Africa quarterly special on emerging powers.pdf

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africa

II N D I A NN D I A N CC O U N C I LO U N C I L F O RF O R CC U L T U R A LU L T U R A L RR E L A T I O N SE L A T I O N S

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lSECURING AFRICA’S TRANSFORMATION: The India Factor lBRAZIL & AFRICA: Challenges and OpportunitieslRUSSIA & AFRICA: Russia Stages a ComebacklAFRICAN AGENDA: The Pretoria Way


RISE OF EMERGING POWERS IN AFRICA RISE OF EMERGING POWERS IN AFRICA

SPECIAL EDITIONVolume 51, No. 3-4

Indian Journal of African AffairsVolume 51, No. 3-4, August 2011 — January 2012

INDIAN COUNCIL FOR CULTURAL RELATIONS

NEW DELHI

africaQ U A R T E R L Y

SECURING AFRICA’STRANSFORMATIONIndia can play a leadership role in spurring Africa’s metamorphosisby helping to deepen and institutionalise governance reforms in the continent, therebyencouraging positive changes in its democratisation process, say Paul Musili Wambua andMumo Nzau

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A F R I C A Q U A R T E R L Y

THE OTHER POWERS IN THE CONTINENT

The growing engagement of India and China inAfrica has compelled western powers to shift

their perspective towards a renascent continent, says Sanjukta Banerji Bhattacharya

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EMERGING POWERS IN AFRICA: AN OVERVIEW Africa must leverage its growing relations with emerging

powers like India, China and Brazil to promote its own development. It’s time for African leaders to take charge

and set the agenda, says K Mathews

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AFRICAN AGENDA, THE PRETORIA WAY South African foreign policy’s biggest goal today is tointertwine the ‘African Agenda’ with its interests in the

continent, says Rajiv Bhatia

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BRAZIL & AFRICA: CHALLENGESAND OPPORTUNITIES Buiding upon its historical ties with the continent, Brazil is navigating new challenges to expand its influence in Africa, says Danilo Marcondes de Souza Neto

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RUSSIA STAGES COMEBACK Russia is working towards increasing its share of trade with the continent, but needs to be more proactive to take on competition from other countries, says Alexandra Arkhangelskaya

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122 DOING BUSINESS WITH AFRICA

134 BOOKS & IDEAS

142 SPEECHES

OPINION/COMMENT

24 Engaging Tanzania

102 Middle Powers Zero in on Africa Opportunity

106 African Oil, Asian Growth

112 Island Nations: High Stakes on High Seas


August 2011-January 20126

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The EditorAfrica Quarterly


Indraprastha EstateNew Delhi-110 002

E-mail: [email protected]

Printed and Published bySuresh K. Goel

Director-GeneralIndian Council for Cultural RelationsAzad Bhavan,

Indraprastha EstateNew Delhi — 110002

Editor:Manish Chand

ISBN 0001-9828


August 2011-January 2012 7

It’s a moment of unprecedented churn in global geo-politics, a moment that comes but rarely when anold order gives way, imperceptibly but surely, to a newone. Africa, the continent that was once superciliously

dismissed as a foredoomed place of darkness, is now not onlyshining anew, but is at the centre of a new great game ofcourtship. The rise of emerging powers, specially the BRICScountries, has changed the rules of engagement, compellingthe established status quoist powers to shift their strategy in thisrecalibrated 21st century contest for Africa’s resources, markets and friendship. In this arguably post-American world,marked by an inexorable shift of power from the West to therest, Africa, a continent of around one billion people which isexpected to grow at a healthy 6 percent in times of the festering eurozone recession, has a unique opportunity toshepherd its renaissance on its own terms and reclaim its placein an evolving global order. The special edition of Africa Quarterlybrings together experts

and scholars cutting across continents to look at the unfold-ing narrative of Afro-optimism and the implications of the riseof BRICS (Brazil, Russia, India, China and South Africa) andother middle powers for a renascent African continent. The statistics are revelatory: the BRIC countriesstepped up their trade with the continent from merely $3.5 billion in 2000 to over $200 billion in 2011. China hasmultiplied its trade with Africa from $3.5 billion in 1990 toaround $150 billion in 2011. India’s trade with Africa is esti-mated to be over $50 billion; Brazil’s trade is pegged at around$16 billion; and Russia’s bilateral trade is around $10 billion. While each emerging power has its own motivations, imper-

atives and even competing ambitions for engaging Africa, thereis a marked realisation that the continent is a different place andrequires new strategies to forge alternative investment anddevelopment paradigms for the continent. The BRICS coun-tries present a powerful challenge to the so-called Washingtonconsensus deployed by the U.S. and traditional Westerndonors and partners, some of them former colonialists, todominate the continent through the IMF-World Bank’s pre-scriptive aid policies. With the unipolar moment of the American domination

waning, new models have arisen: the so-called Beijing consensus, a blend of authoritarian regulated political systemand state-led economic foray, and what some are seeing as the‘New Delhi model’ that is focused on a blend of capacitybuilding, human resource development, trade, aid and an African-led consensus. One can also say there is a new“southern consensus” emerging for engaging Africa that isbased on the principles of South-South solidarity, which

contrasts with the hegemonic, prescriptive Washington consensus. Clearly, the accelerated engagement of emergingpowers has provided more choice of models/approaches toAfrica, but one also needs to look critically to find out whetherthese new players represent real choice or are basically repackaging old wine in new bottle. In other words, we needto ask: are emerging powers different from traditional powersin any substantial way or are they neo-colonial powers in disguise, resorting to simply packaging to differentiate/brandthemselves in Africa while following the same policies? In thiscontext, it is important to mention the backlash to Chinese policies in some parts of Africa. The articles in this edition document in great detail the

trajectory of engagement each of these emerging powers hassought with Africa, and provide a diversity of perspectives onthe questions and issues that arise from their trade and diplo-macy in the continent. Taking an overarching view, K. Mathews argues that Africa must leverage its new partnership with emerging powers in the interest of its ownlong-term development. “African political elites will have tobe much more cohesive at the continental level if they are ableto use the competitive international environment to their collective advantage. African leaders also need to engageemerging powers more proactively in terms of Africa’s ownneeds, demands and aspirations,” he writes. In her article “The Other Powers in the Continent,” Sanjukta BanerjiBhattacharya contends that the relationships of the emergingpowers with Africa are being increasingly framed in the lexicon of “partnership”, be it strategic or economic. In fact,she points out that the methods of these powers are now beingemulated by both the older players and the new aspirants inthe continent that includes mixing trade with lucrative infrastructural investment and partnerships in agriculture,health, sport, education and technology. In a seminal sense, there is a radical shift from merely

self-interested profiteering to forging win-win and mutuallyempowering partnerships with African countries. Paul MusiliWambua and Mumo Nzau hold India’s democracy as a modelfor an increasingly democratising continent. More than 30African states have embraced democracy and many of themhave voluntarily subjected themselves to the African PeerReview Mechanism. The authors argue forcefully that Indiacan play a leadership role in spurring Africa’s ongoing resurgence by helping to deepen and institutionalise democratic reforms in the continent. In fact, a lot is happening on the ground on this front. Egypt

is keen to seek India’s help in bolstering its election infrastructure and officials from many African countries come

Emerging Powers: A time for new dreams

�� From the Editor’s Desk


E D I T O R I A L

to India to familiarise themselves withthe workings of the world’s most populous democracy.

While recent scholarly attention hasfocused mostly on the rising engage-ment of China and India with Africaand the media has obsessed about thelooming rivalry between the two risingAsian powers in the continent, it isimperative to look at how otheremerging and middle powers are con-figuring their engagement with Africa.Brazil, for one, has dramatically scaledup its economic and diplomatic forayinto the continent. Brazil has opened37 embassies in Africa, out of which 17were opened during former presidentLula da Silva’s tenure. “Brazil’s effortsto expand its commercial space inAfrica is part of an effort to offer analternative to the increase in Indian,Chinese, South Korean, Turkish andMalaysian influence on Africa,” writesDanilo Marcondes de Souze Neto, aRio De Janerio-based professor. Whatdoes Brazil bring to the table? “Brazilis seen to have a more balancedapproach towards Africa other thanemerging powers. There is a percep-tion of partnership, reciprocity and thecreation of a middle ground betweenthe Chinese state-led approach and theIndian strategy based on private sectorinvestment.” In yet another article,Estefenia Marachan writes about theinspiring narrative of how India andBrazil are investing in Africa to help itbecome self-sufficient in agriculture.

Russia, a born-again energy giant,too, has not remained immune to theattractions of Africa. Although Russia’strade with Africa is low compared toother BRIC countries, AlexandraArkhangelskaya says that Moscow haswoken up to new opportunities in the

continent and is trying to increase itsbilateral trade. Now, there are 18 bigRussian companies active in 13 countries of Africa and Russia hasinvested $9.7 billion in 47 projects.South Africa, the new addition to theBRIC grouping and the only Africanmember of this club of emergingeconomies, is also ramping up itsinvestments across Africa, specially inthose markets where its powerfulcompanies in the fields of communi-cation and broadcasting, infrastruc-ture, mining, pharmaceuticals andbanking enjoy a competitive advan-tage, says Rajiv Bhatia, a former Indianenvoy to South Africa. In his article“African agenda, the Pretoria Way,”Bhatia observes that South Africa,given the duality of its position, econ-omy and multi-tier relationships, willhave a significant contribution to maketo the development of Africa andargues for closer cooperation betweenNew Delhi and Pretoria on the largerAfrican agenda.

What does this renewed interna-tional competition for Africa mean forthe resurgence of the continent? Oncecalled “a dark toy in the carnival ofothers”, will Africa now have it owncarnival and not just be a plaything ofdeveloped and emerging powers?While much could still go wrong and there are pockets of instability and impending chaos, there are overwhelming signs of renascence and renewal. Afro-optimists is passé;Afro-optimism is in. In his article‘Africa Unbound’, Simon Freemantle,an analyst at Standard Bank Researchin South Africa, maps an upward economic trajectory on the continent.The IMF has predicted that between2011 and 2015, seven of the ten fastest-

growing economies in the world willbe from Sub-Saharan Africa. “Thispositive trajectory is unlikely to alter,”says Freemantle. He writes about thefive major trends that will continue topower Africa’s growth and reconfig-ure the continent’s global relevance.These include: a larger, younger, moreaffluent population; rapid urbanisa-tion; increasing absorption of telecom-munications; natural resources wealth;and a deepening financial sector.These trends should cheer all Afro-optimists and all those who believe ina more equitable world order.

Sadly, despite these upbeat economic indicators there still remainstubborn Afro-pessimists who refuseto look facts in the face and persist intheir prejudice. But they are clearly ina minority. It’s time to rediscoverAfrica through the eyes of love, thetrue Africa of laughter, joy, creativityand playfulness, says celebratedNigerian novelist Ben Okri in a lyrical meditation on the continent inhis new book A Time for New Dreams.

“Africa was seen for many decadesthrough greed. This justified all kindsof violence. The world should begin tosee light in Africa, its beauty andgenius,” says the novelist. “It is Africa’sturn to smile. That’s the loveliest giftthe world can give to keep Africa smil-ing,” he said when he was in Indiarecently. Poetry does not often squarewith the ruthless world of realpolitik,but the emerging powers will do wellto heed these prophetic words of BenOkri as they navigate and reconfiguretheir engagement with a resurgentcontinent in the midst of this tectonicshifts of power in the global geo-political landscape.

— Manish Chand

9August 2011-January 2012


Defying the Eurozone debt cri-sis, Africa is poised for an eco-nomic upsurge, with the

International Monetary Fund (IMF)and the World Bank hailing it the “con-tinent of opportunity”.

“This is the Africa of opportunity —the Africa where people take charge oftheir own futures, the Africa where peo-ple are looking for partnerships,” IMFManaging Director Christine Lagardesaid during her first official visit to Africain December 2011.

According to Dr. Maxwell M.Mkwezalamba, Commissioner forEconomic Affairs, African Union, “Inthe decade prior to the recent econom-ic and financial crisis, the continent reg-istered an average economic growth rateof above 5 percent and inflation declinedto single digits. This was a result of con-comitant improvements in governance,macro-economic management, andimprovement in the investment climate.Although the impact of the current Eurozone debt crisis on Africa is yet to befully understood, the continent hasdemonstrated an impressive post-crisisrecovery and has begun to regain itsgrowth trajectory.”

The World Bank has also noted thatgrowth across the 54-nation continenthas averaged 5-6 percent or more overthe past decade. “It varies from countryto country,” said the bank, adding that itwas significant that the poverty rate haddeclined from nearly 60 percent to justover 50 percent in the 10 years up to2005. Noting that Africa had been ableto shield itself from the ongoing globaleconomic crisis, Lagarde attributed it tothe “good economic policies” that hadprovided a platform for higher growthand investment, leading to a reduction inpoverty. There are, however, apprehen-sions that growth would be impeded ifthe population surge was not broughtunder control. The UN says the conti-nent has joined India and China as thethird region of the world where popu-lation has reached one billion. This

number is certain to reach up to 1.3 bil-lion by 2050. This growth is staggering,considering the fact that by 1950 therewere just 500,000 people living in theurban areas across the continent.

“A number of African countries havedemonstrated strong growth in 2011 asgrowth slowly returns to trend, post-cri-sis. Of these, Ghana, with an estimated13.6 percent growth rate, is by far themost impressive,” Standard CharteredChief Economist Gerard Lyons said.

Another country that has also per-formed well is Angola. The country,which is the third-largest sub-SaharanAfrican economy, is set for growthresurgence. “Rising oil production willlikely drive a growth rebound to 8 percent in 2012, with oil production set torise to 1.8 million barrels per day (mbd)from 1.6mbd in 2011,” StandardChartered said in its continental review.

Of the other countries, it said:“Mozambique is set to remain a star per-former in Africa in terms of economicgrowth. The economy expanded at anaverage rate of close to eight per centover the last decade and is likely to growby more than 7 percent in 2012.”

Lyons said: “South Africa underper-formed even relative to pre-crisistrends... South Africa with its deeperlinkages to the global economy is nowthreatened with a slowdown in the glob-al economy, especially the Eurozone, thedestination of most of its manufacturedexports.” In Nigeria, the resurgence ofreligious attacks is likely to create somesecurity problems for the country andaffect the investment climate. Theresource-rich Democratic Republic ofCongo is still trying to come to termswith a contested election result whichmay affect any attempt to develop theeconomy. The famine in Somalia andthe crisis in Sudan are yet to be fullysolved and this is likely to impinge ongrowth in the two countries.

Lagarde’s hope for Africa hinges onthe assessment that, though “the foodand fuel crisis of 2008 had a severe

impact on the continent and the globalfinancial crisis that followed, policy-makers responded effectively. Mostcountries were able to maintain criticalspending on health, education andinfrastructure. And we saw countries inthe region recover quickly, with growthrates now returning to levels enjoyed inthe mid-2000s.” She added that “this isa testament to the hard work and dedi-cation of policymakers and peopleacross the region. Before the crisis, theyreduced budget deficits and public debt;they brought down inflation, and builtup foreign exchange reserves. In short,they put their economies on a funda-mentally stronger footing.”

The continent has also found a newway of dealing with the adverse effectsof the global financial crisis by acceler-ating its engagement with emergingeconomies. Jean Ping, Chairperson ofthe African Union Commission (AU),told a meeting in Istanbul, Turkey, inDecember 2011 that “this adverseimpact is alleviated thanks to the strongpartnership that Africa has forged withcountries like Turkey, China and India.”

“This gives us an assurance thatwhile we cannot be fully insulated fromthe current crisis in Europe, we havedeveloped enough resilience to enableus to cope better with its adverseimpact,” Ping added.

Against this background, MthuliNcube, Chief Economist of the AfricaDevelopment Bank (AfDB), has urgedAfrica to these new relationships to beatthe Eurozone blues. “While theeconomies of Europe and NorthAmerica have stalled, the gloomy pic-ture is by no means worldwide,” he said.“All was not lost as the BRIC nations —Brazil, Russia, India and China — con-tinue to forge ahead. The Chinese econ-omy is likely to continue with its phe-nomenal rate of growth: nine and a halfpercent this year, and nine percent in2012. In India, we’re likely to see growthholding steady at around the 7.5-percentmark.” n

A continent of opportunity

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India offers $100-million line of credit to Mali

India on January 11 offered a $100-million line of credit to Mali fordeveloping a power transmission

project in the landlocked West Africancountry as the two countries agreed toscale up trade and investment.

The two countries also agreed to stepup counter-terror cooperation amidreports of Al Qaeda affiliates steppingup activities in Mali.

