India-Africa ties touch a new high

The just-concluded India-Africa summit at New Delhi was a resounding success. In terms of scale, this was the biggest of the three summits held so far. Compared to the 2011 Addis Ababa summit that saw participation of only 15 countries, 41 heads of state and government and over a thousand delegates from all of Africa’s 54 countries came for the Delhi meet. The increased participation is heartening as it signals Africa’s growing interest in engaging with India. In New Delhi, India reiterated its commitment to the continent’s development with Prime Minister Narendra Modi pledging $10 billion in new credit and $600 million in grant aid. On the face of it, all seems well in India’s relations with Africa. Trade soared from $39 billion in 2009-10 to $71.4 billion in 2014-15. Indian investment in Africa witnessed an 11 per cent jump between 2010 and 2012. However, there is reason for concern. Almost 90 per cent of African investment in India comes from one country – Mauritius, a tax haven. Besides, the nature of trade has triggered some unease in Africa. While much of Africa’s exports to India consist of raw materials such as crude oil, gold and diamonds, India’s exports to the continent are largely high-end consumer goods. In addition, Indian companies are investing in African land to grow cash crops for export. This is undermining Africa’s food security. It has triggered criticism of India’s “neo-colonial relationship” with Africa.

Allegations of India’s neo-colonial approach are unfair and emanate largely from envious western countries. No doubt Africa is an important market for the Indian pharmaceutical industry but low-priced Indian drugs have benefited African masses. Importantly, India has focused on capacity-building in Africa. While importing rough diamonds from Botswana, for instance, it has engaged in capacity building there, helping it move up the value chain in the diamond business.Still, India needs to tread carefully. As it sets out to match China’s enormous clout in Africa, it must bear in mind that principles, rather than profits alone, should determine its relations with the continent. This will make its relationship with Africa sustainable. The country is looking to Africa to support its quest for a permanent seat in the UN Security Council. With 54 seats in the UN General Assembly, the continent is a rich resource. Delhi will be hoping that just as Africa’s struggle for liberation from colonial rule benefited from India’s support, all of Africa will support India’s effort to democratise the UN. India must convince Africa that as a permanent member of the UNSC it will represent Africa’s interests.