Japan is intensifying its economic engagement with Africa by offering low-cost loans, presenting an alternative to China’s high-interest lending practices. At the Ninth Tokyo International Conference on African Development (TICAD 9), Japan pledged 5.5 billion in loans, coordinated with the African Development Bank, to support sustainable development and address Africa’s mounting debt challenges. [1]

This initiative includes concessional loans through the Japan International Cooperation Agency (JICA), aiming to provide African nations with more favorable financing terms. For instance, Kenya secured a 25 billion yen (169 million) Samurai bond deal to bolster its vehicle assembly and energy sectors, reducing electricity transmission losses and lowering borrowing costs. [2]

Additionally, Japan proposed the creation of an “Indian Ocean–Africa economic zone” to enhance economic ties between Africa, India, and the Middle East. This strategy seeks to position Japan as a reliable partner in Africa’s development, offering alternatives to China’s Belt and Road Initiative. [3]

Through these measures, Japan aims to strengthen its presence in Africa by providing financial support that emphasizes sustainability and mutual growth.