Japan PM warns Africa leaders about accumulating too much debt

Japan’s prime minister 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, Shinzo Abe stressed that Tokyo was promoting “quality” infrastructure exports and investments, supported by Japan’s government-backed institutions.

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

The comment came as Abe aims to boost Japan’s presence in the promising African market but many businesses are wary of financial and other risks.

But China, with its ambitious Belt and Road Initiative, now enjoys a massive presence in the continent, having announced $60 billion in development funding for Africa last year.

The Chinese efforts, however, have faced criticism for favouring Chinese companies and workers over local economies, saddling nations with debts and ignoring rights and environmental issues.

Japan stresses that its loans and projects come with fewer strings attached and with sound financial advice and support. (ChannelsTV)