In the recent years Africa has become the centre of word’s attention. This began with the former British Prime Minister’s defining speech on the “state of Africa being a scar on the conscience of the world” and his attempt to erase the scar through the lofty promises of high powered Blair commission towards debt relief and increase in aid for Africa. President Bush also discovered that Africa has entered the strategic space as far as the United States was concerned. The establishment of the US military’s Africa Command (AFRICOM) is an indication of the merging importance of Africa from Washington’s perspective. The Chinese have been engaging African countries in a big way, the November 2006 Sino-Africa summit that brought together 47 African presidents to Beijing indicated that Chinese were very serious about doing business with the continent In February 2007 the Chinese President Hu Jintao wrapped up a tour of eight countries in Africa promising enormous aid packages. This Chinese interest in Africa is reflected in the phenomenal growth of trade with Africa from &6.5 billion in 1999 to $40 billion in 2005.
This renewed interest towards the African continent, that has been in past been viewed through the prism of conflict, poverty, disease and corruption is due to a combination of factors. First, on the political front there has been an end in sight of some of the debilitating conflicts that have ravaged the continent. The conflict in Democratic Republic of Congo often referred as Africa’s world war, has abated considerably with new government in place after UN supervised elections. Similarly Rwanda, Sierra Leone, Liberia and Ivory Coast have moved out of the conflict zone. In Sudan after years of negotiations the comprehensive Peace Agreement (CPA) was signed between southern rebels and the Sudanese government in 2005. Currently a government of national Unity (GUN) is in place. At the same there is a move towards Africans taking charge of their own destiny. This is reflected in the African Union’s steps towards conflict resolution. The continent is also embracing the value of democracy and good governance. Around two thirds of the African states have conducted multi-party elections in the recent years. Similarly 24 countries have taken their promises of good governance seriously and signed up for the African Peer Review Mechanism (APRM) that is an offshoot of the new partnership for Africa’s Development (NEPAD) initiative launched by the African countries in 2001.
Second, economically there is a transformation underway in the continent. Around 20 countries have averaged a growth rate over five per cent during that past decade. According to the latest IMF World Economic Outlook the average growth rates for Sub Saharan Africa are poised to accelerate to 6.1 percent in 2007. While the rising crude oil and other non-fuel commodity prices may explain the high growth rates of some of the economies, the implementation of radical structural adjustment programmes mandated by the IMF may be the real factor for the steady performers.
India-Africa Ties
In this backdrop what is happening on the India Africa front? India’s ties with Africa were rejuvenated with the recent high level visits to Africa. External Affairs Minister Pranab Mukherijee visited Ethiopia in August 2007 followed by the visit by leader to the burgeoning trade between the two regions. India’s bilateral (non-oil) trade with Africa has grown from &967 million almost 10 fold in 1990-91 to 9.14 billion in 2004-05. Exports during this period have increased form a mere $394 million to $5.4 billion, while imports have risen from $573 million to 3.8 billion. What is important to note is that Africa’s share in India’s total exports has trebled from 2.2 percent to 6.8 percent while continent’s share of our total imports has also gone up form 2.4 percent to 3.5 percent yielding a substantial balance of trade surplus in the process. Equally encouraging is the sharp acceleration in India’s exports in the last few years, growing by 23.2 percent in 2003-04 and by as much as 39.1 percent in 2004-05. These positive trends continued during the first quarter of 2005-06, with India’s exports to Africa rising by as much as 63 per cent and imports by 35.5 per cent. More importantly, during 2005-06, India’s exports to Africa grew at a faster pace than that to other regions of the world. South Africa and Nigeria are our largest trading partners in Africa, followed by Egypt, Kenya, Sudan, Togo, Mauritius, Algeria, Ghana and Tanzania.
The expanding Chinese presence in Africa has led to speculation in some quarters that India has lost the race in Africa. In fact there is a growing discourse on the ‘competition between India and China’ in Africa, a scramble primarily for Frican resources. However, this attempt to relate India’s relations with Africa through Chinese prism is somewhat problematic.
