In the last few decades, Africa as a region has been a hot topic around the world due to a rush of investments.
in the Middle East. India has also started investing and trading with countries in Africa.
India and Africa are not only close physically and historically, but their interests also overlap in a lot of different ways. Former Indian Vice President Hamid Ansari said, “India shares Africa’s dreams, and cooperation between India and Africa is a real two-way street.”
In the past, ties between India and Africa went through many ups and downs.
After the country got its freedom,
During the process of decolonization, there was unity and support for Africa. African countries helped the Non-Aligned Movement (NAM) and made it stronger. From the 1970s to the 1990s, Africa was ignored because India focused on South Asia and made policies that were focused on India. During this time, India still helped Africa fight against Apartheid.
But until the 1990s, India’s foreign policy and relations didn’t pay much attention to Africa, even though they had a shared history and similar ideas. Since 1990, India’s business sector has put a lot of money into Africa. This is called the “re-engagement” phase.
• The African Union is an international group made up of all 55 countries in Africa.
• It began on July 10, 2002, in Durban. It took the place of the Organisation of African Unity (OAU).
• In 1999, the heads of state and government of the OAU made the Sirte Declaration, which called for the creation of an African Union to speed up the process of integration on the African continent.
• Its main office is in the city of Addis Ababa.
Summit of the India-Africa Forum
• Since 2008, the relationship has been set up in a formal way. In April 2008, New Delhi was the site of the very first meeting of the India-Africa Forum.
• The African Union Commission and the leaders of 14 African countries were there. The India-Africa Forum Summit process, which started in 2008, is a much-needed attempt by governments to give mutual synergies direction and drive. It was a turning point in the relationship between India and Africa.
• In May 2011, the Second Africa-India Forum Summit was held in Addis Ababa. In October 2015, India held the third meeting of the India-Africa Forum.
Africa’s Growth
Africa, which is often called “the last economic Eldorado” because of its fast-growing population, increased income, and untapped mineral and agricultural wealth, has been on the rise because of the following:
1. Stability in politics because of better government;
2. Human resources and more people who want to buy things because the population is growing quickly;
3. More people live in cities;
4. A more skilled and trained work force; and
5. Africa, like India, will stay young in a world that is getting older because of how the world’s population is changing.
How important are ties between Africa and India?
• India and some African countries used to be part of Europe. Slave trade and bonded labourers caused Indian people to live on the continent.
• Nelson Mandela was often called the “Gandhi of South Africa” because he had strong links to India and a lot in common with the “Father of the Nation” of India. The leader of the movement against apartheid had a special connection to India, and he picked the country of Gandhi, whom he called his “political guru” and “role model,” as his first trip outside of South Africa in 1990, after spending 27 years in jail.
• Nelson Mandela got the Bharat Ratna award in 1990, which was before he got the Nobel Peace Prize in 1993.
Geo-strategic
• Terrorism: The fall of Libya in 2010 and the general unrest in North Africa have made the Sahel region unstable. Now, guns, drugs, and terrorist groups are flooding the area. Terrorist groups like Boko Haram and Al-Shabaab have done bad things in Africa. Boko Haram has a strong presence in Nigeria, and it has now spread to the countries nearby. This has led to an alliance of troops fighting the group in the area. India has asked African nations to help with the Comprehensive Convention on International Terrorism (CCIT). Sea Lane of Communication: There are important sea routes that go through Africa. Important choke points include the Strait of Hormuz, the Suez Canal, and others. For Indian trade and business, it is important to make sure that there is freedom of navigation and security in the area.
• India Ocean Region: In the Indian Ocean Region, India and Africa share a large stretch of ocean border. Many of the African countries in the area are important to India from a military point of view. Some East African countries are members of the Indian Ocean Rim Association (IORA). The platform gives people a chance to work together to make the Indian Ocean a more peaceful, safe, and prosperous place.
• Piracy: On the other hand, Africa, especially the Horn of Africa, is very important to India’s security because of how close it is to India. This area is a source of anarchy, piracy, and organised crime, all of which are dangerous. A
A calm Indian Ocean will be good for both of them.
• UNSC: For India to reach its goal of getting a stable seat on the UNSC, it needs the help of African countries.
