The 5th CII-EXIM Conclave on India Africa Project Partnership 2009 held in New Delhi from 22-24th March successfully showcased Indian competence and economic opportunities in Africa. Stepping up India’s visibility and participation in the developmental process of Africa, the conclave facilitated greater exchange of information among the companies from India and Africa in the infrastructure sector of Africa.

The conclave attracted 483 registered participants from Africa: and there were a total of 820 delegates. Ministers from Mauritius, Burkina Faso, Cote d’lvoire, Botswana, Mozambique, Sudan, Comoros, Togo, Congo, Uganda and Central African countries attended.

The Conclave discussed projects worth over US$12 billion as against the last conclave, held in New Delhi in March 2008 where projects worth over US$10 billion clinched.

The CII Director-General Chandrajit Banerjee in his welcome address observed that the time has come for India to enter into long-term partnerships in newer areas like agriculture, pharmaceuticals, alternative fuels and energy. India so far remained a key contributor to the development of Africa’s mineral and mining sectors.

New Trade Target

Observed Pranab Mukherjee, India’s External Affairs Minister, in his keynote address, “Given the concrete opportunities that exist between the two sides, India-Africa trade could easily be doubled to US$70 billion over the next five years. I would urge this conclave to accept this challenge and plan out strategies to achieve it.” He also called for supplementing the government’s effort with those from the industry, civil society and private institutions to widen India’s growing partnership with the African continent.

Mukherjee affirmed that India was committed to helping Africa bridge its digital divide and spread the benefits of development especially in sub-Saharan Africa. In this connection, he mentioned India’s Pan-African e-Network Project, the first phase of which he inaugurated in February this year. The minister said the project aimed at linking major universities, centres of excellence and healthcare institutions in Africa and India would be extended to 22 more countries by the middle of this year.

Agreements

The conclave saw the signing of two MoUs—one between the COMESA Business Council (CBC) and the Confederation of Indian Industry, and the second for a US$25-million line of credit from the Government of India for Burkina Faso, the partner country for the conclave. The CBC-CII MoU provides a framework for promoting technical cooperation between the CII and the CBC in all fields of economic activity, while the line of credit to be extended by the EXIM Bank seeks to promote rural electrification in Burkina Faso.

The Executive Director of EXIM Bank of India, Shanker Narayan R Rao announced that the bank had already extended US$2 billion line of credit to African nations and would be extending another US$600 million credit. This is part of the commitment to extend US$5.3 billion assistance over a period of five years. The credit will be used to develop trade, infrastructure in the private and public sectors.

Perspectives from Africa

The African leaders called for more Indian investments in agriculture, mining, power, agro-processing, irrigation, pharmaceuticals, IT, health, retail and small and medium enterprises for generating employment.

Ambassador Jonathan Wutaunashe, Dean of the African Group of Heads of Mission, in his speech described relations between India and Africa as a new growth paradigm. “The African drum and the Indian sitar are today producing beautiful music and this is clearly evident in the growth in bilateral trade between the two regions.”

Wutaunashe also said that theme of the conclave ‘Celebrating Partnerships’ was an appropriate one but the challenge lay in ensuring that the outcomes and targets were achieved. According to Ambassador Wutaunashe, “people in Africa came to India to take health, education and technology back to their country, and it was this relationship that must now be put on a stronger footing.”

Delivering the special address on behalf of the President of Burkina Faso, Alian Bedouma Yoda, the country’s Minister of Foreign Affairs & Regional Cooperation, said that opportunities existed for Indian businessmen in his country, which had only recently opened its doors to privatisation. “The legal framework for this was already in place”, he said.

Mauritian Vice-Prime Minister, Minister of Finance and Economic Empowerment, Ramakrishna Sithanen, said, “Development of a strong capital market in Africa is imperative as the region cannot rely exclusively on outside financing. An 80 percent decrease in private capital flow to emerging countries in 2009 as compared to 2008 is anticipated, we need to find complementary sources of financing besides institutional arrangements to build capital markets”. He added that investment portfolio should be rearranged from project to programme based financing. The minister especifically mentioned that African SMEs could greatly benefit from technology transfers from India, which can then be adapted to local conditions.

The Southern Sudan Minister of Finance and Economic Planning, Kuol Athian Mawien expressed the view that Indian investment in commercial banking will provide favourable platform for trade in the region. He suggested Indian enterprises to invest in range of sectors in Sudan namely agriculture, infrastructure, education, oil, mining & minerals, transportation, tourism development and capacity building.

Anand Sharma, India’s Minister of State for External Affairs noted, “It is time for Indian industry to institutionalize its relations with Africa and find new pathways for sustainable and inclusive growth.” He pointed to the strategies outlined in the Framework Cooperation Agreement that was reached at last year’s India-Africa Summit in New Delhi. Syamal Gupta, Chairman, CII Africa Committee & Chairman, Tata International, put it rightly that the conclave was a major springboard for greater India-Africa cooperation.