Prime Minister Manmohan Singhheld talks with Mali’s PresidentAmadou Toumani Toure to scale upbilateral ties across the spectrum,including deepening of economic tiesand developmental cooperationbetween the two countries.

The two leaders also discussed glob-al issues, including counter-terrorism,the UN reforms and climate change.

The Mali leader reiterated his coun-try’s support for India’s candidature fora permanent seat in an expanded UNSecurity Council. After the talks, thetwo sides signed two pacts that includ-ed the agreement on the grant of lineof credit by the Indian government for

a power transmission project connect-ing Bamako and Sikasso via Bougouniin Mali.

A memorandum of understandingon cooperation in the field of geologyand mineral resources was also signed.

India noted with appreciation Mali’s

offer for Indian participation in theirmining industry, agriculture, food pro-cessing, dairy and poultry farming, cot-ton cultivation, pharmaceutical indus-try, leather industry, automobile andtwo-wheeler segment and other com-mercial activities, said a joint statement

after the talks. Expanding counter-ter-ror cooperation figured prominently inthe discussions. “The two sides strong-ly condemned terrorism in all its formsand manifestations and resolved toincrease cooperation in the commonefforts of the international communityin preventing this scourge in a compre-hensive manner,” said the joint state-ment.

Appreciating the regional peacekeep-ing efforts of Mali in Africa, India reit-erated its offer for providing trainingfacilities to Mali to augment its peace-keeping capabilities.

Mali is Africa’s second-largest pro-ducer of long staple cotton after Egyptand is known to have the third largestreserves of gold in the continent. India’srelations with Mali have been growingsteadily in the past decade.

During 2009-10, goods worth $42.24 million were exported to Malifrom India. Indian exports include elec-tricity transmission equipment, cottonfabrics, cycle parts, machinery andmachine parts. n

Indian Prime Minister Manmohan Singh with Mali President Amadou Toumani Toure in New Delhi on January 11.

“The two sidesstrongly condemnedterrorism in all its

forms and manifesta-tions and resolved toincrease cooperationin the common effortsof the international

community”

11



As the glitzy China-built AfricanUnion building opened inAddis Ababa on January 28,

India was quietly engaged in intenseconsultations with delegations fromaround 25 African countries, includingforeign-office talks with Ethiopia, tofast-track implementation of key projects agreed at the second India-Africa summit.

M. Ganapathy, Secretary (WestAfrica) and Gurjit Singh, AdditionalSecretary (East and South Africa) in theMinistry of External Affairs, led theIndian delegation in talks with officialsfrom various African countries.

The focus was on fast-trackingimplementation of lines of credit andgrants worth $5.7 billion for a slew ofdevelopment projects and over 80 train-ing institutes Prime MinisterManmohan Singh had announced at thesecond India-Africa Forum Summitheld in Addis Ababa.

Several officials from African countries commended India’s develop-ment-centric diplomacy in the Africancontinent that focuses on capacity-building and human resource development, informed sources said.China has spent $200 million in build-ing the new African Union headquartersin Addis Ababa, a symbol of Beijing’sgrowing profile in the resource-richAfrican continent. The new AU build-ing, now the tallest in Addis Ababa, wasformally inaugurated over the weekendat a colourful ceremony in the presenceof several African leaders.

Although China’s $120-billion bilateral trade with Africa is more thandouble of India’s trade with the conti-nent, India’s soft-power diplomacy,reflected in over 100 training institutesit plans to set up across the continent,has generated enormous goodwill.

In the Ethiopian capital, Indian offi-cials also held the second round of

India-Ethiopia Foreign OfficeConsultations on January 24. This wasthe first bilateral meeting after the Indian Prime Minister’s visit toAddis Ababa in May last year and hiswide-ranging talks with his Ethiopiancounterpart Meles Zenawi.

The Indian delegation was led byGurjit Singh, also a former ambassadorto Ethiopia, and the Ethiopian delega-tion was led by Arega Hailu, DirectorGeneral of the Asia and Oceania Affairs,Ministry of Foreign Affairs of Ethiopia.

Both sides had also agreed to infusethe close political relationship withgreater economic content, according to the Indian embassy in Ethiopia. At the meeting, Singh underlined thatthe India-Ethiopia relationship was“exemplary” and was based on “com-mon commitment to economic development and cooperation”.

Hailu, on his part, expressed appre-ciation for the growing bilateral rela-tionship that had flourished over the lastfew years and expressed his gratitude toNew Delhi for providing Lines ofCredit (LoC) worth more than $700million for sugar development and rural

electrification. He also commendedIndia’s contributions towards capacity-building and human resources develop-ment by offering various scholarships.

“Cooperation under the India AfricaForum Summit and the LoC offered bythe India for sugar project and Ethiopia-Djibouti railway line were also discussed,” said the Indian embassy inEthiopia.

During the discussions, both sidesalso discussed the modalities of imple-menting decisions taken under the twoIndia-Africa summits, including theestablishment of four capacity-build-ing institutions in Ethiopia at bilateraland regional levels which include avocational training centre, an IT centre, a women’s solar engineeringvocational training centre and a farmscience centre.

The multifaceted ties between Indiaand Ethiopia have shown a remarkableupswing in the last few years with tangible progress in various fields,including political cooperation, infras-tructure development, agriculture, peo-ple to people contact, capacity-buildingand human resources development. n

(L-R) National Institute of Disaster Management Executive Director Dr. Satendra, DisasterManagement (Ministry of Home Affairs) Joint Secretary R.K. Srivastava, former Joint

Secretary (East and South Africa) Ministry of External Affairs Gurjit Singh and Joint Secretary(Ministry of Home Affairs) Lokesh Jha at a training programme on comprehensive disaster

risk management organised for African offcials, in New Delhi on September 19, 2011.

As China-built AU centre opens,India focuses on quiet diplomacy

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India has offered a $100-million lineof credit (LoC) to help improveZimbabwe’s health infrastructure.

Indian public sector undertakings(PSUs) will assist in reducing the infras-tructural deficit and contribute towardsthe African nation’s economic develop-ment.

“India would assist Zimbabwe inreducing its infrastructural deficit.Indian PSUs like IRCON, RITES andWAPCOS which had earlier also exe-cuted infrastructure projects inZimbabwe could participate in execut-ing fresh projects,” said IndianCommerce Minister Anand Sharma ina meeting with Zimbabwean FinanceMinister Tendai Biti at Harare onJanuary 10.

“A team from India would be visitingHarare next week to discuss the propos-al for an LoC of $100 million forstrengthening the country’s healthinfrastructure,” Sharma added.

The two ministers also agreed tospeed up the execution of the Pan-African e-Network project.

Sharma also expressed concern overZimbabwe’s Indigenisation andEconomic Empowerment Act, as itcould deter further investments byIndian companies in Zimbabwe. Theminister also urged Zimbabwe to sim-plify the process for issue of businessvisas to Indian businessmen.

“It was suggested that a one-year

multiple entry visa could be issued toencourage potential Indian investors vis-iting Zimbabwe,” the statement said, cit-ing Sharma.

The minister also said that the India-Zimbabwe ties would be furtherstrengthened as India helps set up a ruraltechnology park and a food-testing lab-oratory in Zimbabwe by India. n

India proposes $100-million line of credit for Zimbabwe

Months after its second sum-mit with Africa, India onNovember 24 underlined

its initiatives to help in the socio-cul-tural transformation of African coun-tries and called for jointly combatingglobal challenges like terrorism, piracyand climate change.

India as a development partnercould play a role in the socio-culturaltransformation of African countries, M. Ganapathi, Secretary (West),External Affairs Ministry, said at a two-day conference on the India-Africastrategic dialogue that started in NewDelhi on November 24.

Ganapathi highlighted India’s effortsto engage Africa on a broad spectrum ofissues related to global security, espe-cially piracy and terrorism on theSomalian coast, food security, energysecurity and climate change. Hestressed that the two sides would nowintensify their cooperation in the fightagainst poverty, disease, illiteracy andhunger. The foundation of India-Africaties was based upon equality, mutualrespect and mutual benefit, he added.The conference sought to expand theambit of the strategic dialogue betweenIndia and Africa and firm up a roadmapfor accelerating the crucial engagement

between the two regions.The conference was organised by

the Institute for Defence Studies andAnalyses, a defence ministry-fundedthink tank. Prominent experts fromAfrica who participated in the confer-ence included Abednego Edho Ekokoof Delta State University, Nigeria;Festus K. Aubyn, senior research fel-low at Kofi Annan InternationalPeacekeeping and Training Institute(KAIPTC), Ghana; ElizabethSidiropoulos, national director, SouthAfrica Institute of International Affairs;and Paul Musili Wambua of theUniversity of Nairobi School of Law.n

Committed to Africa’s transformation: India

Zimbabwe’s Finance Minister Tendai Biti meets Union Minister for Commerce and IndustryAnand Sharma, in New Delhi on February 24, 2011.

13



Building on key commitmentsit had made at the secondIndia-Africa summit, India dis-

cussed the location of training insti-tutes and developmental cooperationwith chiefs of leading RegionalEconomic Communities (RECs) dur-ing their four-day visit to India late lastyear.

The heads of RECs, also known asbuilding blocks of Africa, began theirfour-day visit in New Delhi onNovember 7.

They met Minister of State forExternal Affairs Preneet Kaur and discussed the gamut of India-Africarelationship and steps to take forwardkey decisions of the second Africa-India Forum Summit in Addis Ababaheld in May last year.

Richard Sezibera, Secretary-General of the East AfricanCommunity (EAC); MahboubMaalim, Executive Secretary of theInter-Governmental Agency forDevelopment (IGAD); SindisoNgwenya, Secretary-General ofCommon Market for Eastern andSouthern Africa (COMESA); andGeneral Louis Sylvain-Goma,Secretary-General of EconomicCommunity of Central African States(ECCAS) were among those who par-ticipated in the discussions.

Senior officials of RECs also heldextensive discussions with GurjitSingh, Additional Secretary (East andSouthern Africa) in the Ministry ofExternal Affairs, and Rajinder Bhagat,Joint Secretary (West Africa), MEA.

The discussions revolved aroundbolstering India’s relations with eachof the RECs and the nitty-gritty of thetraining institutes India plans to set upacross Africa.

M. Ganapathi, Secretary (West),MEA, hosted a lunch for the visitingAfrican chiefs.

At the Addis Ababa summit, Indiahad pledged $5.7 billion in lines ofcredit and grants for setting up a hostof developmental projects and over 80training institutes across Africa with aview to enhancing capacity building inthese countries. Out of these, the loca-tions of 42 institutes are to be consen-

sually decided by RECs. “The idea behind the meeting with

the RECs is to strengthen institution-al integration with regional communi-ties which is a vital part of our three-tier partnership with Afric,” said GurjitSingh. “Africa values its partnership

with India greatly and is benefitingfrom its technologies and expertise,”said Sezibera, of EAC.

With agriculture being a key area ofbilateral cooperation between Indiaand Africa, the Indian Council forAgricultural Research presented itsproposals to the visiting delegation on setting up soil water and tissue testing laboratories; regional farm science centres; agriculture seed production-cum-demonstration cen-tres; and special agriculture scholarships for Africa.

They also met officials of theEnergy and Resources Institute (TERI)to discuss issues relating to climatechange.

India and the African Union hadlaunched an action plan in 2010 thatsought to develop Africa’s impulsestowards regional integration andIndia’s institutional engagement withthe RECs. Subsequently, India heldthe first-ever meeting with top officialsof the RECs in New Delhi fromNovember 14 to 16, 2010. n

India, Africa RECs discusstraining institutes, projects

Participants from Africa at a training programme for packaging of fresh and processed foodproducts conducted by the Indian Institute of Packaging in New Delhi in February 2011.

The talks revolvedaround bolstering

India’s relations witheach of the RECs and

the nitty-gritty of training institutes

India plans to set upacross Africa

14 August 2011-January 2012

N E W S

With corruption being viewedas a major hurdle in thegrowth of the developing

world, Africa’s Regional EconomicCommunities (RECs) are workingtowards strengthening anti-graft mea-sures and are looking at legislations fromaround the world, including India.

East African Community (EAC)Secretary-General Richard Sezibera saidon the sidelines of an India-Africa meetat the Indian Council of World Affairs(ICWA) that his REC was working onanti-corruption legislation for theregion, for which the forum had exam-ined other such legislations from aroundthe world. He said the EAC had not yetstudied the Indian anti-graft legislation,but would soon do so.

Sezibera, who has served in variouscapacities in the Rwandan government,also said that the five-nation EAC, com-prising Kenya, Uganda, Tanzania,Rwanda and Burundi, was now workingtowards harmonising the work of exist-ing anti-graft agencies to to put in placea regional effort in curbing corruptionand counterfeiting. “We are workingtowards having a regional anti-corrup-tion legislation and the draft is at theworking-group level,” he said.

“We are looking at anti-graft legisla-tions from all over the world. I don’tthink we have yet studied the Indiananti-corruption legislation, but we shallcertainly take a look at it,” he added.

Speaking at the India-Africa meetingon November 10, Sezibera said the EACnations had changed for the better andare “more transparent economies” nowthan in the past. “We take corruptionseriously. Corruption is a problem for usand we are addressing it very seriously,”he said.

The ICWA meet also had participa-tion from the Common Market for

Eastern and Southern Africa (COME-SA), Economic Community of WestAfrican States (ECOWAS), EconomicCommunity of Central African States(ECCAS) and Inter-GovernmentalAgency for Development (IGAD), whowere unanimous in their opinion thatIndia “can never be a coloniser” and thatthe African communities do not look atthe South Asian giant that way.

Sezibera and COMESA Secretary-General Sindiso Ngwenya were joinedby IGAD Executive Secretary MahboubMaalim in calling for greater Indian par-ticipation, both from the governmentand private sectors, in building infras-tructure in Africa, apart from buildingcapacities of its people.

“Africa has everything that’s neededin the 21st century. However, ourbiggest challenge is infrastructure. Wehave bilateral cooperation with India,but we are looking at regional and sub-regional cooperation as well,” the headsof the RECs said.

Chairing the session, former Indianforeign secretary Shashank said, “Indiais new to regional and sub-regionalcooperation, therefore, we look forwardto learning from you on how to growtogether in such a framework.” n

EAC Secretary General Richard Sezibera

African regional bloc to studyIndian anti-graft measures

India on November 22 said it wouldfollow transparent and fair selec-tion procedures based on compet-

itive bidding for award of contracts andexecution of projects through its lines ofcredits to Africa, estimated to be $5 bil-lion over the next three years.

External Affairs Minister S.M.Krishna also noted that such transpar-ent methods would “ensure the bestvalue for money and quality of delivery

under the scheme”. “As we take ourcooperation forward, it is of paramountimportance that we follow transparentand fair selection procedures based oncompetitive bidding for award of con-tracts and their execution of them. Suchtransparency will ensure the best valuefor money and quality of delivery underthe scheme,” Krishna said, inauguratingthe first ever two-day conference on“Indian Lines of Credit: An Instrument

India to maintain transparency in LoC

External Affairs Minister S.M. Krishna

15



India on January 13 stressed theneed for the United Nations andits Security Council to “listen to

Africa and its organisations” for a “bet-ter understanding” of the situation inthe continent.

“It is important for us to listen toAfrica and its organisations so that thecouncil’s activities are not only basedon Africa’s needs but also complementthose of African countries and organi-sations,” India’s PermanentRepresentative at the United NationsHardeep Singh Puri said during aSecurity Council debate on the part-nership between the UN and theAfrican Union.

“Cooperation with Africa will alsoenable the council to act with betterunderstanding of the situation on theground that would establish Africa’sownership of the solutions and pro-mote lasting peace and security on theAfrican continent,” Puri said.

The Security Council has devotedmuch of its time and energy to Africanaffairs, he noted. “As much as two-thirds of the active items on the coun-cil’s agenda concern Africa,” he said.“About three-fourth of the council’stime is spent on African issues,” Puri

said. “It would, therefore, be no exag-geration to say that the success of theefforts of this Council in Africa willdetermine in significant measures itsoverall effectiveness in the implemen-tation of its charter-mandated role asthe principal organ of the UN formaintenance of international peace andsecurity,” said India’s PermanentRepresentative at the UN.

On the UN-African Union part-nership, Puri said: “We think that this

partnership should be based on long-term strategic and operational per-spectives taking into consideration thecomplementarity of strengths that thetwo organisations possess.”

“The focus should be on capacity-building of African Union’s peace andsecurity architecture so that the AUbecomes a more effective and capablepartner of the UN system,” Puriadded.

“The African Union has alreadyproven beyond any doubt its ability toaddress African problems,” he said.

“For an effective and enduringcooperation between the UN and theAU, it is necessary that the council notadopt a selective approach to this coop-eration,” Puri added.

