The Independent Uganda: You get the Truth we Pay the Price
The ninth TICAD set for August to unlock opportunities in trade, technology and agriculture
ANALYSIS | IAN KATUSIIME | With US tariffs rocking the global economy, countries are scrambling to deal with the resultant trade tensions and realign their economies.
Japan, the world’s fourth largest economy with a GDP of $4.3 trillion, is preparing for the ninth edition of the Tokyo International Conference on African Development (TICAD) “to promote high-level policy dialogue between African leaders and development partners”.
Held under the theme of “Co-create innovative solutions with Africa”, the TICAD event will be held in August in Japan’s second largest city, Yokohama, and is tipped to attract over 2000 delegates including 20 heads of state. Top on the agenda will be investment, trade and technology.
Although, globally, Japan is caught in the middle of the trade war between Washington and Beijing (It sells cars to the U.S. and semiconductor chips to China), it is equally looking to African markets to offload its manufacturing and technology industry products.
Japan hopes to tap into the vast potential of the African continent in an era of emerging technologies like Artificial Intelligence, digital currencies and clean energy systems.
Africa has a rapidly growing workforce and in 2050, is predicted to have the highest population worldwide. This is what the giant economy is weighing as the U.S. and China divvy up their slice of the pie.
From manufacturing to pharmaceuticals and food processing to climate resilience, there is a flurry of activity between Japan and several African countries. At the last TICAD event in Tunisia in 2022, Japan pledged $30bn in African investments. Reports now indicate that the figure could be doubled to boost economic cooperation.
African leaders and innovators at the inaugural Global Summit on AI for Africa held in Kigali this month resolved to establish a $60bn AI Fund to support startups, build digital economies, and finance infrastructure to scale AI adoption across the continent.
The TICAD was started in 1993 by the government of Japan in collaboration with organisations like the United Nations Development Programme (UNDP).
In preparation for TICAD 9, UNDP and the Embassy of Senegal in Japan organised a high-level meeting on April 22 for the African Diplomatic Corps in Tokyo.
According to a statement from UNDP, Jean-Antoine Diouf, Ambassador of the Republic of Senegal to Japan and Chair of the TICAD Committee, emphasised TICAD’s 30-year legacy as a dynamic platform for African ownership, multilateral cooperation, and international development.
Diouf underscored the critical role of TICAD 9 in addressing post-pandemic recovery and highlighted the need to strengthen key sectors such as trade, investment, industrialization, agriculture, education, and technology. He also underscored the role of the youth in
in shaping Africa’s future with a focus on youth employment and economic empowerment.
Ahunna Eziakonwa, UNDP Assistant Administrator and Regional Director for Africa, delivered a keynote speech on Africa’s role in global development. Eziakonwa advocated for the continent’s transition from being a recipient of aid to becoming a proactive and confident global partner. She highlighted private sector partnership and for African ownership of the conference.
African leaders lobby
African leaders have actively lobbied Japan to invest on the continent. In October, Nardos Bekele Thomas, the CEO of the Africa Union Development Agency- New Partnership for Africa’s Development (AU-NEPAD) was in Tokyo to woo Japanese private sector investment in Africa in the key sectors of infrastructure, technology, agriculture and the pharmaceutical industry.
A TICAD ministerial meeting held last year tackled important issues like climate change, digital transformation, strengthening health systems, and implementation of the African Continental Free Trade Area (AfCFTA).
A communique from the meeting said it was important to address the connectivity challenges through developing regional hubs for capacity building, improving transport infrastructure and services and to add value in implementing AfCFTA as key enabler for socio-economic development.
The African ministers meeting in Tokyo also recognised the efforts made by Africa through innovative domestic resource mobilization for financing climate actions in Africa such as the Africa Adaptation Initiative (AAI), the Africa Renewable Energy Initiative (AREI), the Initiative for Adaptation of African Agriculture (AAA), and the Commissions on the Sahel, Congo Basin, and Small Island States.
In 2024, the African Development Bank (AfDB) hosted a Japan-Africa Business Forum in collaboration with Keiza Doyukai, an association of business leaders/executives in Japan to stimulate Japanese awareness and interest in the African business and investment landscape, while promoting a better understanding of the Japanese private sector, in line with the development aspirations of TICAD.
