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Japan To Counter China’s Influence In Africa With Cash Pledges

Japan To Counter China’s Influence In Africa With Cash Pledges

In his visit to Africa this week, Japanese Prime Minister Shinzo Abe plans to counter Chinese growing influence in the resource-rich region by signing development cash pledges with key countries across the continent.

Abe is expected to promise $577 million in loans to Mozambique for the construction of highways, and some $96 million to Ethiopia for the construction of a geothermal power plant. The tour will also include Ivory Coast and Oman, Business Standard quoted an AFP report saying.

This will be the first visit to Africa by a Japanese premier in over eight years and will seek to fulfill a pledge to visit the continent that Abe made when he hosted a summit of the continent’s countries last year.

It also coincides with Chinese Foreign Minister Wang Yi visit of Ethiopia, Djibouti, Ghana and Senegal.

AFP reported Abe saying during the Tokyo International Conference on International Development in June that “Africa will be a growth centre over the next couple of decades” and Japan must make a commitment in a way that would benefit both sides.

The construction of the highway in Mozambique will support the mining activities of Japanese companies in neighboring inland countries such as Zambia, which have large deposits of rare-earth minerals and rare metals.

Despite relatively longstanding connections, Japan’s importance to Africa has slipped behind that of China, whose more aggressive approach has given it five times the trading volume and eight times the direct investment, AFP says.

Beijing is criticized in some corners for what is sometimes seen as little more than a resources grab, and for not linking investment with demands for improved human rights or more transparent governance in recipient countries.

Japanese officials have stressed the need to transform their country’s relationship with Africa from one of donor-recipient to that of business partnership, as Tokyo’s firms seek to tap a burgeoning market.

Abe in the June conference pledged $13.4 billion in aid to Africa, half of which will be dedicated to infrastructure projects. The cash is part of the $30 billion that Japan’s public and private sectors will invest in Africa over the next five years.