Areas of involvement in contemporary times
1] Economics and Trade
2012 – $70bn
2015 – $54bn
China > $200 bn
EU ~ b$450 bn
There is ample scope for India to increase its trade to $100bn.
ONGC Videsh has invested $6bn (10%) in Mozambique oil fields.
2] Energy Security
India can diversify procurement of oil and gas. /Latin America too.
0% of oil and gas from Africa in 2000.
3] Food security
Import of pulses (worth ~ $2bn) from East African countries like Mozambique, Kenya.
4] Maritime Security | Seychelles and Mauritius
Increasing Chinese presence in region. e.g. Djibouti
Piracy. e.g. Somalia.
Seychelles (1.3 mn sq.km sea area is under them.) and Mauritius. (2.3 mn sq.km) i.e Have vast exclusive economic zones. But limited capacity. Also strategically located.
SAGAR project. Initiated in 2015.
$ 100 mn LOC for Defence sector to Mauritius.
INS Barracuda gifted in 2015 to Mauritius.
Other coastal surveillance systems e.g. Radar system.
/e.g. Indian diaspora in Africa and its implication for India’s FP.
1_South Africa – large number of Indian origin continue to thrive there. (1.3mn)
2_Uganda – 50K Indians are present.
3_Mauritius – Large population including many heads of state are people of Indian origin. (882 K)
Total Diaspora – 2.8 million.
Main reason for PIO is due to Britishers carrying Indian labour.
/China lacks in this aspect and we should maturely take advantage of it.
Evolution of Indian FP in Africa
In immediate post colonial era.
India moved towards Africa in cold war era through NAM.
Supported decolonization and movements against apartheid in African countries.
ITEC (Started in 1964). Indian Technical and Economic Cooperation.
/ It has its form owing to India’s capabilities and deficiencies. To take benefit of Indian strength.
1_Higher education scholarship.
3_Training and institution building in elections. Technical assistance.
4_Training of officers like Kenya, Tanzania even including their Chief of staff, Heads of state.
5_Till 2015, India has spent around $3bn on ITEC and almost 50% of it to Africa.
1_ITEC is demand driven. It usually doesn’t come with conditions.
2_Other assistances are usually supply driven.
3_It Generates goodwill for our country.
By 1980 almost all African countries became independent.
by 1990s NAM also became largely redundant with collapse of USSR.
1991 LPG reforms in India
Increasing Chinese presence in Africa
Desire of Indian pvt. sector to capture African market.
Energy security, food security, maritime security.
India Africa Summits
2008 India Africa Summit.
40/48 African countries attended it.
2008 India promised $9bn LoC. and out of this ~ $4.5bn projects have been signed…
2009 India announced $1bn loan for Pan African e-network for tele education and Medicare services.
2011 Ethiopia, Addis Ababa Summit.
2015 Delhi meet. All 54 states attended with 40 heads of state.
India announced that its going to open 18 new embassies making their number to 47.
TEAM 9 countries. (Techno Economic Approach for Africa India Movement)
Envisioned in 2004. Focuses on 9 West African countries.
Energy and Mineral rich but relatively neglected countries.
India is not to compete nor it can compete with China.
Chinese are expert in infrastructure and are doing that.
Chinese model doesn’t create much employment since it brings Chinese companies and Chinese labour. Done at heavy expensive loans and thus unsustainable in long run.
Chinese are fast comparatively.
Asia Africa Growth Corridor (AAGC).
India is expert at skill building, Japanese are expert in quality infrastructure.
Sustainable quality infrastructure which will be demand driven. Involves port infrastructure also.
Funding for AAGC is concern. AfDB (African development Bank).
ISA (International Solar Alliance)
Large investments will go to African countries.
ITEC can be incorporated with this. e.g. Barefoot college in Jaipur.
/ 54 votes in UN
/ 6000 troops in UN peacekeeping /mission.
Rajiv Bhatia, Ex Diplomat.