• Nuclear energy: Uranium is needed to meet India’s energy needs. Namibia is the fourth biggest country in the world that makes uranium. In 2009, India and Namibia made a deal to work together and use nuclear energy for peaceful purposes. As part of this deal, India got a long-term source of uranium to feed its nuclear reactors. But because Namibia is a member of the Treaty of Pelindaba, it could not approve the agreement. Since India is not a member of the NPT, Namibia cannot trade uranium with India. India needs African countries to loosen their adherence to the Pelindaba Treaty, which limits the amount of uranium that can be sent from Africa’s key mining hubs to the rest of the world.
• Mineral Resources: South Africa, Namibia, Zambia, and Tanzania, all of which have a lot of mineral resources, are old friends of India. Africa is an important place for Indian businesses to get the metals they need because it has a lot of iron, copper, zinc, and other metals.
Pelindaba Treaty
• The Pelindaba Treaty, which was signed in 1996, is also called the African Nuclear Weapon Free Zone Treaty. Its goal is to stop the spread of nuclear weapons and stop the free export of vital minerals from Africa.
Economic
• Business and money:
India is the fifth largest investor in Africa. In the past 20 years, it has put $54 billion, or 19.2% of Africa’s foreign direct investment, into the continent.
China’s generous grants and aid to economic growth have made it easy for its government-owned and private companies to take over most of the industrial minerals and energy resources in many African countries.
Indian trade and investment in Africa could be boosted by the pharmaceuticals, information and communications technology (ICT) and services, car, and power sectors. In 2017-18, two-way trade was worth $62 billion, and the goal of reaching $100 billion is still a long way off.
• The large number of people in Africa makes it a good place for trade and investments under ‘Make in India’.
• Africa can help India’s energy sources become more diverse, which is one of the goals of our Integrated Energy Policy.
• Mozambique and Ethiopia, both in Africa, help India meet its needs for beans.
• Africa has a lot of farmland that can help India make sure it has enough food. India is thinking about renting land in Africa to make up for the fact that we don’t have enough land that can be used to grow crops.
• As Africa develops, it needs help from other countries that will help it grow instead of serving their own needs and encouraging unethical behaviour. Compared to the United States or China, Africa would be more likely to choose India.
• WTO: A universal, multilaterally negotiated, rules-based global trade system under the WTO is best for the economic interests of India and African countries. Both sides need to work together to find ways to finish the Doha round and keep the world economy from breaking up.
Geopolitical
• Through UN Peace keeping operations, India has done a lot to help keep peace and security in African countries. India helps African countries improve their ability to do things.
• Africa can speak up for the needs of developing and least developed countries at international climate change conferences and business summits through groups like BRICS and IBSA.
• India’s help for Africa: With its help, India needs to jumpstart the building projects that are already going on in Africa.
• Because India is a peaceful, democratic country, it can help African countries set up stable governments.
Soft Power
• India has a lot of “soft power” throughout the continent. It is made worse by the fact that there are Indians living in places like Mauritius.
• This helps build trust between countries and makes it easier to work on projects together.
• 90% of Africa’s informal sector workers are women. They mostly work in education, health care, and educational services.
• India’s work in these areas as part of the AfCFTA would improve the image of its brand across the continent.
Common Agendas
• Most African countries are developing in the same way that India is, so they understand each other on a number of problems.
• India and Africa agree on things like how to change the UN Security Council, how to deal with climate change, trade issues, and WTO talks, among other things.
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China in Africa
• There isn’t much competition between India and China in Africa in terms of trade and business. In 2014, China did $200 billion worth of business with Africa. India did $70 billion worth of business with Africa.
• Beijing makes frequent trips to resource-rich countries to talk about big trade, aid, and investment deals. It also has a nearly unmatched ability to offer cheap financing and cheap labour for building projects.
• China has helped the oil and mining industries in Africa in return for good trade deals. Chinese companies are also expanding their business interests in infrastructure, manufacturing, technology, and agriculture in Africa.
• After the Middle East, Africa, especially Angola, the Republic of Congo, and South Sudan, is China’s second biggest source of crude oil imports.
