India’s trade with Africa nears $100b – External Affairs Ministry

Being the fourth largest trading partner and the fifth largest investor for Africa, India’s trade with the continent is nearing US$100 billion with cumulative investments of over US$ 75 billion.

This, according to the India Ministry of External Affairs, is a demonstration of strong trade ties with Africa and the country’s commitment to help the Global South realized its developmental needs.

Interacting with journalists from 10 Central and West African countries during a familiarization visit, Special Secretary (ER & DPA) at the Ministry of External Affairs, Shri P. Kumaran indicated that “India and Africa share a multifaceted economic relationship and its foreign policy towards Africa is based on four pillars; development partnership and capacity building, trade and investment, strong people-to-people ties, and defence and maritime security”.

Despite its resource constraints, India has been sharing its developmental experiences and technical expertise with other developing countries.

“Over the years, we have utilized this foundation to develop a more comprehensive policy of development cooperation. India’s approach to development partnerships is human-centric and demand-driven, offering assistance while sharing India’s own developmental experience in a wide range of activities” Mr Kumaran highlighted.

So far, over 300 Lines of Credit (LOCs) aggregating to USD 31 billion have been extended to 68 countries in various sectors. Africa’s share is about USD 12 billion, spread over 42 countries.

336 developmental projects have been taken up so far out of which 208 projects have already been completed whilst 85 projects are currently under execution and the remaining projects are in various preparatory stages.

“Some of the iconic assets built in Africa under this modality include the Parliament Building in Gambia, the Presidential Palace in Ghana; the Kosti Power project in Sudan which provides one-third of the country’s power; Upper Ruvu Water Treatment Plant in Tanzania: and several ‘first-ever’ industrial units, such as the first cement plant in Djibouti, the first milk processing plant in Mauritania, and the first sugar factory in Ghana.

“In addition to LOCs, India has supported projects in a number of countries with outright grants amounting to nearly USD 4 Billion”, the Special Secretary disclosed.

India believes that the Global South has to be a much larger and more vocal participant in finding solutions to intractable global issues.

“We have to join hands to pursue comprehensive reform of the international governance institutions and the international financial architecture, including the UNSC, IMF and the World Bank, to promote greater representation from countries of the Global South and effectively empower them to achieve SDGs.”

Mr Kumaran expressed the strong desire by the India government to provide platform for developing countries to unite in addressing their priorities and forging stronger South-South cooperation.

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