Japan, China battle for African telecom investments

24.01.2011
A battle for supremacy in investment in Africa has emerged between Japan and China, which are now competing for the dominance of the region's telecom market.

China has offered more than US$10 billion in funding for telecom and other related investments in the region. The Japanese government is also pumping billions of dollars into the Common Market for Eastern and Southern Africa (Comesa) and some Southern Africa Development Community (SADC) countries. The investments come in the wake of African governments' push for improved telecom services.

While the Chinese Vice Premier Hui Liang Yu was announcing a funding facility in Lusaka, Zambia, earlier this month, a Japanese Ministry of Telecommunication delegation led by Vice Minister Morita Takashi was also visiting some African countries in order to convince them to accept telecom investment help from Japan.

The Japanese government wants to help develop the SADC and Comesa member countries' telecom sector by providing both financial and human resources, creating opportunities for Japanese companies to invest in the region and acquire supply contracts.

Angolan Minister of Telecommunication and Media José Carvalho da Rocha said Japan will enable the country to expand telecommunication and other service in the country.

The ability of Asian companies to lower communication costs and take calculated risks in investing in the African region is, however, seen as a significant challenge to European and Middle Eastern companies that have slowed down their investment in the region.