• Beijing’s business goals in Africa have changed over time. China has been involved in the energy, mining, and telecommunications industries, and it has paid for the building of roads, trains, ports, airports, hospitals, schools, and stadiums. With state and private money, tobacco, rubber, sugar, and sisal farms have also been set up. As part of its “going out” or “going global” plan, China had to break into new markets for its consumer goods and excess industrial capacity because of its own economy.
• Even so, China’s position in Africa has caused some trouble. Some governments have tried to stop China from building things. Problems range from not following safety and environmental rules to doing business in an unfair way or breaking local laws.
Present Status of India’s Presence
• China has been involved in Africa’s infrastructure, mining, oil, and natural gas industries for a long time. India, which got involved later, has worked through training, education, and capacity-building projects, which the countries have been very happy with.
In the last 15 years, trade between India and Africa has grown by 20 times and is now worth $70 billion, according to the government. About $ 30-35 billion is invested by India in Africa.
India has given $ 7.4 billion in interest-free loans, of which $ 3.5 billion have been paid out. With the help of the loan lines, 137 projects have been started in 41 countries.
In 48 African countries, a Pan-African e-Network for education and health is up and running. India has given 40,000 grants to African countries since 2008.
• The Union Cabinet just decided that 18 new Indian missions will open in Africa over the next four years, from 2018 to 2021. People think that this will help India and Africa get along much better.
• India had offered LDCs in Africa duty-free, quota-free entry.
• More interaction between people, as shown by the growing number of medical tourists, students, trainees, and Indian business owners and experts.
• Project “Mausam,” which aims to restore lost connections with the “world” of the Indian Ocean (East Africa, the Arabian Peninsula, the Indian subcontinent, and Southeast Asia), also aims to strengthen cultural ties between India and East Africa.
• The India-Africa Forum Summit (IAFS) process has also made it easier for people to get in touch with each other and learn about their cultures.
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Challenges and Opportunities for India
Challenges
• On paper, India invests more than $50 billion in Africa, which is almost twice as much as China. However, 90% of that money goes to Mauritius and is then sent back to India to avoid taxes.
• Indian companies are also worried about spending because their growth is slowing and many of them have dangerously high amounts of debt.
• There is almost no connection between cities in India and cities in Africa. People-to-people connections, which are a weak link in the growing relationship between continents, will be strengthened by better communication.
• India needs to deal with the worries of Africans who think that investments by Indian companies are the same thing as colonisation. E.g. Deals on land in Ethiopia
• Racial Attacks: Attacks on Africans because of their race have hurt India’s reputation a lot. If nothing is done, this could cause trouble between India and Africa and hurt the good relationship India has with the region right now.
• Africa is now the main focus of India’s foreign policy, but it is not the main focus. This is because India is working more and more with the US, the EU, and its Asian neighbours on economic and security issues.
• When it comes to diplomacy with checks, India can’t match with China or the U.S. Under IAFS, some of Africa’s countries, even the wealthier ones like Nigeria, want India to bring them gifts. However, India asserts for joint endeavour for better growth.
• Even though India has made promises, it has problems with low rates of payment and slow service.
• India doesn’t take care of the middle and end stages of the delivery process. Instead, it relies on international organisations like the African Union. Even though India gives money and technology to a project, it loses respect because of this.
• India did a lot more to help with Ebola than other countries, but they didn’t talk about it. Most of India’s help came through multilateral platforms and was given in small amounts.
• India’s role in keeping the peace in Africa: 80% of India’s peacekeepers are serving there right now, and 70% of all deaths have happened there. India’s military involvement and help for Africa are built on UN missions. But there are more and more arguments about how effective these projects are and what India gets out of staying involved.
• People question the troops’ ability and desire to protect human lives. Developing countries, which send most of the troops, complain that they are not taken into account enough when military plans are made.
Opportunities
• Africa isn’t just about its riches anymore. In its “Lions on the Move” study from 2010, McKinsey found that in the first decade of the 21st century, rising consumer spending helped African economies grow more than the commodities boom of that time. This is one reason why the World Bank and other organisations are still hopeful about Africa’s economic growth, even though the “commodities super cycle” – the long-term drop in commodity prices, especially oil – has ended.
• Indian companies have put a lot of money on Africa’s growth. Many big Indian companies, like Bharati Airtel, have already invested in opportunities in Africa. Despite what most people think, India is actually ahead of China when it comes to private business investment. A new report from the African Development Bank says that the number of “greenfield” projects funded by investments from India is twice as high as the number of “greenfield” projects funded by investments from China.
