Japan will provide $30 billion to support developments in the health, education and infrastructure sectors in both public and private regions of the African economy in the next three years, as the nation battles China for more financial influence in the continent.
The financial aid will be committed in partnership with the African Development Bank (AfDB) and comes three years after a $32 billion aid by the Asian economic powerhouse pledged to Africa during the fifth Tokyo International Conference on African Development (TICAD).
“This is an investment that has faith in Africa’s future, an investment for Japan and Africa to grow together,” Shinzo Abe, Japanese Prime Minister said at the just concluded sixth edition of TICAD, held in Nairobi.
The Japanese premier made the pledges after meeting more than 30 African heads of state on the sidelines of the conference that is jointly organized by the United Nations, the African Union, World Bank and Japan.
Targeted areas under the new deal is a boosting power production across the continent by 2,200 megawatts, training of 20,000 Mathematics and Science teachers and skill-transfer to 20,000 experts to help them tackle infectious diseases that hit the continent, Reuters reported.
Japan currently trails its Asian counterpart, the second largest economy in the world in trade deals with African nations.
China recorded $179 billion worth in trade compared to Japan’s $24 billion, last year, The Japan Times reported, in a battle for more influence in the resource-rich African continent.
Japan’s direct investment into Africa has been overshadowed by China, who made a $2 billion single investment to build a hydropower dam in Equatorial Guinea in April, last year to double the nation’s energy production capacity.
According to Japan External Trade Organization, Japan’s direct investment in trade with Africa was $1.24 billion, last year which was a drop from the $1.5 billion made in 2014.
Despite being overshadowed by China, Japan interest in the continent has been on an increase since 2011, when the Fukushima nuclear disaster triggered by 9.0 magnitude earthquake destroyed the nation’s nuclear reactors, leading to dependence on oil and natural gas imports.
African leaders, led by current AU chairman and Chadian president Idriss Deby called on Japan to support Africa’s fight insecurity, especially terrorism.
“I urge all our partners, and in particular Japan, to contribute to the African Fund Against Terrorism that was set up and established by the Kigali summit, Deby said.
The conference that ended on Sunday at the Kenyatta International Convention Centre in Nairobi was the first to be held in Africa, Tokyo has hosted the last five events.
