What's New: International conference to chart future course of trade and investment between Asia and Africa

Tokyo, 29 October 2004 – Prime Minister Junichiro Koizumi of Japan, President Olusegun Obasanjo of Nigeria, and President Mwai Kibati of Kenya are joining 350 government and business leaders from Asia and Africa, at a meeting here on Monday and Tuesday to push for more trade and investment between Asia and Africa.

The Asia-Africa Trade and Investment Conference, which will be held from 1 to 2 November at the Akasaka Prince Hotel in the center of Tokyo, will include representatives of international financial institutions, African regional organizations, and many African and Asian private enterprises.

Co-organized by the Government of Japan, the United Nations Office of the Special Advisor for Africa, the Global Coalition for Africa, the World Bank and the United Nations Development Programme (UNDP), the Asia-Africa Trade and Investment Conference represents the first major follow-up meeting to the Tokyo International Conference on African Development (TICAD III) held in Tokyo from 29 September to 1 October 2003.

For two days, participants in the high-level meeting will discuss a wide range of issues on the present situation and potential for enhanced trade and investment opportunities between Asia and Africa, and concrete measures for the future. They will share experiences on best practices that will enhance the two regions’ ability to tap into the huge potential for increased trade and investment. A side event featuring an exhibition of various African products and a series of investment promotion seminars, with the aim of promoting trade and investment toward Africa, will also be held.

“The economic success of Asian countries lies in the ability of their policymakers to create enabling conditions that facilitate investment,” said UNDP Associate Administrator Zéphirin Diabré, who is heading the UNDP delegation to the Tokyo conference. “The achievement of many Asian countries that we witness today is mainly due to the fact that they have succeeded in instituting good governance, macro and microeconomic policies and sound financial systems”.

Current statistics show that Africa’s share in world trade has been falling since 1980 (from about 6.0% of world exports in 1980 to 2.0% in 2002; from about 4.6% of world imports in 1980 to about 2.1% in 2002). Foreign Direct Investment (FDI) to Africa remains negligible (about 1.7% of global FDI inflow in 2002). On average, Africa’s share of developing countries inflows has more than halved since 1985 (12% in 1985 to 5% in 2002). At the same time, the share of Asia in World trade is much higher and has been increasing over the years (from 17.9% of world export in 1980 to about 23% in 2002; from about 13.1% of world import in 1980 to about 20.8 in 2002). Asian countries have seen their outward FDI stock grow rapidly from about 2% in 1990 to about 9% in 2001.

Statistics also show that trade between Asia and Africa has steadily improved. African exports to Asia have gone up from $6.7 billion in 1990 to $ 17.2 billion in 2000. Asia, as the fastest growing market today, represents a huge market for African products.

The trade and investment conference is organized in two parts: during the plenary sessions, the participants will acquaint themselves with issues related to general trends in trade and investment between Asia and Africa, and improvement of business climate in Africa. During the breakout sessions, participants will exchange views on natural resources and agriculture, manufacture, and services. This provides an opportunity to showcase good practices of policies and measures to attract trade and investment, as well as to explore opportunities for new and innovative development partnerships in support of African countries’ growth and reform policies.

The Asia-Africa Trade and Investment Conference is part of the Tokyo International Conference on African Development initiative launched a decade ago by the Japanese Government to raise international support for African development.

For more information, please contact: in Tokyo, Nicholas Gouede, tel. 1+212 906 6801; or Chisa Mikami at (011) 81 9020 267 253; in New York, William Orme, tel. 1+212 906 5382.

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