• Business-to-business ties between India and a number of African countries, including key economies in the eastern, southern, and western parts of Africa, are becoming more important and are driving the relationship between the two countries’ governments.
• In 2009, India’s investments made up 6% of all Greenfield projects in Africa, while China’s investments made up only 3%. • Investments from Europe and North America still make up over 50% of Greenfield projects in Africa. However, their share has been going down over the years, while investments from China and India have been going up.
Other Forums of Cooperation
• BRICS: The participation of the BRICS countries in Africa is quickly changing the way Africa interacts with the rest of the world. “BRICS’ engagement with Africa is not a single act of goodwill; it makes perfect economic and strategic sense,” says the Goldman Sachs Report.
• Asia-Africa Growth Corridor (AAGC): The Asia-Africa Growth Corridor is an economic cooperation deal between India and Japan. Its goal is to help Asia and Africa improve their social and economic situations. The goal of the Asia-Africa Growth Corridor is for India and Japan to work together to improve infrastructure and internet connectivity in Africa.
• AAGC vs. OBOR: India is worried about China’s One Belt, One Road (OBOR) project, but the Asia-Africa Growth Corridor is designed to be more open and inclusive. It will be based on more consultations and put people at the centre, not just trade and economic ties.
• Climate Change: If nothing is done to adjust to and reduce the effects of climate change, it will hurt African countries and India. To meet the INDCs, there needs to be cooperation in foreign forums to get enough money and transfer of technology.
• Solar energy: On November 30, 2015, at the UN Climate Change Conference in Paris, the International Solar Alliance (ISA) was formed. The ISA is meant to be a group of countries that have a lot of solar resources working together to meet their unique energy needs. It will give them a place to work together to fill the gaps they’ve found using a common, agreed-upon method. The International Solar Alliance (ISA) created a partnership between India and Africa to share the latest technology in renewable energy and bring power to the most remote parts of Africa.
• Science and technology: At the India-Africa Forum Summit in 2008, India promised a lot of money to help Africa improve its science and technology. Under the India-Africa Science and Technology Initiative, the Department of Science and Technology is running a number of courses and events. The CV Raman Fellowship for African researchers was started in 2010 with the goal of giving them the chance to work with famous Indian experts on science and technology research in Indian universities and institutions.
• Agriculture: In places like Angola and Cameroon, ICRISAT has set up agri-business incubators and value-chain incubators. Agriculture partnership between India and Africa is led by the International Livestock Research Institute (ILRI).
Way Forward
• The India-Africa Forum Summit (IAFS) needs to make better use of two strong assets that haven’t been used much so far: the strong business sector in India and the large Indian community in Africa.
• There are a lot of ways to improve the last mile of the delivery chain to make sure that it works. For example, the $150 million Pan Africa e-Network project didn’t get much attention because the real providers didn’t have a reason to work on it.
• India needs to work harder to let its African friends know about what it has done. (Example, in Ebola situation). It would be good to have a system that is better organised, more coherent, and can react more quickly, along with the right media campaign. To this end, having an Indian TV station for African countries that is focused on making money could be a good start.
• India and Africa need to have a serious talk about what will happen to UN peacekeeping activities in Africa. Criticisms like not protecting people or claims of wrongdoing and corruption need to be dealt with straight on. Discussions should centre on what can be done to make peacekeeping missions more successful overall.
• India should think about giving African countries more security help. At the Africa-India Forum Summit in 2011, India said that it would give $2 million to Amisom, the African Union Mission to Somalia. This should be raised by a lot, especially since this mission involves a lot of intense combat. India should also improve the military training teams it has in Botswana, Zambia, Lesotho, and the Seychelles. It should also try to include other countries that show interest.
• The Indian government should also pay attention to the attacks on African people in India and do something about it.
Conclusion
• The different ways in which Africa has grown and changed since the end of the Cold War in terms of its economy and politics have given Indian diplomacy and business new possibilities.
• It’s true that other growing and big powers are also working hard to connect with an ambitious Africa. This means that India needs to take care of the chance it has and put a lot of money into it at all levels.
