Yokohama - What Did Continent Achieve?

from All Africa

New Vision (Kampala)

By Felix Osike
Kampala

Japan has launched a major economic and diplomatic strategy to tackle development in Africa.

But questions are being asked why the world's second largest economy is evolving partnership with Africa.

Heads of State and government from 52 African countries and other representatives of international organisations met last week in Yokohama to hammer out a blueprint for African development.

Africa's influence in global affairs is rapidly growing. But it is the continent where the bottom billions of the world's poor live. Under the Tokyo International Conference on African Development (TICAD) held every five years, Japan stresses the importance of Africa exercising full ownership of its own development agenda, while maintaining partnership with the international community to bolster economic growth.

"The TICAD summit is an opportunity to galvanise support for Africa's effort to reach the Millennium Development Goals," said the UN Deputy Secretary General Dr. Asha-Rose Migiro.

There was consensus in the meeting that African economies were making steady growth with increased political stability albeit remaining conflict hotspots.

But despite posting strong economic growth figures, there are still a number of challenges including continued widespread poverty, unemployment, low agricultural productivity, severe effects of climate change, low levels of industrialisation and inadequate generation and access to energy and diseases. While African governments bear responsibility for the economic and social well-being of their peoples, it was noted that the international community has a crucial role to play in overcoming the challenges.

Boosting economic growth, consolidation of peace and good governance and addressing environmental issues were the key issues. Export of raw materials and semi-processed products of low export value and inadequate energy, were identified by President Yoweri Museveni as the factors for Africa's underdevelopment. Museveni called for additional resource flows for the private sector and value-addition, infrastructure, expansion of employment opportunities and commitment to free trade.

Low levels of technical know-how and investments and the current trade imbalance that exists between Japan and Africa are other bottlenecks.

According to Tanzanian President Jakaya Kikwete, increased trade and investment between Japan and Africa and active presence of Japanese private sector on the continent was urgently required.

World Bank figures show that Japanese investments in Africa have remained dismal. Japanese Foreign Direct Investments (FDIs) in sub-Saharan Africa between 2002 and 2004 amounted to only $415m; roughly 0.4% of Japan's total global FDI flow of $108.5b.

Interestingly, of the $ 415m that Japanese firms have invested in Africa, $352m or 85% went to just two countries-South Africa and Egypt. The rest of Africa (51 countries) shared the remaining $63m. Protectionist's measures by developed countries such as subsidies, which prevent the poor from fair trading, were also pointed out. Goods and services exported to Japan from Africa were also less than 2% of Japan's total imports in 2003-2004. African leaders want this imbalance addressed.

As Rwandan President Paul Kagame noted: "Africa is now the place for the highest returns on investments as illustrated by the fact that the continent is the fastest growing market for mobile telephone technologies."

As part of its commitment, Japan announced a $2.5b for Japanese companies willing to invest in Africa in the next five years. A high powered trade delegation is expected in Africa soon.

African countries will also benefit from Prime Minister Yasuo Fukuda's pledge of up to $4b for infrastructure development, including regional road networks and power grids in the next five years.

But the Botswana Vice President Lt. Gen. Mompati Merafhe argued that increasing ODA to Africa alone was not enough.

"Japan should work with the continent to ensure the assistance provided is relevant to the needs of the recipient countries and also target where it would be used most productively."

African leaders want Japan to have a similar initiative in Africa like the US Africa Growth and Opportunities Act and EU's Everything But Arms.

Kenyan President Mwai Kibaki noted that Japan had given priority to Africa and kept its commitment of doubling its ODA aid to Africa as pledged in 2005.

Promises by other development partners to scale up aid have not yet materialised.Kibaki clinched a deal to have Kenya Airways and Japan Airlines initiate direct flights to respective cities. Uganda also signed a number of deals with Japan including the construction of a bridge on River Nile at Jinja as well as help in the renovation of roads and the East African railway network. African countries will also benefit from access to low interest loans directly from the Japanese Bank unlike previously when it had to be processed through the African Development Bank.

On climate change, Japan has created a $10b Climate Change Fund to help countries attain acceptable Green House gas emission levels through the, "Cool Earth Partnership."

Although analysts believe Japan's interest in Africa is to counter China and India's influence in the continent, diplomats in Tokyo say that is never the reason because TICAD was initiated way back in 1993.

Japan says trade with Africa presents an enormous opportunity and involves far more than natural resources.

As the G8 chair this year, African leaders believe that Japan can play a leading role in making the development partners fulfil their promises to help African nations achieve the Millennium Development Goals by 2015.

Japan's capacity to deliver cannot be underestimated. It was in Okinawa in 2000 that the Global Fund for AIDS, TB and Malaria was initiated. Japan has the experience of taking millions of people in Asia out of poverty and its intervention was critical in creating the Asian Tigers. Bono of the Irish U2 rock band and activist for Africa believes the continent will be the cockpit of politics in the coming years because of its growing market worth hundreds of billions of dollars a year. Bono wants Japan's efforts that were used to rebuild Asia in form of education, agriculture and roads applied to Africa.

TICAD wound up with Japan pledging 120 programmes in areas such as building up social infrastructure, health, promoting good governance, bolstering African agricultural production, water and sanitation and enhancing education. Tokyo's credibility will be at stake if it does not live up to the pledges.But the courtship with Africa has also to do with Japan's attempt to secure a permanent seat in the UN Security Council. In his bilateral meetings with African leaders, Fukuda asked Ghanaian President John Kufuor to lead the discussions on realistic UN reforms.