India-Africa Relations

 

  • India and the African countries are in news lately, however the ties between the two regions date back to the ancient civilizations. Along with geographical proximity, there are factors such as the cultural connect, colonial past and development hurdles that are more or less common to both and thus bring each other much closer.
  • In this context it can be rightly said that through cooperation if the opportunities of these two regions is utilized, then there cannot be anything bigger in the geopolitical world scenario today than this cooperation.
  • Although triggered by the unfortunate racist attacks, however in this article we would try to learn and focus on the historical ties, how this relationship moved ahead and where do we stand today. This article intends to make the learners aware about the two regions in the most comprehensive manner and build a base for future understanding and correlation with the topic.

Backgrounder:

  • Once known as the ‘dark continent’ by the colonial exploiters due to inaccessibility into the interiors of the continent
  • The geographical proximity between the two was an important factor for building up relations during the ancient and the colonial period

Ancient Period

  • During the ancient period, the Indian merchants were in the constant look out beyond the Arabian Sea towards the west for lucrative markets. Slowly, the increasing people-to-people contacts made them a part of Indian Ocean circuit of trade’
  • They sailed regularly to the Zenj coast (Zanzibar) for palm oil, gold, copper, spices, ivory, rhino horn etc.
  • They sold cloth, metal implements, foodstuff like wheat, rice and jaggery, besides porcelain and glassware
  • Trade developed through the knowledge of favourable sea winds and the development of a suitable marine technology
  • Periplus of Erythrean Sea, a first century AD merchants’ sailor guide throws light on the thriving trade between India and the Western Indian Ocean region
  • It also stated that India’s trading contacts were spread from Egypt to coastal to northern Somalia, ancient land of Punt, kingdom of Kush (Sudan) and Axum

 

Islamic Era 

  • Indian presence in Africa is also seen during the Islamic age. The Venetian traveller Marco Polo mentioned explicitly about the Gujarati and Saurashtrian merchants on Africa’s east coast
  • The use of Indian system of weights and measures and Cowries as currency, pointed to the fact that Indians were playing a key role in this area
  • Not only economic benefits, the trade also contributed to the development of internal links in the African continent even before the advent of Europeans
  • By seventeenth century, the nature of Indian Ocean trade underwent a radical change due to demand for captives who could be sold as slaves.

During the medieval time the Africans came to India and were part of the muslim rule in India

  • A good example could be of ‘Malik Amber’ and the ‘Siddis’ who are still a part of the Indian population and are settled in parts of Gujarat, Karnataka and Hyderabad

 

Advent of Colonialism

  • With the advent of European colonial powers in India and Africa, the trade pattern underwent a significant change as Indo–African relations entered a new era of ‘colonialism’
  • During the colonialism period, trade continued and also started the slave trade
  • The Indians who went to Africa as slaves and post abolition of slavery, as the indentured labourers, and the merchant class of Gujarat slowly settled down there
  • India’s link with the African continent dates back to the anti-apartheid struggle of Mahatma Gandhi with the colonial rulers in South Africa
  • India has been aggressively putting forward the issue of apartheid on multilateral forums such as UN, NAM And Commonwealth

Post-Colonial Period

The foundations were laid by Mahatma Gandhi. According to him, there will be a “commerce of ideas and services and not of raw materials and goods like imperialist powers”. The present government continues to take this approach as the foundation of India’s Africa Policy. According to Vice President Hamid Ansari, “ India shares Africa’s dreams and India Africa cooperation is genuine 2 way street partnership

Relations uptill 1960:

Nehru talked about Afro Asian solidarity. African countries provided strength to Nehru’s NAM. The policy in this phase is described as “ideational” and “pragmatic”

2nd phase (1970s – 1990s):

There was neglect of Africa because of India’s attention on South Asia and India’s attention on inward looking foreign policy. Though India in this phase continued to support Africa against Apartheid.

3rd phase (1990s onwards):

This is the phase of reengagement with Africa. However the lead was taken by private sector, rather than government. Private sector of India should be given credit to push attention of GoI towards the region of strategic and economic importance.

