INDIA-AFRICA by Atrishekhar Sir
COOPERATION
GEOECONOMIC
TRADE
● 5th largest investor
CHINA’S GROWING FOOTPRINT IN AFRICA
Significance
● Geostrategic - threat of radicalism, piracy
● Geopolitical - permanent seat at UNSC
● Eco- growing middle class, agr land
● Energy security
Concerns
● Modest eco engagement
● Slow project delivery
● Lack of synchronisation
● Lack of resources
● Land grabbing
● Cumbersome bureaucracy
● China launched 'Going Out' policy in 2001
● China is Africa’s biggest bilateral trade partner
● key arms supplier to the Continent
● Increasing Africa’s dependency on China
This is a worrisome issue for India:
How is India's approach for Africa different from China?
● Developing together as equals
● Facilitates local participation
● Capacity building
● Fight against the COVID-19 pandemic
China’s projects in Africa
The four major areas of China’s interest are natural resources, maritime interest, financial assistance and infrastructural projects and infrastructure investment.
• China is also funding $200 million for the construction of the African Union’s headquarters in Addis Ababa.
• It has also made a significant investment in railway building, the Addis-Djibouti railway line connecting the and-locked country with Eritrean ports in the Red Sea.
• China’s interest in Africa is due to the presence of natural resources like oil and coal. It has invested $400 million in the Mombasa oil terminal.
• China is also interested in metallic minerals such as gold, iron ore, and precious stone along with chemicals,oil and natural gas in Ethiopia.
• In maritime interest, China has its military base in Djibouti and is also willing to develop the Eritrea coast
Why is Africa claimed as the “second continent”?
China’s policy of “Going Out”encouraged State owned companies to venture abroad, but fine tuning this policy had led the private companies to gain access to natural resources and continue with the agenda of debt trap diplomacy.
• China’s first military base outside its mainland is in Djibouti.
• China is Africa’s biggest bilateral trade partner - 62% of African bilateral debt is owed to Chinese creditors.
● ‘Kampala Principles
• Chinese economic engagement with Africa is not limited to resources. Although trade in resources such as crude oil and copper account for the bulk of trade between China and Africa, China has sanctioned
infrastructure for resource loans worth billions of dollars. Example: Nairobi Expressway.
• Demand for African exports was one of the most direct channels through which China penetrated Africa.
India prefers to focus on India’s long-term commitment to African development, development cooperation initiatives like Indian Technical and Economic Cooperation (ITEC) and Lines of Credit (LoCs) as well as the need for African votes for a permanent seat in the United Nations.
Europeans termed Africa as a “dark continent” but today world is viewing it as “Continent of hope”
As mentioned by Prime Minister Narendra Modi, India and Africa share an “emotional link” based on our shared history of struggle against colonialism and our aspiration to bring prosperity to our people.
Reducing dependence on gulf for oil & gas-Nigeria is the 5th largest crude oil supplier to India
Agriculture-India has entered into agreements with Malawi and Mozambique for the import of pulses
proposals to create a jointly-owned brand of Africa-Kollam cashews.
GEOSTRATEGIC
UN peacekeeping
Security and Defence cooperation
They have moved joint proposals, such as the Agricultural Framework Proposal and Protection of Geographical Indications, at WTO and World Intellectual Property Organisation
Reform of global governance institutions-
● India is now Africa’s third-largest trade partner.
Faith in Non-Alignment-
Operation Vanilla 2020- It was an Indian operation to provide HADR to Mozambique in the wake ofCyclone Diane INS Airavat (amphibious ship)
Operation Sahayata 2019- It was an Indian operation to provide Humanitarian Assistance and Disaster Relief (HADR) to Mozambique in 2019. Cyclone IDAI
INS Sujata, ICGS Sarathi and INS Shardul undertook HADR
Credit Facilities- India has sanctioned 182 LoC projects in Africa through the Export Import (EXIM) Bank of India, with a total credit commitment of about US$ 10.5 billion
Transfer of Technology-
ASIA AFRICA GROWTH CORRIDORt
Better alternative to BRI-
Japan has agreed to fund in the tune of $200 billion for the growth corridor in Africa.