“Partnership should not be restricted only to areas of the council’sconvenience but also extend to areaswhere there may be differences, andbe based on mutual respect,” Puri said.

“This requires a mindset change inapproach and demands expansion ofthe permanent membership to makethe council reflective of contemporaryrealities and wider representation fromdeveloping countries, includingAfrica,” Puri said. n

Listen to Africa on Africanaffairs: India to UN

India’s Permanent Representative at the UNHardeep Singh Puri

to Enhance India-Africa Partnership”,held in New Delhi. The conference-was organised by the Ministry ofExternal Affairs’ Investment andTechnology Promotion Division.

Prime Minister Manmohan Singhhad, at the India-Africa Forum Summitin Addis Ababa in May, announced thatIndia would extend $5 billion worth oflines of credit to African nations overthe next three years. Over 40 Africannations have availed of over a 100Indian lines of credit so far, amounting

to over $4.2 billion. In 2010-11 alone,14 lines of credits amounting to $1 bil-lion were approved and the list contin-ues to grow.

Krishna said at the event that thelines of credit was an important instru-ment in the economic engagement withthe African continent, directed at meet-ing the socio-economic developmentaspirations of developing countries inthe spirit of South-South cooperation.

“This takes several forms, includingIndian Technical and Economic

Cooperation (ITEC) programmes thatare tailor-made to respond to the capac-ity-building needs of our partner coun-tries. Several initiatives under our FocusAfrica Programmes underline our polit-ical commitment to build mutuallybeneficial partnerships,” he said.

The lines of credits provide supportat highly concessional terms to leastdeveloped countries and developingcountries in the African continent.Representatives of 40 African countriesattended the event. n

16 August 2011-January 2012

Ethiopia wants $300 million morefrom India for an ambitious rail-way project that would connect

it with neighbouring Djibouti, a venturethat India backs as part of its “support forregional integration in Africa”. India hasalready inked a loan agreement worth$300 million for the railway project.However, the loan from New Delhi isyet to be disbursed. “The support to therailway is part of India’s support forregional integration in Africa. This is thefirst time we are doing a project whichcovers more than one country. That iswhy we are going through the proce-dures rather carefully,” said GurjitSingh, Joint Secretary, (East & SouthernAfrica), Ministry of External Affairs, onJanuary 28.

Singh said the $300-million dis-bursement would depend on how theproject was implemented, which was inthe hands of the Ethiopian andDjiboutian railway corporations.

“We are just facilitating and workingwith them on the feasibility study, andfrom that we will discover how our part

of the implementation will comethrough. Once all that is settled and theproject goes on stream, we see no diffi-culty in periodic and timely disburse-ments,” Singh said. The Ethiopian gov-ernment plans to construct a 2,395 kmnational railway network, out of which1,808 km will be completed by 2015.

“At the highest level, India hasexpressed its commitment to the projectand we will try to do whatever we can.But all these possibilities are based ontechnical discussions. So the politicalcommitment is there, but we have tomake sure the technical discussion goesthrough smoothly and they lead to prac-tical implementation. That is what weare now focusing on,” he said.

Ethiopia and India have seen an“exemplary” relationship in the past,according to Singh, who has also servedas India’s ambassador to the country.

With more than $700 millionextended by New Delhi for rural elec-trification and sugar production projectssince 2006, Ethiopia is the biggest recip-ient of India’s lines of credit in Africa,

Singh said. An Indian delegation led bySingh and the Ethiopian team headedby Arega Hailu, Director-General of theAsia and Oceania Affairs of the Ministryof Foreign Affairs, held discussions atthe second round of India-Ethiopia for-eign office consultations.

It followed up on the decisions takenat the India-Africa summit last year andat bilateral meetings between EthiopianPrime Minister Meles Zenawi andPrime Minister Manmohan Singh.Singh had earlier visited Addis Ababa inMay 2011.

The two sides discussed the imple-mentation of decisions taken under theIndia-Africa Forum Summit I & II,including the establishment of fourcapacity-building institutions inEthiopia. These include a vocationaltraining centre, an IT centre, a women’ssolar engineering vocational trainingcentre and a farm science centre.

According to the Indian mission inEthiopia, the two countries agreed thatthe next joint commission meetingwould be held in 2013. n

Ethiopia seeks India’s help for rail project

N E W S

17August 2011-January 2012

Impressed by the efforts of socialentrepreneurs to make the publicdelivery service more effective, five

African countries want to emulate theIndian models of development, saidSam Pitroda in New Delhi on January21. “At least five African countries arelooking at Indian models of develop-ment to solve the problems at the bot-tom of the pyramid as Western modelswere not scalable,” said Pitroda, Adviserto Prime Minister Manmohan Singh onPublic Information Infrastructure andInnovations.

Addressing 100 young social inno-vators at ‘Action For India Forum 2012’,Pitroda said India was in a unique posi-tion to solve the problems of the poor as

it had the largest number of poor and ahuge amount of talent to address chal-lenges. “There is a lot of talent solving

the problems of the rich. Innovationsare needed to solve the problems of thepoor,” he told the entrepreneurs andasked them to focus on technology thatcould make social enterprises scale theiroperations to get them to be more per-vasive in coverage and impact.

Pitroda said the Central and stategovernments were taking steps to sup-port social entrepreneurs to set up newbusiness models. “To support socialentrepreneurs set up new business mod-els to bring about change, efforts areunder way to increase the corpus of theNational Innovation Fund as soon as itcollects `5 billion.”

The fund is expected to becomeoperational by July, 2012. n

Nigeria, which is India’s sec-ond largest supplier of oiland is aiming to be among

the world’s top economies, is seeking toramp up bilateral trade and is lookingfor help in capacity-building, includingrestructuring of its “shattered railwaysystem,” Nigeria’s Planning Ministersaid on December 7.

“We are looking at enhancing bilat-eral trade agreements. We are lookingfor technical relations between yourplanning commission and our planningbody,” visiting Nigerian PlanningMinister Shamsuddeen Usman said atan interactive session at Sapru House inNew Delhi.

“We are looking at an exchange ofideas for developing capacity and evolv-ing some kind of understanding to arriveat it,” he said at the event, organised bythe Indian Council of World Affairs(ICWA).

He said Nigeria, which is aiming tobe among the world’s top 20 economiesby 2020, was focusing on education,

health and catering to the weaker sec-tions of society.

“There is a very strong focus on whatwe need to do,” he said.

Usman also said Nigeria could learnfrom India’s efforts to ensure inclusivegrowth.

“There is not much inclusiveness inNigeria. Fifty-four percent of our peo-ple live in poverty and that’s criminal,the minister said. Usman and a 12-member delegation of parliamentariansand officials, was in India at the invita-

tion of Planning Commission DeputyChairman Montek Singh Ahluwalia.

On December 6, apart fromAhluwalia, he also met External AffairsMinister S.M. Krishna. He also indicat-ed that India could play a role in restruc-turing the West African nation’s “shat-tered railway system”.

“Ahluwalia mentioned that India’strains were not too fancy. I said to him:‘At least your railway system is func-tional. Ours is not even functional.’”

“In the 1960s (before the militaryintervened and ruled for 35 years), 70percent of the freight traffic was han-dled by the railways. Today, it is downto four percent. We are making a majoreffort to restructure the system,”Usman said.

There were other areas too whereNigeria could learn from India, theMinister said. “We have noted thedebate here on FDI in retail. We toohave a parallel debate as we want toreduce petroleum subsidies,” Usman said. n

‘Africa wants to emulate India’sdevelopment model’

Nigeria seeks help in capacity-building

Sam Pitroda

Shamsuddeen Usman


A N A L Y S I S


The world today is at a hinge moment inits history. The Western domination ofthe world and Africa is clearly on thedecline. A once-dominant America hasreached the end of its global ascendan-cy. Europe is in a shambles. It has beenrightly noted that the future the worldfaces is a post-American one. The

unipolar world of the post-Cold War period has ended. Thespectacular growth of countries like China, India, Brazil,Russia, Mexico, South Africa, Indonesia, Malaysia, SouthKorea, Vietnam, Iran, Turkey etc. are configuring a new glob-al landscape. In short, what we are witnessing is the decline ofthe North and West and the rise of the South and East. In 2003,Goldman Sachs, the global investment bank, predicted that theBRIC economies of Brazil, Russia, India and China wouldsurpass the combined gross domestic product of the G-6 by2040. ‘Emerging Powers’ is a phrase coined to describe a newgroup of states that has through a combination of economicpower, diplomatic acumen and military might managed tomove away from developing country status to challenge thedominance of traditional mainly Western powers.

China, India and Brazil are the leading emerging powerstoday. They are also challenging the hegemonic positions longmonopolised by the West, particularly, Britain, France and theUnited States in Africa. It is estimated that Europe todayreceives 50 percent less of Africa’s exports than it did a decadeago. The emergence of the G-20 group of nations in place ofG-8 is symptomatic of the new emerging situation. In theemerging new world order, China, India and Brazil are poisedto play a greater role, particularly in the face of the retreat ofthe ‘Washington Consensus’ and its poor record in Africa in providing some support and an enabling international environment for the continent to chart its own alternativedevelopment course.

Africa, one of the fast growing regions of the world todayis once again the arena of competition among the traditionaland emerging powers, which are vying for its resources, mar-kets and influence. Africa must leverage its growing relationswith emerging powers for its own development. It’s time forAfrican leaders to take charge and set the agenda.This articleseeks to explore and explain issues relating to the deepeningengagement of emerging powers focusing on China, Indiaand Brazil with Africa and its implications for African growth

EMERGING Powers inAfrica: An Overview

Africa must leverage its growing relations with emerging powers like India,China and Brazil to promote its own development. It’s time for African

leaders to take charge and set the agenda, says K Mathews

India’s External Affairs Minister S.M. Krishna, China’s Foreign Minister Yang Jiechi, Brazil’s Foreign Minister Antonio Patriota, Russia’s Foreign

Minister Sergey Lavrov and South African Ambassador & Director-General for Multilateral Organisation Jerry Matthews Matjila at the BRICS

Foreign Ministers’ Meeting in New York on September 23, 2011.



and renaissance. In this context it may be appro-priate to provide a brief historical background toexternal involvements in Africa.

Background: Slavery,

colonialiSm and cold War

For centuries, Europeans regarded Africa mere-ly as a landmass to be circumnavigated on the wayto the riches of the Indies. It was the ‘DarkContinent’, the last territory to be fully explored bythe Europeans. Incredibly, it was described as aland without history until the coming of theEuropeans. But in reality, the African continenthas a rich and varied history stretching back overthousands of years. Africa has a triple heritage ofthree civilisations that shaped it — its own rich inheritance,Islamic culture and the impact of Western traditions andlifestyles. The images of the indigenous Africa are contradic-tory: the continent encompasses both the rural simplicity ofvillage life and the sophisticated cultures capable of carryingout such feats of skill as the building of the ancient pyramidsand Great Zimbabwe. The coming of Islam andWesternisation have irrevocably distorted this ancient rela-tionship while the introduction of capitalism and the casheconomy have produced disastrous results.

Looking back at history, from 1441 to 1870 the Atlanticslave trade devastated Africa.According to estimates between 12million to 20 million Africans wereuprooted from their homes and vil-lages and transported to the Newworld. Untold millions died, mostduring the Middle Passage across theAtlantic Ocean. Although anextraordinarily profitable enterprisefor Europe, the trade destroyedAfrica and eviscerated its people.Slavery, however, was merely Sub-Saharan Africa’s firstlengthy and consistent contact with the West. Unfortunatelyit was not to be the last. The ultimate demise of slavery andthe slave trade was not the end of a bad relationship, for itoccurred almost simultaneously with the emergence of stillanother negative aspect of the Euro-African connection: theimposition of colonial rule.

Bridging the close of the slave trade were the developingimperial policies of European states. As the interior of Africabegan to be opened up by Western explorers, European monar-chs and their governments organised official claims to largeswathes of the continent. With Portugal, Spain, Germany,England, France, Italy and Belgium contending for territories,the mammoth land-grab often led to conflicts. Imperialismproved to be a very competitive contest, as the rival parties hadan enormous appetite. In order to prevent the increasinglydangerous friction among themselves, every European power(except Switzerland) and the United States, met in Berlin from

November 1884 to February 1885 to establish recognised fron-tiers. Africa was almost effortlessly diced and distributed amongEuropean nations while its own concerns were completelyignored. As Europe’s consideration of its own imperial inter-ests was paramount, the conference was very specific in layingout the state boundaries. Many of contemporary Africa’s borders, therefore, are synthetic, almost fictional, created outof the needs of European powers rather than African states. Inmany cases, unrealistic borders encompassed groups with little in common, culturally or geographically.

Africa for nearly a century was governed with an iron handto cater the European colonial eco-nomic interests. Africa had beenhumiliated repeatedly. The colonialmasters on behalf of the ‘civilised’world administered the colonies bar-barously and savagely, and never con-sidered it expedient to allow their‘sub-human’ species under theiradministration the same democraticrights as they themselves enjoyed.The British and the French, who

colonised a great deal of Sub-Saharan Africa, applied differentimperial philosophies in governing their territories. The colo-nial policy of Belgium was openly based on racism. Overall,colonialism was a terribly destructive and divisive force thatresulted in more than 100 years of political, social and economicoppression of Africa, with devastating consequences.

independence, cold War and

external intervention

The Second World War, which ended in 1945, called intoquestion the very existence of colonialism. It was a time whenmajor changes in the world’s power structure were about totake place. There were nationalist demands for independenceall over the colonised world. The climate in which the main-tenance of European empires appeared to be part of the natural political order was disintegrating under a range of newpressures particularly the marginalisation of Europe by theemergence of two superpowers and the coming of the Cold

Africa for nearly a centurywas governed with an ironto cater for European colonial economic interests and was

humiliated repeatedly

The skyline of Luanda, the capital of Angola, is lined with construction projects.

A N A L Y S I S


War. The war also eliminated two European powers, Germanyand Italy, who lost their African colonial empires. A majordevelopment in the post-Second World War period was the development of Cold War. Just as the African slave tradeproceeded seamlessly to colonial rule, so colonialism seguedinto the doctrinaire conduct of the Cold War in the post-Second World War period.

Colonialism was replaced by a form of Cold War neo-colonialism — control of the newnations of Africa via their economiesand through the national elites whohad been cultivated by theEuropeans. One superpower wouldbuttress the elites empowered by thecolonial authorities, while the otheroften backed the opposition, as eachsupported a different client and a dif-ferent agenda. The United States, asthe only Western superpower, moved to supplant the nowmarginalised countries, such as France and Great Britain, astheir colonies were freed. It filled the vacuum left by thedeparture of colonisers so as to prevent the spread of com-munism and radical nationalism, which would threatenAmerican interests. The Soviet Union represented just sucha menacing and alien communist ideology.

The Cold War credo, expressed in the Truman Doctrineof 1947, provided the framework of containment withinwhich the United States resolved to pursue a policy of intervention in Africa. For the Soviet Union these newly independent states offered opportunities to expand its sphereof interest. From the 1960s to 1991, the year the Soviet Unioncollapsed, the respective interests of the U.S. and the USSRoften clashed in Africa. Each succumbed to the propensity toperceive local conflicts in global terms, political conflicts inmoral terms and relative differences in absolute terms. Boththe United States and the Soviet Union, however, pursued

their own interests irrespective of thenational political dynamics of the Africanstates. In short, the slave trade, colonialismand the Cold War left Africa with a ruinousheritage that has been exceedingly difficultto subdue. For more than five centuries,first Europe, then the United States andthe Soviet Union have done what theycould to devitalise Africa and its people.

Despite formidable problems, the 1960swas a time of optimism as Africans enjoyedtheir new independence and prepared totackle their political and economic problems in their own way. The 1970s,1980s and 1990s spelt a disaster for mostcountries of Sub-Saharan Africa. In theperiod when other underdevelopedregions, especially Asia, were experiencingsteady economic growth, Africa as a whole

saw its living standards plummet. By the 1990s, dictatorships,corruption, civil wars, genocides, famines, widespread pover-ty, and the interventions and manipulations of Africa byWestern powers had relegated Africa to the position of an aid‘basket-case’, the world’s poorest and least developed conti-nent. Africa came to be spoken of only in pessimistic terms.The May 20, 2000 issue of the Economist summarised it all inits cover caption, “Hopeless Africa”!!

the reSurgence of africa in

the 21St century

Africa today is a fast-moving continent. Across the continent economic growth rates (in per capitaterms) have been positive since thelate 1990s. Even though Africa’s eco-nomic growth rates still fall short ofAsia’s astounding levels, the steady

progress that most African countries have experienced hascome as welcome news after decades of despair. The perva-sive Afro-pessimism of the 1970s, 1980s and 1990s has givenway to an image of Africa that is socially and economicallyvibrant, politically more open, with an assertive civil society,an entrepreneurial indigenous private sector and an aggressivepress playing a central role in articulating an independent andauthentic African development agenda.

