GOJ PLANS FOR TICAD IV FOLLOW-UP CONFERENCE IN

UNCLAS SECTION 01 OF 02 TOKYO 000538 SENSITIVE SIPDIS USAID FOR AFRICA/AA E.O. 12958: N/A TAGS: EAID EFIN ETRD PREL XA JA SUBJECT: GOJ PLANS FOR TICAD IV FOLLOW-UP CONFERENCE IN BOTSWANA REF: A. 08 TOKYO 1598 ¶B. TOKYO 493 TOKYO 00000538 001.2 OF 002 ¶1. (SBU) SUMMARY: Japan's Ministry of Foreign Affairs (MOFA) call for donor countries and institutions to "not fall behind" in commitments to African development will be a main theme of the Tokyo International Conference for African Development IV (TICAD IV) Ministerial Follow-up Meeting in Gaborone March 21-22, according to MOFA officials. In support of the GOJ's call, the Japan Bank for International Cooperation (JBIC) will establish a Facility for African Investment to undertake equity investments and loan guarantees for private banks in addition to direct lending in order to facilitate its commitment to provide $2.5 billion to the region through 2012. END SUMMARY ¶2. (SBU) MOFA Second Africa Division Director Asako Okai told emboffs Foreign Minister Nakasone is expected to attend the Gaborone TICAD Ministerial Follow-up in Gaborone March 21-22; however, developments in the Diet may prevent him from traveling. Other senior GOJ officials who may attend include State Secretary for Foreign Affairs Seiko Hashimoto and Parliamentary Vice Minister for Foreign Affairs Nobuhide Minorikawa. Former Prime Minister Yasuo Fukuda, who presided over the April 2008 TICAD IV meeting in Yokohama and announced Japan's plan to double assistance to Africa through the Yokohama Action Plan (ref A),will give the keynote address during the opening ceremony and have bilateral meetings with several heads of delegations. In addition to TICAD co-organizers from Japan, UN Office of the Special Advisor on Africa (UNOSAA),the UN Development Programme (UNDP) and the World Bank, the conference will include ministers from several African countries, donor country representatives, and officials from various regional and international organizations, including the African Union Commission. ¶3. (SBU) Okai said the Gaborone Ministerial will have two objectives, namely (1) to assess progress in implementing the Yokohama Action Plan; and (2) to discuss the possible impact of the global financial crisis and economic downturn on Africa. The progress review, based on input gathered during the TICAD monitoring conference held in Tokyo in early February and compiled into a TICAD IV Annual Progress Report 2008, will focus on further developing Africa's development priorities while encouraging African countries to deepen their ownership of aid implementation to improve effectiveness. (Note: MOFA subsequently published the TICAD IV Progress Report to its website at www.mofa.go.jp/region/africa/ticad/ticad4/rep ort2008.pdf. End Note.) ¶4. (SBU) The final plenary session, to be co-chaired by the World Bank and Botswana, will focus on challenges caused by the global financial situation. Okai said the conference will likely produce a statement for the G-20 London summit calling on donor countries to avoid slowing down their commitments to African Development. Okai noted that while Africa was not directly affected by the collapse of global financial markets, concern is growing about other macroeconomic effects such as a decline in private sector investment, tourism spending, and remittances. As a result, the conference will encourage a continued commitment to African development in spite of the global economic slowdown. ¶5. (SBU) Okai also described the JBIC Facility for African Investment (FAI),which will be available from April 2009 in order to provide GOJ support for private investment in Africa. JBIC first announced the creation of the FAI in the wake of TICAD IV in June 2008. Under the FAI, JBIC, in addition to its hard-currency direct lending, will make TOKYO 00000538 002.2 OF 002 equity investments in manufacturing, natural resource development and infrastructure projects, extend loan guarantees for private banks, and provide local currency financing to projects in African countries. JBIC will also undertake an equity investment in TCX, a currency exchange fund set up on the initiative of the Netherlands Development Finance Company, to serve as a currency swap counterparty to enable local currency funding for project investors. The facility is intended to facilitate the GOJ's goal of doubling Japanese private investment in Africa by 2012. JBIC plans to spend $2.5 billion in international financial operations for Africa through 2012, and Okai said around $700 million of this will be through the FAI. ¶6. (SBU) Comment: Prime Minister Aso told world political and business leaders at the January 2009 World Economic Forum in Davos that Japan will fulfill its TICAD commitments (ref B) and will work to bring African voices together in a call for continued attention to Africa at the London G-20 summit. The GOJ is clearly trying to maintain momentum for the TICAD process. Japan launched the Yokohama Action Plan during its year as G8 Host and it remains committed to fulfilling its pledges which have been undermined by several factors that have since challenged not only the Japanese private sector's interest in Africa, but also the global community's ability to contribute, including the deteriorating global financial situation and a collapse in global commodity prices. End Comment. ZUMWALT