Asia Africa Growth Corridor (AAGC), an initiative announced in 2017, that is going to be jointly undertaken by India and Japan.
four core areas for this growth corridor
Development cooperation projects
quality infrastructure and institutional connectivity,
enhancing skills and capacity building
people-to-people partnership.
Africa Continental Free Trade Area-
● Trade at $ 98 bn
India-Africa trade of $98 billion in FY22–23 can go up if access to finance through the creation of an Africa Growth Fund (AGF) is ensured.
A special package of measures –
To improve project exports and build up cooperation in the shipping domain has been suggested.
To promote trilateral cooperation and deepen S&T cooperation.
GEOPOLITICAL
It should be strengthened by restoring periodic leaders’ summits through the medium of the India-Africa Forum Summit (not held since 2015).
A new annual strategic dialogue between the chairperson of the African Union (AU) and India’s External Affairs Minister should be launched in 2023.
Forging consensus among G-20 members on the AU’s entry into the G-20 as a full member.
The MEA should have a secretary exclusively in charge of African affairs to further enhance the implementation and impact of the African policy.
Sharpening competition among external powers: Countries such as China, the US, Japan, Türkiye, and UAE are competing for strengthening their relations with Africa to ensure –
Market access,
Gain energy and mineral security, and
Increase political and economic influence.
AFINDEX-19 underscores India’s growing military-to-military ties with a range of African states.
Group of 20 summit in New Delhi in September with the announcement that the African Union would become a permanent member of the group, which should amplify the voice of the Global South.
his move followed on the heels of the decision the previous month by India and the other four current members of the BRICS group to admit Egypt and Ethiopia, along with four other countries, into its ranks.
Africa has a large working-age population, a growing middle class and a wealth of raw materials including gold, diamonds, oil and minerals.
Indeed, India has become the largest supplier of passenger vehicles to South Africa as South Korean and Japanese carmakers assemble vehicles in India for onward export.
India exports food and beverages, petroleum products, pharmaceuticals, machinery and vehicles to Africa.
Over the past decade, India has also become one of the top five investors in Africa, with around $74 billion flowing over to the continent, attracted by rich supplies of crude oil, grain and nuts
Agriculture accounts for around 57% of employment on the African continent.
There is wide scope for India to contribute to the modernization of agricultural infrastructure in Africa, increase agricultural supply chain efficiency and improve productivity
India and Africa can strengthen their agribusiness ties by channeling funds into agrotechnology, which could boost global food security
India produces agricultural inputs like fertilizer, pesticide and seeds, which African countries are keen to access to enhance productivity.
Indian ocean like Indian Ocean Naval symposium (IONS), SAGAR, Indian Ocean Rim Association (IORA).
IVORY TRAFICKING
flagged its concern over the delay in tur (pigeon pea) dal shipments from Mozambique and requested the African nation to expeditiously clear consignments at its ports.
INDIA, MOZAMBIQUE DISCUSS EARLY RESTART OF $20BN LNG PROJECT
ONGC Videsh, the overseas arm of India’s ONGC, and other Indian state-owned energy companies hold a total stake of 30% in the Mozambique LNG project
India, Tanzania elevate ties to Strategic Partnership, to enhance cooperation in Indian Ocean region
Eight foreign countries - Comoros, Madagascar, Maldives, Mauritius, Mozambique, Seychelles, Sri Lanka and Tanzania - participated in the annual Annual Joint HADR Exercise, which concluded in Goa.
CHEETAH DIPLOMACY
India is considering importing cheetahs from northern Africa due to concerns that these big cats from Namibia and South Africa have developed a winter coat in the Indian summer
India has signed an agreement with South Africa to translocate 12 cheetahs (seven male and five female) to the Kuno Palpur National Park (KNP) in Madhya Pradesh
The PM of India released the first batch of eight cheetahs (five females and three males) from Namibia into a quarantine enclosure at Kuno last year.
