Tokyo conference proposes roadmap to foster trade and investment

Tokyo, 2 November 2004 —The Asia-Africa Trade and Investment Conference ended here today with the endorsement of a strategic plan proposed by Japan to promote trade and investment between Asia and Africa.

The plan features four areas that would enhance investment and aid: favourable government policies, product development, empowered small and midsize enterprises, and an atmosphere conducive to the promotion of social contributions by the private sector.

In opening remarks to the conference, Japanese Prime Minister Junichiro Koizumi called on leaders of African nations to devise sound industrial policies to enhance trade and attract investment from Asia.

“Trade and investment are primarily activities of private actors,” said Mr. Koizumi. “At the same time, the government’s role is indispensable for ensuring that trade and investment lead to economic growth.”

President Olusegun Obasanjo of Nigeria and President Mwai Kibaki of Kenya joined nearly 723 delegates from 50 African nations and 14 countries from Asia at the two-day conference, along with representatives from international and regional organizations, the private sector, and non-governmental organizations.

African countries are “increasingly recognizing the urgent need to implement far-reaching reforms” to attract overseas investment, said Mr. Obasanjo, who is currently President of the African Union. He noted that Africa “still faces daunting challenges” and “requires substantial resources” from the northern industrialized nations in the form of aid for building infrastructure, providing technical assistance and substantial debt relief.

Kenyan President Kibaki called for more interaction between Asia and Africa. “There is a need for us to continue building bridges between the business communities in the two continents,” he said.

UNDP Associate Administrator Zephirin Diabre, headed the UNDP delegation to the conference. “For UNDP, the promotion of global partnerships in support of development constitutes a central practice area and is part of our mandate to coordinate efforts for the achievement of the Millennium Development Goals and monitor the progress made,” he said. “The commitments renewed during Tokyo International Conference on African Development as well as the long standing, rich, multi-faceted partnerships that so happily links UNDP to Japan have helped focus and reinforce our action in that sense.”

TICAD co-organizer, UNDP provided a wide range of information on the importance of the small and midsize enterprise sector in doing business in Africa. Asia-Africa cooperation initiatives for the development of the private sector undertaken by UNDP include the Africa-Asia Business Forum (AABF), whose major achievement includes establishing 179 memoranda of understanding with a total value of US$153 million, the soon-to-be launched Africa-Asia Chamber of Commerce in Accra, Ghana, and the TICAD IT Initiative, which provides training through the CISCO networking academy.

Also noteworthy was the signature of a policy document at the closing ceremony by Prof. Wiseman Nkuhlu, chairperson of the Steering Committee of the New Partnership for African Development (NEPAD) and representatives of TICAD co-organizers. The document offers guidelines for mutual cooperation in promoting business in Africa.