 percent average in June, shrinking the positive spread of net operating income yields.
In Singapore, investment transactions totaled more than $15.8 billion in the first half of the year, a 70 percent increase from the previous year, according to CBRE International. Development sites drove acquisitions as private equity groups and foreign funds gained interest in office properties.
MCP Raffle, a unit of Macquarie Global Property Advisors, purchased Temasek Tower for nearly $660.8 million, making it the most significant office transaction in the first half of the year, CBRE said.
Average rents for Singapore industrial space also increased in the second quarter, with high-tech space posting its largest gains in five years, according to CBRE. Analysts expect supply constraints in the office market and optimistic business conditions to increase demand and rents.
The Singaporean banks were the most transparent in Asia, according to Fitch. The overall collateralized debt obligation exposure in the Singaporean banks was at nearly $1.5 billion, which could potentially give rise to losses that would dent annual earnings. However, Fitch said it would not materially weaken the banks' capital,
“Singapore has always been an attractive investment hub," Mobrez said, in reference to Singapore’s financial stability, based on policy and infrastructure. "Financial market discipline is a role model for China to copy from Singapore.”
Development Bank of Singapore disclosed $850 million of CDO/collateralized loan obligation exposures, including asset-backed securities exposure of $188 million. Not all of the $188 million is subprime-related—some is A-paper or higher—and it amounts to nearly 1.5 percent of DBS Group's equity.
Fitch’s data indicated limited exposure to problematic subprime mortgage assets among life insurers and—in a worst-case scenario—losses related to subprime exposures are likely to be within 6 percent of equity even for the more aggressive investors among the life insurance companies.
Mobrez noted that Asia as a whole requires fiscal discipline from investors rather than overaggressive investment.
“Financial balance is a key element in Asia. Investors have to look at that,” Mobrez said. “Investors have to walk into Asia with open eyes, rather than the belief that they just have to invest for the sake of investing.”
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