II. Boosting Economic Growth

Promotion of Trade●JICA: Increasing the quota of trainees in the field of trade tenfoldInfiscalyears2008and2009,approximately200peoplepartici-pated in various types of JICA training (training in Japan andthirdcountrytraining)andseminarsinthefieldoftrade.

●JETRO: Access Japan!(MechanismforAfricanproductstoentertheJapanesemarket)JETROisassistingAfricanproductstogainaccesstotheJapa-

nesemarketthroughseveralschemes.Amongothers,infiscalyear2010,fiveAfricanproductswereadoptedbythePilotDem-onstration Projects for Development and Import Scheme. Forexample, dried fruits from Uganda and baskets from RwandaarefavorablyreviewedinJapanesedepartmentstores.Inaddi-tion,manyotherAfricanproductssuchasherbs,spicesandcutflowerarebe-ing improvedfor the Japa-nese marketthroughtheseprojects.

WithAfrica’srecoveryfromtheimpactoftheglobaleconomicandfinancial crisis, Japan’s total trade amount with Africa in 2010showeda27%increaseoverthe2009figure.Inaddition,exceptforinvestmentinMauritius,Japan’sdirectinvestmentinAfricaalsoin-creasedcomparedto2009asawhole.NipponTelegraphandTele-phoneCorporation(NTT)’sacquisitionofDimensionDataHoldingsplc,SouthAfricanITfirm,andtheparticipationofSojitzCorporationinthejointdevelopmentofthewindpowerprojectinNamibia,the

first IPPprojectbyaJapanesefirminSub-SaharanAfrica,are ex-amplesofJapan’sinvestmentinAfricainfiscalyear2010.

Withregardtobilateralinvestmenttreaties,anagreementinprinci-plewithAngolawasannouncedinFebruary2011.TheconclusionofthistreatywouldmarkJapan’sfirstinvestmenttreatywithaSub-Sa-haran African nation. Japan is also exploring the possibility ofstrengtheningwide-rangingtradeeconomicrelationswithSACU.

Africancountriescontinuetoimprovetheirbusinessclimates.Ac-cordingtotheWorldBankreport“Doing Business 2011,”therankingsof17Africancountrieshaverisencomparedtothe2010report.Themost remarkable is Rwanda (rising from 70th to 58th) who hasraiseditsranktwoyearsinarow,followedbyGhana(77thto67th)andZambia(84thto76th).Inaddition,amongthenineindicatorsmeasuringimprovementsinbusinessclimate,infourofthem(deal-

ingwithconstructionpermits,gettingcredit,payingtaxes,anden-forcingcontracts)thegreatestimprovementwasshownbyAfricancountries(DRCongo,Ghana,Tunisia,andMalawi).TICADpartnersarecontinuingtoimplementvariouspoliciesandmeasuresinordertosupporttheseeffortsbyAfrica.Inthisregard,Japanmadeanac-tivecontributiontolaunchthe“AidforInvestmentinInfrastructure”projectintheNEPAD-OECDAfricaInvestmentInitiative.

Trends in Trade and Investment between Japan and Africa

Supporting African Capacity for Doing Business

(1)Trade and Investment

Examples of Japan’s assistance to improve the business environment in Africa

2. Trade, Investment and Tourism

With the total amount of foreign direct investment from around the world in Sub-Saharan countries exceeding the amount of aid since 2006, the promotion of trade and investment is becoming increasingly

important in the context of African development.

In June 2010, the Kan administration set forth the “New Growth Strategy,” a policy of expanding international trade and investment, including the export of “package” type infrastructure, notably to emerging economies and resource-rich nations, including those in Africa. In light of this policy orientation, Japan is engaging in closer economic relations with Africa.

Currently there are over 484* Japanese private sector companies which have opened offices/branches and local Japanese corporations operating independently or jointly in Africa, which provides roughly 200,000 Africans’ workplaces. Major examples include TOYOTA, the Ambatovy Madagascar project of which Sumitomo Corporation owns a 27.5% interest, and Mozal in Mozambique of which Mitsubishi Corporation has a 25% share. As such, Japan’s investment contributes not only to job creation but to technology transfer and human resource development with a focus on the downstream industrial development that will lead to a stable socio-economy in African countries.* MOFA’s data as of Oct.1, 2009 **the Secretariat’s rough estimate

(Photo: FAR EAST Inc.) (Photo: Ruise B)

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TheGovernmentofJapancontinuestostepup its“Public-PrivatePartnershipforBoostingEconomicGrowth”programme.Inaddi-tiontoactivelydisseminatinginformationviavarioustypesofsemi-nars,symposiaetc.,itisstrengtheningmeasurestoencouragethe

utilisationofofficialfundingresourcesincludingODA.Throughtheuseofsuchframeworks,furtherdiversificationoftheformsofpub-lic-privatepartnershipscanbeexpectedinthefuture.

Public Support for Japanese Corporations (Public-Private Partnership)

Promotion of Investment●JBIC/UNCTAD: Follow-up on policy recommendationsFollowing delivery of the Blue Book in collaboration UNCTAD,JBICheldconsultationswiththegovernmentsofKenya,Uganda,Zambia,Ghana,andTanzaniatoassesshowfartherecommen-dationshadbeen implemented.Forexample, inKenya,guide-linesfortransactionsinagriculturallandhavebeenpublishedforinvestors.InUganda,acomputerdatabasehasbeendevelopedandaspecialliaisonofficerwasmadeavailabletohelppotentialinvestors secure information on suitable land that meets theirneeds,andinGhana,anonlinetaxinformationservicehasbeensetup,whereinformationonvarioustaxincentivescanbefound.

●NEPAD-OECD Africa Investment Initiative Japan provided assistance for capacity building in order toenhance the investment climate of various African countriesthroughthisinitiative,contributing400,000Eurosbetween2008and 2010. At the November 2009 ministerial meeting, invest-mentpolicyreviewsofSouthernAfricannationswerelaunched

and are currently underway in Zambia and Mozambique. As aseparate endeavor, an agricultural investment policy review ofBurkinaFasohasbegunattherequestoftheClubduSahel.

Aministerialmeetingwithinfrastructureandagricultural invest-mentasitsmainthemeisscheduledtobeheldinSenegalinlateApril 2011. Synergic effects are expected between this meetingandtheTICADMinisterialFollow-upMeetinginMay.

Support for Private-sector Development●JICA: Expansion of the number of trainees in its Private Sector Development Program to a scale of 1,500Infiscal2008and2009,1,566Africansparticipatedinseminarsand various types of training by JICA related to private sectordevelopment (training in Japan, in-country training, and thirdcountrytraining).Althoughthetargethasalreadybeenattained,JICA will continue to be committed to the enhancement andimplementationoftrainingprogrammes,giventheimportanceoffosteringhumanresourcesinprivatesectordevelopment.

Public and Private sector Joint Mission for Promoting Trade and Investment for Southern AfricaInAugust2010,ahigh-levelPublicandPrivatesectorJointMissionfor Promoting Trade and Investment for Southern Africa wasundertaken.ThemissionwasheadedbyMr.OsamuFujimura,thethenSecretaryforForeignAffairs,andvisitedAngola,NamibiaandSouthAfrica.Approximately60Japanesefromthepublicandpri-vatesectors(includingsomeboardmembersofJapanesemajorcompanies)participatedinmeetingswithhigh-levelgovernmentofficialsandotherpersonsconcerned,receptionswitheconomicand industrial associations andother groups, business seminars,and visit to project sites. At theworking level, several public andprivatesectormissionshavebeendispatchedacrossabroadvarietyofsectors,includingeightmissionsknowntotheSecretariatthusfar.

Promotion of Base of the Pyramid (BOP) businessesIn2009,theGovernmentofJapanbeganitsfull-fledgedcon-siderationofpublicsupporttopromoteBaseofPyramid(BOP)business. In August 2010, the “Preparatory Survey for BOPBusiness Promotion,” a programme to support private sectorendeavors,was launchedbyJICA,with20projects (includingten from Africa) adopted from the total 92 project proposalsthatweresubmittedby124entitiesin2010.InOctober2010,corporations, NGOs/NPOs, international organisations, aidagencies, academic institutions, and other entities cametogether in the “Japan Inclusive Business Support Centre”establishedunderMETIasaframeworkforassistingBOPbusi-ness in an integrated manner. Through this centre, METI isengagedinthepromotionofBOPbusinessbyJapanesecorpo-rationsandotheractors.

JBIC finance: New establishment of GREEN financing schemeInApril2010,JBICstartedtoprovideanewfinancialtool,theGlobalactionforReconcilingEconomicgrowthandENvironmentalpres-ervation(GREEN),whichsupportsprojectsaimedatpreservationoftheglobalenvironmentsuchasthemitigationofglobalwarming.

In addition, following the conclusion of a Memorandum in2009 to enhance cooperation in financing with the AfricanDevelopment Bank (AfDB), JBIC concluded a MemorandumwiththeAfricanExport-ImportBankinMay2010,withaviewtoestablishingcooperativerelationsinoperations.JBICcontin-ues to actively support Japan’s exports to Africa through itscollaborationwiththeseregionaldevelopmentbanks.(Seepages6and9forinformationonprogressregardingJBIC’sUS$2.5billioncommitment.)

JOGMEC Remote Sensing Centre in Botswana InordertoexpandtheactivitiesoftheJOGMECRemoteSensingCentreProject(theCentre)whichcommencedin2008,JOGMECinvited experts from Angola, Malawi andTanzania in 2010 totransfertechniquesofsatelliteimageanalysis.

Inaddition to thedesktopsatellite imageanalysisat theCentre,fieldsurveyswerecarriedoutinMozambiqueandAngolain2010tochecktheresultofdesktopanalysis.

FurthermoretheCentreandSADCSecretariat inBotswanaheldtheSADCRemoteSensingSeminarandWorkshopwiththeassis-tanceoftheMinistryofForeignAffairsofJapan.

(Photo: JOGMEC)

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Specific examples of Japanese corporations’ business and investment in Africa conducive to African development

Yamaha Motor Co., Ltd.:Beforetheterm“BOPbusiness”exists,YAMAHAMOTORCO.,LTD.hasbeenactiveinempowermentofruralcommunityindevel-opingcountries.ThecompanyhasbuiltupasalesnetworkinallcountriesandregionsinAfricaotherthanSomalia,andtheirout-boardmotorscontributingtothedevelopmentofAfricanfisheryhavea75%marketshare.Asanewactivity,throughcooperationwith NGOs, agricultural equip-ment manufacturers, and localgovernments, the company isproviding guidance to farmersin Senegalese agricultural vil-lagesfacingdesertification.Thisguidance introduces farmers toanewfarmingmethodemploy-ing pumps and drip irrigation.Bysellingpumpsforagricultural

use,thecompanyisundertakingeffortsforagriculturalrevitali-sation through boosting production efficiency and decreasingproductioncostsoverthelongterm.

NTT’s Acquisition of South African firm Dimension DataIn October 2010, NTT acquired a major South African IT firm,DimensionData,foratotalpriceofapproximately270billionyen.Thisacquisition isexpectedtofacilitatetheentryofNTTintotherapidlygrowingAfricancellularphoneandITservicesmarket,whilesimultaneouslyenhancingtheintra-officeservicesofDimensionDataamidstadvancesincloudcomputing,whichwillleadtoa“win-win”situationforbothsides.Moreover,sinceboth sides will be providing new services, it is expected thatbenefitswillalsoexpandtoAfricandevelopmentinthefieldsofeducation,medicine,andtheenvironment.

Efforts by Other TICAD PartnersUNDPInadditiontoeffectiveuseofODA,ithasbecomeincreasinglyimpor-tanttosupportprivatecorporationstoestablishanewandinclusivebusinessmodeltocontributetohumandevelopmentthroughsimul-taneouspursuitofrevenuesandsocialimpact.Againstthisbackdrop,UNDP has been facilitating “Growing Inclusive Markets” initiative,whichincludedsupportforJapanesecompaniestoengageinAfricanmarketwithsustainablecontributiontodevelopment.

UNIDOUNIDO conducted through itsTokyo investment andTechnologyPromotionOfficevariousinvestmentpromotionprogrammeswiththecooperationofAfricanInvestmentPromotionAgencies(IPAs).High level IPAsstafffromKenya,Tanzania,Uganda,Mozambique,Nigeria,SouthAfrica,Egypt,MoroccoandBotswanawereinvitedtoJapan to facilitate business and FDI promotion in the Africancontinent.

ThesuccessofthefirstWorldCupheldinAfricaattractedinterna-tionalattentionnotonlytothehostnationSouthAfricabutalsotoAfricaasawhole.PartiallyasaresultoftheWorldCup,Sub-SaharanAfricabecameonlyregionintheworldtoseeanincreaseintouristsin2009,withthenumberofinternationaltouristsalsoupby16%inthefirsthalfof2010.Africa’smajortourismdestinationsoutsideofSouthAfricasuchasCapeVerde,Kenya,Mauritius,theSeychelles,andTanzaniaalsosawincreasesintourism-relatedrevenue.

MOFA and Yokohama-city co-organised Afri-can Festa 2010 with asupport of African em-bassies in Japan andKanagawa Prefectureto broadly introduceAfricanculturetoJapa-

nesecitizensanddeepentheirunderstandingtowardsAfrica.Inad-ditiontoNGOsanduniversities,Japanesecompanies,whichpartici-pated in this event for the first time, sold their fair trade AfricanproductsandpresentedBOPbusinessactivitiesandtoursforAfrica.

JATA(JapanAssociationofTravelAgents)organisedseveralsemi-narstargetingJapanesetravelindustryinOct.toNov.2010topro-motethetourforAfricancountries(Lesotho,SouthAfrica,Kenya,TunisiaandMorocco)andEgypttravelseminarwasalsoheldattheJATAWorldTravelFair2010inTokyoinSep.2010.

JICAiscurrentlyworkingactivelytoenhanceitssupportforthede-velopment of tourism and it is now in the process of identifyingprojectsforfurthercooperation.Additionaleffortsarerequiredto-wardtheimplementationoftheplantodoublethequotaoftrain-eesinthefieldoftourism.

(2) Promotion of Tourism

(Photo: YAMAHA MOTOR CO., LTD.)

(Photo: MOFA)

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