India-Africa Relations: Strategic Importance of the Africa

Last month, on his way to Brazil to participate in the G-20 Summit, Prime Minister Narendra Modi made a strategic halt in Nigeria. His visit to Nigeria boosts India’s strategic relations with African nations.

• Later, the Indian Prime Minister was conferred Nigeria’s second-highest national award, the Grand Commander of the Order of the Niger. 
• He became the only second foreign dignitary to receive the distinction since 1969, after Queen Elizabeth II.

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India Africa Facts

India Africa Relations

• Historical Relations: India’s fight against decolonisation and apartheid, and consistent efforts to serve as a voice of developing countries through the Non-Aligned Movement (NAM). 
  • Non-Aligned Movement (NAM) was founded in 1961 with the view to advancing the interests of developing countries in the context of Cold War confrontation.
• India Africa Forum Summit: First held in New Delhi in 2008, it marked India’s initial diplomatic efforts to seek a comprehensive partnership with the African bloc of nations as a whole.
  • Kampala Principles: Outlined in 2018, they serve as a guiding framework for India’s engagement with the continent.
• India-Africa Trade Cooperation: As per a paper by the International Monetary Fund, as of 2022, India was the third-largest trading partner for Africa, accounting for 7 percent of exports ($32.3 billion) and 5 percent of imports ($28 billion).
  • Bilateral trade between India and Africa surged to US$ 98 billion in 2022-23, marking significant growth from the previous year’s US$ 89.6 billion.
  • Africa, through the African Continental Free Trade Area (AfCFTA), is putting in place the appropriate rules of origin to assure their optimization. 
  • This will provide a unified continental market that Indian firms can easily access and tap into—potentially increasing the scope and level of India’s engagement with Africa. 
  • Concessional Financing: India extended concessional loans exceeding USD 12.37 billion. 
    • GoI has extended 196 LOCs worth US$ 12 billion to 42 African countries.
• Infrastructure: The Asia-Africa Growth Corridor (AAGC) was launched by India to enhance cooperation with African countries in partnership with Japan. 
  • India’s cumulative investments in Africa are estimated at around $75bn to date, spanning IT to critical minerals.
• Defense: India Africa Defence Dialogue (IADD) has been institutionalised to be held once every two years to explore new areas of convergence for mutual engagement.
  • It includes capacity building, training, cyber security, maritime security and counter terrorism.
  • The Indian army is working as a UN peacekeeper and plays a peace-building role in Africa (DRCongo, Ethiopia-Eritrea border, Sudan and other), building infrastructure and de-mining land.
• Education: ‘Study in India’ was launched to attract students from neighboring and African countries. 
  • India has granted 42,000 scholarships since the 2015 India Africa Forum Summit (IAFS)-III. 
  • The first foreign campuses of National Forensic Sciences University (NFSU) in Uganda and of IIT Mumbai were established in Tanzania.
• Health and Medical Tourism between India and Africa: India was the third-largest investor in Africa’s healthcare sector from 2010–2019, accounting for a 19 percent share. 
  • Made in India’ COVID-19 vaccines have been exported to 42 African countries from January 2021 to March 2023. 
  • India has become a top medical tourism destination, with 19.5% of African tourists visiting for medical reasons in 2020. 
• Humanitarian assistance: India has provided humanitarian assistance to address food deficits, floods, and other needs. 
  • India sent 1,000 metric tons of rice to Malawi, 1,300 metric tons of maize to Zambia, and 1,000 metric tons of rice to Zimbabwe to help with food security. 
  • India also sent $1 million in flood relief assistance to Kenya, including medical aid, baby food, water purification supplies, and more. 

Opportunities for India in Africa

• Expanding Bilateral Trade: Strengthen trade partnerships across sectors like agriculture, mining, and energy.Africa is a significant destination for Indian pharmaceuticals, which constitute around 18.5% of India’s exports to the region.

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• Investment in Infrastructure Development: Leverage India’s expertise in infrastructure development for building roads, railways, and power projects in Africa.
  • Africa requires investments of over $100 billion annually for infrastructure, presenting an untapped market for Indian companies.
  • Adani Group’s $736 million agreement with Kenya Electricity Transmission Company to construct 388 kilometers of high-voltage transmission lines.
• Securing Critical Minerals: Enhance access to critical minerals like lithium and cobalt, crucial for India’s renewable energy and EV goals.
  • Africa holds 30% of the world’s known critical mineral reserves, and India has already initiated partnerships, such as KABIL’s lithium exploration agreements in Argentina (via African partnerships).  
• Food Security and Agricultural Cooperation: Collaborate on agricultural technologies, food processing, and irrigation to address Africa’s dependence on food imports.
  • Africa’s food import bill was $43 billion in 2022, while 282 million Africans are undernourished, highlighting the need for agricultural transformation.
• Renewable Energy Collaboration: Develop solar and renewable energy projects under the International Solar Alliance (ISA).
  • India has pledged $2 billion for solar energy projects in Africa. Solar energy initiatives can help electrify Africa’s 600 million people currently without access to electricity.
• Digital Transformation and Start-ups: Expand India’s digital payment systems, e-governance models, and technology start-ups to Africa.
  • Africa has over 1.2 billion mobile subscribers, making it an attractive market for Indian digital solutions like UPI, Aadhaar, and Co-WIN platforms.
• Strengthening Health and Pharmaceutical Ties: Increase pharmaceutical exports and support healthcare infrastructure development in Africa.
  • Indian generics account for 20% of Africa’s pharmaceutical imports. The continent’s health care market is projected to grow to $259 billion by 2030, driven by rising demand for affordable medicines.
• Political and Strategic Alliances: Reinforce India’s diplomatic ties and support African nations in global forums like the WTO and UN.
  • India was instrumental in securing the African Union’s permanent membership in the G20, demonstrating its role as a global advocate for African interests.

