Japanese PM Shinzo Abe warns African leaders about debt, seeking to counter China’s growing influence

China has a massive presence in the continent, having announced US$60 billion in development funding for Africa last year

However, critics say Chinese companies and workers have been favoured over local economies, saddling nations with debts and ignoring rights

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Japanese PM Shinzo Abe with South African President Cyril Ramaphosa. Photo: AFP

Published: 11:14am, 29 Aug 2019Updated: 7:37pm, 29 Aug 2019

Japanese Prime Minister Shinzo Abe on Thursday warned African leaders against accumulating too much debt, in an apparent reference to Chinese infrastructure projects that some blame for damaging the finances of developing nations.

Addressing leaders from several African nations at a development conference in Yokohama, Abe stressed that Tokyo was promoting “quality” infrastructure exports and investments, supported by Japan’s government-backed institutions.

“What should the government do to encourage (entrepreneurs) to exercise their skills?” Abe asked the Tokyo International Conference on African Development (TICAD).

“If partner countries are deeply in debt, it interferes with everyone’s efforts to enter the market,” he said, introducing financing and insurance schemes by Japan’s government-backed institutions aimed at reducing risks to businesses and public coffers.

He also announced that Japan plans to train experts in 30 African countries in next three years on managing risks and public debts.