Japan committed $5.5 billion in loans to Africa this week, positioning itself as a reliable partner at a time when the US and UK governments have made huge cuts to foreign aid.
The new funding package was announced during the country’s flagship conference promoting development on the continent, a forum attended by more than two dozen African presidents and heads of state or their high-level representatives. Japanese Prime Minister Shigeru Ishiba held bilateral talks with the presidents of Angola, Ghana, Kenya, and South Africa, among others.
Japan is also seeking to strengthen its ties with Africa through a new economic zone connecting the continent with the Indian Ocean under an initiative proposed by Ishiba this week. His government will provide a grant to develop Kenya’s Port of Mombasa, where ongoing infrastructure upgrades saw cargo volumes rise 8% in the first half of this year.
Kenya is also set to receive a yen-denominated loan worth $169 million, with the backing of Japan’s Nippon Export and Investment Insurance, to boost its local automotive and energy sectors.