More than a century after Mahatma Gandhi went to South Africa, and a decade after China began to woo the rich continent for its natural resources, foreseeing the need for energy, India is following suit. The India-Africa Forum Summit, to be inaugurated by Indian Prime Minister, Dr. Manmohan Singh will begin tomorrow.

The meet is being attended by Heads of States of 14 African nations, who have the mandate of the entire continent as they have been chosen by the 54-nation African Union itself, the Hindu reported.

During the two-day summit India is likely to announce technology transfers and duty cuts for certain imports from Africa and assistance in developmental projects while striving to tap the immense mineral resources in that continent.

An Action Plan for furthering cooperation in areas like environment, health, education, energy and mining will be issued at the Summit, which could form a precursor for broader India-Africa Summit.

The Summit is also expected to issue a Declaration that will address broader areas of cooperation and “common views” on regional and international issues, including fight against terrorism, climate change and WTO negotiations.

Reuters reported that while China has invested in countries like Sudan where human rights concerns have curbed interest from more cautious Western countries, India enjoys historic and cultural links to several eastern and southern African nations dating back to British colonial rule, which could ease its way.

“India has a goodwill which it wants to translate into economic benefits,” said Ajay Dubey, professor at the Centre for West Asian and African Studies at New Delhi’s Jawaharlal Nehru University.

Dubey said Africa was crucial to India’s energy security and a region where it was in a better position to negotiate the local system because of long-standing ties.
India’s trade with Africa has soared from $967 in 1991 to $20 billion in 2006/07. But compare that with China’s trade relations with Africa which were worth less than India’s in 1999, but have since leapt to $55 billion.

“Africa’s importance for India is manifold. Africa is the largest bloc in the United Nations and support from this bloc is important if India wants a seat on the United Nations Security Council,” a ministry official told AFP.

At a recent meeting of Indian and African firms organised by the confederation, 150 projects worth $11 billion were discussed, but company executives are waiting for policy declarations from the summit before moving ahead with the deals.

At the same conclave, India’s Exim Bank extended a $30 million line of credit to finance Indian exports to Africa.

India imports 70 percent of its crude needs, and energy demand in Asia’s third-largest economy is expected to more than double by 2030, according to the International Energy Agency.

Private companies such as Essar Oil Ltd and state-owned explorer Oil and Natural Gas Corp have clinched deals in southern Sudan, Kenya, Libya and Nigeria among others.
ONGC has made a renewed push in Angola — sub-Saharan Africa’s second largest oil producer — where it lost out on a 50 percent share in an oil exploration project to China, after China reportedly dangled US$2 billion in aid — 10 times India’s offer.

“The Chinese are more aggressive after oil, mineral and metals,” said David Nalo, permanent secretary in Kenya’s Trade and Industry Ministry, adding that Asia’s market size and Africa’s desire to grow meant there was something for everyone.

“We need to get more out of India, even in terms of tourists,” he said.

To read more about China’s trade and influence on Africa read a special report by our sister publication China Briefing. Click here to activate.

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