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Challenges in India-Africa Relations

• Limited Trade Integration: Despite being Africa’s fourth-largest trading partner, India-Africa trade is only $90.5 billion (2022-23), compared to China-Africa trade, which surpassed $250 billion in 2021.
  • Africa’s intra-regional trade under the African Continental Free Trade Area (AfCFTA) offers immense potential, but India’s engagement in these frameworks is limited.
• Geopolitical Rivalries: Africa has become a battleground for global powers like China and the US, competing for access to resources and markets.
  • China’s Belt and Road Initiative (BRI) has financed infrastructure projects across Africa, such as railways in Kenya and Ethiopia, leaving India to play catch-up.
  • Kenya cancelled multimillion-dollar airport expansion and energy deals with Adani Group after U.S. bribery and fraud indictments.
• Governance and Security Issues: Africa faces challenges like political instability, terrorism, and corruption, particularly in the Sahel region.
  • Between 2020 and 2023, there were 9 coups in seven African countries, including Sudan, Niger, and Burkina Faso, complicating diplomatic relations.
• Limited Impact of Development Cooperation: India’s Lines of Credit (LoC) and capacity-building initiatives often lack strategic integration, limiting their impact.
  • Projects like Pan-African e-Network have improved connectivity but failed to address larger systemic challenges like poverty or food insecurity.
• Healthcare and Pharmaceutical Challenges: India supplies 62% of Africa’s pharmaceutical imports, but COVID-19 exposed vulnerabilities in global supply chains.
  • African nations faced significant delays in accessing vaccines and medicines due to supply chain disruptions.
  • Tainted syrup medicine imported from India was the cause of an outbreak of kidney failure that killed more than 60 children in Gambia 2023.
• Cultural and Educational Barriers: Instances of discrimination against African students in India and complaints about the quality of education deter cultural and educational exchanges.
  • While 95,000 African students study in China, India’s Study in India initiative has failed to attract significant numbers.
• Climate Change and Food Insecurity: Africa’s 282 million undernourished population (2022) and increasing climate-related disasters demand urgent attention.
  • The Horn of Africa faces severe droughts, exacerbating food insecurity and forcing India to address humanitarian needs.

Way Forward for India-Africa Relations

• Boosting Economic Cooperation: Diversify trade portfolios by focusing on sectors like renewable energy, technology, and healthcare.
• Strengthening Engagement: The last India-Africa Forum Summit (IAFS) was held in 2015. India must convene IAFS-IV soon to capitalize on the African Union’s inclusion in the G-20 under India’s presidency.
  • An India-African Union Track 1.5 Dialogue can help address mutual concerns, with Addis Ababa (African Union’s seat) as a potential host for IAFS-IV.
  • Setting up an AU regional office in New Delhi would facilitate regular consultations.
• Enhancing Security Cooperation: Increase collaboration in counter-terrorism, maritime security, and cybersecurity.
• Addressing Food and Healthcare Needs: Partner with African nations on sustainable agriculture and boost pharmaceutical manufacturing within Africa.
• Leveraging Cultural and Educational Ties: Greater interaction between universities, think tanks, civil society and media organisations in India and select African countries is needed. 
  • Establish a National Centre for African Studies in India and liberalize visas for African students.
• Trilateral and Multilateral Cooperation: Foster trilateral initiatives like the India-Brazil-South Africa (IBSA) Fund to address Africa’s developmental challenges.
• Sustainable Development Initiatives: Promote renewable energy and climate action through platforms like the International Solar Alliance (ISA).
• Leveraging India’s Digital Strengths: India’s digital stack (e.g., UPI, biometrics, Jan Dhan technology) can be replicated in African nations.
  • UPI and RuPay services already operate in Mauritius, with countries like Kenya, Namibia, Ghana, and Mozambique showing interest.
• Support for Industrialization and Value Addition: India must focus on creating higher value-added investments in sectors like agriculture, pharmaceuticals, and manufacturing.
  • Indian companies can contribute by establishing manufacturing bases, promoting farm mechanization, food processing, and cold storage infrastructure.

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Conclusion

India-Africa relations hold immense potential for fostering mutual growth, addressing global challenges, and promoting South-South cooperation. By overcoming existing challenges and focusing on strategic collaboration in trade, security, and development, both regions can build a resilient and inclusive partnership that benefits their populations and contributes to a balanced global order.