What drives Japan’s renewed interest in Kenya

Japan is focusing on infrastructure projects, food production, trade and investment projects as it seeks to reposition itself as a strategic partner of Kenya and other African states.

The initiative is informed by the waning influence of Japan and Japanese businesses even as other emerging powerhouses such as Brazil, Russia, India and China spread their influence.

For Japan, the renewed drive is informed by the Tokyo International Conference on African Development (TICAD IV) initiative, which lays down the road map for the next five years.

Business Daily spoke to Japanese Ambassador to Kenya Shigeo Iwatani.

Japan is actively engaging in infrastructure projects, a shift from its previous ‘soft’ projects. What informs the change of strategy?

The focus on infrastructure projects is informed by the TICAD IV initiative which has economic infrastructure as one of its main pillars. This covers rural electrification and modernisation of transport facilities. The other pillars are on human security, health, environment, trade and investment.

Explain the importance of TICAD IV to Kenya?

TICAD is a policy forum for African Development with the main focus on the areas mentioned. TICAD IV will see Japan double its Official Development Assistance (ODA). Under the TICAD IV platform, Japan has launched the CARD (Coalition for African Rice Development) initiative which commits to double rice production in 10 years from 2008.

This involves introduction of the New Rice for Africa (NERICA) variety which is drought resistant, matures faster and has higher yields.

In Kenya the Mwea irrigation project is a beneficiary. We are funding it at a cost of Sh12.11bn. We are looking to extend the project to other rice schemes in the country.

Which key local project is Japan funding?

Our focus is on the critical energy and transport sectors which will allow unlocking of the country’s economic potential. In terms of infrastructure, we are focusing on transport and electricity. We are funding the Olkaria geothermal project and rural electrification using solar. We will provide solar panels to 20 selected public facilities such as health centres and schools. These sites will allow the public to enjoy the services for instance by charging their mobile phones.

In terms of transport, we are involved in the expansion of the Mombasa port container terminal to enable more ships to dock. We will also fund the Nairobi-Western-Ring-Road circuit, which will involve upgrading roads in Westlands, Kilimani and Lavington.

Japan’s private sector is not well represented in Kenya. What is the Japanese government doing to enhance its involvement?

The TICAD IV initiative is expected to push the Japanese private sector to enhance its participation by increasing investment. Currently, the main focus of Japanese businesses has been China, India and other emerging markets.