For the first time in more than two decades Africa hasbegun to find its rightful place in the world, attracting attention of the Western powers as well as the emerging‘Southern powers’. At the end of the first decade of the 21stcentury, Dorr et al (2010, p.80) captured the mood of the‘African Miracle’:

…. Africa has outgrown the gloom and doom… Africain fact, is now one of the world’s fastest-growing eco-nomic regions… revenues from natural resources, theold foundation of Africa’s economy, directly account-

On April 18, 1980, Zimbabwe gained independence from the United Kingdom.

Today, the institutionalframework for doing

business with Africa hasimproved with the creation

of the AU as well as several multilateral blocs



ed for just 24 percent of growth during the last decade;the rest came from other booming sectors, such asfinance, retail, agriculture, and telecommunications.Not every country in Africa is resource rich, yet GDPgrowth accelerated almost everywhere.Various internal and external factors have contributed to

the rapid growth in many parts of the continent. The first is the improvement in the security situation in many conflict-ridden countries — Darfur, DRC and Somalianotwithstanding! At the end of 2000, nearly 15 countries werestill at war. Ten years later that number has been reduced tojust five. Peace has brought with it opportunity for develop-ment. There is also greater continental and regional consen-sus on what needs to be done to accelerate growth, reducepoverty and prevent deadly conflicts. Societies are becomingmore open and democratisation is gaining momentum. Thesuccessful popular revolts in Tunisia, Egypt and Libya in 2011demonstrated this trend. Besides, many African countries haveput in place appropriate macro-economic, structural and socialpolicies, which have contributed to improved GDP growthrates. According to reports in the first decade of the 21st century six of the ten fastest-growing economies in the worldwere in Sub-Saharan Africa (Angola, Nigeria, Ethiopia, Chad,Mozambique and Rwanda). The global demand for Africa’snatural resources has increased dramatically, thus allowingmany African countries to diversify their economies. Also,there is greater consensus among African governments nowthan ever before on what needs to be done to address the continent’s myriad problems. Regional initiatives under theAfrican Union (AU) and the New Partnership for Africa’sdevelopment (NEPAD) are allowing African countries toimprove governance; assume leadership and accountabilityfor development; increase trade within Africa and the world;and enhance regional public goods such as cross-countrytransportation and pooling of electricity. Most significantly,the African Union and various Regional Economic

Communities (RECs) are playing an important role in dealing with disruptive national crises such as those in Sudanand Somalia.

There is also the ‘Emerging Powers in Africa’ factor, particularly that of China and India. The global demand forAfrica’s vast energy and natural resources has increased dramatically, thus allowing many countries to start to diversi-fy their economies for the first time in many decades, and toinvest in strategic infrastructure necessary for raising productivity and growth. Even those African countries withfew strategic resources, such as oil and gas, have experiencedmoderate growth due to expanded trade with emergingeconomies. Obviously, the increasing role of EmergingPowers in African economies, which is likely to be long-term,requires careful analysis.

emerging poWerS in africa

During the last fifteen years or so, emerging powers have made significant inroads in the West’s political and economic dominance of Africa. The result is a diversificationof the external actors involved across sectors of the African economy with much of this interaction being framed in termsof new forms of multilateral and bilateral arrangements.Driven by the need for resources and markets, these emerging powers nonetheless are acutely conscious of theirown development challenges and correspondingly, those facing Africa. The changing dynamics of Africa’s internation-al politics in relation to three of the leading emerging powers,namely, China, India and Brazil, have enormous implicationsfor Africa and its development aspirations.

Many analysts of the African condition today assert that anew scramble for Africa is now under way. After decades ofneglect, the continent and its riches are once again beingsought by the outside world. Africa has now become the mostfavoured destination for foreign direct investment (FDI)which is said to have increased from a low of US$ 2-3 billion

per annum in the early 1990s to over$40 billion today. At present, all theworld’s major economic actors have apresence on the continent. There is nodoubt that besides the United Statesand Europe, China, India and Brazilhave become Africa’s most importanteconomic partners and their growingfootprint on the continent is trans-forming Africa’s international relationsin a dramatic way. In addition, a host ofother Asian and other emerging powers are also actively courtingAfrican countries through aid, expanded trade and investment instrategic sectors of African economiesto leverage international politics, gainaccess to growing markets and acquiremuch needed raw materials from the

Augustine Mahiga, Special Representative of the UN Secretary-General and Head of the UN

Political Office for Somalia (UNPOS), addressing the media in Mogadishu, Somalia. Improved

security allowed UNPOS to shift its office permanently to Mogadishu after 17 years.


A N A L Y S I S

continent. Asia looks set to become the dominant economicpresence in Africa in the years to come. Europe is becomingincreasingly marginalised in significant decision-making onAfrica’s future, in particular, because of the United States’greater assertiveness in Africa prompted by its ‘War onTerrorism’ and its desire to reduce its dependence on MiddleEastern oil.

Is the emerging powers’ presence in Africa likely to changethe pattern of Africa’s relations with the outside world? Thisis of course not the first scramble for Africa’s resources. Thepast two centuries have witnessed two different scrambles onthe continent. The first, organised by the Europeans in the late19th century, carved up the continent leading to the estab-lishment of colonialism. The second occurred immediatelyafter decolonisation following the Second World War and theCold War between the United States and the Soviet Union,culminating largely in neo-colonial relations, proxy wars, polit-ical instability and economic decline. As with the earlier twoscrambles, the new scramble involves both foreign states andtheir multinational corporations playing in the game. Unlikethe earlier ones, however, the new scramble is distinguishedby the deep involvement of two developing nations from Asia:China and India. The key question is, is Asia’s potential eco-nomic dominance, then, likely to repeat those exploitative andoppressive relations of the past or is it to herald a new era ofSouth-South Cooperation? Opinions differ.

china in africa

Today, China and India are the fastest-growing economiesin the world. They both have suddenly ascended the centrestage of the world. They have attracted immense global atten-tion for their phenomenal growth stories and rising influencein international affairs. In 2010, China officially became theworld’s second-largest economy overtaking Japan. In the West,this has prompted concerns about China overtaking theUnited States sooner than previously thought. A mix ofmotives is at play. New sources ofenergy are obviously a major moti-vating factor. Fifty percent of China’soil requirements will be imported inthe near future and nearly half of itwould be sourced from Africa. Thecountry also requires other rawmaterials — timber, copper, non-fer-rous metals and iron ore — if itsrobust economic performance is tobe maintained. The Chinese also see Africa as an ideal marketfor their low-cost manufactured products.

China has formal political relations with 49 of the 54African countries and close partnerships with almost all theimportant ones. China currently has over 800 businesses in 49African countries and the amount of total trade reached $100billion in 2008, up from $10 billion in 2000. China also correctly recognises that a unipolar world dominated by theUnited States is not in its own long-term interests. It has thus

partnered African countries and others to contain the UnitedStates and facilitate the development of a multilateral system,both of which are compatible with the continent’s long-termdevelopment and political interests. One may say that coinci-dence of interests, rather than solidarity, is the crucial politi-cal impetus for the alliance between African nations andChina.

india in africa

China’s competitor from the developing world is, ofcourse, India. Even though India’s growth has been less rapidthan China’s its potential impact on the rest of the world andAfrica in particular should not be underestimated. India’smotivation in the African scramble is not far different fromthat of China or other emerging powers. Africa is looked uponas an important market for Indian goods and services, a vitalelement in her quest for energy security, a significant sourceof minerals and other natural resources for India’s burgeon-ing economy and a potentially attractive destination for Indianfarmers.

Undoubtedly, it is in India’senlightened self-interest to become astrong and reliable partner in Africa’squest for economic development.Besides, Africa with its 54 votes inthe UN General Assembly and threein the (unreformed) SecurityCouncil will always matter. TheIndian economy has grown rapidlyfrom the 1990s and securing cheap

energy and other strategic raw materials from the African con-tinent on a long-term basis has become an economic and polit-ical imperative. It is projected that by 2030 India will be theworld’s third-largest consumer of energy. Currently, 75 percent of India’s oil imports come from the politically volatileMiddle East. Because India possesses few proven oil reserves,diversifying the sources of its energy supply by developingstronger economic ties with the African continent tops thepolitical agenda. Not surprisingly, India has decided to inter-

The new African Union building in Addis Ababa, Ethiopia, has been

built through Chinese assistance.



of the AU as well as several multilateral blocs



act with the continent in its areas of needs and strengths.India’s dependence on oil imports is expected to grow by over90 percent by 2020. To satisfy the growing energy needs, thegovernment through its energy parastatal, ONGC Videsh Ltd.has begun to pursue foreign oil and natural gas explorationprojects aggressively. As a result, India has a significant pres-ence in the energy sectors of Egypt, Côte d’Ivoire, Nigeria,Sudan and elsewhere.

Indian companies are currently involved in renovating oilfields and building petroleum pipeline projects in Sudan,establishing oil refineries, power plants and steel mills inNigeria, and launching information technology projects thatwill electronically connect the continent, so as to facilitate e-commerce, e-governance, and more generic healthcare,education and research initiatives. In addition to its own directdevelopment initiatives such as seconding farmers to cultivateland in East African nations, the Indian government is involvedsupportively through its Export-Import Bank of India (EximBank) in extending huge credit facilities for these projects. Thecredit facilities from the Exim Bank are also used to supportIndian conglomerates to expand their presence on the continent. As a result, Indian companies are now involved inAfrican industries, such as automobile manufacture, banking,information technology, textile manufacture, pharmaceuticaland steel. Overall, bilateral trade between Africa and India hasrisen from $ 967 million in 1991 to $4.2 billion in 2001 andover $50 billion in 2011. All assessments are that it is likely torise further given that the Indian economy is expected to growby 7 to 8 percent per annum for the next decade. The Indiangovernment has also accelerated its engement with the conti-nent by hosting so far two India Africa Forum Summits inNew Delhi in April 2008 and in Addis Ababa in May 2011.

china and india in africa

China and India’s deepening involvement in Africa in the21st century has provoked much debate and discussion. Many

questions are asked: Are they just the latest in the line ofexploiters of Africa’s rich natural resources who put their owneconomic interests above humanitarian, environmental or human rights concerns? Or are their engagement an extension of the South-South Cooperation? Do China’s andIndia’s engagement enable African countries to free themselves from the tyranny of debt and conditionality, thatthrough two decades of structural adjustment programmes(SAPs) have reversed most of the gains of independence? Is Africa swapping one set of tyrannies for another? These arecomplex questions requiring careful analyses.

Here it may be noted that despite attempts by manyWestern analysts to put the stamp of imperialism or neo-colo-nialism on China’s and India’s relations with Africa, there area number of features of China’s and India’s relations withAfrica that distinguish them from the Western (EU and theU.S.) engagement. First and foremost, China, India and allAfrican countries are still developing countries with identicalproblems and aspirations. Secondly, China and India alongwith the African Union (AU) formed part of the South-Southbloc in the World Trade Organisation (WTO), opposing, forexample, the patenting of life forms and the hegemonic plansof U.S. based biotech corporations. Thirdly, China and Indiaare not identified with the structural adjustment policies thatimpoverished Africa over the past three decades. Besides,China and India earlier embraced the African liberation process with diplomatic, political, material and some militarysupport. Moreover, there has been no tradition of Chinese orIndian attempts at colonial occupation of any part of Africa,rather they were co-victims of European colonialism.

India’s active involvement with Africa is motivated by ageneral desire to exert greater influence in global affairs andmore specifically to secure African diplomatic support forNew Delhi’s quest to gain a permanent seat on the UNSecurity Council. Although China currently dominates theAfrican market, India will more likely gain the comparative

Exim Bank CMD T.C.A. Rangarathan, CII Africa Committee Chairman Sanjay Kirloskar, Mozambique’s Prime Minister Aires Bonifacio Ali,

India’s Minister of Commerce & Industry Anand Sharma, Prime Minister of Togo Gilbert Fossoun HOUNGBO, CII President Hari Bhartia and

CII Director-General C. Banerjee at the 7th CII-EXIM Bank Conclave on India-Africa Project Partnership in New Delhi on March 28, 2011.


A N A L Y S I S

advantage in the medium to long term: its strong diasporiccommunity on the ground in Africa, its proximity to the continent, its use of historical ties and special niche areas topromote its cause of African friendship, its first-class educational system and its enduring democratic tradition willcontribute towards making it more competitive than China(Cheru and Obi 2011).

Brazil and africa

Of the three major emerging powers discussed here, Brazilis the least engaged in Africa. China’s role in Africa is nowwidely scrutinised. India’s presence in Africa is still a fringetopic, but an emerging group of analysts has begun to studyIndia’s presence systematically. Brazil on the other hand isnew, though its activities in Africa are arousing growing inter-est around the world. Considering that Brazil does not needto import energy nor food, what are Brazil’s interests in Africa?

Brazil’s historical origins owes much to Africa, in part dueto the role of the Atlantic slave trade and its role in the widercommercial network of the Portuguese empire. Until fairlyrecently, Brazilian foreign and economic policy’s historicalfocus on North America, Europe and South America had relegated ties with Africa to the margins. The main consequence of this lack of active engagement in Africa is thatBrazil has lagged behind China and India in formulating andimplementing a comprehensive Africa policy. Thus, althoughit is in the process of expanding its commercial and financialties, Brazil’s trade with Africa remains relatively low andfocused on only a few countries, while at the same time Brasiliahas actively sought to elevate and integrate Africa into its global foreign policy.

The evolution of Brazilian foreign policy over the last sixtyyears has produced differing policy approaches to Africa.

However, there has been a continuum in Brazilian foreignpolicy towards Africa in terms of a commitment to respectingsovereignty and non-interference in domestic affairs.Underlying Brazil’s Africa policy is a desire to prioritiseBrazilian developmental and commercial aims in approach-ing the continent while at the same time responding to broader foreign policy ambitions. In the period between 1945and 1974, this manifested itself as a policy of general (thoughnot uniform) diplomatic support for French and Portuguesepositions in Africa in fora such as the United Nations. Thisapproach was guided in part by mercantilist needs of securingEuropean investment in the Brazilian economy as well asaccessing its markets, and culminated in particularly close tieswith Portuguese territories as well as strong trade ties withSouth Africa that practised apartheid.

With the collapse of the Portuguese empire in Africa in the mid-1970s, Brazil reached out to the rest of Africa diplomatically but essentially remained confined in econom-ic terms to Lusophone Africa, Nigeria and South Africa. WhilePresident Fernando Henarique Cardoso (1995-2002) set thestage for diversifying Brazil’s partnerships after the end of theCold War, it was President Lula (2003-2010) who made Africaa strategic priority (as part of a grand strategy to strengthenSouth-South Cooperation). The present government ofDilma Rousseff (since October 2010) also is actively reversing the decline in ties under earlier predecessors andemphasizes Brazil and Africa’s shared historical standing asdeveloping countries. The Lula/Rousseff governments alsolaid emphasis on the cultural affinities of Brazilian societywith Africa, built on the shared experiences with LusophoneAfrica and the influence of Brazilians of African origin. It isnotable that Lula made 12 trips to Africa, visiting 21 countriesduring his presidency while Brazil received 47 visits of African

There is growing demand for Africa’s natural resources from India and China. Photo: http://africaoil.ning.com



kings, presidents and prime ministers from 27 nations. Brazil’sForeign Minister Celso Amorim made 67 official visits to 34African nations during his time with the Lula government.Brazil now has 37 embassies in Africa (much more than thatof India), up from 17 in 2002.

A key aim of Brazilian foreign policy under Lula da Silvahad been to ‘reduce Brazilian vulnerability on the internationalstage’ by engaging in a more ‘muscular foreign policy’ to pursue its interests. With respect to Africa this has meant thatBrazilian foreign policy has rediscovered its ‘African voca-tion’, framing it within this broader concern of respondingmore effectively to globalisation. Brazil’s Africa policy reflectsthis impulse in that the most significant diplomatic initiativesthat involve Africa are multilateral while the substance of eco-nomic activity is played out at the bilateral level. A key initia-tive is the IBSA (India, Brazil, South Africa) initiative, a diplo-matic partnership initially focused onmutual support for a position in areformed UN Security Council.This multilateral approach has beenexpanded into other areas: theCommunity of Portuguese SpeakingCountries (CPLP) has becomeanother global diplomatic vehicle forextending Brazilian influence acrossLusophone Africa. Private Braziliancommercial interests are active pri-marily in Angola, Mozambique and South Africa whileBrazilian multinationals have also made concerted efforts tobreak into areas such as Gabon and Nigeria. In Angola, forinstance, Brazil’s two-way trade has jumped to over $1 billionin 2007 and the country is a leading destination for Brazilianinvestment in Africa, receiving $750 million in 2006 alone.

