At the recent Tokyo Investment Conference for Africa Development (TICAD-9), Prime Cabinet Secretary Musalia Mudavadi emphasized the importance of expanding regional and international trade chains to drive Africa’s economic growth. Speaking at the conference, Mudavadi lauded Japan’s continued support for Africa’s infrastructural development and socio-economic progress, highlighting the need for collaborative efforts to enhance trade, investment, and technological integration across the continent.
Mudavadi, who also serves as Kenya’s Cabinet Secretary for Foreign and Diaspora Affairs, stressed the critical role of trade and investment in accelerating economic development and poverty alleviation in Africa. He called on African nations to formulate and implement strategies that leverage these areas for rapid and impactful growth. “Collectively we need to identify areas of quick wins that do not require huge resources but have huge impact value,” Mudavadi stated, emphasizing the necessity of focusing on initiatives that offer substantial benefits without demanding significant investment.
During his address, Mudavadi outlined several key strategies for advancing Africa’s economic interests. He advocated for the expansion of production capabilities, the creation of employment opportunities, and the generation of income through targeted investments in skills development and capacity building. A favorable legal and regulatory environment, he argued, is essential for effective private sector engagement and technology utilization, which can pave the way for sustained economic stability.
Mudavadi recognized Japan’s effective partnership with Africa and challenged African nations to deepen their trade and investment collaborations with Japan. The trade relationship between Africa and Japan, while relatively balanced, still reflects a trade deficit of USD 1.98 billion for Africa. In 2023, Africa exported goods worth $8.28 billion to Japan, while imports from Japan totaled $10.27 billion. Mudavadi pointed out that there is significant potential to improve this balance and maximize mutual benefits.
Kenya was highlighted as a prime example of successful collaboration with Japan. With approximately 120 Japanese companies operating in Kenya, the country has positioned itself as a preferred destination for global Foreign Direct Investment (FDI). In 2022, Kenya attracted an estimated USD 759 million in FDI, representing 20 percent of the total FDI inflows to the East African Community (EAC). This underscores Kenya’s status as a financial and investment hub in the region. Mudavadi emphasized that partnerships between Japanese companies and Kenyan start-ups could drive further growth and innovation, benefiting both nations.
Looking forward, Mudavadi proposed several initiatives for strengthening Africa-Japan ties. He suggested revisiting the objectives of TICAD to better align with African priorities, integrating concerns related to employment creation, agricultural development, digital transformation, and equitable growth into international cooperation agendas. He also advocated for increased focus on youth and women’s challenges from a South-South perspective, and the integration of funding and technology into agriculture to make it more adaptive to climate change.
Mudavadi also called for a re-evaluation of the global financial architecture to better support developing countries. He emphasized the need for a cohesive African start-up ecosystem that fosters innovation, attracts FDI, and addresses societal challenges through cross-border collaboration. Embracing private sector involvement and leveraging innovations in artificial intelligence and robotics could drive sustainable development and an inclusive digital economy.
Finally, Mudavadi underscored the importance of continued collaboration between Africa and Japan in reforming global governance structures, including the United Nations. He proposed that Japan and the African Union (AU) work together to harmonize various reform initiatives, integrating AU’s Ezulwini consensus and the G4 approach on UN reforms to address global governance issues effectively.
As Africa seeks to enhance its global economic standing, Mudavadi’s insights from TICAD-9 provide a roadmap for leveraging international partnerships, advancing trade and investment, and fostering a dynamic start-up ecosystem to drive the continent’s future growth.
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