India and Africa have a relationship that can be traced back to the ancient times. The contact and trade between the people of the eastern seaboard of Africa of the western seaboard of the India has been going on for centuries. During the colonial period, colonial India was allotted the role of supplying middle level services such as ‘duka’ trading and junior level technical, clerical and administrative services apart from providing indentured labour. The arrival of Mohan Das Karamchand Gndhi in South Africa in 1893 and his subsequent launching of innovative instruments of liberation struggle like “Satyagraha” placed India-Africa linkages into an a binding bond of special relationship. Right form the sixties the effort has been to assist African countries in their development through capacity building. In the post independence period there have been two main strands of India’s policy towards Africa. First was that of showing solidarity with the anti apartheid struggle in Africa. Successive Indian governments form the days of Jawaharlal Nehru have consistently championed the cause of Africa’s liberation in various international for a a like the United Nations, the commonwealth and the Non-Aligned Movement. Apart from diplomatic support, India also provided financial and material aid to the liberation struggles in Africa. Though not directly but through multilateral institutions like the OAU, UN fund for Namibia, UN Educational and Training programme for South Africa and finally through the Action for Resisting Invasion, Colonialism & Apartheid (AFRICA Fund). AFRICA Fund was established by NAM under Prime Minister Rajiv Gandhi’s leadership in 1986 to assist the frontline states and liberation movements in South Africa and Namibia. Second and more important was to forge technological cooperation with the Africans. The foundation of this policy was laid with the launching of Indian Technical and Economic Cooperation programme (ITEC programme) in 1964. The South-South cooperation encouraged by this programme was based on the philosophy that India could provide the intermediate technology “the missing middle” to the African and other developing countries. India has the advantage to providing technology that was affordable, adaptable and easily accessible to the African countries.
In the post cold war era with the end of apartheid in South Africa, one of the major rationales of solidarity no longer exists. The shared ideologies of Non Alignment and disarmament through still advocated are no longer the rallying points of interaction. In the current era India’s ties with the African countries appear to be composed of following mantras:
Promoting techno – economic partnership
Preserving Peace
Promoting Techno-Economic partnership
One of the important pillars of India’s techno economic partnership with Africa is capacity building. India recognizes Africa’s focus on human resources development on overcome the gap for development in indigenous capacities. Africa today is the largest recipient of India’s technical cooperation programmes and we have so far extended more than US$ 1 billion worth of such assistance including training, deputation of experts and implementation of projects in African countries. Over 1,000 officials form Sub Saharan Africa receive training, deputation of experts and implementation of projects in African countries. Over 100 officials form Sub Saharan Africa receive training annually in India under the ITEC programme. Annually over 15,000 African students study in India and Indian engineers, doctors, accountants and teachers are present all across Africa. India is also the member of the African Capacity Building foundation (ACBF). In 2005, India became the first Asian country to become the full member of the ACBF with a contribution of US $1 million for building capacity for sustainable development and poverty elevation in Africa. India has also offered capacity building support to the African Union and to regional communities with several of whom we have MOUs for cooperation. India has allocated 10 slots in the year 2006-07 of the ITEC programme to the AU personnel.
Apart from offers of transfer of technology and management skills, India also provides confessional credit to the African countries. Many India initiatives to enhance economic cooperation have been through the extension of lines of credit at bilateral, regional and Pan-African level.
AT present, nearly $2 billion in Indian lines of credit is operating in Africa either through bilateral, regional or Pan African institutions. In 2006, EXIM bank, which is the main functionary for Indian lines of credit in Africa, has extended 46 lines of credit to various countries and institutions in Africa.
