Digvijay Singh & Bhanu Kumar
Five days Narendra Modi can use to add a new page in the books of Indo-African history and take the partnership to an all new different level.
There is a lot in the bag as Prime Minister Narendra Modi visits Africa. The five day tour of PM Modi exhibits the strong promise for prominent Indo-Africa partnership. The recent years have seen a significant rise of India’s involvement in Africa and Indian objective is to play a crucial role in the development of Africa. The power position of India is increasing significantly in the world and this visit is an opportunity for Narendra Modi to reinvigorate the African policy. The tour is significant on the strategic and economical parameters and also important is the timing as India is being watched globally. The NSG episode is fresh and therefore India has a chance to explicitly showcase its abilities with new partnerships. Africa is not new to Indian Foreign policy orientations but there has been several instances where we have seen a sense of discontinuity in Indo-African partnership and here lies a chance with Mr. Modi to hold a determined long term multi-dimensional partnership with Africa.
There are several key issues that will be dealt around in these five days four Nations tour but most importantly the focus will be on Energy, Food Security, Maritime Interest and Development with partnership. India and Africa not only share a promising future but they are tied historically and motivated culturally. The international community is also keenly observing Modi’s Visit which starts from Mozambique to go through South Africa, Tanzania and Kenya. Narendra Modi’s visit will be the third segment of India’s high-level engagement with Africa this year after Vice President Hamid Ansari’s visits to Morocco and Tunisia and President Pranab Mukherjee’s visits to Ghana, Ivory Coast and Namibia. The idea is to start a new paradigm of unprecedented engagement with Africa through the African Mainland.
The Third Indo African forum Summit held in October 2015 did set the platform for a dialogue of co-operation between India and Africa. The summit per se was very enthusiastic and relevant as Majority of the leaders of African Union participated in it as the government wanted to hold a concrete talk with all the AU leaders. The motion was set in the summit and therefor began a new era of partnership. The identical lines between India and Africa make this engagement more substantial and sustainable. There is an urge in both the spheres to promote development and also reach out the benefits to the most disadvantaged strata of the society. Human security is a challenge for both Africa and India thus leading them to a more rigorous partnership to eliminate underdevelopment from their respective societies. Thus the 5 days tour of Indian Prime Minister is so essential to stand up the envisaged goals of the Forum summit held in October last year.
THE ECONOMY IS THE CARDINAL FEATURE OF ANY PARTNERSHIP and so is the case with Modi’s visit to the African Nations. Mozambique is the third largest exporter of natural gas after Qatar and Australia. A memorandum of understanding (MoU) on purchase of pulses from Mozambique for India and another on civil aviation are expected to be signed. India has been assisting Mozambique in various ways including through provision of Line of Credit (LOCs). India offered credit assistance of US$500 million to Mozambique during the State visit of Mozambican President to India in 2010. Under this, approvals have been conveyed for all the projects proposed by the Government of Mozambique although some projects are still to take off for a variety of reasons. Prior to this, India had extended LOCs worth US$140 million to Mozambique. The investment has increased in recent years and in 2014-15 we have seen a significant surge as ONGC Videsh Ltd and Oil India Ltd have invested nearly $5 billion to acquire 20 per cent in Mozambique’s Area-1 gas block in Rovuma basin. Mozambique is also home to nearly a quarter of Indian investments totaling $8 billion. So this will be the most significant visit to Mozambique as Modi will be second Prime Minister to visit Mozambique after Indira Gandhi in 1982.
The South Africa- India trade in 2014-15 has been around 6370.73 Million US $. There is substantial potential for trade growth between the two countries. Exports from India to South Africa include vehicles and components thereof, transport equipment, drugs and pharmaceuticals, engineering goods, footwear, dyes and intermediates, chemicals, textiles, rice, gems and jewellery, etc. Import from South Africa to India include gold, steam coal, copper ores & concentrates, phosphoric acid, manganese ore, aluminum ingots & other minerals. Major Indian investors in South Africa include Tata (automobiles, IT, hospitality and ferrochrome plant), UB Group (breweries, hospitality), Mahindra (automobiles) and a number of pharmaceutical companies, including Ranbaxy and CIPLA, as well as IT companies and some investments in the mining sector. There is also growing South African investments in India led by SAB Miller (breweries), ACSA (upgradation of Mumbai airport), SANLAM and Old Mutual (insurance), ALTECH (set top boxes), Adcock Ingram (pharmaceuticals), Rand Merchant Bank (banking).