Brazilian enterprises, mostly through the activity of largeprivate firms such as Vale and Odebrechts, initially enteredthe African market without significant Brazilian govern-ment support. The Brazilian mining giant, Vale, convinced

President Lula to lobby the president of Gabon directly tosupport its iron ore lease, citing the Chinese approach oflinking state diplomacy with commercial interests; thus anew form of direct political engagement to Brazil’s approachto Africa has emerged. Moreover, state firms such asPetrobas are embarking on joint ventures in Africa, withPetrobas and Angola’s state-owned oil company Sonangolexploring training and cooperation in exploration of oil.

As Brazil’s economic engagement in Africa grows, the wayAfricans see Brazil will inevitably change. While its presenceis still much smaller than that of China and India, Brazil mustbe careful to avoid some of the mistakes made by China thatmay run the risk of facing regional backlashes. Many are of theopinion that Brazilians are well liked across Africa. Now the challenge is to assure that even despite ever greater investments, such as Vale’s recently signed $1 billion deal to

build a railway in Malawi to transportcoal from Mozambique, Brazil willcontinue to be seen as a partner, andnot a coloniser that merely seeks toexploit Africa’s resources.

policy implicationS and

imperativeS

It may be justifiably said that thenew scramble for Africa could be asruinous to Africa as the earlier

scrambles unless effective corrective measures are taken.Although it is true that China has successfully implement-ed an alternative development path, which may have moredevelopmental possibilities for the African continent, it isimportant to note that the promise will be realised only ifAfricans do not become complicit with the Chinese agendas, but are able to play off the competitors for Africa’sresources with a view to maximising the benefits for thecontinent. Africa needs to transform the ‘resource curse’ intoa vector for socio-economic development. This requires a

strategic engagement and a set of actionsdesigned specifically to enhance the leverageof African countries in their relations withChina, India and other traditional and emerging powers.

The last time such a scramble took place —during the Cold War — the consequences weredevastating for the African continent. Both foreign powers — the United States and theSoviet Union — established client regimes,funded rebel armies and engaged in proxy wars.The result was a continent wracked by civilwars, displacement of citizens and cross-borderrefugee flows. The competitive internationalenvironment during the Cold War did not benefit Africa. The current conflict situationssuch as in Sudan, DRC and Somalia could produce similar situations elsewhere on the

India’s Prime Minister Manmohan Singh, South Africa’s President Jacob Zuma and

Brazilian President Dilma Rousseff at the 5th IBSA Summit in Pretoria, South Africa,

on October 18, 2011.

Compared to actors likeChina and the United

States, the EU approach to engaging Africa represents a more

balanced understanding of Africa’s needs


A N A L Y S I S

continent. How to avoid such scenarios should be the overriding concern of Africa’s political and economic elite.The crucial challenge for Africa today is to see that the newscramble for Africa is managed to the benefit of Africa.

The real danger to Africa today does not come from thecompetition among emerging powers in Africa but from thereal danger of confrontation between China and the UnitedStates in Africa and the more general threat of proxy wars andpolitical instability occasioned by the race for Africa’sresources. For Africa to develop its political elites must buildthe political will to pursue a comprehensive developmentagenda that benefits their citizens. Such a political will canemerge when the political elite are kept in check by a pluralpolitical system and/or an independent robust national civilsociety. Where this does not exist, as in many African countries today, these political elites easily become proxies forforeign powers and interests, whether traditional or emergingexternal powers.

Besides, the African political elite should have to be muchmore cohesive at the continental level if they are to be able touse the competitive international environment to their collective advantage. Such cohesion could emerge from initiatives towards greater continental unity and integrationand models of a pan-African solution in the form of a UnionGovernment for Africa or a United States of Africa, whichmay be long-term aspiration. To start with, at least a charterof rights governing investments and engagements on the continent would be necessary. Such a Charter which wouldhave to be negotiated in the African Union (AU), couldsupercede bilateral agreements and force all external, and perhaps even continental, powers to agree to a specific set ofbusiness and diplomatic codes of conduct. If AU could agreeto such a charter, it could be subsequently ratified in the UN,thereby extending and strengthening its institutionalisation,and enhancing the reach of its compliance.

concluSion

The rise of China, India, Brazil and other emerging powers is the definitive economic and political story of our time. Nowhere is this more apparent than in Africa. The accelerated engagement of these powers in Africa in recent years presents both threats and opportunities for Africa. China is the key emerging power which makesthe most extravagant claim of formulating a relationshipthat is strategic in its aims, equitable in its political engagement and founded on the notion of a common conception of political history. However, some African andother critics point to the manner in which China’s tradewith Africa replicates features of traditional Western colonial trade for African resources in exchange for manufactured goods.

Despite its longstanding political and socio-economicengagement, India’s recent active drive for acceleratedengagement in Africa is relatively new. There is little evidence that New Delhi aspires to play the continent-widerole. In the case of Brazil, despite the pressure to deeepenits involvement in Africa, much of what has been done stillreflects Brasilia’s primary concern for integrating its Africapolicy in the service of broader foreign policy objectives.Concurrently, the focus on Lusophone Africa, where Brazilarguably has an advantage over other external actors, ensuresa neat juxtaposition between the cultural-historical dimension of Brazil’s Africa policy and its current commercial interests.

As the leading emerging power in Africa, China seemsto be setting the pace and example for India and Brazil whohave, to varying degrees, adopted the elements of theChinese approach to Africa. Western domination, be it commercial or otherwise, is waning in Africa; but the selective engagement of the United States and the residualpresence of European interests will remain a feature of

The under-construction site of a stadium in Georgetown, Guyana, which is being built by India’s real estate company Shapoorji Palonji.



external relations of African states. It may also be said thatall the countries involved in the new scramble for Africa aredriven largely by national interest, and that their behaviouris conditioned far more by competition with each otherthan by the noble sentiments enshrined in their policy doc-uments and press releases. There are lurking dangers inher-ent in the new scramble, the possibility of repeating theresults of previous scrambles: neo-colonial relations, proxywars, and ultimately political instability and economic dev-astation.

However, it must be stressed that Africa must leverageits new partnership with China and other emerging powersin the interest of its own long-term development. For that,Africans should develop a collective long-term perspectivein its relations with external powers. Collective strategies areneeded to effectively utilise external capital, training andinvestment for Africa’s economic development. Africanpolitical elites will have to be much more cohesive at thecontinental level if they are to be able to use the competi-tive international environment to their collective advantage.African leaders also need to engage emerging powers moreproactively in terms of Africa’s own needs, demands andaspirations.

The rapid growth of emerging powers is also an exam-ple of the fact that poor societies can rise beyond colonialexploitation and the mangled priorities of societies whichensure that colonial societies continue to remain producersof raw materials.

These emerging powers broke with the old models ofaccumulation and the changes in their economies led to anbetter standard of living for their people. The growing partnership of emerging powers with Africa has great poten-tial to break pre-existing failed development paradigms byfocusing on trade and investment and promotion of genuineSouth-South cooperation.

The only way this objective could be reached is forAfrican leaders themselves to take charge of their own destiny. This would require these leaders to be willing to playforeign powers against each other to obtain the best terms fortheir own comprehensive development in the first place,and they would need the institutional capacity to manage theforeign relations to achieve this. Both these preconditionswould also require a united political elite on the continent.Only then can the continent begin to lay the foundations forthe realisation of the long-standing dream of many Africanleaders to make the 21st century, the African century. n

1. Alden, C., China in Africa, London, Zed Books, 20072. Alden, C., and Alves, A., ‘History and Identity in theConstruction of China’s Africa Policy’, Review of African3. Political Economy, 35 (115): 43 – 584. Ampiah, K. and Naidu, S., Crouching Tiger, HiddenDragon? Africa and China, Cape Town, KwaZulu NatalPress, 20085. Beri, Ruchita, “China’s Rising Profile in Africa”, ChinaReport, Vol.43, No. 3, 20076. Braughtigam, D., The Dragon’s Gift: The Real Story ofChina in Africa, Oxford, Oxford University Press, 20097. Broadman, H.G., Africa’s Silk Road: China and India’sNew Economic Frontier, Washington, World Bank, 20068. Campbell, H., China in Africa: ‘Challenging U.S. GlobalHegemony’, Third World Quarterly, 29(1), 2008: 89 – 1059. Chand, Manish (ed.) Two Billion Dreams: CelebratingIndia-Africa Friendship, New Delhi, IANS Publishing, 201110. Cheru, Fantu., African Renaissance: Roadmaps to theChallenge of Globalization, London, Zed Books, 200211. Cheru, Fantu and Obi, Cyril., (eds.) The Rise of Chinaand India in Africa, Nordic Africa Institute, Zed Books,London, New York, 201012. Cornelissen, S., Cheru. F., and Shaw, T.M.,(eds.) Africaand International Relations in the 21st Century, Palgrave,Macmillan, 201213. Davis, M., ‘China’s Developmental Model comes toAfrica’, Review of African Political Economy 35 (1) 2008:134-7

14. He Wen Ping, “China’s Africa Policy: Driving Forces,Features and Global Impact”, Africa Review (ASA, NewDelhi) vol. 1., No.1, 2009: 35-5316. Ikenberry, J.G., “The Rise of China and the Future ofthe West”, Foreign Affairs, (New York), Vol. 87,, No.1,January/February 200817. Large, Daniel, “Beyond Dragon in the Bush: The Studyof China-Africa Relations”, African Affairs (London) Vol.107, No. 426, 200818. Lahiri, Dilip, Schultz, Jorg and Chand, Manish,Engaging with Resurgent Africa, New Delhi, MacmillanPublishers, India, 201119. Mathews, K., India Africa Cooperation: A StrategicVision, Africa Quarterly, Vol. 51, No. 1, 2011: 36-4720. Mawdsley, Emma and McCann, Gerard, (ed.) India inAfrica: Changing Geographies of Power, Pambazuka Press,Cape town, Nairobi, 201121. Sharma, Anand, ‘India and Africa: Sharing RobustPartnership’, in Beri, Ruchita and Sinha, Uttam (eds) Africaand Energy Security: Global Issues, Local Responses, NewDelhi, Academic Foundation, 200922. Tull, D.M., “China’s Engagement With Africa: Scope,Significance and Consequences”, Journal of ModernAfrican Studies, No. 44 (3), 200623. Vines, Alex, “China in Africa: Mixed Blessing”, CurrentHistory, May 200724. Zakaria, Fareed, The Post-American World, PenguinBooks, London, 2009

References

P A R A D I G M S H I F T


Africa’s relations with India and Chinaas a whole have been the subject ofmuch discussion in the media andacademia in recent years because ofthe rather sudden and exponentialgrowth of trade and other relations ofthese two countries with the conti-nent and the impact this has had on

African countries previously written off as ‘basket cases’.Today, they have emerged as significant economic actors withgrowth rates that, in many cases, have shown more promisethan that of western countries for the past few years. In fact,their terms of relationship have been very different from that

of western countries and have included infrastructure development, aid and lines of credit — instruments that haveacted as drivers of growth rather than agents of exploitation,and have helped draw African states into the emerging markets of an increasingly globalised world.

Today, several states of Africa are attractive destinations forforeign direct investment and trade, and many countries, inaddition to India and China, are vying for an entry or a re-entry into the African market and are offering terms andconditions similar to those offered by India and China. Theseinclude major powers like the United States, the EU as a bloc,and countries from regions that had so far had very littleinterest in the continent, that is, South East Asia and Latin

The powers in the continent

The growing engagement of India and China in Africa has compelled western powers to shift their attention to a renascent continent,

says Sanjukta Banerji Bhattacharya

U.S. President Barack Obama addresses the Ghanaian parliament in Accra, Ghana, on July 11, 2009.



America. African countries, too, are realising the potential ofgetting the best deals out of the increasing competition andare taking the initiative to engage with countries other thanIndia, China and the major powers. Moreover, having beenvictims of exploitation from colonial times to the post-inde-pendence period, they have perhaps learnt the lesson of notputting their eggs in one basket and are diversifying theirrelations to include other powers that are emerging and whoare interested in Africa for the same reasons that India andChina profess, that is, to foster South-South cooperation topromote mutual growth. This article provides an overview ofAfrica’s relations with these ‘other’ powers, both major andthe new ones, with a view to understanding what the futureholds for India’s relations with Africa.

It needs to be mentioned at the outset that the relationshipthat states in general now seek with Africa and African countries is not of the earlier type marked by exploitative trade.Relationships are underlined by the lexicon of ‘partnership’,be it strategic or economic. The question is why? There aremany reasons for this: (a) Africa is rich in resources that arefast diminishing in other parts of the world; (b) Africa is poorin infrastructure and infrastructural capacity and, therefore,welcomes partnerships that will bebeneficial to them and help them to develop; (c) the institutional structure of the African Union (AU)is perhaps better equipped for partnerships than that of theOrganisation of African Unity(OAU) ever was; (d) the Africancontinent has 54 states and they areall members of AU and therefore,potentially, Africa can be a good partner in multilateral fora like the World Trade Organisation(WTO), the United Nations (UN) and climate change forawhere issues are raised that pit states against other states andwhere the support of 54 countries may be crucial in decidingan issue; and (e) the climate for economic relations with African states has shown an overall upswing with animprovement in the political environment in many states.

These reasons are by no means the only ones that act asmotivating factors in bilateral and multilateral relationsbetween African and other states or regions or regional blocs,but they are some of the more important ones. It will also beuseful to remember that the new interest in Africa, whichinvolves paying at least lip service to African ownership, co-management and co-responsibility, goes back only to theturn of the century. That was the time when India andChina’s success in evolving a new pattern of relationshipwith African states, which had begun five to ten years earlier, had started paying dividends in terms of increasingtrade figures. Also, the benefits of such trade viewed in terms of entry into the energy sector of Africa’s largely unexploited oilfields became self-evident.

Of Africa’s ample resources, oil is not the only area

attractive to states all over the world. Its mineral and otherresources range from cobalt and copper to gold, diamonds,uranium, hydrocarbons and other energy sources. Some ofthese energy sources such as solar energy, thermal power andwind energy have great future potential. Africa is alsoendowed with large tracts of land where plants for bio-fuelscan be cultivated. Other resource-rich parts of the world areeither developed or being developed by their own countries’private or public sectors or are under the control of foreigncompanies who do not encourage competition from othertransnational companies. African countries, on the otherhand, lack the skills needed to exploit their own resources.Moreover, they need investment for not only overall devel-opment but also for infrastructure and capacity building.

Further, much of the mineral resources in Africa are stillbeing explored and therefore, there is scope for new countries and companies to compete for a share of the pie inareas where resources are diminishing in other parts of theworld. Petroleum is a case in point. At 4 million bpd, Sub-Saharan Africa already produces as much oil as the totaloutput of Iran, Mexico and Venezuela put together. As such,it is on a forward curve in terms of oil production unlike most

of the known oil producing regionswhere older oil fields are located[Khapoya, 1998:112]. The output,for instance, increased 36 percent inthe past 10 years; for most of theother regions, the figure was around16 percent [Servant, 2003]. Quite afew of the most promising fields arelocated offshore in the SouthAtlantic.

However, African states such asNigeria, Angola, or Equitorial Guinea do not have the technology to extract deep offshore oil embedded in theirrespective territorial seas. Even Chinese companies are not ata par with western developed countries in such technologies.On the other hand, the U.S. and some EU countries possessstate-of-the-art technologies that are necessary for the extraction of deep-sea oil [Khapoya, 1998]. Another factorthat makes this oil attractive to other countries is that apartfrom Nigeria, none of the other countries where oil is beingdiscovered and new fields are being opened up, is a memberof the Organisation of Petroleum Exporting Countries(OPEC) and, therefore, has more flexibility in productionand pricing. This amplifies their attractiveness to interestedpowers.