Present status of relations:

Since 2008, India and Africa relations have been institutionalized. India has started engagement with African Union (Pan African Platform). So far 3 summits have been organized under the aegis of India Africa Forum Summit. It is to be noted that the approach of GoI is also influenced by China. China has also initiated the Forum for Africa and China cooperation in the year 2000.

Importance of Africa:

Geostrategic

  • Africa is critical to India’s security, especially the Horn of Africa region, because of its proximity with India. The threat of radicalism, piracy, organized crime emerge from this region

Economic

  • Africa can help us in diversifying our energy sources, which is one of the stated objective of our Integrated Energy Policy
  • Africa also contains rich reservoir of valuable minerals, metals including gold and diamond
  • Africa provides a space for Indian investment
  • Africa has ample agricultural land which cab address India’s food security. India is looking at leasing land in Africa to overcome the land deficit that we face in terms of arable land

Geopolitical

  • Support of African countries is important for India’s aim of gaining a permanent seat in UNSC
  • Africa provides a space for displaying both India’s soft and hard power
  • India has been actively involved in peace and stability of African countries through UN Peace keeping operations. India is involved in capacity building of African countries. Africa is also the largest beneficiary of India’s ITEC programme

History of India Africa Relations: India Africa Relations

Strategies adopted by Indian government:

  • Pan African level engagement
  • Partnership with regional organization
  • Development partnership through IBSA and BRICS
  • Bilateral engagement with countries
  • Involving Indian communities and Indian Diaspora

Whether India’s relationship with Africa should be seen through Chinese prism?

  • While China has been in Africa’s infrastructure, mining, oil and natural gas sectors for many years, India, despite moving late, has worked through training, education and capacity-building programmes — which have been very well-received by the countries.
  • China is developing series of important ports in Africa on the western and eastern coast right uptill Mediterranean and building rail linkages to connect to those ports
  • Over the last 15 years, India-Africa trade has gone up 20 times, and reached, according to the government, $ 70 billion.
  • Indian investment in Africa is between $ 30 billion and $ 35 billion.
  • India has given concessional credit to the tune of $ 7.4 billion, of which $ 5 billon has been disbursed. The credit lines have helped create 137 projects in 41 countries.
  • A Pan-African e-Network for education and health is functional in 48 countries.
  • Since 2008, India has extended 40,000 scholarships to African countries under ITEC programme

Thus it would be wrong to conclude that India’s African outreach is with a view to counter China’s expanding influencing in the region.

Moreover Chinese strategy of exporting Chinese labour as part of its push to create excess capacity abroad to counter unemployment in China is rattling the African population. There have been protests against the discriminatory employment practices of China in matters of employment in Nigeria, Kenya etc.

Challenges India faces from the presence of countries like U.S in Africa

  • S trade with Africa initially was high because of its strategy to reduce dependence of middle East oil and hence they went for greater purchase from Africa. With shale revolution in USA, trade volume has declined.
  • USA still involved in infrastructural development, export of commodities (food stuff, refined products), export of equipments, projects for Mineral exploration. All these fields are also what India is interested in. Same is the case with china
  • USA along with China has also been offering soft loans which are being lapped up by capital starved African nations

Shortcomings of U.S (and other developed countries) involvement

  • S products are too costly for African customers compared to Indian and Chinese products
  • Export of raw materials to USA unlikely to grow a lot because of relative stagnation of GDP growth rate of U.S economy compared to India and china
  • USA’s involvement in building transport infra etc can lead to increased sale of Indian cars etc which are cheaper
  • Development of African primary industries by these countries can lead to increased exports to India

Shortcomings of India’s involvement in Africa

  • In terms of cheque book diplomacy, India can not compete with China or U.S. Some of the African countries, even the richer ones like Nigeria, expect India to bear gifts for them under IAFS. However India asserts for joint endeavour for better development
  • India abrogates its responsibility in terms of mid stream and down stream delivery processes, instead relying on multilateral agencies like African Union. This leads to India losing credit for a project despite the financial, technological backing it gives
  • India contributed a lot more than other countries in terms of ebola relief but did not highlight it. Indian assistance was largely through multilateral forums and in a piecemeal manner

Impact of IAFS process so far:

  • India has committed unprecedented level of resources to Africa (in soft loans and grants). $5bn in soft loans, half a billion dollars in grants, institution building and training fellowship to Africa
  • Earlier in IAFS 1 India had offered DFQF (Duty Free Quota Free) access to LDCs of Africa
  • Increased people to people contact as observed in the increasing flow of medical tourists, students, trainees and Indian entrepreneurs and experts.
  • IAFS process has also given a boost to cultural and information contact and mutual awareness
  • Growth in India’s trade and investment activities has partially slowed down due to the effects of recession.

