India and Africa Relations: PM Modi in Ghana Highlights India’s Commitment to African Development

PWOnlyIAS

July 07, 2025

India and Africa Relations: PM Modi in Ghana Highlights India’s Commitment to African Development

Recently during addressing a special session of the Parliament in Accra, Ghana, PM Modi said India is a committed partner in the development of African nations.

About Ghana

  • Location: Ghana is located in West Africa, one of the most stable democracies in Africa.
  • Bordered by: Cote d’Ivoire to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south.
  • Capital: Accra
  • Official Language: English
  • Currency: Ghanaian Cedi (GHS)

Key Decisions During PM Modi’s Visit to Ghana

  • Bilateral Trade and Investment
    • Target to Double Trade: India and Ghana aim to double bilateral trade within the next five years.
    • Indian Investments: Indian companies have invested nearly $2 billion in 900 projects across Ghana.
    • India reaffirmed its support for Ghana’s economic restructuring efforts.
  • Agreements Signed During the Visit
    • India-Africa RelationsMoU on Cultural Exchange Programme (CEP): Focus on promoting cultural understanding and exchanges in art, music, dance, literature, and heritage.
    • MoU between Bureau of Indian Standards (BIS) & Ghana Standards Authority (GSA): Enhance cooperation in standardization, certification, and conformity assessment.
    • MoU between ITAM (Ghana) & ITRA (India): Focus on education, training, and research in traditional medicine.
    • MoU on Joint Commission Meeting: Institutionalize high-level dialogue to review and enhance bilateral cooperation mechanisms regularly.
  • FinTech and Digital Public Infrastructure (DPI)
    • UPI-Based Digital Payments: India offered to share its experience with UPI to help develop Ghana’s financial technology infrastructure.
  • Collaboration in Mining: Indian companies will collaborate with Ghana in the exploration and mining of critical minerals to support industrial development and supply chain resilience.
  • Defence Training and Security Cooperation:
    • Increased cooperation in defence training, cybersecurity, maritime security, and defence supplies.
    • Agreement to advance defence ties under the framework of “security through solidarity”.

About Global South

  • The “Global South” is a term used to broadly describe countries that are often characterized as developing or less developed, primarily located in Africa, Asia, and Latin America. 
  • It’s a geopolitical, historical, and developmental concept, not strictly a geographical one, as some countries within the Global South, like China and India, are in the Northern Hemisphere.

  • Counter-Terrorism Cooperation: Both countries unanimously agreed that terrorism is the enemy of humanity and committed to strengthening counter-terrorism efforts.
  • Global South Solidarity: Both leaders pledged continued cooperation as part of the Global South.
    • Acknowledged Ghana’s role in the Voice of Global South Summit.
  • African Union’s G20 Membership: PM Modi highlighted African Union’s permanent membership in the G20 during India’s presidency.

India and 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.
  • Kampala Principles: Outlined in 2018, they serve as a guiding framework for India’s engagement with the continent.
  • India-Africa RelationsIndia 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.
  • India Africa Trade: As of February 2025, India is Africa’s 4th largest trading partner, with USD 100 billion in bilateral trade.
    • India’s investments in Africa have reached USD 75 billion, with a target to double by 2030.
    • 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. 
  • Infrastructure: The Asia Africa Growth Corridor (AAGC) was launched by India to enhance cooperation with African countries in partnership with Japan. 
    • With nearly $75 billion of investments by Indian companies, India is among the top five investors in Africa.
  • 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. 

Significance of Africa in India’s Foreign Policy

  • Strategic Partnership in Global South: Africa is a key ally for India in shaping a multipolar world
    • Both support reforms in global institutions like the UN Security Council and WTO
    • India’s G20 presidency in 2023 led to the African Union’s permanent membership in G20, showing India’s strong advocacy for Africa.
  • Trade and Economic Importance: Africa is rich in natural resources like oil, gas, and minerals.
    • India’s trade with Africa touched $98 billion in 2022–23, making Africa a vital trading partner.
  • Energy and Critical Minerals: Africa is important for India’s energy security and green transition.
    • Indian companies are exploring lithium and other critical minerals in Zimbabwe, Namibia, and DRC.
    • India also sources solar project partners in Africa under the International Solar Alliance.
  • Security and Defence Cooperation: India supports African peace and security through UN peacekeeping missions and military training
    • India has deployed around 5,000 personnel in African missions under the UN.
  • Development Assistance and Capacity Building: India offers Lines of Credit, grants, and training under programs like ITEC and e-Vidya Bharati.
    • So far, India has extended $12.26 billion in credit to African nations.
  • Diaspora and Cultural Ties: India has a 3 million-strong diaspora in Africa.
    • They are mainly in South Africa, Mauritius, Kenya, Tanzania, and Uganda.
    • They act as cultural, political, and economic bridges between the two regions.
  • Counter to China’s Influence: China has made heavy investments in Africa — over $170 billion since 2000.
    • India offers a different model — demand-driven, people-centric, and with fewer strings attached.
    • India’s model is based on capacity building and mutual respect, not just loans and infrastructure.

Significance of Ghana for India

  • Geopolitical Location: Ghana is strategically located along the Gulf of Guinea in West Africa, providing India with access to important maritime routes and key West African markets.
  • Regional Stability: Ghana is one of the most politically stable countries in West Africa, with free and fair elections since 1996, making it an anchor for democratic governance in the region. 
  • Economic Trade and Investment: India imports gold (over 70% of total imports from Ghana) and cocoa, while exporting pharmaceuticals, machinery, and agriculture-related products
  • Defense and Security Cooperation: India and Ghana collaborate on maritime security, cybersecurity, and counter-terrorism efforts, with Ghana being an important partner in UN peacekeeping missions.
  • Cultural and Educational Ties: Ghana hosts a vibrant Indian diaspora of over 15,000, and cultural exchanges like the Festival of India and International Day of Yoga strengthen people-to-people connections. 
    • Ghana benefits from Indian Technical and Economic Cooperation programme (ITEC) and Indian Council for Cultural Relations (ICCR) scholarships.
  • Development Partnership: India has extended $450 million in concessional credits and grants for infrastructure projects, including rural electrification and the Tema-Mpakadan railway project, supporting Ghana’s economic development.
  • Global South Solidarity: Both countries advocate for a stronger voice for the Global South in global governance. 
    • Ghana supports India’s UNSC reform and its leadership in climate change and security issues.
  • Humanitarian Support: India provided COVID-19 vaccines and other humanitarian aid to Ghana, demonstrating its commitment to Ghana’s health and well-being during the pandemic.

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.
  • 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.
  • 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 health care 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.

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.
  • 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.
  • 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.

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.

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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