In earlier years, much of Africa had been subject to dictatorships, conflicts and coups. Some major powers,notably, France, the U.K. and the U.S., had carved outspheres of influence and interest and in some cases had helpedto prop up dictatorships if it suited their purpose, providingarms (clandestinely or otherwise) and aid in their own interest. So far as Africa’s mineral wealth was concerned,while a select few multinational companies had benefited

Much of the mineralresources in Africa are

still being explored.Therefore, there is scope

for new countries andcompanies to compete

for a share of the pie



manifold, African dictators, often in connivance with theirpatrons, had also exploited their country’s wealth for theirown aggrandisement. Things have, however, changed for thebetter, with democracy slowly finding a foothold in the continent, making it a better place to do business with.Moreover, in earlier times most relationships between Africaand the outside world were bilateral, leading often to a kindof patron-client bond. Today, the institutional framework fordoing business with Africa has improved with the creation ofthe AU as well as several multilateral blocs like the CommonMarket for Eastern and Southern Africa (COMESA), theEconomic Community of West African States (ECOWAS),the East African Community (EAC)the Southern African DevelopmentCommunity (SADC), to name justa few. Countries are now not onlyinterested in bilateral tie-ups but alsoin multilateral institutional tie-ups.

Another trigger has been theexpanding relations of India andChina with African states. Since the1990s, the two emerging powershave acted as drivers of growth by providing alternativesources of investment, with attractive terms for the Africans.China, for instance, has offered a kind of ‘triple whammy’ —arms sales, cancelled debts and soft loans. As a result, Chinahas already cornered some of the best oil prospects in Sudanand Angola, the two countries ravaged by civil war from the1970s through the 1990s, and therefore considered to be toorisky for oil extraction by the major powers [Klare, Volman,2006].

The emerging powers are also revealing Africa’s economicpotential, because some of the countries have now becomesafer places to invest and trade is increasing between Africannations and the new powers in Africa. The competition from

these countries has shaken the major powers and they are now becomingaggressive in their efforts to outbid theemerging nations and promote their owneconomic interests in Africa. In short, theyhave woken up to the fact that Africa is nolonger their backyard, where aid could winthem ‘everlasting’ allies, and their only taskwas to keep these allies in power in orderto get the kind of deals that they wanted.

The U.S. and africa

So far as the U.S. is concerned, itshould be noted that during the Cold Waryears, it had hardly any kind of special relations with any Sub-Saharan Africanstate except for South Africa. It did, however, have a patron-client relationshipwith several states, such as Somalia andEthiopia under Emperor Haile Selassie in

the 1970s, in areas where it had geostrategic Cold War interests. In fact, it was the East-West rivalry that motivatedmany of its interventions in Africa, for instance, throughproxy forces in Angola [Baptiste, 2005]. Mineral wealth andCold War interests prompted the U.S. to develop a specialrelationship with South Africa. This was, to some degree,responsible for the perpetuation of apartheid at a time whenmost other countries had no relations with that country.

The fact that Africa was of little interest to America is evident from the lack of any high-level visits to that continent.Although the U.S. had set up a Bureau of African Affairs within the State Department in 1958, the first state visit by an

American president to Sub-SaharanAfrica was 20 years later in 1978when president Jimmy Carter visited Nigeria and Liberia. The nextstate visit came 29 years later in 1998,when president Bill Clinton paid abrief visit to Africa. The year 1998was a turning point because the U.S.embassies in Kenya and Tanzaniawere bombed that year. From 1999,

the beginning of some kind of engagement, particularly inpublic diplomacy and trade, can be observed. The same year,the U.S. Congress passed the African Growth andOpportunity Act (AGOA) to spur exports to the U.S. fromAfrica. The fact that this Act was passed following the bombing incidents is significant.

There was more activity during the presidency of GeorgeW. Bush, who visited the continent twice, once in 2003 andthe second time in 2008. There were also attempts at promoting sustainable development, particularly throughmultilateral fora like G-8 summits and the World EconomicForum at Davos. The American interest, however, also hada security angle. What is especially significant is the announce-

Former U.S. President George W. Bush with a group of dancers in Ghana during his visit

to the country in 2008. Photo: the.honoluluadvertiser.com



of the AU as well as the several multilateral blocs



ment in 2007 of the creation of a newand separate Africa Command tocoordinate all U.S. military andsecurity interests throughout thecontinent. Actually, even prior to that, in November 2002, the continent saw the first permanentU.S. base, when the Combined JointTask Force–Horn of Africa (CJTF-HoA) was set up in a former Frenchmilitary base, Camp Lemonier, inDjibouti [afrol News, 2004].

The U.S. also set up the EastAfrica Counter Terrorism Initiatives(EACTI) in 2003, and disbursedapproximately $100 million throughthe programme to Djibouti, Eritrea,Ethiopia, Kenya, Tanzania andUganda. Diplomatic initiativesdeepened under the Obama administration, with the President himself visiting Ghana inJuly 2009 within a few months of his inauguration followedby several high-level visits including that of the Secretary ofState, the U.S. Permanent Representative to the UN, theUnder Secretary of State for Democracy and Global Affairsand many others. The increased activity underscores anenlarged U.S. interest in Africa [Carson, 2010].

The main driving factors behind this augmented attentionare resources and security, the two often interacting to buildpolicy [Ceukelaire, 2004]. It should be noted here that U.S.foreign policy has never been altruistic but realistic and driven by its national interests, with foreign aid acting as aninstrument of foreign policy. In the current context, the U.S.main so far as resources are concerned, is in hydrocarbons.According to forecasts made by the U.S. National IntelligenceCouncil, the U.S. could be importing as much as 25 percentof its oil from Central Africa by 2015, compared to 16 percent at present [Servant, 2003].

If one looks at the trade figures of the U.S. CensusBureau’s Foreign Trade Division, imports from Africa grewfrom $19.9 billion in 1997 to an estimated $113.4 billion in2008, falling somewhat in 2009, presumably because of theeconomic recession [U.S. Census Bureau, Foreign TradeDivision, 2009]. While exports to Africa increased from $11.3billion in 1997 to $22.3 billion in 2008, between 2007 and2008, imports from oil producing states grew at a much higher rate than with other countries. To quote some figures,the rate of growth for Angola was 51.2 percent, for theRepublic of Congo, it was 65.2 percent, for EquatorialGuinea, it was 89.5 percent and for Chad, it was 55.4 percent.In 2008, the U.S. imports under AGOA amounted to $66.3billion, but petroleum products accounted for the largestportion with 92.3 percent share of the AGOA imports. With fuel products excluded, AGOA imports amounted to$5.1 billion. If these figures are correlated to the U.S.

developmental aid to individual countries, the results areinteresting [U.S. Department of Commerce, InternationalTrade Administration, 2009].

During the Cold War period, the U.S. had supportedclient states like Somalia and Sudan without regard todemocracy and governance. Between 1992 and 2000, whensuch clients no longer mattered in its geopolitics with the endof the Cold War, the amount of aid dropped 52 percent from$1.93 billion to $933 million. And although the U.S. pays onthe face of it supports governance and democracy, after 9/11,developmental aid has focused on countries where the U.S.has oil or security interests, and some of these countries havevery poor human rights records. For instance, aid to Kenyaincreased from $19.5 million in 1998 to $44.1 million in2005; to Sudan, it increased from $4.5 million in 2001 to $81million in 2005; to Nigeria, from $7 million in 1998 to $59.3million in 2005, and to Djibouti from nothing in 2001 to $2million in 2005 [Williams, 2006]. Aid to Sudan, which isconsidered “Not Free” by Freedom House, increased by94.4 percent in the course of four years, at a time when theDarfur crisis was beginning to peak on one hand, and Chinawas signing deals for prospecting some of the best oil fields,on the other. Kenya was one of the two African countrieswhere the U.S. embassies were the target of terror attacks;Djibouti is the country where the U.S. has set up a militarybase, and Nigeria, of course, is rich in oil and many countries are vying for prospecting deals. So, it appears thata new set of countries is receiving a disproportionate amountof U.S. foreign aid based on newly re-evaluated Americanstrategic concerns.

Another point that has to be made in this context is thatwhile the U.S. developmental assistance has increasedapproximately 10 percent since 2001, spending on militarypreparedness has gone up over 20 percent, and spending toassist African governments to purchase weapons has increased

Senior officers and staff members of the Ugandan People's Defence Force Senior Command and

Staff College taking part in a briefing led by officers from the U.S. Embassy in Kampala

on January 11, 2011. Photo: Africom



17 percent. Since 2001, funding for IMET and FMF hasincreased approximately 35.6 percent and 27.8 percent,respectively [Williams, 2006].

This marks a shift away from issues of humanitarian aid,peacekeeping and democracy to security and law and orderissues. Countries seen as central to the War on Terror —Ethiopia, Eritrea, Djibouti and Kenya — received the bulkof IMET assistance between 2001 and 2005. Angola, whichit needs to keep satisfied because of its oil resources, andRwanda, in which it is developing a strategic interest, havealso received such funding. The biggest loser in this periodwas South Africa, its strategic ally through the better part ofthe 20th century, where there was a 95 percent decline insuch funds.

At the same time, the U.S. signed a memorandum ofunderstanding in April 2010 with South Africa to lay theframework for a ‘Strategic Dialogue’ focusing on issuesinvolving health, trade, energy and non-proliferation, amongothers [U.S. Department of State, 2010]. While military programmes and aid have declined, South Africa’s stabilisingpotential and its latent importance as a partner is recognised,particularly under the Obama administration, which has beenfurthering an ongoing Non-proliferation and DisarmamentDialogue, and has also signed an agreement on Cooperationon Nuclear Energy Research and Dialogue in April 2010[U.S. Department of State, 2010].

In fact, apart from trade, particularly in hydrocarbons,security issues appear to be uppermost in U.S. foreign policy considerations. Such security considerations may belinked to securing its oil interests particularly since it appearsto be keen on shifting out of its dependence on MiddleEastern oil after the Iraq War and the highly volatile natureof its current politics. Even President Obama, despite hisrhetoric of viewing Africa as a “partner” and being “ready tocontribute to Africa’s growth and stabilisation”, strengthen-ing African governments so that ultimately “African leaderstake control”, is, in essence, continuing and expanding former president George W. Bush’s unilateralist security policy in the continent.

The Obama administration asked for $38 million for a foreign military financing programme to pay for U.S. arms salesto Africa, $21 million for IMET and $24.4 million for Anti-Terror Financing Programmes in 2010 [News & Trends:Africa, 2010]. Overarching all these is the new AfricanCommand or AFRICOM, which transited to an independentUnified Command Status in 2008 [Dickinson, 2009]. Therewas no separate defence Command for Africa prior to the set-ting up of AFRICOM, which is now responsible for U.S. military relations with all African countries, given the fact,according to its website, that Africa is “growing in military andeconomic importance in global affairs” [U.S. AFRICOMPublic Affairs Office, 2010]. Obama also appointed a SpecialEnvoy to Sudan, Gen. Scott Gration, as well as a Special Adviserfor the Great Lakes, former Congressman Howard Wolpe.

While the new U.S. relationship with African states

reflects a kind of aggressive diplomacy that may not be overtly attractive to African states, the fact remains that theU.S. is still the world’s sole superpower and has the world’slargest GDP. As such, it is attractive as a trading partner andit is in African countries’ interest to trade with it if the termsare suitable.

eU and africa

The EU, on the other hand, follows a different policy andits diplomacy is much more subtle but perhaps more effective. The EU appears to have taken lessons in diplomat-ic strategy from the emerging powers and is pursuing its agenda in Africa on similar lines. Although the Eurozone crisis has affected its investment and purchasing power andshifted priorities for the time being, the EU has a long-termagenda for Africa. Europe has had trade links with Africa going back a long time. These links were in more contemporary times enhanced by privileged agreements likethe Yaoundé and Lome Conventions and the more recentCotonou agreement (2001) [Douaud, Caprile, 2008].

In view of the fact that the EU is the biggest market forAfrican products, taking in around 85 percent of its cotton,fruits and vegetables, it is no wonder that Europe has enduring interests in Africa. Faced with the World TradeOrganisation’s (WTO) regime institutionalisation, it has beenforced to move away from privileged bilateral to WTO-compatible multilateral trade deals. As such, the EU alsolaunched negotiations on Economic Partnership Agreements(EPAs) with all African, Caribbean and Pacific (ACP) countries in 2002 [Nolte, 2002].

It is interesting that the EU now focuses on Africa’s development as part of its agenda in that continent much asIndia and China speak of cooperation for mutual benefitinvolving infrastructural and other kinds of development inAfrica. The difference, however, is that the EU emphasisesgood governance and human rights along with economicgrowth. The security-development nexus, changes withinboth the AU and the EU, new international developmentcommitments under the Millennium Development Goals(MDGs), increasing competition with the emerging powers(Asia is now Africa’s third-largest trading partner after theU.S. and the EU) and depleting energy and natural resources,are all factors behind the EU’s increasing interest in Africandevelopment. One of the objectives of the EU Strategy forAfrica’s Development of 2005 was to “give people in lessadvanced countries control over their own development”,focusing on four main pillars: peace and security, humanrights and good governance, health and education, and economic growth [Europa, 2005].

Accordingly, the Africa-EU summit of 2007 in Lisboncreated a new Africa-EU Strategic Partnership providing anaction plan for 2008-10 on eight points of cooperation thatinclude peace and security, MDGs, trade, democratic governance, science and space, energy, and climate change[Africa-EU Ministerial Troika, First Action Plan, 2007].



eU Trade WiTh The WorLd and eU Trade WiTh africa (2010)* (ranking by Trade flows in 2010)

eU imporTS from…

Africa

TDS World Millions Share of Share ofSelections of euro Total total EU

Imports

TOTAL 1 509 073 134 326 100% 8.9%

TDC 05 411 171 82 159 61.2% 20%

TDC 04 34 878 7 097 5.3% 20.3%

TDC 14 38 825 6 908 5.1% 17.8%

TDC 16 344 652 6 662 5% 1.9%

TDC 11 84 773 6 446 4.8% 7.6%

TDC 02 36 943 5 760 4.3% 15.6%

TDC 15 88 336 5 344 4% 6%

TDC 06 126 045 3 086 2.3% 2.4%

TDC 17 102 251 2 313 1.7% 2.3%

TDC 01 19 777 1 799 1.3% 9.1%

TDC 07 42 086 1 089 0.8% 2.6%

TDC 09 10 312 928 0.7% 9%

TDC 12 17 037 821 0.6% 4.8%

TDC 08 11 749 570 0.4% 4.9%

TDC 21 16 385 522 0.4% 3.2%

TDC 20 37 383 497 0.4% 1.3%

TDC 18 51 624 391 0.3% 0.8%

TDC 10 16 034 345 0.3% 2.2%

TDC 03 6 989 319 0.2% 4.6%

TDC 13 10 772 267 0.2% 2.5%

TDC 19 1 050 7 0% 0.6%

eU exporTS To…

Africa

TDS World Millions Share of Share ofSelections of euro Total total EU

Imports

TOTAL 1 349 165 125 609 100% 9.3%

TDC 16 379 077 35 123 28% 9.3%

TDC 05 80 931 14 696 11.7% 18.2%

TDC 17 194 617 14 667 11.7% 7.5%

TDC 06 211 580 12 886 10.3% 6.1%

TDC 15 94 776 10 960 8.7% 11.6%

TDC 11 34 165 4 896 3.9% 14.3%

TDC 04 46 817 4 689 3.7% 10%

TDC 07 53 989 4 545 3.6% 8.4%

TDC 02 17 877 4 476 3.6% 25%

TDC 01 17 912 3 182 2.5% 17.8%

TDC 18 62 660 3 153 2.5% 5%

TDC 10 28 300 2 925 2.3% 10.3%

TDC 09 9 401 1 668 1.3% 17.7%

TDC 20 20 937 1 647 1.3% 7.9%

TDC 13 15 815 1 466 1.2% 9.3%

TDC 14 38 231 1 276 1% 3.3%

TDC 21 19 621 852 0.7% 4.3%

TDC 03 3 170 464 0.4% 14.6%

TDC 08 10 986 409 0.3% 3.7%

TDC 12 5 979 359 0.3% 6%

TDC 19 2 325 61 0% 2.6%

TDC 01 Ch.01-05 Live animals; animal products TDC 02 Ch.06-14 Vegetable productsTDC 03 Ch.15 Animal or vegetable fats and oils and

their cleavage products TDC 04 Ch.16-24 Prepared foodstuffs; beverages, spirits and

vinegar; tobacco TDC 05 Ch.25-27 Mineral Products TDC 06 Ch.28-38 Products of the chemical or allied industriesTDC 07 Ch.39-40 Plastics and articles thereof; rubber and

articles thereof TDC 08 Ch.41-43 Raw hides and skins, leather, furskins

and articles thereof TDC 09 Ch.44-46 Wood and articles of wood; wood charcoal;

cork and articles of cork TDC 10 Ch.47-49 Pulp of wood or of other fibrous cellulosic

material; paper or paperboardTDC 11 Ch.50-63 Textiles and textile articles

TDC 12 Ch. 64-67 Footwear, headgear, umbrellas, sun umbrellas, walking-sticks

TDC 13 Ch.68-70 Articles of stone, plaster, cement, asbestos, mica or similar material

TDC 14 Ch.71 Natural or cultured pearls, precious or semi-precious stones

TDC 15 Ch.72-83 Base metals and articles of base metalTDC 16 Ch.84-85 Machinery and mechanical appliances;

electrical equipmentTDC 17 Ch.86-89 Vehicles, aircraft, vessels and associated

transport equipmentTDC 18 Ch.90-92 Optical, photographic, cinematographic,

measuring, checking, precisionTDC 19 Ch. 93 Arms and ammunition; parts and

accessories thereofTDC 20 Ch.94-96 Miscellaneous manufactured articlesTDC 21 Ch.97 Works of art, collectors’ pieces and antiques

* The sums of the individual TDC categories are less than the totals due to confidentiality reasons. Source: EUROSTAT (Comext, Statistical regime 4); World excluding Intra-EU trade and European Union: 27 members.

