Japan has invested more in project financing in Africa than China as Asian nations continue to strengthen their economic influence on the continent, according to Linklaters LLP.
Japanese investors accounted for $3.5 billion of the $4.2 billion of project funds that Asian nations poured into Africa last year to improve roads, water and sanitation and build oil and gas pipelines, according to the London-based law firm.
“Japan now ranks as the most active Asian project finance sponsor in Africa, investing almost three times as much as China, which is often regarded as the most active Asian investor on the continent,” according to the report published Monday.
Sub-Saharan African nations are seeking to reverse years of under-investment by moving forward with road and rail projects to help boost economic growth, which is forecast by the International Monetary Fund to expand 4.9 percent this year, more than double the rate of advanced economies. Asian investors are among those seeking deals to develop oil, gas and mineral deposits in African nations, which are exploiting their natural resources to boost revenue to fund development plans.
China ranked as the second-biggest Asian financier of projects in Africa, committing more than $11.9 billion over the past decade, with more than half spent in South Africa, while India placed third, Linklaters said.
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