By John Stephen Katende

03 June 2013:

Uganda stands to scoop a slice of a $32 billion donation that Japan has promised to inject into Africa – especially to help growth on the continent and encourage Japanese firms to invest there over the next five years.

The multi-billion package, which was unveiled by Japanese Prime Minister Shinzo Abe at the opening of the Tokyo International Conference on African Development (TICAD), includes $14 billion official development aid and $6.5 billion support to help infrastructure.

Like China, Japan doesn’t have any serious deposits of natural resources.  It’s therefore no surprise that, like China, it seems to be keen to lay its hands on Africa’s vast natural resources.

The quest for natural resource from Africa has assumed greater significance since the country’s dependence on oil and gas imports surged after the March 2011 Fukushima nuclear disaster shut almost all of Japan’s nuclear reactors.

Japan’s direct investment in Africa was $460 million in 2011, compared with China’s $3.17 billion, according to the Japan External Trade Organization and China’s government data.

50 African leaders, including President Yoweri Museveni attended the three-day conference held in Yokohama near Tokyo to discuss issues such as economic development, peace-making and anti-piracy.

State-run Japan Oil, Gas and Metals National Corp (JOGMEC) will also provide financial support worth $2 billion in the next five years to help Japanese firms’ natural resource development projects, aiming to catch up with China.

Nippon Export and Investment Insurance (NEXI), also state-run will secure the maximum of $2 billion trade and investment insurance framework.  END: Login to www.ugandacorrespondent.com every Monday to read our top stories mid-week for our updates

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