Tdc SecTionS (harmonized SySTem):



The third Africa-EU summit of November 2010 reiteratedthese goals and set out the second action plan which alsoincluded issues of migration, mobility and employment[Africa-EU Partnership, Action Plan, 2010], This ‘partner-ship’ is further complemented by objectives laid out in the Cotonou Agreement, the Trade Development and Cooperation Agreement (TDCA), the Europe-Mediterranean Partnership and the EuropeanNeighbourhood Policy, which also include support for political reform and economic modernisation. These partnerships have led to someviable developmental projectsfocusing on ways to build and consolidate Africa’s infrastructure,such as the building of a highwayfrom Dakar to Djibouti and another from Djibouti to Gabon(Libreville), which would actuallyprovide an almost transcontinentalEast-West road connectivity[Commission of the AfricanUnion, 2004]. There is another project to connect all Africancapitals to their counterparts in neighbouring countriesthrough fibre-optic broadband cable by 2012 [EuropeanCommission, 2010].

The EU is ready to provide large sums for such projects,with a number of EU financial institutions pitching in withmoney. The lion’s share comes from the EuropeanDevelopment Fund (EDF), which has 22 billion euros at itsdisposal between 2008 and 2013, of which 20 billion euroshave been earmarked for Sub-Saharan Africa. Other fundingagencies are: the European Neighbourhood and Partnership

Instrument (ENPI) for North Africa; the Instrument forStability; the Instrument for Democracy; the EuropeanCommunity Humanitarian Aid Department (ECHO); and the European Trust Fund for Africa (the co-financinginstrument of the EU-Africa partnership on Infrastructure).Apart from these, there are bilateral contributions from EUmember states, trust funds like the African Peace Facility(APF) and the AU Peace Fund, development banks like theAfrican Development Bank and the European DevelopmentBank, which facilitate aid/loans/investments from the EU

[Kotsopoulos J, 2007]. In the sphere of security, the EU

has focused on building regionalmechanisms and has provided fundsto enable the AU and other regionalorganisations to conduct their ownpeace support operations. TheAfrican Peace and SecurityArchitecture (APSA) has been operationalised, though a lot remainsto be done. This involves a

continental early warning system, a ‘Panel of the Wise’, anAfrican Standby Force, enhancing the capabilities of the AUand other regional mechanisms and empowerment of theEU-AU civil-social networks capable of sustaining and supporting peace and security initiatives, among others. TheEU will also financially enable the AU and other regionalmechanisms to plan and conduct peace support operations[Africa-EU partnership.org, 2010].

Compared to the self-interested actors like China and theU.S., the EU approach to engaging Africa represents a morebalanced understanding of Africa’s needs and seeks to

Compared to the self-interested actors like

China and the U.S., the EUapproach to engaging

Africa represents a morebalanced understanding

of Africa’s needs

Delegates at a seminar on Africa-EU relations at the African Union Commission in Addis Ababa, Ethiopia, in October 2010.



promote self-reliance vis-à-vis its security issues. The EU’sengagement, however, attracted criticism. Critics argue thatthe changes sought by the EU are not mutually beneficial.Despite emphasis on ‘partnership’ and rhetoric on new post-colonial relations, agreements between the EU andAfrica have served to reentrench and maintain Europeaninterests [Kotsopoulos, 2007]. Trade figures show that whilethe EU accounts for the bulk of sub-Sahara’s trade, Africa isan increasingly marginal market for both EU exports andimports, leaving aside direct investment. The argument is that there is a necessity to go beyond the traditional ‘North-South’ equation if any kind of true partnership is tobe engendered.

While the EU agenda is better balanced than that of theUnited States, Africa’s equations with both the EU and theU.S. are still unequal and there is always the possibility forthe development of a new kind of dependency. However,the new terms of contact with both the major powers andthe emerging powers have made African countries moreaware of their own potential to get the best deals with notonly these countries but also other states and regional blocsthat are trying to get a toehold in the vast prospectiveimport-export market of Africa.

Among the newer regions to show an interest in doingbusiness with African states are South East Asia and LatinAmerica, areas that contain newly industrialised nations(NICs) which, in order to promote their own growth, need

to invest in new markets and draw their resources fromcompetitive sources. For Africa, these regions, which contain essentially developing countries, provide a morelevel-playing field than the major powers or even China.Again learning from India and China, the countries of theseregions too are offering terms that include some form ofdevelopment or other incentives like educational trainingand collaboration in sport.

As such, the choice is expanding for African countries andmany of them are actively seeking better trade and other relations with states of South East Asia and Latin America.The regions also provide the possibility of multilateral tie-upsbetween regional organisations since the Association of SouthEast Asian Nations (ASEAN) and the MERCOSUR(Mercado Commun del Sur or Common Market of theSouth) are both well developed and experienced. However,there has been little earlier contact between the two regionsand Africa. Although the willingness is becoming apparent,it will take time for the required infrastructure to develop.

SoUTh eaST aSia and africa

So far as Southeast Asia is concerned, except for Malaysia,other states are just waking up to the investment and tradepossibilities with Africa. In fact, the initiative appears to becoming more from the African side than the South EastAsian one. According to Jean-Louis Billon, the president ofthe Ivory Coast Chamber of Commerce, “We are basically

A Japanese medical expert trains nursing staffers of Josina Machel Hospital in Luanda, Angola. The training was part of a capacity-building

programme conducted jointly by the Brazilian and the Japanese governments. Photo: www.impactalliance.org



the same type of countries, and we have much to learn fromthis region than from Europe or anywhere else” [Reuters,2010]. There is some truth in this although South East Asiahas some countries with high per capita incomes. If one con-siders the average GDP real growth rate for South East Asia,it was 5 percent between 2000 and 2005, while it was 4.4 per-cent for Africa. While the per capita GDP for Singapore in2005 was $20,000, the figures for Cambodia, Laos, Myanmarand Timor-Leste were less than $500. In Africa, the corresponding figures for the same year showed that whilecountries like Equatorial Guinea had a per capita GDP of$13,410, half the Sub-Saharan states had GDP per capita ofless than $500 [UNDP, 2007]. Many South East Asian coun-tries have faced socio-political problems typical to ThirdWorld nations and are now transiting to their own forms ofdemocracy just as African states are trying to do. These stateshave also known war and conflict and have faced the problem of re-building their economies. African countriescan, therefore, relate to these countries in a way that they cannot with the major powers or even China.

However, South East Asian nations do not have much ofa history of investing abroad, particularly outside the region.Transaction and information costs are higher when investing in Africa than in other Asian economies and bothhost and home-country regulatory frameworks often imposeconstraints. Only Singapore,Malaysia and Indonesia began toinvest in Africa prior to this centuryand even then the investment waslimited. However, driven by soaringcommodity prices, FDI in naturalresources in Africa showed a considerable increase from 2005.Investment was, however, directedto only a limited number of countries.

African countries, on the other hand, are actively seekinginvestment from this region, which has several transitionaleconomies with good investment potential as well as expertise in commodity production like palm oil, rice andrubber. According to BJR Itoua, Congo’s Energy Minister, “It is not an Africa that needs humanitarian consideration orpity, it is an Africa that needs investment and partnership”[Reuters, 2010]. In pursuit of mutual benefits, therefore, thefirst Africa-South East Asia Business Forum was organised inSingapore in April 2010 with the aim of bringing togetherbusinessmen, policy makers and investors from both regionsto explore business prospects.

Firms of South East Asia were urged to invest in theupgrade of airports, seaports, transportation infrastructure,real estate, food processing, mining and energy. Given thatthe region’s average growth was strong at 5.6 percent in 2010,it was better placed to invest than the U.S. and Europe. Therewere dividends from this forum: Temasek, an autonomouswealth fund of Singapore commanding around $122 billion,

is all set to invest in Africa; Olam, a well known commodities firm, has agreed to purchase one of the threelarge wheat millers of Nigeria for $107.6 million. SingaporeTelecommunications, too, will enter the African marketthrough Bharti Airtel’s recent purchase of Kuwaiti telecommunication company Zain’s African assets. In theaftermath of the Forum, an Africa-South East Asia Chamberof Commerce has also been set up [Borden, 2011].

At the bilateral level, Malaysia is the foremost country toseek relations with African states. Malaysia’s trade with Africaincreased from RM4.8 billion (US$1=RM380) in 2001 toRM25 billion in 2010 [Borneo Post, 2011]. According toMaTrade (Malaysia External Trade Development Company),bilateral trade increased 51 percent in 2010 over 2009 toRM17.99 billion. Malaysia’s top trading partners in Africaare Egypt, South Africa, Benin, Togo, Djibouti, Algeria,Ghana, Nigeria, Mauritius and Tanzania. Palm oil was themajor export and petroleum the major import. In fact,Malaysia has encouraged bilateral relations through itsLangkawi International Dialogue (LID) initiative, establishedin 1995, which seeks to strengthen ties with African andCaribbean countries. Here, ideas on trade, development,investment and even topics like religious extremism areexchanged. The initiative is underlined by the concept of‘Smart Partnership’, the brainchild of Prime Minister

Mahathir Mohamad. As part of the Smart Partnership

Dialogue, the Southern AfricanInternational Dialogue (SAID) wasset up in 1995 to enhance relationsnot only with South Africa but othercountries in the region likeBotswana, Mozambique andNamibia. SAID is a follow-up andcounterpart of LID, and it is

advertised as a potential growth area and hotbed for inter-regional trade and investment with particular focus onblocs like the COMESA and SADC [Aliyn, 2011]. In addition, a Malaysia-Africa Business Forum (MABF) has alsobeen formed recently with its first meeting being held inJune 2011 on the sidelines of the LID meet at Putrajaya. Theinaugural theme was ‘Exploring New Dimensions’.

At the meet, Africa was represented by 177 delegates from27 states, highlighting the importance now being paid toMalaysia. What is interesting is that the talks focused not onlyon economic but political and social issues, including an educational exchange programme and an internship programme for African students in Malaysian educationalinstitutions through which African students already inMalaysia could familiarise themselves with the local culture.It should be noted that there are about 21,000 African studentscurrently studying in Malaysia: the ‘soft’ power diplomacy atdisplay here is similar to that of the emerging powers. Itshould also be mentioned that ASEAN is not part of MABF,which is Malaysia’s own initiative.

Malaysian transnationalcorporations (TNCs) have

been active in variousparts of Africa and in

sectors of the economyother than hydrocarbons



In fact, many Malaysian transnational corporations havebeen active in various parts of Africa and in sectors of theeconomy other than hydrocarbons, such as, hotel, real estate,banking, infrastructure and telecommunications. Some of thebetter known firms are Genting (a conglomerate that includeshotels, power generation, plutonium etc), IOI Corp (oil palmrefining, property and trading, mainly based in Mauritius),MISC (shipping, the main centre being Nigeria), MRCB(broadcasting, based in Ghana), Opus International (assetmanagement with a focus on South Africa), Petronas (oil andgas, based in Chad, Mozambique, Guinea, Niger, Somalia,Sudan and South Africa), Puetra Capital (financial services,with bases in Ghana, Mozambique and Tanzania), RanhillPower (power generation in Tanzania), Sime Darby (palm oilrefining, in Egypt, Tanzania andTunisia) and Telekom Malaysia(telecommunications, in Guinea andMalawi) [UNDP, 2007]. What isnoticeable here is that only one of thelarge companies is involved in oil andgas; the other firms are investing inareas that will help Africa developvital infrastructure for the future, andfurther, such sectors will not attract the accusation of beingexploitative of Africa’s mineral resources.

LaTin america and africa

The other region that is keen on improving ties with Africais Latin America. Earlier relations had been primarily betweenCuba (a Soviet surrogate at the time) and Ethiopia and certain guerilla groups fighting for power in Angola andMozambique, but trade relations had been negligible. It isonly recently that Brazil began to engage with Africa,

particularly with South Africa and the Lusophone countries,not only as an emerging power with economic dynamics similar to other emerging countries but also as part of mul-tilateral forums like the India-Brazil-South Africa (IBSA)Dialogue which goes beyond trade to security issues, amongothers. Mexico and Argentina are the two other countries thathave shown growing interest in Africa in recent years.However, there are several similarities between the tworegions like vibrant growth rates on one hand and poverty andsocial inequalities on the other; further, some North Africancountries are undergoing processes of political change thathave parallels in Latin American history. There is much toshare by way of experience. The two regions also have sharedinterests in global issues such as the need for a new interna-

tional financial architecture, the foodcrisis that has resulted in high inter-national commodity prices and ener-gy policies and their implications forthe environment.

Earlier contacts between Africaand Latin America had beenthrough multilateral forums likeUNCTAD and G-77, but then it

was a different world. The G-24 is newer and contains eightcountries each from the two regions apart from other coun-tries. They came together with more current issues in mind,namely, the objective of coordinating the positions of devel-oping states on financial and monetary matters as well asdevelopmental issues. The creation of the Africa-SouthAmerica (ASA) Summit mechanism in 2006, an interna-tional framework that aims at strengthening relations between the two regions in the long run, wasanother important milestone. The first summit, held at

Coffee growers in Bamenda, Cameroon, celebrate in 2009 the completion of the first year of a Douwe Egberts Foundation initiative to

improve the local coffee trade. The foundation is run by the Singapore-based OLAM and Sara Lee Corporation. Photo: OLAM international

The creation of the Africa-South America Summit

mechanism in 2006 aimsat strengthening relationsbetween the two regions



Abuja, Nigeria, adopted the Abuja Declaration and theAbuja Action Plan, which mentioned among other things,the creation of an energy commission for South Americaand Africa, a South America-Africa bank, a network of universities and a proposal to connect Africa with SouthAmerica through communications.

The second summit at Margarita Island, Venezuela, in2009 brought together nine South American and 20 AfricanHeads of State along with representatives from 61 out of the63 countries that comprise the ASA — quite a record number by any standards. Here, areas of joint cooperationwere identified, ranging from science and technology, ICT,education and culture, sports,human rights and political affairs,crime, peace affairs, democracy andgovernance to rural development,agriculture, agro-business, invest-ment and tourism, water resources,energy, trade, health and labour, andinfrastructure development.

In the follow-up summit inAugust 2010 — the First ASAMeeting of the Presidential StrategicTable — an agreement was signed on a South America-Africa Strategic Agenda 2010-2020 to serve as an instrumentthat would give greater viability to cooperative actions ofinterest in both regions. There were agreements to strength-en South-South cooperation in eight areas — economy, foodproduction, energy, stability, maritime, air and communi-cational connection and defence of the Earth in light of cli-mate change.

What is worth noting are the institutional mechanisms thathave been formed to ensure the success of the ASA,

something that Latin American countries are very good at setting up and observing. Apart from the follow-up mechanism of ministerial meetings, there is also a monitoring mechanism to monitor implementation andmake recommendations [SELA, 2011].

To facilitate trade between the two regions — high tariffsand lack of preferential agreements being an obstacle — established trade blocs like the MERCOSUR have alreadysigned trade agreements with several countries and blocs inAfrica. For instance, MERCOSUR signed a trade agreementwith Egypt in August 2010, with Morocco in December 2010(reciprocal preferential agreement on tariffs), and with the

Southern African Customs Union(SACU) in December 2004 (preferential trade agreement). So far as bilateral agreements areconcerned, Argentina has signeddiverse types of agreements (scienceand technology, trade, culture andeducation, energy, technologicaldevelopment, fishery, health, creditlines) with 22 countries, includingZimbabwe, South Africa, Togo,

Namibia and Mozambique. Brazil has abandoned its policy of privileging relations

with Portuguese-speaking African countries and networkswith 28 African countries, including Nigeria, South Africa,Namibia the Republic of Congo (ROC) and the DemocraticRepublic of Congo (DRC) in various fields like humanrights, sport, culture and education, professional training inlaw, health and transportation apart from energy andpetroleum. Cuba has developed relations with many countries, including the DRC, Equatorial Guinea, Kenya,

However, relations betweenAfrica and Latin American

countries are as yet underexplored. Bi-regional

trade is still at an early stage with few products involved

Officials from various African nations on a field visit to Gansu Province in western China as part of a programme

conducted by the International Poverty Reduction Center in China and the World Bank. Photo: www.impactalliance.org



Malawi, Mali, Mauritius, Senegal, Tanzania and Swazilandin agriculture, science and technology, media, health, cinema, TV, radio, mining, news agencies and sports, apartfrom combating drugs. Mexico has agreements with eightcountries and Venezuela with 35 [SELA, 2011].