India and Tanzania have a vibrant business and commercial relationship driven by the presence of a large community of Tanzanians of Indian origin. India is a leading trading and investment partner of Tanzania’s as well as an important source of petroleum products, essential machinery and pharmaceutical products. Many of the top business establishments of Tanzania are owned by persons of Indian origin. According to Department of Commerce data, total bilateral trade with Tanzania was US$3573.63 million during 2014-15, of which exports to Tanzania constituted US$2484.60 million and imports from Tanzania was US$1089.03 million. Significantly, Tanzanian exports to India which were stagnating at around $187 million annually in 2009 have jumped to over $ 1293 million in 2014 according to TRA data.
India’s economic engagement with Tanzania has also increased with a cumulative investment of US$ 2000.04 million [1990-2014] which is supporting employment of over 54,176 persons in 426 projects, as per Tanzanian official sources. India is at third position after the UK and China. Additionally, Indian firms have invested over $ 497 million in EPZs across the country, taking the total investments to about $2497 million. Tanzanian investments in India are a little over US$ 1 million as per DIPP. However, recently a Tanzanian company claims to have invested US$200 million in pulses processing plants set up in Gujarat and Kolkata. Major Indian companies and brands operating in Tanzania include Bank of Baroda, Bank of India, Tata International Limited, National Mineral Development Corporation Limited, insurance companies (LIC, NIC, United India, etc), Reliance Industries Ltd, Kamal Group of Industries, Bharti Airtel, Tata [trucks, buses and SUVs], Escorts [tractors], Ashok Leyland [trucks and other vehicles], Eicher [buses and trucks], Bajaj [three wheelers], TVS [three wheelers], Kirloskar engines and Godrej safes. Most of medicines and pharma products imported by Tanzania are sourced from India. All major Indian pharma companies have their distributors and representatives here.
Kenya and India have historical ties. The Principal Indian exports to Kenya include pharmaceuticals, steel products, machinery, yarn, vehicles and power transmission equipment. Main Kenyan exports to India include soda ash, vegetables, tea, leather and metal scrap. Government of India offered over 164 scholarships to Kenyan nationals in 2014-15. These include scholarships for professional training in various fields under the Indian Technical & Economic Cooperation (ITEC) Programme and related schemes and Indian Council of Cultural Relations scholarships. A Cultural Cooperation Agreement was signed in 1981. Kenya sent its largest ever sporting contingent to the 19th Commonwealth Games 2010 at New Delhi.
THE CULTURAL TIE AND THE DIASPORIC BOND MATTERS FOR A SUSTAINABLE PARTNERSHIP and Modi is all set to traverse through the cultural route as well. His address to about 10,000 people of Indian origin at Johannesburg and 20,000 people at Nairobi will matter as to develop more people to people contact. He will undertake a train journey from Durban to Pietermaritzburg in South Africa where Mahatma Gandhi was evicted from a train in 1893. The idea of India –Africa partnership relies largely on these aspects. This trend is not new there has been a lot of initiatives from both sides to make the Diasporas feel at home. A Festival of India in South Africa was jointly organized by High Commission in Pretoria and Department of Arts and Culture of South Africa during July-August 2014 commemorating 20 years of our diplomatic relations and also 100 years of Gandhi’s return to India from South Africa. The ICCR (Indian Council of Cultural Relations) has been continuously engaged in promoting the cultural ties between India and African Nations through arts, music, literature and various forms.
What is imperative here is for Modi is to look at African Nations as Equal partners in development and use the cultural prospects tactically in the favor of development of both the societies.
The prospects of partnership in Energy, Maritime and Food security is sublime but can only consolidate if Narendra Modi is able to hold the African Nations as Equal and walk together on the same line. The need is to use the partnership to secure the Eastern coast and give priority to the IOR (Indian Ocean Region). The East coast of Africa is both strategically and economically important for India.
(Digvijay Singh, Assistant professor (visiting faculty), Amity University Noida &
Bhanu Kumar, M.Phil, Pol. Sc. Delhi University)