(1) Ghana's Position in Japan's ODA

Japan is providing assistance to Ghana, taking into account the following factors.

Ghana is the 22nd largest recipient of Japanese bilateral aid (based on cumulative net disbursements up to 1998) and the third largest in Africa. In addition, Japan is the largest aid donor to Ghana (as of 1997).

(2) Priority Areas for Japan's ODA

On the basis of studies and research concerning development conditions and tasks in Ghana and its development plans as well as policy dialogues between Japan and Ghana, including the High-Level Mission on Economic and Technical Cooperation sent to Ghana in March 1995 and subsequent policy dialogues, Japan has given priority to assistance in the following areas.

(3) Matters for Consideration

• Ghana seems to be proceeding relatively smoothly with structural adjustments. Its economic infrastructure is, however, still fragile, and Ghana's foreign currency holdings have decreased, due to susceptibility of the country's agriculture to weather conditions, a drop in hydroelectric power generation due to a lack of rain, and foreign debt repayments. The implementation of assistance at the macro level should encourage Ghana to make further self-help efforts to reduce its dependency on primary sector products and to improve its debt situation.
• Cooperation promoted under the Tokyo Initiative of the TICAD II talks held in Tokyo should be implemented, and the regional cooperation discussed in the initiative in terms of examining the implementation of projects that benefit not only Ghana but the whole West Africa region.

(1) Major Economic Indicators

(2) Current Situation

Ghana is said to be the sub-Sahara African country where structural adjustments have been most successful, as seen in the economic reforms achieved through structural adjustments since 1983. This suggests that the country has sustained generally favorable economic growth. However, many problems remain in Ghana, including an inefficient public sector, high inflation, a high dependency on foreign aid, and poverty.

(3) Tasks to Be Addressed

• Implementing fiscal reform, reducing the country's high level of foreign debt and controlling inflation
• Furthering deregulation in certain sectors such as cocoa production, reforming the public sector and building the investment environment
• Upgrading the economic infrastructure and nurturing industry, which provide the base for sustainable economic growth
• Enhancing social services, including the water supply, education, and health and medical services
• Controlling population growth and implementing AIDS prevention measures
• Developing human resources to provide a solid base for economic and social development
• Improving agricultural productivity to achieve a stable food supply and enhancing post-harvest sectors (food storage, distribution and processing)

(1) Japanese Assistance

(2) Assistance from DAC Countries

(3) ODA from International Organizations

(1) Kenya's Position in Japan's ODA

Japan is providing assistance to Kenya, taking into account the following factors.

Kenya is the 11th largest recipient of Japanese bilateral aid (based on cumulative net disbursements up to FY1998) and the largest recipient in Africa. In addition, Japan was the largest aid donor to Kenya in 1997.

(2) Priority Areas for Japan's ODA

On the basis of studies and research concerning development conditions and tasks in Kenya and its development plans, as well as policy dialogues between Japan and Kenya, including the High-Level Mission on Economic and Technical Cooperation sent to Kenya in January 1994 and subsequent policy dialogues, Japan has given priority to assistance in the following areas.

(3) Matters for Consideration

• From the perspective of making effective and efficient use of limited assistance, the following six points are important for the implementation of aid:
  i) Japanese ODA should benefit the poor directly;
  ii) assistance should support political and economic reform;
  iii) assistance should promote intra-regional cooperation (South-South cooperation);
  iv) there should be cooperation among donors;
  v) assistance should be of a general nature (cooperative or field-specific);
  vi) private sector investment and political and economic reform should be promoted.
• To support political and economic reform, improvements in economic governance, especially in terms of corruption and ineffective public investment, are vital. Japan will further promote assistance in this field with a view to improving the administrative capabilities of the Kenyan government.
• Cooperation under the Tokyo Initiative of the TICAD II talks (held in Tokyo in October 1998) should be implemented. As discussed in the initiative, there is a need to examine how to implement projects that will serve to benefit Kenya as well as the greater East Africa region.