1_P2P links should be increased. Connectivity is crucial here.
2_Diaspora’s potential has not been utilized fully.
3_Improve implementation of projects and Line of Credit uptake.
4_He also welcomes renewed push in India towards closer involvement with Africa.
5_Use forums like BRICS
(New Development Bank can extend loans in future for infrastructure creation to African countries. /Currently it extends loans only to member countries.)
Recent Developments in Africa and its Relations.
Internal transformations in Africa.
1_From Dark continent, it has become a continent of hope. There is new ‘gold rush’ for Africa.
2_African countries are taking steps to help themselves transforming the image of Africa.
3_Regional consolidations as well as pan-continental level consolidations.
4_In 2002, steps were taken for conflict prevention. Africa Peace and Security Architecture was established.
5_Africa has taken the charge of its destiny, reflected in the Vision 2063.
6_Africa is negotiating continental free trade agreement.
7_NEPAD – New Partnership for Africa’s Development. Economic Development Programme of African Union.
8_As per IMF predictions, it is one of the fastest growing economies. There is a prediction of $5.6tn market opportunities.
9_Population of more than 1.52bn by 2025.
What different countries are doing in Africa.
1_Japan provides huge official development assistance. It has committed $100 bn to finance infrastructure and in future it may go to $200 bn.
2_TYCAD – Tokyo International Conference on African Development.
3_EPSA – Enhanced Private Sector Participation in Africa.
4_Partnership with India – Asian Africa Growth Corridor. It covers Indo Pacific. Three regions – ASEAN, BIMSTEC, Africa.
5_Four pillars of AAGC.
_1_Skill and Capacity building.
_2_Quality infrastructure and institutional capacity.
_3_Development and cooperation projects.
_4_People to people relations and partnerships.
* Japan is collaborating with India to reduce the market risk.
Japan is focusing on West Africa, North Corridor, Nacala Corridor in East Africa.
1_USA has instituted Atlantic Dialogue in Morocco.
2_It has pronounced New Africa Policy against predatory policies of China and Russia.
3_Prosper Africa Strategy 2018 / John Bolton./ they will also go for high quality, transparent, sustainable investment.
4_Increased development assistance of around $8.7 bn in 2017 data.
Germany – Compact for Africa.
France, Saudi Arabia, UAE are also emerging as new players.
1_China has emerged the major player. The share of US exports is $22.28 bn, whereas that of China is $103.19 bn in 2015-16.
2_China has a ‘early bird’ advantage.
3_Structured engagement started in 2000 with the formation of FOCAC. (Forum for China Africa Cooperation).
4_In terms of political interventions, China’s significant entry has been in Sudan (Sudan crisis). Peacekeeping operations in Mali in 2013.
4_China has a first military base outside China in Horn of Africa at Djibouti.
5_It has massive BRI programme for Africa.
Just as India and Africa fought colonialism together, we will work together for a just, representative and democratic global order, that has a voice and a role for 1/3rd of humanity.PM Narendra Modi
Historically India has been always a part of Africa’s movement of self-help, growth and development.
In July 2018, PM Modi made 1st articulation of India’s Africa policy at Uganda. | Ten Points.
1_Africa will be the top priority.
3_Access to Indian markets.
6_Fighting Climate Change.
7_Keep oceans and maritime lanes free for all.
8_Counter terrorism and cyber security.
9_Africa should not be a theatre of competition but nursery for youth.
10_Working for representative and democratic global order.
At last we have a policy. Now India should have action plan also.
Uniqueness of India’s approach.
Benevolent, Non intrusive, benign, caring-sharing model reflect a paradigm shift from other countries ‘gold rush’ based neo colonial approach.
1_We will be leveraging positive critical mass of our diaspora.
2_India is also going for trilateral collaboration with like minded countries like Japan, Saudi Arabia, UAE.
3_Structured engagement of India started in 2008 with India Africa Forum summit.
