Modi takes tacit dig at China's debt-trap diplomacy in Africa, says India's partnership focussed on empowering people

New Delhi: India’s support to development projects in Africa is driven by local demands and focussed on building self-sustaining ecosystems, Prime Minister Narendra Modi said in an address to the Parliament of Ghana on Thursday, taking a subtle dig at the debt-trap diplomacy of China, the largest lender to the continent.

“India remains a committed partner in Africa’s development journey. We support Africa's development framework, Agenda 2063, to secure a bright and sustainable future for its people,” Modi, who visited Accra on Wednesday and Thursday, said. “Africa’s goals are our priorities. Our approach is to grow together as equals,” he said, addressing parliamentarians of the West African nation.

‘Agenda 2063’ is a vision document which was adopted by the African Union in January 2015. The document outlines the vision for economic development, with a focus on the eradication of poverty, political integration, security and peace, democracy, and justice.

“Our development partnership with Africa is demand-driven. It is focussed on building local capacities and creating local opportunities. Our objective is not just to invest, but to empower, to help develop self-sustaining ecosystems,” the prime minister said, articulating New Delhi’s approach to Africa and tacitly taking a dig at China.

China has expanded its footprint across Africa but has often been criticised for its predatory lending practices that do not take into account local aspirations.

The Government of India has completed 206 projects in 43 African countries, and 65 projects are being implemented under the concessional loans with a total outlay of over $12.37 billion, according to data available with the Ministry of External Affairs till June 2024. Besides, 81 more projects are at a preparatory stage. India-funded projects in Africa cover drinking water and irrigation schemes, power plants and transmission lines, cement, sugar and textile plants, technology parks and railway infrastructure.

“In Ghana, we inaugurated the Tema–Mpakadan rail line last year. It is the largest infrastructure project in this part of the African region. We welcome Ghana’s own efforts to accelerate economic integration under the African Continental Free Trade Area,” the prime minister said.

China, on the other hand, has become Africa’s largest bilateral trading partner, with 20 per cent of the continent’s exports now going to the communist country, and about 16 per cent of its imports coming from it. China’s share of the total external debt of the countries in sub-Saharan Africa was less than 2 per cent before 2005 but grew to about 17 per cent, or $134 billion, by 2021.

“The world order created after the Second World War is changing fast. The revolution in technology, the rise of the Global South, and the shifting demographics are contributing to its pace and scale. The challenges, such as colonial rule that humanity has faced in earlier centuries, still persist in different forms,” Modi said in his address to the Parliament of Ghana.

He said that the world was also facing new and complex crises such as climate change, pandemics, terrorism, and cybersecurity. “Institutions created in the last century are struggling to respond. The changing circumstances demand credible and effective reforms in global governance,” added the prime minister.

He said that India has emphasised ensuring Africa’s rightful place at the global high table and was proud that the African Union became a permanent member of the G20 during its presidency.