SWOT analysis

Strength

  • Indian diaspora in Africa to be leveraged for involvement in building social infra
  • Similar socio economic challenges and historical linkages
  • Indian developmental model more in line with Africa’s needs
  • Private sector involvement in Africa. India’s private sector is involved in 2x more Greenfield projects as compared to Chinese counterparts. Another advantage that India has, in any projects it employs local people thereby generating employment, earning goodwill. China exports Chinese labour.

Weakness

  • Multiple competing interests present. China and USA are the top 2 trading partners
  • Chequebook diplomacy can not be done by India
  • Lack of emphasis on bilateral relationships instead engaging mostly through forums like IAFS

Opportunities

  • Shift from line of credit approach to private sector involvement which would help in providing loans at cheaper interest rate, risk mitigation
  • Better organized, more coherent and faster responding mechanism accompanied by an appropriate media campaign required for highlighting India’s contribution

Threats

  • Bureaucratic hurdle in trade expansion as we interact largely with African Union. We have focus on nations individually to take projects forward
  • No efforts by India to curb racial discrimination. Several reports in the past have highlighted that the propensity if Indians to discriminate on grounds of race is quiet high. China has undertaken educational projects to bury the African stereotype

A Brief Analysis of the Third India-Africa Forum Summit

‘New Hopes, New Horizons’

The Third India-Africa Forum Summit held recently unveiled a “dynamic and transformative agenda”. This agenda is of mutual empowerment and mutual resurgence between India and the African nations to strengthen the bond even more in the future.

This was the third summit, which was started in 2008, since when two summits had taken place.

However, this is the first time that 54 heads of the states out of a total of 54 in the African continent came to India together for one cause.

There were commemorative coins that were released to mark the event. They were as shown below:

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                                                                            Source: MEA

Development Partnership

The ‘Delhi Declaration’ of 2015 envisages the India-Africa partnership in development. On the same lines, India would be providing a credit of $10 billion to Africa for development projects along with a grant assistance of $600 million.

This grant includes development fund, health fund and scholarship for students in India. The Indian Technical and Economic Cooperation(ITEC) programme has already laid base for knowledge sharing and has acted as a bridge to connect students from both the sides.

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The Delhi Declaration is in sync with the ‘Africa’s Vision 2063’ which also focusses on growth, stability and prosperity.

Arc of Prosperity

India-Africa Business Forum was also held as an important segment of the summit. It is noteworthy that the India-Africa trade has exceeded $70 billion!

Along with economic development through public private partnerships, institution building, infrastructure development and development of small and medium enterprises, the focus will also be on poverty alleviation, healthcare, education and sustainable development.

Blue Economy

An agenda was brought out in the summit or the development of blue economy or ocean economy which is aimed at development of marine resources sustainably for the growth and development of countries like India, on the African coast and other littoral states with coastlines.

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Commemorative stamps were also issued during the summit:

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Source: MEA

Strategic Partnership

India called for partnership with Africa in raising voice for the reform of international institutions such as the United Nations and its security council.

It also stressed for collective action for climate change with the mantra of ‘clean and green’. It includes the invitation given by India to all the African countries to be a part of the Indian initiative and join the ‘Solar Club’ for a partnership in areas of clean energy, sustainable habitats, public transport and climate resilient agriculture.

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Partners in Peace

India is a major partner in the UN Peacekeeping missions in the African continent. The major peacekeeping missions in Africa in which India is involved are:

  1. Democratic Republic of Congo
  2. South Sudan
  3. Ivory Coast
  4. Liberia

Till date, India has deployed about 4,500 soldiers on the ground. This includes the only fully formed Indian female police unit in Liberia.

