The Confederation of Indian Industry (CII), together with the Indian Ministry of External Affairs and the Ministry of Commerce & Industry, recently emphasized the need for a strengthened trade and investment agreement between India and Africa. This occurred at the 17th CII Exim Bank Conclave on India-Africa Growth Partnership in New Delhi, India. The Vice President of India also visited Senegal, signing three Memorandums of Understanding (MoUs) on cultural exchange, youth cooperation, and visa-free travel.
The CII Exim Bank Conclave: Bridging India and Africa
Estabilished in 2005, the CII Exim Bank Conclave aims to foster cross-border partnerships between India and African countries. Over time, it has shaped policy dialogues and encouraged Indian exporters to access African markets. The conclave has provided a platform for discussing more than 4430 projects and facilitated dialogue with financial institutions in the African region.
India’s Offerings for Africa
India’s development partnership with Africa seeks to facilitate trade, commerce, business, investment and opportunities for Africa’s youth. This includes offering new technologies and drawing on India’s experience with digital revolution to support Africa’s growth. In addition, India’s Startups and technological innovations, such as Unified Payments Interface (UPI) and Open Network for Digital Commerce (ONDC), can greatly benefit Africa.
India-Africa Relations: An Overview
India’s relationship with Africa has seen a surge in high-level engagements over the last eight years. India has extended concessional loans of over $12.3 billion to Africa, and has completed 197 projects so far, with many more lined up. Initiatives range from construction projects in Gambia and Zambia to providing medical assistance to 32 African countries during the Covid-19 pandemic.
Addressing Food Security and Combating Neo-Colonialism
Agriculture and food security present an opportunity for deepened ties, as Africa has significant arable land but a low proportion of global agricultural output. China has been actively investing in Africa, often seen as neo-colonial due to its focus on political influence and resource extraction. In contrast, India prioritizes building local capacities and fostering an equal partnership.
Preventing Global Rivalries in Africa
As various global economic players seek to strengthen their relationships with African states, there is a need to ensure that Africa does not once again become a theatre of rival ambitions. To that end, India and Africa can work together to build stronger financial partnerships and strengthen value chains in agriculture and food processing.
The Way Forward: Enhancing Food and Energy Security
The current global context underscores the importance of food and energy security. With the ongoing Ukraine conflict, India and Africa can collaborate for mutual benefit in these areas. There are also opportunities for strategic convergence, such as the Asia-Africa Growth corridor proposed by both India and Japan.
Further Areas of Cooperation
Cooperation between India and Africa could expand into other significant sectors such as higher education, skill development and strengthening financial partnerships. By focusing on mutual growth and benefits, the renewed India-Africa relations can demonstrate a new model for international engagement.
