Japan takes on China with a planned $20 billion investment in Africa

[Ryan McGauley]

https://www.cnn.com/2019/08/30/africa/japan-to-invest-billions-in-africa-intl/index.html

Here is an interesting article from CNN about Japan increasing its investment in African countries by $20 billion over 3 years.  The purpose of this investment is not solely economic aid to African countries as Japan has done in the past, but "to assist the advancement of Japanese companies into Africa" according to Japan's Prime Minister Shinzo Abe.  This economic investment may in part be to catch up to China's massive past and current investments in Africa, but so far the stance of Japan investing in Africa as a way of fighting economically with China has not been officially taken.

[william lee]

Link to the article: https://www.cnn.com/2019/08/30/africa/japan-to-invest-billions-in-africa-intl/index.html

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Introduction: As Africa's presence grows worldwide, countries are attempting to establish a partnership that involves more than just aid but rather allows for locals to develop infrastructure and human resources development. This article further shows the concept of the African Rising- a term coined to explain the rapid economic growth in Sub-Saharan Africa after 2000. The impact of Africa is established as it becomes a active member on the globalized world involving exchange of goods, peoples and culture. 

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Japan's private sector will invest $20 billion over three years in Africa, Prime Minister Shinzo Abe promised Wednesday.

Abe, who was addressing African leaders gathered at the Tokyo International Conference on African Development (TICAD) in Yokohama, said Japan is interested in infrastructure and human development on the continent.

"I make this pledge to you: The government of Japan will put forth every possible effort so that the power of Japanese private investment, of $20 billion in three years, should in the years to come be surpassed anew from one day to the next," he said in his opening speech at TICAD.

"We will do whatever it takes to assist the advancement of Japanese companies into Africa," he added.

Japan also seeks to train 3,000 people over a period of six years under a human resource development program for Africa so there will be more people from the continent who can contribute to promoting Japan-Africa business relations.

Why Africa?

Japan is not new to investment in Africa. For more than 30 years, the country has focused its efforts on providing economic aid to African countries.

In April, it released $1.5 million to fund community stabilization activities in Nigeria's war-torn northeast.

And in Kenya, through the Grant Assistance for Grassroots Human Security Projects, it provides funding for various skill acquisition and training centers across the country.

Now, it wants a partnership that involves more than just aid -- adding infrastructure and human resource development.

How China is slowly expanding its power in Africa, one TV set at a time

At the 2016 TICAD conference held in Kenya, Abe mentioned that Japan wanted African countries to view it as a partner rather than just a donor.

Jonathan Berkshire Miller, a senior fellow at the Japan Institute of International Affairs, says Japan is increasing its investment in the continent because it wants a more holistic alliance that will create critical infrastructure for African countries.

"Japan wants to see its billions of aid to the continent used towards sustainable development that benefits the lives of Africa and Africans -- not merely the narrow interests of one power," Miller told CNN.

"Additionally, Tokyo remains interested in using its historically strong relations in Africa to bolster evolving political and security interests there," he added.

A match for China?

According to Japan's ministry of foreign affairs, the country invested $20 billion in the continent from 2016-2018. But the numbers don't match up to China's, which is also heavily investing in the continent.

China is one of Africa's largest investors, surpassing France, India and the United States with investments in railway, manufacturing and TV.

According to a report from the Japan External Trade Organization, Japan's foreign direct investment in Africa in 2017 was $9 billion, only a fraction of China's $43 billion invested in the continent in the same year.

In 2018, the volume of Chinese trade in Africa was $204 billion, according to China's ministry of commerce. Japan's total import and export volume, on the other hand, was $17 billion.

Long-standing relationship

Miller, who is also the deputy director at the Macdonald-Laurier Institute, a foreign policy think tank based in Canada, says Japan is more focused on promoting a healthy relationship with the continent as opposed to going head to head on foreign direct investment with China.

"Japan does not see Africa as a ground for zero-sum competition with Beijing -- but is rather looking for ways to enhance its longstanding engagement to promote healthy governance and sustainable business," he said.

Skyscrapers, trains and roads: How Addis Ababa came to look like a Chinese city

So far, Japan is leveraging on its provision of long-term structures in Africa.

Last year, it partnered with Kenya to build a geothermal expansion power generation plant, according to local media. It also supplies Botswana with broadcasting equipment to enhance the country's digital broadcasting standards.

According to Miller, in the future, Japan is likely to join hands with foreign states such as France, India, and the United States to promote a more inclusive type of development within the continent.

[william lee]

Full Article: https://www.cnn.com/2019/08/30/africa/japan-to-invest-billions-in-africa-intl/index.html

Japan takes on China with a planned $20 billion investment in Africa

[Sam Vrana]

This article is a report on the Prime Minister of Japan, Shinzo Abe’, promise of $20 billion in Japanese private sector investments into Africa. Japan has been investing in Africa for the past 30 years, however, this investment hopes to refocus the relations between the continent and country. Instead of a patron-client relationship, Japan hopes to create an economic partnership for the future. Johnathan Miller, a senior fellow at the Japan Institute of International Affairs, reiterates this shift and states that this is not about competition with Beijing for influence. 

