Investment Reforms in Africa - JICA’s Approach – Ministerial Forum Fifth Ministerial Meeting NEPAD-OECD Africa Investment Initiative

Nobuhito Hobo Vice-President Japan International Cooperation Agency (JICA)

Dakar, 27 April 2011 1 Achievements of TICAD IV: creation of the follow-up mechanism 1. Yokohama Action Plan (YAP) Concrete targets and shared responsibility for action among Africa and partners 2. TICAD Follow-up Mechanism Transparent monitoring of the YAP implementation Next Ministerial Meeting Follow-up held here next week (1- Secretariat 2 May 2011 in Dakar) Information gathering/analysis/ PR/website management Ministerial Follow-up Joint Monitoring Meetings Committee Adoption of the TICAD IV Review & assess the progress Annual Progress Report and provide high-level policy guidance 2 JICA’s cooperation in investment reform

1. Africa: Regional Infrastructure (transport) and OSBP 2. Zambia Investment Promotion Project - Triangle of Hope 3. Using OECD’s Policy Framework for Investment (PFI) 4. Enhanced Private Sector Assistance for Africa (EPSA) 5. New Initiative for Private Sector Investment

3 Case 1. Africa: Regional Infrastructure (transport) List of Projects Approved in JFY 2008-2009 and OSBP

4 Case 2. Zambia Investment Promotion Project - Triangle of Hope •Asian Experience and its applicability to Africa.

Education, Health, MSME, MFEZ, Mining.

Formulation of Investment Promotion Package 5 Case 3: Using OECD’s Policy Framework for Investment (PFI) •Japan/JICA strongly supports PFI •JICA effectively utilizes PFI for its bilateral ODA in investment reform

 TICAD YAP describes “Japan … promote African efforts in investment policy reform, using multilaterally-endorsed instruments such as the OECD Policy Framework for Investment…”  Effectively used in Cambodia as the first JICA project to utilise the PFI in its cooperation on investment promotion as an important analytical tool  Followed by other JICA projects to utilise PFI in Zambia, Mongolia, Ukraine and others  Thematic issue guideline on trade and investment: currently being revised and PFI is to be included as a useful tool

6 6 Case 4: Enhanced Private Sector Assistance for Africa (EPSA) •EPSA contributes to Africa's economic infrastructure and private sector development

EPSA Enhanced Private Sector Assistance for Africa

ACFA NSL FAPA Accelerated Co-financing Non-Sovereign Loan Fund for Private Sector Scheme for Africa Assistance JICA Annual consultation on GoJ Project Finding / Implementation ODA Loans Commission to FAPA JICA formulate, supervise etc.AfDB/AfDF AfDB (Secretariat within AfDB) Provide Loans and ODA Loans Provide Loans and supervise projects supervise projects Technical Assistance Non-sovereign Sovereign Guaranteed Projects Private Sector Projects Concrete Commitment - Creating an Enabling Business Environment - Strengthening Financial Systems Commit JICA ODA loans up to 1 billion USD - Building Competitive Infrastructure over the next 5 years since 2005 - Development of Micro-SMEs - Promoting Trade and FDI 7 Case 5: New Initiative for Private Sector Investment Public Private

PPP

Bujagali Interconnection Project Bujagali Hydropower Project

Preparatory Research Study ■PPP Infrastructure F/S Support Program ■BOP Business F/S Support Program

Financial Support ■Private Sector Investment Finance (PSIF)

8 JICA’s VISION “Inclusive and Dynamic Development”

http://www.jica.go.jp/english http://www.jica.go.jp/french

Thank you Merci 9 9 Appendix Focused areas of the “Yokohama Action Plan”

I Boosting Economic Growth 1) Infrastructure 2) Trade, Investment and Tourism 3) Agriculture and Rural Development

II Ensuring Human Security 1) MDGs (Community Development, Education, Health) 1) Consolidation of Peace, Good Governance

III Addressing Environmental Issues and Climate Change

IV Broadening Partnership 10 Appendix Japan’s commitment: Fukuda Initiative “Doubling total ODA to Africa by 2012” Average Annual Level Targeted Amount in ODA by Modality (2003-2007) 2012 (Cumulative) Grants (Bilateral) USD 0.7 billion USD 1.4 billion ODA loan (Net) USD 80 million Over USD 160 million Disbursement to AfDB USD 120 million USD 240 million Total ODA to Africa USD 0.9 billion USD 1.8 billion

20 Disbursement to AfDB Yen Loan(Net) 15 Technical Cooperation Average Grants (2003-2007) Yen Loan 10

Average 5 (2003-2007) T/C & Grants 0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -5 11 Japanese Cooperation in Great Mekong Appendix Subregion for a Seamless Asia Kunming North-South Economic Corridor ▲●Nam Ngum Hydropower Station ▲Nam Leuk Hydroelectric Power Plant East-West Economic Corridor Mekong ●Vientiane International Airport River Vietnam ▲Yangon International Airport ▲Pha Lai Thermal Power Plant Myanmar Hanoi Lao PDR Hai Phong ▲Cai Lan Port Naypyidaw Chiang Rai ▲● Baluchaung Hydro Power Plant ▲Hai Phong Port Vientiane Nong Khai ▲Second Mekong International Bridge Thailand Savannakhet ★ Yangon ● Yangon Port Mukdahan Hue National Road Route 9 Mawlamyine Phitsanulok Pakse Da Nang ▲ ▲Lam Ta Khong Pumped Storage Power Plant Sisophon Development Hai Van Tunnel Bangkok Siem Reap Triangle Cambodia ▲Da Nang Port Trat Kampong Cham ●Pakse Bridge Phnom Penh ●Bridge over the Mekong River ▲Suvarnabhumi International Airport Ho Chi Minh Vung Tau

●National Road Route 6 and 7 Southern Economic Corridor ▲Phu My Thermal Power Plant Legend ▲ ● ★ Loans Grant Aid Technical Cooperation ▲★Cai Mep-Thi Vai Port ▲Leam Chabang Port

▲Tan Son Nhat International Airport 12 ▲Map Ta Phut Port ▲★Sihanoukville Port ●National Road No.1 Integrated regional development Appendix model in ,  Integration of transport infrastructure, agriculture and others  Agriculture M/P plans to include Responsible Agriculture Investment 【Survey】 【 】 Road Improvement Plan Loan on Nacala Corridor Montepuez- Road (Mandimba-Lichinga) Project （2007.03 E/N signed、3,282Montepuez mln Lichinga JPY） Preparatory Survey on Nacala Port Development Project 【Loan】 -Cuamba Road Upgrading 【Grant Aid】 Project The Project for the Mandimba （2010.03 E/N signed, 5,978 mln JPY） Construction of a Medical Practitioner Training Institute in 【Survey】 Nampula ProvinceNacala Road Improvement Plan and Cuamba OSBP on Nacala Corridor (Cuamba -Mandimba) Nampula 【Grant Aid】 【 】 Grant Aid The Project for the The Project for the Construction of a Primary Construction of the Cuamba Teacher Training Institute Teacher Training Center in Nampula Province （2007.06 E/N signed, 998 mln 【Agriculture Development Program】 JPY） Preparatory Survey of Japan-Brazil- Mozambique Tripartite Cooperation on 【Grant Aid】 Tropical Savanna Agriculture The Project for Constrction Development 【T/C】 Agricultural Research Capacity Development of Bridges of the Road Project between Ile and Cuamba 【T/C】 Comprehensive regional agriculture development 【masterplanT/C】 Pilot Project

【Grant Aid】 The Project for Construction of 20 Secondary Schools in the Northern Region of Mozambique Approved/Complete Candidate13 d