Egypt is ready to be India’s gateway to Europe, Africa & W Asia: Hossam Heiba, CEO, GAFI
Egypt is located at the crossroads of Africa, Asia, and Europe. This gives it a strategic location for trade and investment. The Suez Canal, which is one of the world's busiest shipping routes, is located in Egyp
INDIA -KENYA
India and Kenya have historical linkages rooted in the well-documented trade in spices.
In addition to being India’s maritime neighbour, it is also a significant stakeholder in determining the geopolitics of the Western Indian Ocean.
India has a long-established connection with the African Union of which Kenya is an active member.
The Kenyan government in 2017, recognized the Indian descent as the 44th tribe in the country.
Also, till date, a total of 14 Kenyan personnel has undergone courses at the National Institute of Hydrography, Goa under the Indian Technical and Economic Cooperation (ITEC) scheme.
India recently handed over 100 nautical charts to Kenya, the result of a collaborative survey between the navies of both countries of the coastal area near the Lamu Archipelago.
From India, the survey was conducted by the Indian Navy's National Hydrography Office.
latest discussions with Kenyan President William Samoei Ruto(dec 2023) Prime Minister Narendra Modi revealed India’s commitment to contribute USD 250 million to modernize Kenya’s agriculture sector
The leaders explored ways to bolster defence ties, enhancing maritime security and jointly tackling piracy, drug trafficking, and terrorism in the Indian Ocean.
MoUs were signed between the open universities of both nations, highlighting collaboration in education. These agreements set the stage for a multifaceted exchange covering cultural, sports, digital solutions, and digital transformation initiatives.
The Kenyan side expressed interest in learning from India in several areas, particularly in fintech, space, the UPI, Aadhaar, and the health space.”
The line of credit is to enhance from the existing 100 million to USD 250,000,000 for the agriculture modernization of Kenya, a customized training program for 20 space scientists of the Kenya Space Agency, which will be done by ISRO, and a geospatial information portal for Kenya, which India will be developing for them.
Kenya is a very strong partner in Africa in the development partnership. The bilateral trade is about USD 3.3 billion. Kenya imports about 1,16,000,000, and the investments from India’s side are about 3.2 billion. About 200 Indian companies are actively present in Kenya
Defence cooperation, maritime collaboration, and hydrography initiatives were highlighted, with ongoing interactions fostering increased Indian investments in Kenya.
India-South Africa Relations
COOPERATION
Exports from India to South Africa include vehicles and components thereof, transport equipment, drugs and pharmaceuticals, engineering goods, footwear, dyes and intermediates, chemicals, textiles, rice, gems, and jewelry, etc.
Import from South Africa to India includes gold, steam coal, copper ores & concentrates, phosphoric acid, manganese ore, aluminum ingots & other minerals.
The leading Indian companies are Wipro, Coal India, Cipla, HCL Technologies, Tata Motors, Zomato, Mahindra and Mahindra, Vedanta, and Motherson Sumi.
India is South Africa’s fifth-largest export destination, and fourth-largest import origin and is the second-largest trading partner in Asia. Both countries are working to boost trade volumes in the coming years.
GEOSTARATEGIC
The Defence Cooperation between India and South Africa officially commenced in 1996 with the signing of an MoU on “Cooperation in the field of Defence Equipment” which was replaced by an MoU on “Defence Cooperation” in 2000.
Indian Naval Ships and Sailing Vessels also regularly make port calls to South Africa.
IN Ships Tarkash and Kolkata visited Cape Town from 1 to 13 October 2018 and participated in the 6th IBSA Maritime Exercise (IBSAMAR).
INSV Tarini visited Cape Town in 2018 as part of Navika Sagar Parikrama.
The South African Army participated in the Multinational Field Training Exercise for African Nations conducted by Indian Army at Pune in March 2019.
GEOPOLITICALGROUPS
India-South Africa global cooperation
India and South Africa have a long history of working together by coordinating their views and efforts in institutions of global governance/multilateral fora, to achieve greater autonomy and ensure that the agenda of the ‘South’ is prioritized.
