Context:
Prime Minister Modi’s 2024 Nigeria visit after 17 years highlights the need for sustained engagement.
Answer:
India and Africa share a historic relationship rooted in anti-colonial solidarity, mutual economic cooperation, and cultural linkages. Africa is crucial for India due to its resources, growing markets, and geostrategic importance in the Indian Ocean region. India is Africa’s third-largest trade partner and it has invested significantly in sectors like pharmaceuticals, energy, and education. However, China’s extensive infrastructure investments and growing trade ties challenge India’s influence.
Challenges India Faces in Sustaining Its Influence in Africa:
- China’s Expanding Footprint: China’s massive investments in African infrastructure, mining, and technology overshadow India’s initiatives.
- China’s $50 billion financing pledge (2024-27), including projects like the Lekki Deep Sea Port in Nigeria.
- Declining Trade Volumes: India’s trade with Africa is largely resource-driven (over 80% of imports from Africa are crude oil and raw materials), limiting its engagement to a transactional relationship.
- Trade with Nigeria dropped from $14.95 billion in 2021-22 to $7.89 billion in 2023-24.
- Limited Financial Leverage: India’s concessional loans and infrastructure projects are smaller in scale compared to China’s investments.
- India completed 206 projects worth $12.4 billion in Africa, far less than China’s $47 billion in Nigeria alone.
- Infrastructure and Diplomatic Gaps: Lack of follow-through on initiatives like the India-Africa Forum Summit (last held in 2015) reduces India’s visibility.
- Africa has hosted summits with the EU, China, the US, and Russia in the last decade, leaving India less visible.
- Geopolitical Competition and Rivalry: African nations face pressures to choose between India, China, the US, and the EU, complicating India’s strategic outreach.
- China’s establishment of a military base in Djibouti underscores its increasing military footprint in Africa.
- Security Challenges in Africa: Ongoing conflicts and instability hinder economic engagement and investment opportunities.
- Over 35 active non-international armed conflicts in Africa in 2023.
Steps India Can Take to Enhance Its Presence and Leverage in Africa:
- Reinvigorating Diplomatic Engagement: Regular India-Africa Forum Summits and high-level visits can strengthen ties and outline long-term partnerships.
- Use platforms like BRICS and G-20 to advocate for Africa’s interests and ensure India’s influence remains strong amidst global competition.
- Enhancing Development Assistance: Increase concessional loans and investment funds to compete with China’s financial presence.
- Establish dedicated India-Africa infrastructure and investment funds.
- Promoting Trade and Economic Diversification: Foster bilateral trade agreements and encourage Indian businesses to invest in Africa’s agro-processing and energy sectors.
- Indian companies pledged $14 billion in Nigerian investments during G-20.
- Promoting Digital and Green Partnerships: Collaborate on digital public goods like the India Stack, telemedicine services and green energy solutions.
- Develop solar energy projects under the International Solar Alliance (ISA) with African nations.
- Focusing on Skill Development: Leverage India’s expertise in education, healthcare, and IT to address Africa’s skill development needs.
- Expand programs like the Indian Technical and Economic Cooperation (ITEC) and scholarships for African students.
- Deepening Defence and Security Cooperation: Provide military training, peacekeeping support, and cybersecurity expertise to African nations.
- Expand defense exports under the Exim Bank credit line for arms supplies and enhance joint military exercises.
- Enhancing People-to-People Ties: Strengthen cultural diplomacy and leverage the 3-million-strong Indian diaspora in Africa.
- Indian diaspora’s role in bridging ties in Kenya, Tanzania, and South Africa.
- Strengthening Maritime Security Cooperation: Enhance collaboration with African nations to secure the Indian Ocean against piracy and trafficking.
- Establish joint initiatives under the SAGAR (Security and Growth for All in the Region) framework.
India must adopt a multi-pronged approach to enhance its strategic, economic, and cultural engagement in Africa.
‘+1’ Value Addition:
- A major achievement of India’s diplomacy was inclusion of the African Union as a permanent member of the G20 at the 2023 Summit in New Delhi.
- PM Modi has set out India’s approach to Africa in the “10 Guiding Principles for India-Africa Engagement” (open markets, open trade, focus on the digital economy, etc.) during his visit to Uganda in 2018.
- India’s trade with Africa has grown from US$ 68.5 billion in 2011-12 to US$ 90.5 billion in 2022-23, with Indian exports to Africa exceeding imports for the first time this century. India has also become Africa’s second-biggest creditor after China.
