Japan is going to open workshops about public debt management in 30 African countries. This initiative is taken by Japan as a measure of their development. The announcement was made on 29th August by Japanese Prime Minister Shinzo Abe. Japan’s partner nations are becoming heavily debt laden due to the unmanageable policies of the financial service provider. And this is causing Japan to prevent starting businesses there. For the next three years, the Japanese government will select 10 African countries each year for holding the workshop.
China’s debt-trap diplomacy was offering promising loans to the African countries in the name of economic assistance. But China was trying to put them in debt due to inconsiderable loan policies. This was threatening the sovereignty of Africa with a serious problem. The Japanese Prime Minister has also announced that a plan to step up assistance in the fostering of human resources and high-quality infrastructure development is differentiating the support measure by Tokyo and Beijing.
Debt problems have remained at large in African countries, as most of the countries are struggling to raise finance for their people. Tricky and mischievous debt consolidation loans are also not able to provide the full benefits. The workshop will help countries differentiate between bad loans like going through FSB Lending Reviews and good loans to get the best loan policy for them. Involvement of Japan will be helpful for Africa and Japan as well. Japan can stabilize its business thereby making some changes in debt management.