IBSA dialogue forum
In 2003, India and South Africa signed an agreement with Brazil, known as the Brasília Declaration, establishing “South-South” cooperation, based on the premise of the three nations being regional powers of South Asia, Southern Africa, and South America.
WTO
The declaration also agreed to work towards the U.N. Security Council reforms, and that each party would support the other’s bid for permanent membership with veto rights.
The IBSA Dialogue Forum was created to promote cooperation and consensus on issues of trade, poverty alleviation, intellectual property rights, social development, agriculture, climate change, culture, defense, education, energy, health care, information society, science and technology, peaceful nuclear energy, tourism, and transport.
BRICS
In 2010, the formerly known grouping of BRIC became BRICS with the induction of South Africa.
The BRICS Forum’s valuable contribution to reforming the global financial and economic architecture is well-appreciated by both India and South Africa.
G20
Both India and South Africa recognize G20 as the premier forum for coordination in international financial and economic matters and call upon the world community to utilize monetary, fiscal, and structural reforms to jump-start the global economy.
A tripartite free trade agreement was a united front to present in negotiations with Western countries in the World Trade Organization (WTO).
India and South Africa support WTO as the sole-multilateral mechanism on global trade, and commerce, and in the centrality accorded to the development agenda in the Doha Development Round.
, the Kenyan government expressed interest in joining the International Solar Alliance and the Global Biofuel Alliance.”
LATEST
High-Level Visits: President Droupadi Murmu's state visit to Algeria, Mauritania, and Malawi in October 2024 marked a significant step in India-Africa relations. This visit underscored India's commitment to the Global South and its proactive approach in engaging with African countries to foster mutually beneficial partnerships
Economic Cooperation: India has been focusing on enhancing economic ties with Africa, particularly in the realm of critical minerals. Africa, which holds 30% of the world's known critical mineral reserves, is crucial for India's supply chain.
Strategic Partnerships: India has been working to align its Critical Minerals Mission with African priorities for value addition and responsible practices. This alignment aims to forge mutually beneficial partnerships while supporting Africa's developmental agenda
Diplomatic Engagements: India's External Affairs Minister S. Jaishankar undertook prominent visits to Kenya, Tanzania, and Nigeria during 2023-2024. Additionally, two India-Tanzania-Mozambique naval exercises were held in 2023 and 2024, highlighting the growing defense cooperation between India and African nations
Indian investments in Africa have reached new heights, averaging $26.39 billion between 2018-20222. Bilateral trade between India and Africa reached $98 billion in 2022-23, with significant contributions from the mining and mineral sectors
Trade and Investment: India has significantly increased its trade with Africa, reaching $98 billion in 2022-23. Indian investments in Africa, particularly in sectors like mining, agriculture, and manufacturing, have been substantial.
Critical Minerals: India is aligning its Critical Minerals Mission with African priorities, focusing on value addition and responsible practices. This helps both regions secure essential resources for their industries.
Scholarships and Training: India offers numerous scholarships to African students under the Indian Technical and Economic Cooperation (ITEC) program and the ICCR (Indian Council for Cultural Relations) scholarships. These programs help build human capital in Africa.
Skill Development: India has established vocational training centers and IT centers in various African countries to enhance skill development and employability.
Lines of Credit: India extends lines of credit to African countries for infrastructure projects, including roads, railways, and power plants. These projects are crucial for economic development and connectivity.
Solar Energy: Under the International Solar Alliance, India is helping African countries harness solar energy, promoting sustainable and renewable energy sources.
Medical Assistance: India provides medical assistance and healthcare services through initiatives like the Pan-African e-Network, which offers telemedicine services. Indian pharmaceutical companies also supply affordable medicines to African countries.
COVID-19 Support: During the COVID-19 pandemic, India supplied vaccines and medical equipment to several African nations, demonstrating solidarity and support.
High-Level Visits: Frequent high-level visits and diplomatic engagements, such as President Droupadi Murmu's visit to Algeria, Mauritania, and Malawi in 2024, strengthen bilateral ties and foster cooperation.
G-20 Advocacy: India has advocated for Africa's representation in global forums, including supporting a G-20 seat for the African Union.