Lankan Ranger
ELITE MEMBER
- Joined
- Aug 9, 2009
- Messages
- 12,550
- Reaction score
- 0
India boosts influence across Africa
The Indian government is raising its diplomatic profile in Africa, with Indian companies striving to keep up with Chinas business profile in Africa, taking advantage of historical ties with the continent, analysts have said.
Last year the continent witnessed the conclusion of one of the biggest deals when Indias Airtel acquired Kuwaits Zain that had operations in 16 African countries. The change probably meant little to the average customer, but for the continent, its another sign that India is moving in. It underscores the rise of India in Africa, at a time when much of the focus on foreign investment here has been on China.
I think one of the things that India doesnt want to allow to happen is that it doesnt want to get behind in this kind of engagement, said Sanusha Naidu, research director at the Britain-based Fahamu organisation, an advocacy group tracking African issues.
Mr Naidu said Indias renewed interest in Africa has not received as much attention as Chinas because India is not seen as a threat.
It is seen as a democratic state, Mr Naidu, a South African, said. It doesnt have a communist regime. All that plays in favour of India. India and China are vying for Africa because of the bottom line: Africa represents new growth. This is the last growth continent in the world. Europe is a done industry.
The US is a done industry. Southeast Asia is old, said Sunil Mittal, founder and chairman of Bharti Airtel. Our model is not suitable for a matured market. We need growth and Africa is the right place to grow.
The International Monetary Fund says sub-Saharan Africa will register the second-highest growth rates in the world in 2011, behind only Asia. The IMF said sub-Saharan Africas economic growth rate will be five per cent in 2010, compared with 2.5 per cent in 2009. This year, the IMF projects Africas rate will be 5.5 per cent.
The relations between India and Africa are centuries old. In the 1960s and 1970s, India helped newly independent African states by training them at Indian universities and other institutions. Indian conglomerates such as the Tata Group have had a presence in Africa for decades.
But India is now changing its relationship with Africa from the political, such as advocating an end to colonialism, to the economic. In recent years, some Indian companies have expanded their business in Africa, propelling what were once small operations into major players.
Along with business, India is playing a philanthropic role in Africa, while at the same time raising its profile. During a summit with African leaders in April 2008, India pledged more than $500 million in grants for development projects. It also pledged to increase by more than $2 billion its lines of credit to African countries and regional economic groups.
The summit was Indias first with African leaders. However, China has held three such summits since 2003, where it has pledged loans and infrastructure projects much bigger than what India has promised. In its most recent summit in November 2009, China pledged $10 billion in loans over a three-year period.
In October, Indias Commerce and Industry minister Anand Sharma led a trade mission to East Africa. He said India is exploring whether African farmers can be encouraged to grow legumes and export them to India, the worlds largest market for legumes.
I think at this time India is taking off in terms of industrialisation, so definitely they are looking for a market, said Jacob Mignouna, the technical director at the Nairobi-based research organisation the African Agricultural Technology Foundation. Of course there may be some philanthropic aspect of it, but the bottom line is, they are looking for trade, for opportunities also for the Indian industries.
The close relationship between India and Africa is reflected in trade. Between April and July 2010, India exported $4.8 billion worth of goods to Africa a 51 per cent increase from the same period in 2009. India imported about $7.8 billion worth of goods from Africa between April and July 2010, a 40.7 per cent increase from the previous year.
The Bharti Airtel investment in Africa is so far one of the biggest from corporate India. In 2009 , Bharti Airtel, Indias largest mobile phone company, tried and failed to acquire South Africas MTN, one of the continents largest communication companies.
Last year Bharti Airtel bought the Africa operations of Kuwait operator Zain for $10.7 billion, and immediately began slashing prices. Call prices dropped 50 per cent or more in 11 countries to attract more customer.
The founder Mr Mittal said he wants to more than double the companys Africa business in the next two and a half years to 100 million subscribers. At the end of September, Bharti Airtel said it had about 40 million subscribers in Africa.
