THE NEW PLAYER IN AFRICA: COUNT ON JAPAN

Relations between Japan and Africa have become geostrategic again. For a long time they were limited to trade, investment and aid, with Tokyo wanting to maintain a presence in certain markets and to have access to local commodity resources. In terms of investments and trade with Africa, Japan is much behind countries like the United States, France, India and China. But watch for Japan! Japan wants to transform its relationship with Africa from one of fonor-recipient to that of a business partnership and Tokyo is intent on tapping a burgeoning market. Japan will not simply bring natural resources from Africa to Japan. The country seeks to industrialize Africa and generate employment and growth.

Here below are the key reasons for Japanese renewed interest in Africa:

• Africa will be the engine for growth over the coming decades. African countries as a whole remain a world's powerhouse with an average 5.8 percent growth rate in gross domestic product since 2000, while overseas direct investments in the continent tripled from 15 billion US dollars in 2002 to about 50 billion U.S. dollars in 2012 according to official figures. In the past several years, sub-Saharan Africa has been growing 5 to 6 percent annually on the strengths of its abundant natural resources. Per capita gross domestic product for combined Africa increased from $ 492 in 2000 to $ 1,189 in 2010, and the continent's population est expected to reach 2 billion in 2050.
• Some countries have seen significant improvement in both economic growth and also development. Ghana is a good case. It has achieved middle income status. Seven of the fastest growing economies in the world today are in Africa: Democratic Republic of Congo, Ethiopia, Ghana, Mozambique, Nigeria, Tanzania and Zambia. The IMF projects over the next five years that African countries will experience some of the fastest growth in the world- 5.5 percent in 2013 and 5.7 percent projected for 2014 among sub-Saharan African countries. Of course all of this is highly dependent on leadership, governance and the political commitment to ensure investments are managed for the betterment of the population such as education, health and infrastructure.
• Alongside the economic boom, another aspect of the African landscape is the growing stability of the democratic process. Very few African countries today can be described as 'fragile' due to political instability. For positive examples of this trend look at countries like Senegal, Malawi, Ethiopia.
• Japan seeks to catch up with China in pursuing resources, markets and influence on the continent. China started expanding trade with Africa around 2005. Its trade with Africa amounted to about $ 200 billion in 2012, a 20-fold increase from 2000. In contrast, Japan's trade with Africa stood only about $ 28 billion in 2011.
• The energy crisis made Japan re-recognize Africa's role in energy support to Japan as several African countries such as Libya, Nigeria and Angola are oil and natural gas giant exporters in the world. The Japanese government wants to tap African natural gas and oil resources after the 2011 Fukushima disaster  led to the closing of Japan's nuclear plants.
• Africa is desperate for roads, rails, ports and power grids and Japan can be a strong provider.
• Africa is rich in rare metals that Japan needs for high-tech products thus lessening imports from China.
• Japan also focuses on enhancing political ties with African countries so as to increase its global influence.
• Africa's growing middle class makes an attractive target for Japan's firms where the domestic market is graying and shrinking.

While Japan is certainly to be counted on as the new player in Africa, Japan should also provide assistance aimed at governance when possible as well as seek free trade agreements or economic partnership agreements with individual African countries.