The Eighth Tokyo International Conference on African Development — the Japan-Africa Forum — will be held in Tunisia this weekend. The conference will focus on economic development and co-operation in post-coronavirus Africa. About 50 African leaders, including President Cyril Ramaphosa, are expected to attend.
Japan has been quietly going about its business in Africa for decades and seldom makes a fuss. While China makes headlines across Africa, Japan’s foreign direct investments on the continent, especially in SA, have been steadfast for many decades. As the contest between China and the US — representing two different models of development — compete for influence in Africa, Japan’s participation in the African economy is no less important.
Whatever your views on global affairs, whether you think SA should reconcile with the West or challenge the global order together with Brics, it is worthwhile for SA’s diplomatic and business community to keep abreast of views from Tokyo.
Whereas China has grown tremendously over the past three decades and is now competing ideologically, militarily and commercially with the West, Japan has taken a more conciliatory approach.
There are several reasons for this. First, Japan grew economically since the end of World War 2 as a defeated country, ever mindful of its imperial history. Second, Japan had its economic growth spurt in the 1970s and 1980s already and has had the chance to settle down as a status quo state in the international community. Third, it is in Japan’s political and economic interests to foster an economically prosperous and politically stable Africa. The continent represents the final frontier as a market, as well as a manufacturing base, with its abundant natural resources and youthful population.
However, perhaps the strongest impetus for Japan’s involvement in Africa is competition with China. Japanese foreign minister Yoshimasa Hayashi referred in March to the so-called “debt trap diplomacy”, where China is often unfairly accused of being the source of unsustainable infrastructure loans in Africa by saying: “Japan will work with international organisations to create an environment where developing countries, especially those in Africa, do not have to rely on such financing.” Hayashi omitted explicitly naming China during this speech to African foreign ministers.
Co-hosted with the UN, the AU Commission and the UN Development Programme, the Japan-Africa Forum involves a plethora of multilateral international organisations and more than 200 African civil society representatives. This inclusive nature is intentional and in marked contrast to China’s Forum on China-Africa Co-operation, which focuses on bilateral relationships between governments.
The SA delegation needs to advocate for more Japanese private sector investments on two fronts. First, SA needs to lobby for more investment into the SA manufacturing sector. Recent investments by motor industry giants Toyota in Durban, Nissan in Roslyn, and Isuzu in Gqeberha were a much-needed boost to the local economy. It is important that we grow this manufacturing advantage by lobbying for more auto-parts manufacturers to set up to supply to these plants so that more employment and training opportunities are created.
On the second front, SA needs to push for more co-operation in power infrastructure. We understand that Japan’s state-owned Nippon Export and Investment Insurance will partner with the African Export-Import Bank to provide financing to Africa’s renewable energy projects. SA needs to elbow itself to the head of the queue to receive this investment to alleviate the power shortage plaguing our economy.
From Tokyo’s vantage point, SA plays a pivotal role in the south-western end of its Indo-Pacific Strategy. SA plays host to most Japanese conglomerates’ African businesses and has a long-standing friendship with Japan. The relationship has always been based on trade and investments, and this is as good a foundation as any to build upon.
It is up to SA to play the right cards in Tunisia to gain maximum trade and investment advantages.
• Dr Kuo, a former lecturer at the Shanghai International Studies University in China, is adjunct senior lecturer in the University of Cape Town’s Graduate School of Business.
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