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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Japan has been active in African development projects for many years, but is now redoubling efforts to extend and deepen its footprint on the continent in the face of strong competition from the East and West.
Japanese Prime Minister Shinzo Abe pledged $32 billion to Africa during the Tokyo International Conference on African Development, where about 50 African nations were represented. This was a dramatic move to catch up with China in terms of African influence, after China previously pledged $20 billion in loans over the next two years and funded and built the new $200 million African Union headquarters in Ethiopia's capital, Addis Ababa.
Parallel the conference, Japan agreed to construct an alternative pipeline for South Sudan to the Kenyan port of Lamu. This is a strategic move for both nations. It would free South Sudan from the punitive tariffs Sudan charges its southern neighbor for the transit of oil to its northeastern coastal terminal, and it gives Japan a foot in the door for the rich hydrocarbon and resource potential of the massive unexplored area of South Sudan. South Sudan's trade potential will be bolstered by the pipeline.
The pipeline decision developed from a meeting between South Sudan's president, Salva Kir, and Toyota Tsusho Corporation's (TYO:8015) (Nagoya, Japan) chairperson Junzo Shimizu, according to Trade and Industry Minister Garang Diing Akuong. He added that opportunities for Toyota to benefit from South Sudan's development were discussed. Although there was no official confirmation, the pipeline construction will cost about $4 billion.
Japan was thanked for services extended to the new nation in the areas of humanitarian assistance and development. This is a key area for South Sudan, as it struggled to get on its feet after war, drought, refugees and all-around fragility. Japan has a good record for humanitarian assistance in Africa, which can now be used to enlarge its profile.
For related information see March12, 2012 -- South Sudan Looks at Trucks and Temporary Pipeline for Oil Exports; January 27, 2012, article - South Sudan Shuts Down Oil Wells and Signs for Pipeline Project with Kenya; and March 9, 2010, article - Toyota Tsusho Renews Proposal for $1.5 Billion Crude Oil Pipeline from Sudan to Kenya's Lamu Island.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Japanese Prime Minister Shinzo Abe pledged $32 billion to Africa during the Tokyo International Conference on African Development, where about 50 African nations were represented. This was a dramatic move to catch up with China in terms of African influence, after China previously pledged $20 billion in loans over the next two years and funded and built the new $200 million African Union headquarters in Ethiopia's capital, Addis Ababa.
Parallel the conference, Japan agreed to construct an alternative pipeline for South Sudan to the Kenyan port of Lamu. This is a strategic move for both nations. It would free South Sudan from the punitive tariffs Sudan charges its southern neighbor for the transit of oil to its northeastern coastal terminal, and it gives Japan a foot in the door for the rich hydrocarbon and resource potential of the massive unexplored area of South Sudan. South Sudan's trade potential will be bolstered by the pipeline.
The pipeline decision developed from a meeting between South Sudan's president, Salva Kir, and Toyota Tsusho Corporation's (TYO:8015) (Nagoya, Japan) chairperson Junzo Shimizu, according to Trade and Industry Minister Garang Diing Akuong. He added that opportunities for Toyota to benefit from South Sudan's development were discussed. Although there was no official confirmation, the pipeline construction will cost about $4 billion.
Japan was thanked for services extended to the new nation in the areas of humanitarian assistance and development. This is a key area for South Sudan, as it struggled to get on its feet after war, drought, refugees and all-around fragility. Japan has a good record for humanitarian assistance in Africa, which can now be used to enlarge its profile.
For related information see March12, 2012 -- South Sudan Looks at Trucks and Temporary Pipeline for Oil Exports; January 27, 2012, article - South Sudan Shuts Down Oil Wells and Signs for Pipeline Project with Kenya; and March 9, 2010, article - Toyota Tsusho Renews Proposal for $1.5 Billion Crude Oil Pipeline from Sudan to Kenya's Lamu Island.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
