Friday, May 31st 2013 at 23:27, By Agency Japan is set to announce a series of deals with African countries to facilitate better access to their fuel and minerals amid intensifying competition with China to tap into the continent’s natural resources.
Ruto will be among more than 50 Heads of State and Government invited to the 5th Tokyo International Conference on Africa’s Development.
The focus of the event will be business and energy, as Japan looks, in particular, for new fuel sources to keep its economy running following a widespread nuclear-power shutdown following the 2011 Fukushima accident.
During the meeting, Japan will sign an investment accord with Mozambique and will likely agree to launch negotiations for such an accord with Kenya, Tanzania and Ghana, Japanese trade officials said. The agreement is aimed at preventing appropriations of assets and arbitrary changes in business rules. To ease concerns about piracy along key shipping lanes connecting Japan and Africa, Tokyo will agree to train coast guard officials, and provide patrol boats, for east coast countries including Somalia, Djibouti and Kenya, they said.
Japan will also agree to help East Africa countries create a common customs infrastructure that makes cross-border shipments within the region easier while building a larger market for Japanese companies. The community comprises Kenya, Uganda, Tanzania, Rwanda and Burundi.
Hesitant stance
But Japan finds itself behind China in terms of building ties with African nations, as corporate Japan takes a hesitant stance on entry into the African market due to its sometimes harsh environment, political instability and risks of war.
Prime Minister Shinzo Abe will stay for the duration of the event and intends to meet all the visiting leaders as he tries to drive home the message that African leaders can count on his administration for developing long-term partnerships in contrast to the last six years of constantly changing PMs.
In 2011, Japanese direct investments in Africa stood at $460 million against China’s $3.1 billion, while Japan’s trade with Africa totaled only $30 billion, less than a fifth of China’s $166 billion, according to the Japan External Trade Organisation, a government-backed trade promotion body.
The number of Japanese living in Africa, meanwhile, totals only about 8,000, compared with China’s 150,000.
Rather than try to compete with Beijing, several senior government officials said Tokyo may find it more advantageous to work with China on gaining access to resources and building cooperation with African nations. “Working with China in Africa is a possibility in the future,” said Katsumi Hirano, an expert on Africa for the State-affiliated Institute of Developing Economies.
Mr Hirano believes such cooperation is especially likely in
resource development, as natural gas has been discovered off the coasts
of Mozambique, Tanzania and Kenya, all located on the continent’s
eastern seaboard.
But Japanese businesses remain cautious. “We do not think we have to have an office in Africa,”
said Takashi Suzuki, who is responsible for overseas business
development at Nippon Steel & Sumitomo Metal Corporation, a major
buyer of coal from Mozambique.— Agencies
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