Uganda and TICAD
Uganda is among several African countries looking forward to the TICAD because of how much it has benefited from Japanese investments.
The Embassy of Japan in Uganda told The independent in an email that as the international community faces difficulties, Japan would like to cooperate by deepening collaboration with African countries in addressing global challenges in which Japan has excellent expertise, such as global health, human resource development and education, disaster prevention, mine clearance, and human security.
The embassy said Ugandan companies could make use of Japan’s innovative technology and expertise in areas such as AI and digital technologies, waste management, digital medicine, and the use of hydrogen and ammonia as energy sources, to enable more business and investment by Japanese companies in the country.
Uganda and Japan have enjoyed bilateral relations for over 60 years and the embassy said the Japanese government intends to provide support that will lead to the expansion of Japanese private companies in Uganda.
Through Japan international Cooperation Agency (JICA), Japan has supported Uganda’s infrastructural development such as the Kampala Flyover project that was opened early this year.
Japan has pledged to support the second phase of the project. In total, the project is expected to cost $1.1bn.
Japan also provided financing worth $112m for the cable-stayed Nile Bridge that was opened in 2018. President Yoweri Museveni and the Japanese Minister of State for Foreign Affairs Masahisa Sato led the commissioning ceremony.
A number of Japanese companies operate in Uganda such as Kansai Plascon, the paint maker which started operations in 2017 after acquiring a local firm. Kansai operates in Kenya, Tanzania, Burundi, Rwanda, DRC and South Sudan.
The company’s footprint extends to South Africa where it has operated for 130 years.
Japan has aided Uganda’s refugee response over the years. On April 18, Japanese ambassador Sasayama Takuya pledged $6.6m to help refugees and refugee host communities.
Efforts have been geared towards improving water, sanitation and hygiene (WASH) systems in the Bidi Bidi refugee settlement in Yumbe district in the West Nile region. JICA has also promoted the growing of Nerica 4, a rich rice variety in the region.
Other areas include construction of classroom blocks and grant assistance for grassroots development projects.
Africa wide expectations
With four months ahead of the event, East African entrepreneurs and innovators are gearing up for a meet up that could unlock several business opportunities.
Japan has made investments in Kenya, East Africa’s largest economy, which also has a thriving Japanese community.
On an official visit to Japan in February 2024, President William Ruto announced that Japan had agreed to sink $2.6bn to support the Mombasa Gateway Bridge and the Dongo Kundu infrastructure ecosystem. The financing also covered renewable energy projects to boost access to clean energy for over 5000 households in Kenya.
The Kenyan government signed pacts to produce electric vehicles under an arrangement with the Toyota Corporation. On top of being a leading business destination in Africa, Kenya is said to be the largest recipient of Japanese official development assistance. Reports also indicated that the country imports 94% of its used vehicle cargo from Japan.
In 2023, the Prime Minister of Japan Fumio Kishida visited Kenya on an African tour that included Egypt, Ghana and Mozambique. Kishida stepped down last year and was replaced by Shigeru Ishiba.
In Tanzania, Agricom Africa, an agriculture supply chain company in Tanzania, recently signed a financing agreement with Sumitomo Mitsui Banking Corporation (SMBC) in Japan.
“Our discussions centered on fostering collaboration in project and trade financing—unlocking new avenues to drive agricultural growth & strengthen trade ties between Africa and Japan,” said Angelian Ngalula, Agricom founder on a spot on X.
The company says it is committed to helping Tanzanian farmers achieve complete farm mechanization. It provides equipment to farmers and maintenance for the same tools among its after-sales services. SMBC is a Japanese banking behemoth operating in over 40 countries.
The TICAD also is big business for South Africa, Africa’s largest economy. In March, the South African Deputy President Paul Mashatile had a three-day visit in Tokyo where he toured the Isuzu Fujisawa Plant Service.
Mashatile said Isuzu Motors South Africa is Isuzu’s first fully owned plant outside Japan. The South African leader said the plant produces about 28 500 vehicles per annum, contributing to the company’s overall sales and market presence.
He also met with Dr Akihiko Tanaka, President of JICA, where the two discussed existing partnerships in health, education, science technology and innovation and agriculture.
