Relations between India and Africa
Introduction:
- Africa has been referred to as the “final frontier” of commerce for many years. It is necessary to broaden perceptions of Africa as a potential market for investments as experts reflect on current global trade practises.
- Africa is a major player in the global economy.
- A more inclusive and stable international economic order is significantly influenced by the continent of Africa.
- Expanding enterprises alone is no longer sufficient to attract investments in Africa; instead, supply and value chains must be diversified in order to build a stable and mostly shockproof global economy.
- Africa is the location of 30% of the world’s mineral reserves, 12% of its oil, and 8% of its natural gas.
- With a young workforce, a growing consumer base, and rising disposable incomes, it will make up more than half of the predicted 1.7 billion increase in global population in 2050.
- In order to unlock strong value chains, international businesses would do well to recognise, support, and take advantage of such benefits.
India’s perspective on the Global South and Africa:
- India has advanced historically during its G20 presidency, with Prime Minister Narendra Modi vehemently advocating for the African Union’s inclusion in the organisation.
- A Business-20 (B20) Action Council report titled “African Economic Integration: Enhancing Inclusion and Participation in the Global South” is in line with the Government of India’s goals for the region.
- Africa currently makes up less than 3% of the total manufacturing and trade market share worldwide. The continent is home to 33 of the world’s 46 least developed nations, many of which are landlocked.
- With the assistance and initiatives of G20 countries and businesses, the Action Council on African Economic Integration established and examined five main targets to spur its economic integration under the auspices of the B20.
- The continent’s regional economic integration needs to be strengthened, hence action must be taken.
- It is necessary to improve human capital results in both health and education.
- Similar to India, Africa has a sizable demographic dividend, highlighting the crucial role that the continent’s youth will play in its economy in the years to come.
- Enhancing healthcare and educational results must be the primary focus if these capabilities are to be realised.
- According to the African Development Bank, $26 billion in funding is needed each year to support healthcare spending on the continent.
Promoting individual participation:
- These industries can benefit from private investment to provide youth and children in Africa with access to excellent training, education, and healthcare.
- An integrated economic framework would allow for resource sharing, knowledge exchange, and the cost-effective transmission of cutting-edge healthcare and education methods.
Enhancing the food and agricultural systems:
- Considering that the agricultural sector employs roughly 70% of Africans. Subsistence farming is prevalent in the area, with modest landholdings. Low productivity is caused by a shortage of financing and essential inputs like seeds and fertilisers.
- Additionally, little value is added, and the majority of agricultural products are shipped unprocessed.
- As a result, farmers must be trained and educated, mechanisation must be increased, and sustainable value-added enterprises must be introduced. The interventions can provide significant effects in Africa when combined with improved access to inputs and credit lines.
Industrial activities should be included to resource-based activities:
- African countries, like other growing economies, must complement resource-based economic activity with industrial operations that promote increased productivity.
- In order to properly utilise Africa’s abundant natural resources, manufacturing-based industrialization is essential, according to the African Union’s Agenda 2063.
- A corollary to this objective is the empowerment of micro, small, and medium-sized businesses through improved access to financing and electricity.
- We found that this may be accomplished over time by facilitating intra-continental trade, harmonising policies, and utilising the world’s abundant renewable energy resources.
Implementing the African Continental Free Trade Agreement (AfCFTA) successfully:
- Through trade facilitation measures, it constitutes a significant initiative. When fully implemented, the AfCFTA will improve economic integration with global value chains, boost competitiveness across the continent, and draw investments.
- Accelerating trade facilitation requires the use of technology and G20 country assistance for execution.
Strengthening the logistics framework:
- Putting these suggestions into practise calls for a strong logistical base. Connectivity on both a digital and physical level is essential for a strong economy.
- To connect the huge expanse of the continent, the building of roads, trains, and air linkages must be accelerated with more private investments.
Conclusion:
- It is impossible to overestimate the socioeconomic benefits of increasing African engagement in the global economy. India’s emphasis on Africa comes at a good moment since the geo-economic landscape is shifting quickly.
- In the grand scale of things, India and Africa depict a past that is in fact the history of economic interactions as well as the history of civilisation.
- Today, the two continents have changed, with India now one of the world’s largest economies with one of the fastest rates of economic growth, and Africa receiving more attention as a source of equitable and sustainable growth.
