The Nigerian government needs all it can grab from international platforms such as the recent Tokyo International Conference on African Development (TICAD) which took place recently in Nairobi Kenya, writes Correspondent, SAM NWOKORO
For a larger part of the 20th century, Euro-American influences dominated the political ideology and economic affairs of many African states. By this time, Japan was building what has turned out today one of the biggest economies in the world. From building ships to electronics, automobiles to computer chips and robots, the Japanese economy made up for its loss to the allied powers in the first and second world wars. With money comes the desire for geo-influence. And today it seems Japan, known for its proactivity in the international business scene, has come to recognise Africa as the 21st century field for investing her technology and industrial prowess.
But it has to court these African states carefully, minding that of the over 50 members of the African Union (AU), the continent has not totally disentangled itself from the controls and subterfuge of Euro-American powers led especially by Britain, France, United States of America (U.S.A.), the Netherlands, Spain and, to some extent, Russia and Italy. Thus the idea of the Tokyo International Conference on African Development (TICAD) was mooted by the Japanese government with the aim of deepening economic co-operation with African nations. The maiden edition held on October 5 to 6, 1993. Nigeria was then under global isolation due to the behaviour of military regimes then. So Nigeria-Japanese economic relations was at best uncoordinated, without focus. However, since the return to democracy in 1999, Japan has upped her diplomatic intercourse with Nigerian peoples and governments, and Nigeria has since kept faith with attendance at TICAD, which sixth edition concluded recently in Nairobi, Kenya, between August 27 and 28.
Japan in the eyes of Nigerians
Before Japanese Prime Minister Shinzo Abe’s announcement of the commencement of the sixth TICAD early last month, Japan’s many interventions in Africa were mostly under the radar, attracting little fanfare. For example, not many knew that Japan’s cumulative foreign direct investment (FDI) in the continent rose from $758 million in 2000 to $10.5 billion in 2014, according to Forbes, a U.S. bi-weekly business magazine. Indeed, Japan was Africa’s largest Asian economic partner until 2000, when China took the lead.
By launching TICAD in 1993 with the United Nations Development Programme (UNDP) and the UN’s Office of the Special Advisor on Africa, Japan pioneered efforts by Asian countries to engage directly with African leaders. The Chinese followed in 2000 with the launch of the Forum on China-Africa Cooperation (FOCAC), while India joined the bandwagon in 2010 with the India-Africa Business Forum (IBF). Often attended by a majority of African leaders, as well as investors and development experts, these gatherings have been opportunities to negotiate international trade and to attract investors and official development assistance (ODA).
Japan’s decision to hold the sixth TICAD in Kenya in August, the first ever in Africa – previous conferences were held in Japan – will likely stoke global interest in Japan-Africa relations. A prior visit to Africa by the PM in 2013 (with stops in Cote d’Ivoire, Ethiopia and Mozambique), the first by a Japanese leader since 2005, highlighted Africa’s investment opportunities, particularly for Japanese companies.
Enticing suitors
Africa’s untapped resources and its resilient economy are a powerful magnet for investors. The continent’s Gross Domestic Product (GDP) growth averaged five per cent in the past decade, according to the World Bank, while its economy was resilient against the global financial crisis of 2007/2008. This prompted Abe to express the view that Africa is “no longer an aid recipient but rather a partner for growth”.
Increasing investor confidence has led to a quadrupling of cumulative FDI since 2000 to about $470 billion. In short, Africa appears like a beautiful maiden attracting the attention of prospective suitors worldwide.
All the same, a feeling exists that Africa’s economic growth has also forced a subtle change in the international rules of engagement. The rationale is that infrastructure projects, often commissioned with fanfare, can be touted as evidence of constructive relation.
Nigeria at TICAD
The Presidency in a statement signed by Senior Special Assistant to President Muhammadu Buhari on Media and Publicity, Shehu Garba, listed six gains Nigeria got from the President’s recent trip to Kenya where he attended TICAD VI.
According to the statement, the TICAD seeks a win-win partnership between Japan and Africa. “A key objective of the conference is to build up African ownership of its own vision of growth and development.”
In furtherance of this, Japan seeks to differ with the other players on the continent by placing emphasis on high quality infrastructure that do more than job-creation by transferring technology through the training of youth and women.
“The conference held every five years from the time it started in 1993 until the last one in 2003 when it was decided that it should be convened every three years instead. The one that just finished is significant in the sense that this was the first time it took place in Africa. They met in Japan all the time in the past.
Another significant departure is the recognition of the role of the private sector in the economic take-off of the continent. In this respect, more than 100 chief executive officers (CEOs) from leading Japanese companies accompanied Prime Minister Abe. This is a clear indication that more and more Japanese companies are eying the African continent. A modest number of Nigerian business and state-owned enterprises were equally present.
“From its start, Abe made known the intention of Japan to spend $10 billion in the next 12 months and overall $30 billion over a three-year period on areas key to African economies, targeting infrastructural projects such as roads, energy, ports, hospitals and training institutions. The money will partly be disbursed through the African Development Bank (ADB).
“At the end of the conference, a statement tagged ‘Nairobi Declaration’ was issued. Among its highlights is the launching of ‘Initiative for Food and Nutrition Security for Africa (IFNA)’. This aims to bring African governments together to swiftly implement food and nutrition security policies and programmes. There were important resolutions taken on economic diversification and industrialisation; promotion of ‘resilient health system for quality of life’ and measures for the promotion social stability and shared prosperity.
“For Nigeria in particular, TICAD VI milestones include the important meeting between President Buhari and Prime Minister Abe, at which event problems militating against the inflow of Japanese investment into Nigeria were discussed and agreed upon.”
What the Japanese PM told Africans
PM Abe told African leaders penultimate Saturday that his country would commit $30 billion in public and private support for infrastructure development, education and healthcare expansion in the continent.
Japan has long been interested in tapping Africa’s vast natural resources, even more so since dependence on oil and natural gas imports jumped after the 2011 Fukushima nuclear disaster shut almost all of Japan’s nuclear reactors.
Abe, in the Kenyan capital, Nairobi, to attend the sixth Tokyo International Conference on African Development (TICAD), said the package would be spread over three years from this year and includes $10 billion for infrastructure, to be executed through cooperation with ADB.
“When combined with investment from the private sector, I expect that the total will amount to $30 billion. This is an investment that has faith in Africa’s future, an investment for Japan and Africa to grow together,” he told a gathering of more than 30 heads of state and government from across Africa.
The $30 billion announced that Saturday is in addition to $32 billion that Japan pledged to Africa over a five-year period at the last TICAD meeting in 2013. Abe said 67 per cent of that had already been put to use in various projects.
“Today’s new pledges will enhance and further expand upon those launched three years ago. The motive is quality and enhancement,” he said.
Japan’s overall direct investment in Africa totalled $1.24 billion in 2015, down from about $1.5 billion a year earlier, according to the Japan External Trade Organisation, which does not provide a breakdown of sectors.
Its presence in infrastructure projects ranges from roads, ports and airports to power plants.
In comparison, rival China made a single investment of $2 billion in oil-rich Equatorial Guinea in April 2015 alone.
A tranche of Japan’s new package will go towards various power projects to increase production capacity by 2,200 megawatts across the continent, according to the Japanese Foreign Minister.