An Africa chocking on massive debts given by the Chinese is the biggest reason why foreign investors are fearing to come to the continent- Japan has warned African countries.
Japan’s Prime Minister Shinzo Abe on Thursday warned a dozen of African leaders gathered in Yokohama city for the Tokyo International Conference on African Development (TICAD).
“If partner countries are deeply in debt, it interferes with everyone’s efforts to enter the market,” he said.
Critics say the Japanese reaction against Sino-Africa relations could be a sign of unease of China’s growing influence on the African continent.
China enjoys a massive presence in the continent, having announced $60bn in development funding for Africa last year.
However, Japan, with its own government funding problems, has struggled to increase its foreign aid money. It has shifted its focus on encouraging the private sector to invest in Africa.
Japanese Prime Minister told African leaders at the conference that his government plans to train experts in 30 African countries in next three years on managing risks and public debts.
The comment came as Abe aims to boost Japan’s presence in the promising African market but many businesses are wary of financial and other risks.
In trying to court African leaders, Japan stresses that its loans and projects come with fewer strings attached and with sound financial advice and support.
The Express News