At the Pan African level India is a member of the African Development Bank and the Afri-EXIM bank through whish an Indian Trust fund, and an Indian line of Credit, respectively operates to achieve developmental goals in Africa. At the regional level, India has lines of credit available with the East Africa Development Bank, the PTA Bank for the COMESA region, West African Development Bank (BOAD) and most recently a line of credit of $250million to the Economic Community of West African States (ECOWAS) Development Bank in West African region. Further India launched the Techno-Economic Approach for Africa India Movement (TEAM 9) between India and eight West African countries in 2003. This initiative was launched primarily to cover the gap that India has traditionally have with certain West African countries. Under this initiative US$ 500 million was committed for project partnership with countries in Central and West Africa. At the bilateral level lines of credit have been extended to Kenya, Tanzania, Mozambique, Zambia, Namibia, Ethiopia and others. These lines of credit have focused on project partnership and have let to the development of entrepreneurship and employment opportunities in several African countries. These have included projects in telecommunications, railways, transport, power, food processing, pharmaceuticals and related sectors.
Information and communication technology (ICT) is another area of Indian partnership with Africa. Software production is the new mantra of Indian excellence. Only half million Africans have access to the net, and therefore there is a pressing need to narrow the “digital divide”. The Economic Commission of Africa (ECA) has launched an initiative to accelerate the adoption of information systems in Africa. There is limited pool of expertise in this area in Africa. India has provided assistance to countries like Mauritius and South Africa to develop their software hubs.
The Pan-Africa e network costing about $100 million is a project that adds anew dimension to the partnership between India and Africa. The initiative for setting up this initiative was announced by then president A P J Abdul Kalam during as address to the Pan African parliament in South Africa in September 2004. This project aims to provide prototypes for tele-education and tele-medicine in all 53 members of African Union. It would also set up a network providing video conferencing facilities for the 53 heads of states/governments. The AU has designated Senegal to be the satellite hub for the entire project.
Energy cooperation is a prominent area of partnership between India and Africa. In words of former President Kalam: “Energy independence has to be our nations’ first and highest priority.” At preset India is the sixth largest energy consumer in the world and is projected to emerge as the fourth largest consumer after the United States, China and Japan, by 2010. its economy is projected to grow 7%-8% over the next two decades, and in its wake will be a substantial increase in demand for oil. For more than a decade, India’s energy consumption has grown at a faster pace than its economy and it appears this trend will continue. Moreover even if India reduces the use of oil in the transport sector shows no sign of abating. Due to stagnating domestic crude production, India imports approximately 70% of its oil. Its dependence is growing rapidly. The world Energy Outlook, published by the International Energy Agency (IEA), projects that India’s dependence on oil imports will grow to 91.6% by the year 2020. India’s growing energy imports. Recently Oil Natural Gas Commission (ONGC) has identified 22 countries across the world to pursue exploration, production, pipeline transpiration and refining hydrocarbons.
India has recognized the energy potential of the African countries and has therefore worked towards cooperation in this vital area. Around 24% of India’s crude oil imports are sourced form Africa (including the North African countries). The Oil and Natural Gas Corporation Videsh Limited (OVL) has invested in assets in Sudan, Ivory Coast, Libya, Egypt, and Nigeria, Nigeria-Sao tome Principle Joint Development Area and Gabon. The OVL invested $750 million to acquire the 25 percent partnership in the Greater Nile Petroleum Company (GNOP) in Sudan in March 2003. As of now, India gets 3.23 million tones of equity oil in Sudan. India has recently completed a 200 million dollar pipeline project to lay a pipeline from Khartoum to Port Sudan on the Red sea. It is also negotiating with Chad, Niger and Angola. Recently in a strategic move to achieve down stream assets abroad, the Reliance industries acquired a majority stake in management and control in an East Africa based oil retail distribution company Gulf Africa Petroleum Corporation (GAPCO). GAPCO owns storage depots all over East and Central Africa and operates terminals in Kenya, Tanzania and Uganda.
