2 days ago
Japan to accelerate development of logistics network in Africa
Prime Minister Shigeru Ishiba will unveil Japan's plan to accelerate the development of the Nacala Corridor, a logistics network in Africa, at the upcoming ninth edition of the Tokyo International Conference on African Development (TICAD), informed sources said.
The planned corridor, which will link the inland African country of Zambia and a port in Mozambique in the southeastern part of the continent via Malawi, is aimed at enhancing supply chains for mineral resources.
Zambia is a mineral-rich country, and minerals such as copper and cobalt produced there are mainly exported through ports in Angola, western Africa. Using Nacala port in Mozambique, however, is more convenient for exports to Japan.
The Japanese government has been developing the Nacala Corridor since 2012.
At the three-day event starting Wednesday in Yokohama, Ishiba, who will chair the conference, will pledge Tokyo's support for the three countries hosting the Nacala Corridor by utilizing investment and loan programs of private firms and international organizations, as well as the government's official development assistance program.
Specifically, Japan will support the development of water facilities and highways in order to promote industrial growth and increase the value of the areas.
Japan is slated to launch a new initiative to strengthen economic ties with India, the Middle East and Africa. The government will support Japanese companies' advances into these regions by helping expand trade and investment through the new economic initiative and the Nacala Corridor.
By leveraging the Nacala Corridor, Japan aims to increase its competitiveness with China, which is trying to increase its presence in Africa by providing countries in the continent with subsidies.
Establishing solid supply chains for critical minerals is "directly associated with Japan's economic security," a Japanese government official said. "The development of the Nacala Corridor will contribute to the development of Africa and also benefit Japan."
U.N. Secretary-General Antonio Guterres is slated to visit Japan in order to attend the conference, where he will underscore TICAD's importance and the potential growth of Africa, a spokesperson said Friday.
After attending the conference, Guterres is slated to visit the Osaka Expo.