(4) The Situation Regarding the ODA Charter

Due to the slow progress of democratization and economic reform in Kenya and the prevalence of corruption, Japan and other donors suspended their balance of payment support assistance in November 1991. In light of subsequent progress in democratization and economic reform efforts, however, this assistance was resumed in 1993. It is praiseworthy that, though they were subject to some confusion, the presidential and parliamentary elections at the end of 1997 ended, as a whole, in a peaceful manner. Japan should, however, provide assistance that directly benefits the poor, bearing in mind the goals of eradicating corruption and securing law and order, both of which have long been tasks; Japan should also continue to pay attention to Kenya's self-efforts with respect to transparency in aid implementation.

(1) Major Economic Indicators

(2) Current Situation

Improvements are being made with respect to Kenya's fiscal and trade deficits, but the country must overcome its enormous foreign debts before it can achieve sustainable growth. Kenya has implemented structural adjustments in the areas of agriculture, industry and finance with help from the World Bank and the IMF. Due to the slow implementation of economic reforms, the IMF and the World Bank have suspended financing for structural adjustment since the latter half of 1997, with a few exceptions. Support from donor countries in the form of financial assistance has also been suspended. Moreover, a slump in the country's main two industries, agriculture and sightseeing, have also taken their toll on the Kenyan economy.

(3) Tasks to Be Addressed

• Improving the balance of payments through the cultivation of export industries, controlling inflation, and making public expenditures more efficient
• Promoting deregulation and other aspects of economic liberalization, promoting the privatization of public corporations and creating jobs
• Promoting human resources development, beginning with primary education
• Boosting agricultural productivity to achieve a stable, self-sufficient food supply
• Upgrading the economic infrastructure to promote the industrial economy and social development
• Bringing the high population growth rate under control and alleviating poverty

(1) Japanese Assistance

(2) Assistance from DAC Countries

(3) ODA from International Organizations

(1) Senegal's Position in Japan's ODA

Japan is providing assistance to Senegal, taking into account the following factors.

Senegal is the 28th largest recipient of Japanese bilateral aid (based on cumulative net disbursements up to 1998) and the fifth largest in Africa.

(2) Priority Areas for Japan's ODA

On the basis of studies and research concerning development conditions and tasks in Senegal and its development plans, as well as policy dialogues between Japan and Senegal, including the High-Level Mission on Economic and Technical Cooperation sent to Senegal in March 1995 and subsequent policy dialogue, Japan has given priority to assistance in the following areas.

(3) Matters for Consideration

• In order to make assistance more efficient and effective, further promote structural adjustments, stabilize the macroeconomy, raise living standards, and ultimately achieve sustainable economic growth, it is essential for Senegal to make self-help efforts to lessen its dependency on aid.
• Cooperation with other major donors such as France.
• Careful consideration of new ODA loans to Senegal, as the Paris Club debt reduction measures (Naples scheme) apply to the country.
• Implement the cooperation promoted under the Tokyo Initiative of the TICAD II talks (held in Tokyo in October 1998).
• Pay attention to the armed independence movement in the south.

(1) Major Economic Indicators

(2) Current Situation

Senegal has been engaged in economic restructuring and structural adjustments since 1979, with help from the World Bank and the IMF. Because of the country's efforts to control inflation, devaluing of the CFA franc in January 1994 and by implementing economic reforms, including efforts to restore the country's international competitiveness, macroeconomic indicators are steadily improving. Senegal is currently working to upgrade its economic infrastructure in a way that will lead the upward moving economy toward sustainable growth.

(3) Tasks to Be Addressed

• Promoting economic liberalization such as deregulation, promoting privatization of state-owned enterprises and upgrading the investment environment
• Enhancing social services, including the water supply, education and health and medical services
• Controlling population growth
• Developing human resources to provide a solid base for economic and social development
• Improving agricultural productivity to achieve a stable food supply and enhancing post-harvest sectors (food storage, distribution and processing)
• Upgrading the economic infrastructure that provides the base for sustainable economic growth
• Promoting environmental conservation, including soil and forest conservation, for sustainable development

(1) Japanese Assistance

(2) Assistance from DAC Countries

(3) ODA from International Organizations