The partnership between India and Africa epitomizes an equitable, consultative, and cooperative relationship..
Africa Day is observed annually on May 25th. It serves as a moment to honor the diversity and achievements of the African continent and to showcase its cultural and economic richness. This occasion commemorates the establishment of the Organization of African Unity (now the African Union) on this date. Formerly known as African Freedom Day and later as African Liberation Day, its roots trace back to Africa's collective struggle against colonialism and economic oppression.
The African Union (AU) is a continental body consisting of the 55 member states that make up the countries of the African Continent. It was officially launched in 2002 as a successor to the Organisation of African Unity formed in 1963. The main objectives of the OAU were to rid the continent of the remaining vestiges of colonisation and apartheid; to promote unity and solidarity amongst African States; to coordinate and intensify cooperation for development; to safeguard the sovereignty and territorial integrity of Member States and to promote international cooperation.
Today, there is a need for a new spirit of solidarity among developing countries. India and Africa recognise that in this globalised age, all live interconnected in a small and fragile planet and work together to uplift the lives of our people in a manner that preserves the sustainability of our common air, land and water.
The story of India and Africa’s partnership embodies an equal, consultative, and collaborative relationship. India has consistently supported the development of African capacities in the maintenance of peace and security. The people of Africa and India stand at the threshold of a historic opportunity. India and Africa account for the whole range of linguistic, religious and ethnic diversity in the world. The success in making open, tolerant and rule-based societies flourish in conditions of relative underdevelopment will have a profound effect on the future of the world.
India-Africa Trade Relationship – Africa Day 2023
India’s bilateral trade with Africa “has now reached US$ 89.5 billion in 2021-2022 compared with US$ 56 billion the previous year.” Today, India’s exports to Africa account for a healthy 5.2 percent of Africa’s global imports, whereas India’s imports accounted for 7 % percent in the continent’s global exports in 2020. This shows that India is Africa’s fourth-largest trading partner.
The investment aspect of the relationship is also progressing well, spanning across greenfield and brownfield sector. Cumulative Indian investments in Africa during the period of April 1996 to March 2022 amounted to US$73.9 billion. This makes India one of the top five investors in the continent.
The extension of Government of India supported Lines of Credit (LOC) on concessional terms continues to remain a popular instrument for undertaking various development projects. As of March 2022, a total of 204 LOCs to the tune of US$12.37 billion have been extended by India to 42 African countries.
India engages with Africa meaningfully, focusing much on its core competencies like human resource development, training and skill development, IT, ITES, education and healthcare services unlike China who focuses majorly on developing manufacturing capacities and infrastructure in Africa.
India enjoys an advantage in terms of language and cultural connections, further bolstered by its significant diaspora of over 3 million in Africa. This diaspora serves as a vital strategic asset for India in advancing its relations with African nations. Historically, the geographical proximity and navigational ease within the Indian Ocean facilitated robust trade ties between India and Africa long before the era of European exploration.