Japanese want oil pipeline deal

By Felix Osike in Yokohama, Japan

Two Japanese companies have expressed interest in investing in Uganda’s energy sector.

The Ugandan delegation led by President Yoweri Museveni  to the Tokyo International  Conference  on African Development  taking place in Yokohama met  the representatives  of Toyota Tsusho Corporation and  Marubeni  Corporation on Sunday and discussed the  investment plans.

“Toyota is looking at the pipeline for crude export from Hoima to connect to the South Sudan -Kenya pipeline. They are also interested in geothermal power,” Energy minister Irene Muloni told New Vision on the sidelines of the talks. Uganda plans to build a refinery in western Uganda.

President Museveni told the Toyota officials to invest in agro-processing. Japan on Saturday announced a US $32b package for African development, a move welcomed by over 40 African leaders and hundreds of international NGO’s.

The package  included $2b  as trade  and investment insurance  to protect  Japanese investors  who are weary  of  investing  in Africa  due to poor infrastructure  and a host of other bottlenecks.       
 
At a press  conference  at the end of the meeting, Prime Minister  Shinzo Abe said in his bilateral meetings  with the presidents  he had indicated  to them  to improve the conditions  of doing  business  in Africa.

 “We are asking African governments to create a free, safe and healthier environment,” he stated. But he also asked the Japanese citizens to “re-draw their mental map of Africa,” because “Africa will be a growth centre.”

Muloni said Marubeni Corporation, wants to invest in geothermal power and agro-processing, particularly   in coffee, infrastructure development and minerals.

There are other companies interested in investing in Uganda and they are coming to Uganda in July, the minister explained.

The minister said the meeting  was successful  and  gave an opportunity  to “interact  with the  Japanese  government  and strengthen  the partnership  between  Africa  and Japan.”

Works minister Eng. Abraham Byandala told the New Vision that he was optimistic the new deal announced by the Japanese Premier would   further help develop Uganda’s infrastructure.

He said he would prepare a request to access the funds for the construction on a new Karuma bridge.
Japan is already financing the construction of the new Nile Bridge in Jinja. A state company  Japan  oil, Gas and Metals National  Corporation  has  committed  $2b to African  resources  project over the next  five years.

It is understood  that  following  the Fukushima nuclear  reactor disaster , Japan is shifting  its focus  to  different energy sources and wants  investments  in countries with  vast amounts  of gas  such as Mozambique and Tanzania.

Others on Uganda’s delegation included Foreign affairs minister Sam Kutesa, State minister for international relations Okello Oryem, Tress Bucyanayandi (Agriculture), Amelia Kyambadde (Trade and Industry).

A Declaration and  Action plan  for 2013-2017 issued  at the end of the talks  said  the meeting  had renewed  the twin  principles  of African  ownership and  international  partnership in which TICAD process is rooted.

The meeting agreed to promote private sector led growth, accelerate infrastructure development, empower farmers, promote sustainable and resilient growth and reduce poverty in Africa.

It also agreed to strengthen Africa’s health systems and promote universal health coverage on the continent.

The leaders agreed to resolve cross border issues, such as terrorism, piracy and transnational organized crime.

They also committed to accelerate efforts to achieve the Millennium Development Goals in Africa by 2015, though it was noted most African countries would not meet the targets by then.