4_In 3rd African summit, India promised $10bn line of credit, $100mn Indian development funds, $500mn grants, 50,000 scholarships under ITEC and ICCR.
5_India has emerged as the 5th largest investor in Africa ($54bn approx.)
6_Asia Africa Growth Corridor.
7_Africa’s share in oil imports has become around 26%.
8_ITEC, TEAM 9 initiative.
Present govt. is giving top priority to Africa. Around 29 high level visits, which includes PM Modi’s visits. This had been a major lacuna in relationship which this govt. has effectively addressed. India has completed visits at the level of minister or above to all 54 countries.
__2015 Seychelles and Mauritius.
__2016 South Africa, Kenya, Tanzania, Mozambique.
__2018 Rwanda, Uganda, BRICS summit in SA.
__2019 President’s visit to 4 west African countries.
__Defence minister’s visit to Mozambique.
Analysis by scholars.
Rani D Mullen | REFOCUSING ON AFRICA article.
Behind Media blitz and official rhetoric, India’s Africa policy is reflecting constraints in its effective implementation. It is not so easy to divert African countries from China’s orbit.
Our strategy is becoming clearer but efficacy of the tools for implementation remains questionable.
India has yet to convince that it not only commits but also delivers. The disbursement of developmental aid is extremely slow.
Rajeshwari Pillai Rajagopalan | India’s China Challenge in Africa. Article.
Though both the countries downplay the rivalries, yet nervousness of India is real. Africa has become lot more significant but India’s long neglect and inadequate capacities have serious disadvantages vis-a-vis China’s strategic push and economic muscle.
C Rajamohan | The Great Game in Africa. Article.
PM Modi has been successful in bringing Africa on the mental map at least. However to meet the scale of China, we need to be very proactive. Also China is not the only competitor.
Up till now South East Asia has been central and Africa has been neglected.
He suggest India to focus on the island nations, specially Mozambique Channel i.e Mozambique, Madagascar, Comoras.
India’s Africa policy oscillated between passive and reluctantly reactive.
India’s narrative is always dominated by historicity. /Gandhi….
Policies made in silos.
Mahesh Sachdev. Fortifying Africa Outreach. Article.
India is also a developing country with resource constraints.
India should not be a cash cow.
India should put conditionalities on developmental assistance.
India needs more connect between developmental aid and economic engagement.
Concerns raised by Indian Businessmen in Africa in a recent DVC (Digital Videoconferencing) organized by Indian High Commission and embassies of 11 African countries. Attended by 400 Indian business men. (May 3-6 2019)
1_Improving Line of Credit System.
2_Setting up of banks.
3_Liberlize VISA system to increase trade and investment.
4_Direct flights between India and Africa.
5_Exploring possibility of rupee trade to overcome shortage of dollars.
6_Creation of common database of buyer-suppliers.
7_Developing robust trade dispute settlement mechanism.
8_Establishing country chapters of FICCI or CII in Africa.
Que. Scale and speed of transformation in Africa means India has huge challenges. Discuss.
Importance of Africa for India
Conventional and non conventional security threats.
/ Your answer should reflect how you are thinking systematically.
Geo-economic. Energy security, food security. Big market.
Geo – political. India’s global concerns.
/ Answers should always be in chronological order. History of relations should come 1st. You gave us Gandhi, we gave you Mahatma..
/ Dark continent – continent of hope. Evident from interest shown by major power. Even US has brought its Africa strategy.
Some optimistic trends are there – democracy is increasing… self help. But simultaneously terrorism, fundamentalism, poverty problems.
India has huge challenge – how to protect our interest in Africa.
Our own challenge – our strategic culture. The way we make foreign policies.
There has to be proper planning and review mechanism. Is aid we are giving getting utilized properly and we are not seen as cash cow.
We’ve to see big picture. Only China is not competitor, others are also competitor.
Now India has Africa policy.. 10 points..