Shinzo Abe shakes hands with Moussa Faki during the closing ceremony of the seventh TICAD in Yokohama on Friday. Toshifumi Kitamura/ AFP
Investors in Africa must beware of burdening countries with “excessive” debt, Japan’s prime minister warned on Friday, an apparent swipe at China whose Belt and Road policy has been accused of saddling poor nations with crippling debt.
Speaking to reporters at the end of an African development conference outside Tokyo, Shinzo Abe emphasised that countries in the G20 group of top economies, including China, had committed to the concept of “debt sustainability.”
“In providing assistance to Africa, we have to take note of the debt burden of the recipient country and take care that the debt burden does not become excessive,” Abe said when asked about China’s influence in Africa.
Earlier, a joint statement published after the three-day summit said: “We believe that quality infrastructure, that guarantees affordability with respect to life-cycle costs, is fundamental for sustainable economic transformation.”
The meeting of leaders and representatives from more than 50 African nations and international bodies has taken place in the shadow of China, which has invested massively in Africa under its controversial Belt and Road initiative.
On Thursday, Abe made a thinly veiled dig at Beijing’s policy, saying: “If partner countries are deeply in debt, it interferes with everyone’s efforts to enter the market.”
This provoked a sharp response from foreign ministry spokesman Geng Shuang in Beijing, who described this as “purely unreasonable speculation.”
“It should be pointed out that African leaders have said many times that there was never a lack of international conferences and promises of aid to Africa, but the key lies in action and implementation,” noted Geng late on Thursday.
At the conference, Japan has focused on the “quality” of its investments rather than the volume of China, which announced a massive $60 billion in African development funding last year.
For example, Japan plans to train experts in 30 African countries in the next three years on managing risks and public debts, Abe announced.
Japan PM warns Africa about debt as China grows presence
The emphasis at the meeting has also been on private investment rather than state development funding.
“I hope you notice how enthusiastic Japanese companies are in doing business in Africa,” gushed Japan’s Economy, Trade and Industry Minister Hiroshige Seko.
Abe said: “With the local community and the host country, the government of Japan is trying to push forward the activities of Japanese business.”
“We will be happy to provide them all our support for advancing Africa in various forms,” he added.
Since 1993, Japan has partnered with African countries to hold the TICAD (Tokyo International Conference on African Development) around every five years in a drive to promote aid and business opportunities.
At the last meeting in 2016, Japan pledged around $30 billion in development funding for Africa but there was no immediate figure put forward on Friday as the conference closed.
Japanese Prime Minister Shinzo Abe said on Monday he planned to meet with Russian President Vladimir Putin this week when he attends the Eastern Economic Forum
Japan’s prime minister on Thursday warned African leaders against accumulating too much debt, in an apparent reference to Chinese infrastructure projects
The meeting is also likely to touch on China’s escalating assertiveness in the East and South China seas, which have become a growing concern for Tokyo and Washington.
A gauge of global equity markets rose to a new high on Friday as US consumer spending in July suggested a strong economic rebound lies ahead, while the Japanese yen surged on safe-haven buying after Prime Minister Shinzo Abe resigned for health reasons.
The Ministry of Foreign Affairs and International Cooperation affirmed the UAE's permanent rejection of all practices that aim to destabilize security and stability and contradict human and moral values and principles.
Organised by the Centre and supported by the Sharjah Chamber of Commerce and Industry (SCCI), the event will run from April 5 to 21, featuring over 10,000 products from prominent brands and retailers with discounts of up to 75%.
The New Cochin Bakery and Brownies Bakery in Kannur are designing the cake which will be on display at the Jawaharlal Nehru Stadium, Kannur