From Aid To Investment

The motivation for deepening the relationship with Africa has changed from humanitarian responsibility to business chance. “It is obvious that Africa will be the center of growth in the middle of this twenty-first century. It is now we should invest to Africa,” told Prime Minister Shinzo Abe at the closing remark of the 5th Tokyo International Conference on African Development (TICAD) on Sunday. Business, however, is closely related to competition. There is no optimistic vision for Japan to take over China, a giant in African development.

Started in early 1990s when Japan was still an economic giant in the Western world in the post-Cold War period, TICAD had been a framework to encourage economic growth and stability of African countries by Japan and some organizations of the United Nations. After entering new century, the framework worked as one of the promoters for implementing the Millennium Developing Goals set by UN. In the emphasis of African development to prevent poverty in the framework of Group Eight of developed countries, Japan, as the chair of G8 that year, led the discussion for sustainable development in TICAD IV in 2008.

This year, the parties emphasized the necessity of private initiative in investment to Africa. The Yokohama Declaration, the achieved document of the conference, determined private sector as necessary driving force for growth. In that context, the declaration required African countries to organize the environment for investment and legislative system. To make the investment effective for ordinary citizens, it emphasized the importance of deregulation. In the conference, Japan pledged $32 billion for next five years to build infrastructure in electricity or transportation and human resource worth of thirty thousands. It also required measures for anti-terrorism to encourage investment.

Over the years, however, China has been the most active country in African development. To make the effort successful, Japan needs to sell Africa its advantage to China. It is trying to distinguish its efforts from Chinese-type development, which has been importing African natural resources, while exporting industrial products to Africa. Focusing on partnership and ownership, Japan appeals its effort as different from colonial-type management of China.

Meanwhile, China criticizes Japanese effort as buying the votes for permanent membership in UN Security Council, to which China strongly opposes. It is undeniable that Japan has been expecting some return from its investment to Africa. After all, it would be Africa who determines the winner of the competition between Japan and China.