Cultural Bonding

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Opportunities for India

Apart from the immense opportunities as can be comprehended from the above analysis of  the third India-Africa Forum Summit, some of the rest can be listed as below:

  • India has the opportunity to benefit from Africa’s rich resources such as coal, oil, and natural gas reserves whereas Africa would gain from India’s world-class downstream capabilities
  • Indian banks to expand their footprint on the continent for developing Africa’s financial market
  • The huge market can serve as an alternative to ours
  • The hydrocarbon from Africa is a source of clean, energy efficient fuel which is of immense importance given India’s ambitious goals for energy production and security

The importance of the ties between India and Africa was realized by our forefathers too for the development of both the land and the people.

The great leader of the world in General and Africa in particular ‘Nelson Mandela’ once remarked:

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Taking ahead the culture of civilization tying it with our ancient past, it can be very rightly concluded by Mahatma Gandhi’s views:

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Prime Minister’s African nation visit includes MozambiqueSouth AfricaTanzania and Kenya. The visit of Prime Minister comes close on the heels of the high level visit earlier by President Pranab Mukherjee and Vice President Hamid Ansari.

kenya-tanzania

Earlier visit of Vice president to Morocco and Tunisia covered North Africa. Later President’s visit to Ghana, Namibia and Ivory Coast covered West Africa. Now the Prime Minister’s visit covers South and East Africa. Through this our three topmost leaders have covered the whole of Africa .

It is projected that by 2020 the collective GDP of all African nations will be $2.6 trillion.

Strategic significance of Prime Minister’s visit

  • The Prime Minister’s focus of the African tour is on deepening cooperation in areas of hydrocarbonsmaritime securitytrade and investmentagriculture and food. Mozambique, South Africa, Tanzania and Kenya are very important and all are littoral states. They had very close connection with India.
  • India-Kenya ties have stood the test of time. Both our nations have had very strong people-to-people ties and both nations have successfully fought colonialism in the previous century.
  • Mozambique was a Portuguese colony earlier. Till 1750 the country was managed from Goa. There are large numbers of Goans in Mozambique.
  • Prime Minister addressed the Indian Diaspora at Nairobi. Terrorism and Global Warming are the two major global challenges faced by all the nations. No country is immune to the state of terrorism. Concerted action is required by the global community through UN frame work.
  • India and Tanzania have agreed to deepen overall defense and security partnership, especially in the maritime domain.

India’s strengths

  • India had age old cultural, historic and civilization ties with Africa and around 16th century India’s indentured labor had come here and now they have all prospered and helped in the progress of these countries.
  • India and Africa are neighbors which are connected by Indian OceanMaritime securitycounter terrorism operation, utilization of the Blue Economy is the important element between India and Africa.
  • There are opportunities for Indian private companies and Public sector entities to invest in Africa. India is interested in securing energy needs, renewable and non conventional sources of energy where Africa is rich in all these resources.
  • Energy security is a significant element of our partnership with Africa. 25% of India’s total investment in Africa is in Mozambique that is $8 billion. Around 10% of total investment is in Tanzania that is $3 billion. These investments are in the field of Energy.
  • India will grow and India will need Energy. Large numbers of countries of Africa are members of International Solar Alliance. Prime Minister also met ‘Solar Mamas’, a group of rural women solar engineers from Africa who have been trained under Government of India-supported programme to fabricate, install, use, repair and maintain solar lanterns and household solar lighting systems in their villages

Difference in India and China approach in Africa

  • India is different from other large investors in Africa. China is considered to be exploitative in terms of exploitation of Natural resources and there is not much benefit to the local people of Africa.
  • China has acquired land for agriculture which has got its own work force and this has not benefited Africa.
  • India wants African nation to get equal benefits from India’s economic development in Africa. India wants a win-win situation for both the countries.
  • There are concerns that India has been very slow on delivery. It makes promises and commitments, but it doesn’t have the wherewithal. There was a tangential comparison with china where china was able to deliver. India in the last 2 years has demonstrated through certain projects that now India will deliver on its promises.
  • India is interested in improving the living standards of the common people. Whether it is energy, renewable energy, agriculture, food processing etc. The strength India has in terms of Human Resource Development, capacity building, education, health care and large numbers of African students are in India.
  • $92 million line of credit that has been agreed to is for water distribution and purification systems. India has long term agreement with Mozambique for the purchase of pulses.
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By B2B

Revisiting the Basics

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