India boosts influence across Africa
The Indian government is raising its diplomatic profile in Africa, with Indian companies striving to keep up with Chinas business profile in Africa, taking advantage of historical ties with the continent, analysts have said.
Last year the continent witnessed the conclusion of one of the biggest deals when Indias Airtel acquired Kuwaits Zain that had operations in 16 African countries. The change probably meant little to the average customer, but for the continent, its another sign that India is moving in. It underscores the rise of India in Africa, at a time when much of the focus on foreign investment here has been on China.
I think one of the things that India doesnt want to allow to happen is that it doesnt want to get behind in this kind of engagement, said Sanusha Naidu, research director at the Britain-based Fahamu organisation, an advocacy group tracking African issues.
Mr Naidu said Indias renewed interest in Africa has not received as much attention as Chinas because India is not seen as a threat.
It is seen as a democratic state, Mr Naidu, a South African, said. It doesnt have a communist regime. All that plays in favour of India. India and China are vying for Africa because of the bottom line: Africa represents new growth. This is the last growth continent in the world. Europe is a done industry.
The US is a done industry. Southeast Asia is old, said Sunil Mittal, founder and chairman of Bharti Airtel. Our model is not suitable for a matured market. We need growth and Africa is the right place to grow.
The International Monetary Fund says sub-Saharan Africa will register the second-highest growth rates in the world in 2011, behind only Asia. The IMF said sub-Saharan Africas economic growth rate will be five per cent in 2010, compared with 2.5 per cent in 2009. This year, the IMF projects Africas rate will be 5.5 per cent.
The relations between India and Africa are centuries old. In the 1960s and 1970s, India helped newly independent African states by training them at Indian universities and other institutions. Indian conglomerates such as the Tata Group have had a presence in Africa for decades.
But India is now changing its relationship with Africa from the political, such as advocating an end to colonialism, to the economic. In recent years, some Indian companies have expanded their business in Africa, propelling what were once small operations into major players.
Along with business, India is playing a philanthropic role in Africa, while at the same time raising its profile. During a summit with African leaders in April 2008, India pledged more than $500 million in grants for development projects. It also pledged to increase by more than $2 billion its lines of credit to African countries and regional economic groups.
The summit was Indias first with African leaders. However, China has held three such summits since 2003, where it has pledged loans and infrastructure projects much bigger than what India has promised. In its most recent summit in November 2009, China pledged $10 billion in loans over a three-year period.
In October, Indias Commerce and Industry minister Anand Sharma led a trade mission to East Africa. He said India is exploring whether African farmers can be encouraged to grow legumes and export them to India, the worlds largest market for legumes.
I think at this time India is taking off in terms of industrialisation, so definitely they are looking for a market, said Jacob Mignouna, the technical director at the Nairobi-based research organisation the African Agricultural Technology Foundation. Of course there may be some philanthropic aspect of it, but the bottom line is, they are looking for trade, for opportunities also for the Indian industries.
The close relationship between India and Africa is reflected in trade. Between April and July 2010, India exported $4.8 billion worth of goods to Africa a 51 per cent increase from the same period in 2009. India imported about $7.8 billion worth of goods from Africa between April and July 2010, a 40.7 per cent increase from the previous year.
The Bharti Airtel investment in Africa is so far one of the biggest from corporate India. In 2009 , Bharti Airtel, Indias largest mobile phone company, tried and failed to acquire South Africas MTN, one of the continents largest communication companies.
Last year Bharti Airtel bought the Africa operations of Kuwait operator Zain for $10.7 billion, and immediately began slashing prices. Call prices dropped 50 per cent or more in 11 countries to attract more customer.
The founder Mr Mittal said he wants to more than double the companys Africa business in the next two and a half years to 100 million subscribers. At the end of September, Bharti Airtel said it had about 40 million subscribers in Africa.
India boosts influence across Africa
