Manmohan Singh announces extra $700m for education, skill development at India-Africa summit
Prime Minister Manmohan Singh unveiled a slew of initiatives to help African nations build local capabilities, continuing the Indian strategy of treading softly on a continent where there is a scramble for natural resources.
India pledged a $5 billion line of credit for development initiatives and an additional $700 million for education and skill development in Africa, Singh said at the plenary session of the second India-Africa summit here. India has traditionally adopted a lightfooted approach to economic diplomacy in Africa and there have been concerns that the Indian engagement lacked consistency and is not as effective as that of China. Officials accompanying the prime minister insisted that India's is not being outsmarted by the Chinese, pointing to the Indian initiatives to build local institutions and capacity in agriculture, education and training.
"The Chinese are absent in many of these areas. We don't agree that China has outflanked us here. There is enough place to do what we are good at,'' said a senior official. Africa, with a population of 1 billion, is being wooed by developed and emerging powers because of its potential as a huge market and a continent with vast mineral and oil resources. China, in particular, has pursued an aggressive strategy of acquiring oil and mineral concessions while building large infrastructure projects.
The $5 billion line of credit will be for three years, Singh said at the summit, attended by 15 African nations. A substantial chunk of the credit line -- $300 million -- will be to support the development of a new Ethio-Djibouti railway line linking Addis Ababa and the port of Djibouti.
To boost engagement in the agriculture and allied sectors, the prime minister announced the formation of an India-Africa food processing cluster. "This would contribute to value addition and the creation of regional and export markets," he said. Furthermore, an India-Africa Integrated Textile Cluster will support the cotton industry and the processing of the raw material into high-value products.
India, which is looking at close coordination with the Africans in climate change negotiations, has also pledged support for weather forecasting technology. "This will harness satellite technology for the agriculture and fisheries sectors as well as contribute towards disaster preparedness and management of natural resources,'' Singh said. India had announced a $5.4 billion line of credit in 2008 at the first India-Africa summit in New Delhi but much of it remains unutilised.
India-Africa trade, which is about $45 billion now, is expected to reach $75 billion by 2015. Nigeria, from where India imports more than a tenth of its crude, and South Africa, are the two main trading partners. But neither attended the summit.
China's trade with Africa is expected to double from its present level to $300 billion by 2015. Indian investment in Africa is driven by the private sector in contrast to China, where state-run enterprises dominate. Many Africa analysts complain that while China is unwavering in its focus on Africa at the highest level, India has been fitful. The Chinese premier or the president visit Africa every year but Indian prime ministers' visits are few and far between. Prime Minister Singh, in his address, also spoke about the need for better connectivity between India and Africa. "One of the biggest gaps in our interaction is that of insufficient air connectivity. To begin with, India would be too happy to increase the access of African airlines to Indian cities in a significant manner over the next three years," he said. With Somalia pirates becoming a major security concern, Singh said India would back African capacities in the maintenance of peace and security. "As a token of our commitment to supporting Africa's endeavours for seeking African solutions, India will contribute $2 million for the African Union Mission in Somalia." He announced the setting up of a formal arrangement for better interaction between businesses in India and Africa. "I propose that we jointly establish an India-Africa Business Council which will bring together CEOs of major corporation from both sides," he said. Among the major business groups with operations in Africa are mobile phone service provider Airtel, the Tata group, the Essar group, Reliance Industries, BHEL and software training company NIIT.
India Pitches for
UN Reforms at
Africa Summit
ADDIS ABABA India on Tuesday made a strong pitch for reform of global political and economic institutions, including the UN Security Council, as it began a second summit with Africa here. "The current international economic and political system is far from favourable, specially for developing countries. The world faces new challenges in assuring food and energy security," Prime Minister Manmohan Singh told African leaders at the African Union headquarters in the Ethiopian capital.
"The global institutions of governance are outmoded and are working under stress," he said. "We, therefore, need a new spirit of solidarity among developing countries." The two-day India-Africa Forum Summit began on Tuesday morning with a rendition of the anthems of the African Union and India. PRR
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