Japan commits $32 billion to Africa’s development

Shinzo Abe pledging more aid to Africa
Shinzo Abe pledging more aid to Africa
Japanese Prime Minister Shinzo Abe has announced a $32 billion aid package to Africa over the next five years in an attempt to match China’s influence on the resource rich continent.

“Japan will support African growth through public and private means of 3.2 trillion yen (about $32 billion) including ODA of around $14 million and other public and private resources of around 16 billion dollars,” Abe said when he addressed over 40 African leaders attending the fifth Tokyo International Conference on African Development (TICAD)

The conference, now in its 20th year, is jointly organized by Japan, the African Union Commission, the UN and the World Bank. The conference has also brought together development partners, donor countries, private companies and non governmental organizations

Abe said that Japan will also underwrite a maximum of $2 billion dollars of trade insurance.
The $32 billion financing comes as Japan seeks to off set China’s influence on the mineral rich continent dubbed as the last frontier for development.

Years of China’s investment in Africa has translated into $138.6 billion in 2011 compared to Japan’s $27.8 billion.

On infrastructure development, Abe said Japan will provide $6.5 billion, over the next five years.

“This will be allocated to developing the infrastructure that Africa itself deems necessary and plans itself. We will rocket forward in further developing first of all “international corridors” that link inland areas with the coasts, and also power grids,” he said.