Tokyo International Conference on African
Development, "TICAD 6" just ended in Nairobi, Kenya and in
attendance were several African Presidents and Prime Ministers including our
own Muhammadu Buhari and the co-convener of the conference, Shinzo Abe, the
head of the Japanese government.
The TICAD seeks a win-win partnership between Japan and
Africa. A key objective of the conference is to build up African ownership of
its own vision of growth and development.
In furtherance of this, Japan seeks to differ with the other
players on the continent by placing emphasis on high quality infrastructure
that do more than job creation by transferring technology through the training
of youth and women.
The conference held every five years from the time it
started in 1993 until the last one in 2003 when it was decided that it should
be convened every three years instead. The one that just finished is
significant in the sense that this was the first time it took place in Africa.
They met in Japan all the time in the past.
Another significant departure is the recognition of the role
of the private sector in the economic take-off of the continent. In this
respect, more than 100 Chief Executive Officers, CEOs from leading Japanese
companies accompanied Prime Minister Abe. This is a clear indication that more
and more Japanese companies are eying the African continent. A modest number of
Nigerian business and state-owned enterprises were equally present.
From its start, Prime Minister Abe made known the intention
of Japan to spend 10 Billion Dollars in the next twelve months and overall USD
30 Billion over a three-year period on areas key to African economies,
targeting infrastructural projects such as roads, energy, ports, hospitals and
training institutions. The money will partly be disbursed through the African
Development Bank, ADB.
At the end of the conference, a statement tagged
"Nairobi Declaration" was issued. Among its highlights is the
launching of "Initiative for Food and Nutrition Security for Africa,
IFNA." This aims to bring African governments together to swiftly
implement food and nutrition security policies and programs. There were
important resolutions taken on economic diversification and industrialization;
promotion of "resilient health system for quality of life" and
measures for the promotion social stability and shared prosperity.
For Nigeria in particular, "TICAD 6" milestones
include the important meeting between President Buhari and Prime Minister Abe,
at which event problems militating against the inflow of Japanese investment
into Nigeria were discussed and agreed upon.
Japanese companies had done a lot by way of investment in
the past in Nigeria but there has noticeably been a drop in the last decade or
two. Chiefly to blame is the problem of security, disguised in official
discussions as "business environment."
President Buhari used this meeting effectively in giving
assurances that the problem is being addressed. Boko Haram terrorism is
nearly gone and sabotage in the Niger Delta will soon be ended preferably
through dialogue and if not, by force of arms.
Coming into close personal contact for the second time, the
two leaders discussed the issues of trade and investment, health, peace and
development of the continent. In addition, they discussed issues in diplomacy
and international relations.
President Buhari's statement at the Head of States' round
table meeting with business leaders underscored the serious efforts government
is making to improve Nigeria's notoriously bad business environment.
At this meeting, he announced the coming into place of a
soon-to-be inaugurated "Presidential Enabling Business Council,
PEBEC."
He described it as an inter-ministerial council to oversee
the efforts of government to remove various bottlenecks that stifle business and
economic activity to give way to the right enabling environment and investment
climate in Nigeria. It will be powered by the government but will be
private-sector driven.
According to its vision, the PEBEC will make Nigeria one of
the most attractive business destinations in the world. It will start with the
modest effort of moving the country up 20 points in the World Bank ranking in
the ease of doing business in the first year, taking it into the top 100 at the
end of the four-year mandate of the current administration.
A third takeaway is on the sidelines of the TICAD where the
Nigerian government delegation met a good number of big Japanese enterprises.
Collectively and individually, these businesses expressed their intention of
either coming in newly or expanding their participation in Nigeria's private
sector. The companies with varied interests in power, agriculture, automobile,
motor cycles, textiles, financing and the service sector included the Honda
Manufacturing (Nigeria) Limited, representing Honda Motor Co. Ltd; Japan
Tobacco Inc., Marubeni Corporation and Mitsubishi Corporation.
Others included Toyota Tsusho Corporation, Toyota Tsusho
(Nigeria) Ltd., an affiliate of Toyota Tsusho Corporation, West African
Seasoning Co. Ltd., affiliate of Ajinomoto Co. Inc., and Japan External Trade
Organization, JETRO.
At these meetings, they explored the scope for the incentive
packages the Nigerian government will give them so as to deepen and expand
their investments. These included export rebates, access to Foreign Exchange,
land, interest rates, transparency in business regulation and favourable
regulatory structure.
The fourth important takeaway is the formation of a new
group KENSA made up of industry leaders on the continent, Kenya representing
East Africa, Egypt for North Africa, South Africa for the South and Nigeria,
from West Africa.
The four countries agreed to consolidate their quadrilateral
grouping initiated at the 19th July UNCTAD (United Nations Conference
on Trade and Development) meeting and decided to expand business and trade
between the four of them, inject impetus into the CFTA, the African
Union-inspired free trade agreement among African countries and to coordinate
their positions on trade and investment inside and outside Africa.
Fifth, Nigeria and Kenya seized the opportunity of the
meeting of their leaders to not only strengthen bilateral relations but to
follow up on the achievements of the State Visit to Nairobi by President Buhari
earlier this year.
From the time of the visit, both countries have seen a
growing impetus for trade and investment between them. Kenya which discovered
oil lately is picking lessons from Nigeria's vast experience in oil and gas.
Nigeria is learning from Kenyan experience in managing animal grazing. There are
efforts on both sides to share experience and promote private sector
participation in trade, cooperatives, micro finance, cotton farming and palm
oil processing.
Sixth, under the auspices of the Bank of Industry and the
Nigerian Investment Promotion Council NIPC, several memoranda of understanding,
MOUs were signed between Nigerian parties and their foreign counterparts. From
many of these, investments and jobs will follow.
On the President's delegation were the Ministers of
Agriculture, Health, Budget and National Planning, and Industry, Trade and
Investment.
There were also the National Security Adviser, NSA and the
Director-General, National Intelligence Agency, NIA.
Members of the delegation expressed satisfaction with the
outcome of the conference and the side engagements.
-By Garba Shehu, Senior
Special Assistant to the President (Media and Publicity)
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