President Emmerson Mnangagwa will this week meet Japanese
Prime Minister Shinzo Abe on the sidelines of the Tokyo International
Conference on African Development (TICAD), a major engagement set to unlock
mutually beneficial opportunities between Harare and Tokyo.
The three-day TICAD summit, which begins on Wednesday in
Yokohama, has become a prime global platform through which international
stakeholders join forces to promote Africa’s development.
Japan is the third largest economy in the world after the United
States and China, and is also a member of the Group of Seven (G7) nations, from
which Zimbabwe is seeking a financial package to clear arrears owed to
international finance institutions.
G7 – made up of the world’s seven most advanced economies as
described by the IMF – consists of the United States, Canada, France, Germany,
Italy, Japan and the United Kingdom.
The Japanese embassy’s counsellor to Zimbabwe, Mr Kenichi
Kasahara ,told The Sunday Mail that Zimbabwe will need “international help” during
its reform process, which Japan is willing to provide.
“The topmost point is that the President himself, President
Mnangagwa, is going to Japan and he will meet Prime Minister (Shinzo) Abe. We
are actually arranging a bilateral meeting to be held on the sidelines of the
summit.
“Sending a delegation headed by the President himself is an
advantage in terms of TICAD.
“Zimbabwe will definitely be known; if the delegation meets
the Japanese side. They can certainly impress their counterparts with their
background and potential,” he said.
Arrears Clearance
The indaba, he said, will likely have potential benefits
for the local economy as it presents an opportunity for the country to get
international support to clear its obligations to international finance
institutions.
Zimbabwe owes US$2,5 billion to multilateral institutions,
of which the World Bank is owed US$1,5 billion, African Development Bank US$702
million, European Investment Bank US$309 million and other multilaterals US$74
million.
As at the end of June 2019, the country’s total bilateral
debt amounted to US$5,5 billion, with Paris Club creditors accounting for
US$3,5 billion and non-Paris Club US$1,6 billion.
Mr Kasahara said: “I believe that TICAD can be the
thrusting element in terms of development of Zimbabwe’s economy.
“I know that Zimbabwe is seeking financial aid from one of
the G7 members. But at the same time, the international financial system is a
tight system; we have to focus on the fact that Zimbabwe has cleared its
arrears with IMF but it cannot get finance from the IMF because it has to clear
its arrears with WB and the African Development Bank also.
“Yes, Japan is a member of G7, G20 and also a member of the
Paris Club, but the issue of finance must be collectively resolved with
everyone’s consent.”
It is believed that the private sector will also be
presented with an opportunity to pitch projects to potential investors.
One of the six sessions at the conference is specifically
meant for the private sector, which will be attending its own side events.
In a statement last week, Japanese Ambassador to Zimbabwe
Mr Toshiyuki Iwado, who also paid a courtesy call on President Mnangagwa ahead
of the summit, said Harare can expect more assistance from this year’s TICAD summit.
“It is only through Africa developing sustainably that the
world’s development will be assured. Our assistance is implemented with this in
mind. Since Japan launched TICAD in 1993, the policy of Japan’s assistance
towards Africa has been strengthened and elaborated even further, and our
assistance to Zimbabwe can be seen by our support to rural communities,” he
said.
Since 1980, Japan has provided loan aid amounting to US$346
million, as well as grant aid worth US$560 million.
Some of the developmental projects funded by Japan in
Zimbabwe include the Nyakomba irrigation scheme in Nyanga, which is benefiting
hundreds of households in the area.
Last year, Japan provided a US$21 million grant for a road
construction project to improve the Makuti-Chirundu highway on the north-south
corridor.
Japan has also provided a US$5,5 million grant for road
construction materials that were distributed to eight provinces around the
country.
Emergency relief assistance has also been provided to the
victims of Cyclone Idai.
President Mnangagwa’s bilateral engagements have been
yielding huge material benefits for the local economy.
His visit to China in April last year unlocked funding for
the US$1,3 billion expansion of Hwange Thermal Power Station, plus a US$150
million loan for the expansion of Robert Gabriel Mugabe International Airport.
Beijing also provided a US$100 million grant for the
construction of the new Parliament building in Mount Hampden. All the projects are currently underway.
More projects and investments from Russia are set to be
announced in October after President Mnangagwa’s fruitful bilateral meeting
with President Vladimir Putin in January this year.
Visits to United Arab Emirates and Belarus, among others,
have also proved to be worthwhile.
At the last TICAD summit held in Nairobi, Kenya, in 2016,
Japan committed to investing approximately US$30 billion under public-private
partnerships for Africa.
This year’s TICAD summit, which will be held from under the
theme “Advancing Africa’s Development through People, Technology and
Innovation”, will focus firmly on business and investment, giving further
impetus to Zimbabwe’s investment drive. Sunday Mail
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