[Nithin Kakulavaram]

At the Tokyo International Conference on African Development (TICAD), the prime minister of Tokyo emphasizes his country's aid to economic development in Africa. This includes infrastructure and human resource development on the continent to assist the advancement of Japanese companies into Africa. This, however, is not new as Japan has been maintaining good relationships with Africa for the past 30 years. China, on the other hand, continues to surpass Japan and other countries in aid, assistance, and investment into Africa. Since Japan won’t be able to compete with China, so their focus is on longstanding and sustainable engagement. In all, it’s interesting to see the amount of foreign investment in Africa. Everyone wants to get a piece of the pie, but China seems to dominate the realm.  

On Sunday, September 29, 2019 at 5:58:37 PM UTC-5, Ryan McGauley wrote:

[John C Kalthoff]

This article displays the growing Japanese investment all over Africa, with projects to create sustainable energy in Kenya and Nigeria. Many see this as a response to massive Chinese investment in Africa, however Japan has allied with countries like the U.S., France, & India to promote inclusive development. Ideally, this would mean Japanese aid would stem from collaboration between trusted African officials to determine what is needed most. I believe this would allow for an effective and sustainable business relationship between Japan and Africa, something Japan has said they want.

On Sun, Sep 29, 2019 at 5:58 PM Ryan McGauley <ryan.a....@gmail.com> wrote:

https://www.cnn.com/2019/08/30/africa/japan-to-invest-billions-in-africa-intl/index.html

Here is an interesting article from CNN about Japan increasing its investment in African countries by $20 billion over 3 years.  The purpose of this investment is not solely economic aid to African countries as Japan has done in the past, but "to assist the advancement of Japanese companies into Africa" according to Japan's Prime Minister Shinzo Abe.  This economic investment may in part be to catch up to China's massive past and current investments in Africa, but so far the stance of Japan investing in Africa as a way of fighting economically with China has not been officially taken.

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[Audrey Heitmann]

Although China is one of Africa’s biggest investors, Japan has decided to raise the stakes and promise a 20 billion investment. At the Tokyo International Conference on African Development, Japan made it clear that they want to train 3,000 Africans under a human resource development program to promote Japan-African business relations. Unlike China, Japan chose Africa to create a foundation for a long-lasting partnership. They want sustainable development that will genuinely help the lives of Africans. After seeing that Japan has already built a geothermal expansion power generation plant in Kenya and supplied Botswana with broadcasting equipment, I cannot help but believe the pure ambitions Japan has for Africa. 

By Audrey Heitmann

On Sunday, September 29, 2019 at 5:58:37 PM UTC-5, Ryan McGauley wrote:

[Robbie Bland]

Wow! I was unaware of Japan's longstanding relationship with the continent and just how active of a role they have played in economic aid to the region. This step-up and commitment to invest "$20 billion over three years in Africa" as opposed to the usual economic aid is a bold new direction for the country and it's relationships in Africa. When paired with Prime Minister Shinzo Abe's comment "We will do whatever it takes to assist the advancement of Japanese companies into Africa," it is apparent that Japan wants to play a larger role in the region, in spite of China's current dominance. However, $20 billion over 3 years hardly compares to China's $43 billion in just one year. Japan's future in Africa is worth paying attention to, but as of right now China is on track to remain at the top. 

On Sunday, September 29, 2019 at 5:58:37 PM UTC-5, Ryan McGauley wrote:

[Sunny Kang]

The Prime Minister of Japan's promise of $20 billion into the Japanese private sector in Africa is discussed in this article. I was surprised to find out that Japan has been financially supporting African countries for over 30 years, and now is adamant about building infrastructure. This investment is for the goal of reestablishing relations between Japan and Africa. Leaders hope that this kind of relationship would enhance engagement to promote "healthy governance" as well as "sustainable business" in the international realm.

[Christopher An]

It’s interesting to see Japan focus its investment in Africa on critical infrastructure projects, since I’m really only familiar with US investments towards medicine and education in Africa. I’m also surprised by the geothermal plant project mentioned in the article since I wasn’t aware of any spots suitable in Africa for geothermal plants. This project along with other potential renewable energy investments in Africa (such as solar panels) could be the start of a major industry in the future. Finally, it feels like Japan is actually investing in African countries for the betterment of that country and the continent as a whole, unlike China.

On Sunday, September 29, 2019 at 5:58:37 PM UTC-5, Ryan McGauley wrote:

[Christopher An]

It’s interesting to see Japan focus its invest in African on critical infrastructure projects, since I’m really only familiar with US investments towards medicine and education in Africa. I’m also surprised by the geothermal plant project mentioned in the article since I wasn’t aware of any spots suitable in Africa for geothermal plants. This project along with other potential renewable energy investments in Africa (such as solar panels) could be the start of a major industry in the future. Finally, it feels like Japan is actually investing in African countries for the betterment of that country and the continent as a whole, unlike China.

On Sunday, September 29, 2019 at 5:58:37 PM UTC-5, Ryan McGauley wrote: