The Second Japan-Africa Business Forum

Joao Miguel Vahekeni
Chair – ADC Trade and Investment Committee
Ambassador Extraordinary & Plenipotentiary – Republic of Angola

Mr. Vahekeni welcomed and expressed his delight at the presence of thevaried distinguished guests at the Second Japan-Africa Business Forum,an event co-organized by the African Development Bank and the African
Diplomatic Corps in Japan.
The event came to fruition with the support of the Government of Japan,JBIC, Keidanren, Keizai Doyukai, UNDP, World Bank Group, African
Society of Japan, Association of African Economy and Development, andAfrica Business Promotion Support Network and was sponsored by theBank of Tokyo Mitsubishi, UFJ, Sumitomo Mitsui Banking Corporation,
Toyota Tsusho Corporation, Glory Limited and Mitsubishi Corporation.
Many senior government officials as well as public and private sector
representatives from Africa had travelled to Japan to attend the forum asAfricans look at Japan as a partner in transforming Africa into a more
prosperous continent with competitive, diversified and growing economies
participating in the global trade.
The forum was honored by the presence of remarkable panelists, who led
the discussions about business opportunities in Africa, based on the HighFives strategies of the African Development Bank.
Mr. Vahekeni concluded by saying that Africa was open for business andinvited all participants to make the most of this precious occasion andleave challenged, excited and inspired to start a new chapter in the JapanAfrica business ties.
Akinwumi Adesina
President – Africa Development Bank

Mr. Adesina conveyed his regret for not being present in person at theforum and conveyed his message through video.
Japan is one of Africa’s strongest and most reliable supporters, partnersand stakeholders. Japanese representatives take a serious and positive
approach in supporting the bank. Japan has been a member of theAfrican Development Bank since December 1982 and has contributed to
all general capital increases of the bank since then.
Japan strongly supported the bank group, including a very significant
contribution to the 14th replenishment of the African Development Fund,which included a substantial bridge loan from the Government of Japan.
Japan has been a reliable partner on the enhanced private sector
assistance for Africa for over 10 years.

The development aid priorities of the Japanese government have focusedon Africa and put emphasis on utilizing and deploying the private sector,
particularly the public-private partnerships.
In 2015, Prime Minister Abe stated that the Japanese government
intended to promote quality infrastructure investments that areenvironmentally-friendly, disaster-resilient and cost effective in the longrun. The medium-term objectives for African economic transformation aredemonstrably alive. The private sector-led growth in Africa needs to beboosted by taking a logical approach to attract the enormous investments
needed to accelerate Africa’s development.
Both African and Japan place a high value on investments in the educationof Africa’s children and youth. Japan’s priorities are perfectly aligned withthe bank’s own priorities and its High-Fives strategy of Light-Up andPower Africa, Feed Africa, Industrialize Africa, Integrate Africa andImprove the Quality of Life for the People of Africa. In this regards, thebank is building greater links with Japan through the African Development
Bank group’s External Representation Office for Asia.
The office is the bank’s only external office outside of Africa, opened inTokyo in 2012, to help strengthen the bank’s communications andinfluence on African development issues in the Asia-Pacific region. The
office has done great work and will continue to be in the discussions
between the bank and the Japanese government to promote business andinvestment opportunities in and with Africa.
In August 2016, during the Sixth Tokyo International Conference on
African Development, Japan placed $30 billion of aid in public and private
support for Africa over the next 3 years to boost infrastructural buildingon the continent. This huge leadership commitment was enormouslyappreciated.
When African Heads of State met with Prime Minister Abe at the TICAD
Sixth Meeting in Nairobi, Kenya, they requested a financing facility toallow Africa to benefit from Japanese technologies, skills and expertise,especially in the energy sector, including clean core technologies. PrimeMinister Abe listens and responds to the needs of Africa without any
preconditions.
Prime Minister Abe and Deputy Prime Minister Aso
responded to Africa strongly with a provision of US $6 billion to support
the Japan-Africa Energy Partnership. This Memorandum of Understanding
was signed at the African Union Summit.
The Japan-Africa Energy Initiative will significantly bolster Africa’s ability
to develop its baseload power needed to support its industrialdevelopment. This initiative was welcomed with enthusiasm, gratitudeand hope that it will catalyze further support from other partners to meetthe huge financing gap in Africa’s energy sector. Japan’s commitment toAfrica and to the African Development Bank will serve as a bright andshining model for other partners to increase their support for the HighFives agenda to light up and power Africa.

Africa looks forward to Japanese government’s strong support for
expanding Japanese business investments in Africa.
Africa is doing well and the Japanese private sector should not botherabout the negative narratives. African economies will grow at 3.4% thisyear, up from 2.2% last year and reach 4.3% next year.
Underscoring the resilience of African economies, last year 32 Africancountries grew at rates between 3% and 5%, 12 countries grew at above
5%, all above global averages. Foreign direct investments to Africa willreach $57.5 billion this year compared to $56 billion last year and just $2billion in 1990.
Although faced by challenges, Africa’s future is definitely bright. Africa isa continent where household expenditures will rise to $1.4 trillion in thenext 3 years, where business-to-business investment will rise to $3.5
trillion in the next 5 years and where the population, by 2050, will be thesame as the combined population of India and China today.
Africa is a continent that will brim with huge demand from a rising youth
population reaching 840 million by 2050 with rapid growth of the middle
class. The African Development Bank is launching the Africa Investment
Forum, which will kick off next year, with the idea of do not think far, justthink Africa.
Finally, Mr. Adesina welcomed to invest in Africa and be part of Africa’s
bright investment future.
Hisatake Sugi
Parliamentary Vice Minister of Finance – Government of JapanOn behalf of State Minister Otsuka, Mr. Sugi spoke for the Japanese
government and the Ministry of Finance.
Africa is a continent of hope with wide-ranging potentials. Last August,when the TICAD VI was held in Nairobi, Kenya, Prime Minister Abe
attended the meeting and announced that investment will be made for thefuture of Africa in human resources development, quality infrastructureand other areas.
To support Africa’s economic growth, the Ministry of Finance of theGovernment of Japan through strong partnership with the African
Development Bank is promoting several initiatives.
To promote quality infrastructure and private sector-led growth, alongwith the African Development Bank, the EPSA, Enhanced Private Sector
Assistance for Africa is underway which will provide $3 billion Official
Development Assistance loans over the course of the next 3 years.
JBIC is promoting FAITE, Facility for African Investment and Trade
Enhancement, to promote diversification of the African economy andindustrialization with a total amount of $7 billion. Further, Deputy Prime

Minister Aso and President Adesina reached an agreement to inaugurate
the joint Japan-Africa Energy Initiative between the Government of Japanand the African Development Bank.
The objective is to resolve the power shortage in Africa by usingsophisticated technology of Japan with a special focus placed on clean coaltechnology to provide support towards energy-related projects in Africa.
The Government of Japan is prepared to provide up to $6 billion throughODA loans and JBIC.
These initiatives will surely deepen the win-win relationship between
Africa and Japan.
Mr. Sugi concluded by praying for the success of the Japan-Africa Business
Forum and further development of business between Japan and Africa.
Henry Mussa
Minister of Industry, Trade and Tourism – Republic of Malawi

Mr. Mussa conveyed fraternal greetings and best wishes from thePresident and people of Malawi.
He expressed sincere gratitude and appreciation to the government andpeople of Japan, African Development Bank, in being the organizers of theJapan-Africa Business Forum 2017, in Tokyo, Japan, for the excellent andunprecedented facilities. He also expressed delight in enjoying sushi,
miso soup, Yebisu beer, all under the auspices of people of Japan andAfrican Development Bank.
The overall objective of the forum is to provide business stakeholders
from Japan and Africa an opportunity to share business ideas,
opportunities and network on various thematic areas of energy and power,agriculture and agribusiness, infrastructure, trade and industrialization,
financing for projects in Africa and health and sanitation.
In this regard, the forum will indeed provide increasing matching
opportunities among business stakeholders so that more Japanesecompanies are able to do business and actively invest in Africa.
This forum could not have come at an opportune time like now whenvarious countries in Africa are grappling on how to develop theireconomies with a view to uplifting the lives of their people. Poverty andunderdevelopment are key issues that need to be addressed.
Everyone knows that the beauty of Japanese investors is credible andsustainable and is basically inclusive rather than extractive.
These
qualities make Japan desirable for Malawi. Development without reliableenergy and power together with infrastructure development, trade andindustrialization which is the focus of SADC, COMESA and the Tripartite
Free Trade Area cannot be sustained.

Issues of increased agriculture production and food, self-sufficient,agribusiness and value addition remain important to the socioeconomic
livelihood of the nations. An empowered nation should have healthypeople, who are provided with habitable sanitation. Nevertheless, toundertake all these daunting tasks, there is a need for equity financing.
The policy in Africa encourages member states to invest in innovation andtechnology ability to expand manufacturing base. Africa needs Japan toinvest in developing innovation and technology capabilities for the reason
that Africa has limited capabilities with no financial muscle. Japanesecompanies need to take over the investment portfolio in Africa anddevelop the region into a formidable economic area that will be a modelfor the entire world. This can be done either through direct Japanese
investment or through partnerships with local investors alreadyestablished in the region.
The African presence at the Japan-Africa Business Forum reflects theconfidence that Japan can achieve this goal through business discussion
between Japan and Africa and considering the given context of Africa anddeveloping an interest to look at the inherent and potential opportunities
both individual and aggregated.
In terms of Malawi, under the transformational leadership of His
Excellency, Professor Arthur Peter Mutharika, Malawi is implementing
various reforms with a view to facilitating the ease of doing business.
Currently, Malawi is at 133 out of 162 of the World Bank Ease of Doing
Business Index. The desire is to be in the top 100 in the next round ofassessment. Investment licenses in Malawi can now be obtained within 5
working days. Border agencies have been reduced from 22 to 5 days only
in order to facilitate trade.
The Land Act was promulgated to allow the state to easily redistributeland to would-be investors. Various incentives, including tax holidays,
investment allowances have been put in place for the would-be investors.
Above all, the constitution of Malawi guarantees equal participation ofbusiness in qualifying areas. Further, Malawi is a free market economy
and foreign investors are allowed to repatriate 100% of profits anddividends. The policy also allows 100% ownership of private investment
unless stipulated. However, joint ventures with locals are encouraged for
employment purposes.
Mr. Mussa concluded by expressing his sincere gratitude to African
Diplomatic Corps and African Development Bank for organizing this forum.
Kunio NojiCommittee Chair – Sub-Saharan Africa of Keidanren
Board Chairman – Komatsu Limited

Mr. Noji thanked the governments of Africa, the business sector, African
Development Bank and the ADC in Japan for the tremendous support andcooperation to the activities of Japanese business.

Against the backdrop of abundant natural resources, Africa is achieving avery high economic growth. The population exceeded 1 billion, with agrowing middle class, who are being focused on by the world as an
attractive and huge market in the making.
Japanese businesses have focused on the potential of Africa. Presently, inthe respective countries of Africa, over 400 bases have been establishedand are engaging in different forms of business. For over 60 or for close
to 60 years, Komatsu has been engaged in businesses in Africa andthroughout Africa, with a head count of 1400 as group employees.
Japanese businesses have been very positive in business in Africa andagainst this backdrop Keidanren has been contributing to the convening ofthe TICAD meetings.
Last year in Nairobi, Kenya, TICAD VI took place and saw the participationof Prime Minister Abe, Chairman of Keidanren, Mr. Sakakibara and over
100 businesses. TICAD VI’s business declaration has been adopted whichtalks of a strong commitment to the African development and to thecooperation which will be rendered for business environment improvementin Africa.
The African Development Bank, the organizer of this conference, iscommitted to the High Fives: Light-Up and Power Africa, Feed Africa,Industrialize Africa, Integrate Africa, Improve the Quality of Life or theQuality of Africa. The TICAD VI Business Declaration is in alignment withthis.
The sustainable development in African is growing and is inalignment with the business circles’ commitment to African development.
Going forward, there will be continued cooperation to the economic circlesof Africa and cooperation with the Japanese government, the AfricanDevelopment Bank and other relevant organizations to promote trade andinvestment, infrastructure improvement, resources, energy, agriculture
and human resources development.
Mr. Noji concluded by wishing the forum to be fruitful.