Agriculture is an important area of cooperation between India and Africa. African leaders often quote the example of India’s green revolution and its self sufficiency in food production. India success in agricultural sector can help in developing the African potential. Opportunities of collaboration between India and Africa exist in agricultural research, crop varieties that require less water, eco-friendly fertilizers, high tech agricultural and soil and water management. In March 2007 India organized an India-Africa Agro food summit. The main aim of this summit was to enhance the partnership between India and Africa in the field of agriculture through trade, joint ventures and investments. Apart from joint ventures the Africans have also expressed interest in inviting Indian farmers to till the lands in Africa particularly Kenya and Uganda. The African leaders have realized that India’s skilled and innovative farmers can contribute to the prosperity of the region.
Preserving peace
India a has supported peace in Africa through contribution to UN Peacekeeping during the last fifty years. Presence of Indian peacekeepers in Africa indicates India’s commitment to support any process aimed at bringing peace and development to the continent. India has a long and distinguished record in United Nations (UN) peace keeping, participating in most of such missions since 1950, in Africa under in the last decade.
Mozambique (ONUMOZ, 1992) India provided a large contingent of staff officers, military observers, independent headquarters company and engineer and logistics company
Somalia (UNOSOM, 1993-95, UNOSOMII), Considered one of the most challenging UN Peacekeeping Operation Indian Naval Ships and personal were involved in patrolling duties off the Somali coast, in humanitarian assistance etc. UN SOM II operation involved peace enforcement.
UNAMIR (Rwanda, 1994), provided an infantry battalion and support element to the UN assistance mission in Rwanda to help ensure security for the refugees and to create conditions for free and fair elections.
UNAVERM, MONUA (Angola, 1995) India has provided contingents for successive Angolan UN peacekeeping missions. We had contributed one infantry battalion, and engineering company and military observers.
Sierra Leone (UNAMSIL, 1999-2000) India contributed largest number of troops till date, a very challenging operation as was witnessed under “Operation Khukri”.
Ethiopia-Eritrea (UNMEE): India contributed 1, 300 troops
Democratic Republic of Congo, Liberia and Sudan: Presence of Indian peace-keepers.
Another plank of India’s Africa policy has been providing military to officers of the African defense forces. The motive was not purely engaging the African armed forces, but as a symbol of brotherhood with the African nations. Most of the African countries lack military training institutions and therefore the officers are often sent abroad either to the military colleges of the former colonial powers or friendly countries in the developing world. Since the 1960s, India has provided military training to number of Africans primarily form the Anglophone Africa. During the last decade and a half around 1000 officers from 13 African countries were provided training by the Indian army.
India’s support to the NEPAD initiative is another step indicative of its efforts to assist Africa achieves its target of sustainable peace. The NEPAD initiative promotes a new partnership in which African leaders accept responsibility and accountability for doing what is right to restore peace and political stability on the continent.
Finally, in the recent years there has been an upswing in Chinese interactions and trade with Africa. Nevertheless, while admitting the gains of trade with Africa, the African nations are gradually realizing that China is both an opportunity and threat. A threat particularly to the local industries that have been hard hit by the flood of cheap Chinese imports particularly in the textile sector. Across the continent traditional products and retailers have been edged out by the Chinese businesses. Also the use of Chinese contract labour rather than local Africans has sparked anger in Africa. Thus China’s mercantilist approach has left many Africans disenchanted.
In comparison to China, India’s interaction with Africa, in quantitative terms is quite low. The bilateral trade between India and Africa stood at $9.14 billion in 2005 while with China it was $40 billion. However India scores better in terms of the image and goodwill it generates through its capacity building programmes which focus on development of indigenous human resources and institutions on the African continent. India has shared a special relationship with the Africans. Africans acknowledge that India’s all round development is a source of inspiration for them. Within the last decade India has emerged as the fourth largest economy of the world after the US, China and Japan in the purchasing power parity terms. In more absolute terms, as the national Intelligence Council (NIC) in the US underlined recently, India will begin to overtake all the Western nations except the US and China by 2020 in economic size. The African countries want to emulate the Indian model of development. Thus there is a lot of goodwill for India in Africa, clearly the responsibility lies with India that this partnership is an enduring one.
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