However, the relations between Africa and LatinAmerican countries are as yet underexplored. Bi-regionaltrade is still at an early stage with few products involved. In2009, African imports from Latin America amounted to$13,494 or only 1.86 percent of its total imports. In terms ofmarket share, however, these figures are on the increase.African exports to the region for the same year totalled$10,018 million or 1.52 percent of Africa’s total exports[SELA, 2011]. The problem is that bilateral trade has involvedonly a small number of countries on both sides so far, focusing on the larger and petroleum-rich states of Africa.Latin American countries, on the other hand, export mainlyagricultural commodities. Moreover, there is a problem ofinformation and connectivity.

Till date, 21 of the 54 African countries have had no diplomatic representation in Latin America and this includessome larger ones like Uganda, Tanzania, Mauritius andSeychelles. Those that have diplomatic representation in theregion are concentrated in a few countries like Brazil,Argentina, Mexico and Venezuela. Latin American countries,too, have little diplomatic representation in Africa, with 12countries having no representation. Since diplomatic representation is a measure of the political importance that isgiven to a country or region, it tells its own tale. However, matters are expected to change in the present decade as Africa’simportance becomes more evident. What is interesting is thatthe countries that are engaging with Africa are using lubricantslike sport (which is well developed in Latin America),

education and health to improve relations — these are perhapslessons learnt from the successful engagement of India andChina with African countries over the last decade.

The growing interest in Africa is certain to benefit Africanstates, some more than others perhaps, but since Africa hasso much potential, it is bound to have a trickle-down effect on the non-resource-rich countries as well. The increasing competition is sure to provide the best pricesfor commodities, and most countries and groupings, even theEU, are providing ‘extras’, presumably to ensure market traction. Against this backdrop, one has to examine India’sfuture in Africa.

india and africa

India was one of the first two emerging countries toinvest in Africa, offer Lines of Credit, draw up training programmes for African personnel, provide educationalscholarships and engage in a country-to-continent forumwith mutual interests in mind — the India-Africa Forum.It is, in fact, the competition from India and China that notonly drew African countries into the global market andhelped improve their rates of growth, but also orchestrateda change in the terms of engagement vis-à-vis the majorpowers since these would otherwise have lost their contractsto the new powers in Africa. But the situation is changingas these new terms of engagement, which are also beingemployed by newer players, challenge India’s trade and market position in future years. India does not need to worryyet about the new players who are now being actively wooedby African states who realise the advantage of having partnerships with these countries, but the U.S. and the EUhave far more money power (and therefore investmentpotential) than India can hope to have in the near future.

Uganda's Minister of Energy Irene Nafuna Muloni (second from left) with India’s Finance Minister Pranab Mukherjee and Petroleum Minister

S. Jaipal Reddy (extreme right) at the 3rd India-Africa Hydrocarbons Conference in New Delhi on December 9, 2011.



Although the two areas are suffering a current economicdownturn, as the past has proven time and again, suchdownturns are temporary.

India, however, has certain advantages. The Indian private sector’s presence in Africa goes back many decadesand its products are trusted and recognised. India’s educational institutions have been hosting African studentssince the 1960s and this has created connections that go beyond trade and commerce. When the Indian governmentstepped in with active engagement in finance and investment, it sought to develop those areas that needed Indianexpertise. The Pan-African e-network that promises digitalconnectivity, the Team-9 initiative which is geared towardsocio-economic development through access to technology,supply of photovoltaic equipment to 35 rural schools inRwanda that will fetch them electrical connection, supply ofbuses and computers to Benin are just a few of the initiativesthat India has taken for Africa’s development. While trade andcommerce and energy security are in India’s interests as well,it is interesting to note that a significant section of India’sinvestment is in the non-hydrocarbons sector.

The upside is that India has built a lot of goodwill over the years; the downside is that India does not engage Africa

as much as it should and the fear is that other countries too will be able to build up similar goodwill, unless it takes an active effort in strength-ening relations on the ground. India has a headstart,particularly in sectors like ICT and health, and itshould build on its advantages if it wishes to remaincompetitive.

concLUSion

In conclusion, it may be said that India and Chinaopened new avenues at a time when African coun-tries were not only exploited by Western multina-tional companies for its mineral resources, but werealso considered not worth investing in because of thedismal performances of their economies. Thisprompted the World Bank and the InternationalMonetary Fund to prescribe structural adjustment

programmes that sometimes had a reverse effect. As a resultof the engagement of the emerging powers, Africa is todayseen as a prime place for investment and trade given its steadyand positive GDP average annual growth figures and its con-siderable untapped natural resources.

India’s and China’s methods, which focus on partnershipand cooperation for mutual benefit, are now being emulatedby both the older players and the new aspirants in the continent, that is, mixing trade deals with lucrative infrastructural investment and partnerships in agriculture,health, sport, education and technology, among other areas,to help lubricate commercial negotiations.

Although the newer regions are yet to invest in and tradewith Africa in a major way, African countries are interestedin diversifying because this is in their interest, and given theincreasing trade figures, it will not be long before South EastAsia and Latin America also become important competitorsin the African trade market.

It is, therefore, imperative for India to strengthen its bilat-eral and multilateral ties and increase its diplomatic engage-ment with Africa in order to maintain the edge that it hascarved for itself in its manifold relations with countries of thecontinent. n

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External Affairs Minister S.M. Krishna, Ghanaian Vice-President John Dramani

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P O L I T I C A L R E F O R M S


Democratisation refers to the processby which states move towards moredemocratic structures, actors andprocesses. Nonetheless, an assess-ment of democratisation sometimeswould have to rely on the concep-tion of democracy itself. Most con-ceptions of democracy are based on

the principle of “government by the people”. This impliesthat, in effect, people govern themselves; that they participatein making the crucial decisions that structure their lives and determine the fate of their society.Such participation can take a number of forms ranging from

direct and continuous involvement in decision-makingthrough referenda and mass-meetings to active involvementthrough mass media. The alternative to this kind of democracy is one that is representative, mainly operationalisedthrough the process of voting. Voting and electioneering pro-cesses aim at selecting public office holders and giving themthe mandate to decide on policy and implement such policieson behalf of the people and in accordance with law as stipu-lated in constitutions (Burnell P and Calvert P, 1999).Today, many sitting governments around Africa are

highly compromised due to the low degree of legitimacythey actually enjoy among the populace. It was not surprising that due to this state of things many presidential

Securing Africa’s TRANSFORMATION

India can play a leadership role in spurring Africa’s metamorphosis by helping to deepen and institutionalise governancereforms in the continent, thereby encouraging positive changes in theirdemocratisation process, say Paul Musili Wambua and Mumo Nzau

External Affairs Minister S. M. Krishna and Ethiopian Minister for Finance and Economic Development Sufian Ahmed exchanging the DoubleTaxation Avoidance Agreement at Addis Ababa on May 25, 2011. India’s Prime Minister Manmohan Singh is also seen.



elections have been highly contested but poorly conductedand ill-informed elections, culminating in violence and massprotests, destruction, and economic retrogression as witnessed in Kenya in late 2007 and early 2008, with a replication of the same in Zimbabwe (2008) and Ivory Coast(2010 and 2011). Recent electionsin Uganda, Liberia and theDemocratic Republic of Congowere accompanied by many protestsand violent skirmishes associatedwith vote buying, harassment andblackmail (BBC Focus on Africa,April-June 2011, 5). Similarly, in late 2010 and early

2011, North Africa drew worldattention to itself in a most profound way. A popular uprising in Tunisia in

December 2010 and January 2011toppled President Zine el AbedineBen Ali. He had ruled Tunisia for23 years. Soon thereafter in Januaryand February 2011, mass protests in Egypt forced presidentHosni Mubarak to resign after 30 years in power. Yet noneof these uprisings turned controversial, brutal, dramatic andmassively violent as that in Libya. From the beginning of theuprising in February 2011 to the time of Col. MuammarGaddafi’s capture and subsequent killing in October 2011,over 25,000 people had lost their lives (Vandewalle D.,2011).

In the western sense, democratisation means a shift fromauthoritarian forms of government to more liberal democratic ones. In this sense, democratisation is very mucha Western and/or Eurocentric phenomenon. In the late1980s, democratic transformation in and around Africa

increasingly became associated withthe question and/or idea of ‘goodgovernance’. A report prepared bythe World Bank in 1989 was the firstto highlight this term when itreferred to Africa as experiencing a“crisis of governance”. A number ofissues to do with the dynamics ofinternational politics and global economic relations brought thisterm to the fore in the African context. As the late 1980s and early1990s witnessed the collapse of theSoviet empire, a wave of democrat-ic change swept across the continent. This state of affairs wasmarked by radical changes in the

modus operandi of relations between Western donor countries and agencies on one hand, and the developingcountries, Africa included, on the other (Haynes J., 2001).The IMF, World Bank and other donor agencies and

bilateral donors urged their partner countries in the ThirdWorld to recognise the fact that a new age of donor-recipi-ent relations was under way and this was operationalised bythe idea of good governance. The World Bank (1992)

An Algerian musical group performs during the 2nd India-Africa Forum Summit in Adis Ababa, Ethiopia, in May 2011.

The IMF, World Bank andother donor agencies andbilateral donors urgedtheir partner countries in the Third World to recognise the fact that anew age of donor-recipientrelations was under wayand that this was

operationalised by theidea of good governance



defined governance as “the manner in which power is exercised in the management of a country’s economic andsocial resources for developing, creating and sustaining anenvironment which fosters strong and equitable development (Skinner E, 2000). Good governance required a

greater pre-occupation with thecreation of an enabling frameworkfor development, larger responsi-bilities for the private sector, areduction in direct governmentinvolvement in production andcommercial activity and the devolution of power from the cen-tre to lower levels of government.In this light, a state pursuing goodgovernance would do the follow-ing: actively fight corruption andthe use of public office for privategain; enhance democratic procedures, institutions and principles; institute limited terms for key public offices;reduce government in size and functions; remove economiccontrol; privatise state enterprises; establish and enforcecodes of conduct; and, promote independent and effectivejudiciary (Hulme D. and Turner M., 1997:11-12). The pertinent question is: what can Africa learn from India, aseasoned democracy and emerging world power? What canIndia on its part offer as far as democratic transformation inAfrica is concerned? In other words, how can Indo-African

cooperation provide fertile grounds for democratic transformation for the latter?

IndIa-afrIcan relatIons In retrospect

India and Africa have had unique and common historical experiences. Internationaltrade between India and Africa datesback several centuries (Amutabi,2009). Perhaps the advent ofEuropean colonialism catalysedeven more interaction betweenIndians and Africans. India wasGreat Britain’s most valued colonialpossession. It was particularly thegreatest source of cheap labour for the colonial empire. Indianlabourers were used to facilitate the entry of colonial expedition in most of Sub-Saharan Africa.

Subsequently, Indian soldiers and their African counterparts found themselves serving the colonisers’ interests during the First and Second World Wars.Thousands lost their lives in these wars. Soon after the end of the Second World War, India led the way in thedecolonisation process (Jioreman 2006, 190-210). The demonstration effect by Indian nationalism led by

Mahatma Gandhi and subsequent independence in 1947strongly influenced the rise of African nationalism in the same direction during the 1950s and 1960s. At

Prime Minister Manmohan Singh being briefed about supercomputer PARAM at the India-Tanzanian Centre for Excellence in Information andCommunication Technology, in Dar es Salaam, Tanzania, on May 27, 2011.

Perhaps the advent ofEuropean colonialismcatalysed even more

interaction between Indiansand Africans. Indian labourers were used tofacilitate the entry of

colonial expedition in mostof Sub-Saharan Africa



independence, most African states formed even strongerbilateral ties with India, paving the way for enhanced trade,commercial and industrial relations (D’Souza, 2008). It isnoteworthy that India remained at the forefront of theUnited Nations-led campaign against apartheid in SouthAfrica and closely partnered with Africa under theOrganisation of African Unity (OAU) banner. At the sametime, India was a forerunner in championing Third Worldinterests right from the Bandung Declarations 1955, theGroup of 77 and the Non-Aligned Movement (NAM)(Abraham I. 2008, 195-219). These platforms of South-South cooperation and

engagement at the United Nations platform were used notonly to agitate for the recognition ofSouthern interests and concerns ina Western-dominated internationalpolitical economy, but also to present a solid stand at the height ofthe Cold War and its arms race thatthreatened the world with nuclearannihilation. These historical andcommon experiences betweenAfrica and India perhaps paved theway for stronger ties with Africancountries for more than fourdecades. At the beginning of the21st century, Indian investments inAfrica ranged from small retailholdings in the remotest parts of Africa, to multinational investments ranging from oil exploration, manufacturing, real estate, banking, insurance,and construction works, just to name but a few.

IndIa’s democratIc experIence: lessons

for afrIca

In a discussion of India’s democratic experience and thelessons for democratic transformation in Africa, it would be crucial to begin by examining Africa’s governance experience. At independence, African political leaders werefaced with several key challenges. First, they differed on thebest strategy to promote development in their countries.However, they agreed substantially over methods. The “instrument of both diagnosis and remedy was thedevelopment plan”. There were three options as far as development planning

was concerned. The first one was the western model of development planning (also known as the Indicative Model).This essentially Western model allowed for political economy to be shaped by market forces with limited state interference. The second was the socialist model of development planning (also known as centralised orimperative model). The third was a model that adopted whatappeared like a blend of the capitalist and socialist models;hence, most African leaders chose to adopt centrally

controlled development planning that was to operate within a mixed economy — one in which both the public andprivate sectors played an important role. Some countries, however, chose to follow a purely socialist modelin which the state controlled the economy in terms of whoproduces what and in what quantities. This was applied incountries like Tanzania under Dr. Julius Nyerere,Mozambique under Samora Machel, Libya under Gaddafiand Guinea under Sekou Toure (Thomson Alex: 2004, 1-23). At the same time, African political leaders were faced

with the great challenge of uplifting the standards of life oftheir peoples through the provision of basic needs and thecreation of a favourable environment by government —

one that would engender econom-ic growth and the creation ofnational wealth. Another challengewas associated with the ideologicalpath that was to guide the develop-ment process. African countriesattained political independence at a time when the internationalpolitical system was stronglyshaped, conditioned and divided bythe Cold War. The choice wasthree-fold: whether to adopt thesocialist ideology or adopt the capitalist ideology or even declaretheir support for the Non-AlignedMovement. Most African countrieschose to be non-aligned andevolved their own ideological style

under the rubric of African socialism (Tordoff W., 2003,140-150).In reality, however, African regime elites traded one

super power against another depending on which one suited them best and ensured their continued stay in power.Africa became a battlefield for proxy wars between thesocialist Eastern Bloc and the capitalist Western Bloc. InWestern leaning systems, dissidents and/or belligerentgroups were branded socialist/Marxist, while in Easternleaning systems dissidents and/or opposition groups andindividuals were branded imperialist elements and agents ofneo-colonialism. The sad reality, however, was that as struggles for power, control and influence took place inAfrica in the name of “weeding out” either socialist or imperialist elements, the noble aspects of politics andnational development were lost. In essence, Cold War politics catalysed bloody civil wars and forms of totalitarianregimes regardless of which side of the ideological dividethese countries belonged — it bred African totalitarian dictators such as Jean Bedal Bokassa in the Central AfricanRepublic, Mobutu of Zaire (now Congo DRC), Somaliaunder Siad Barre and Ethiopia under Mengistu HaileMariam (Nzau M. 2007).There is another line of argument. At independence,

At the beginning of the 21stcentury, Indian investmentsin Africa ranged from smallretail holdings in the

remotest parts of Africa tomultinational investments

ranging from oil exploration, manufacturing,real estate, banking, insurance, and

construction works, just toname but a few



African countries inherited economies that were invariablynot indigenous to them and at the same time theseeconomies were dominated almost in every sector by foreign companies or firms, which had operated in the colonial economies. This meant that there was a very smalldomestic private sector of the indigenous kind. The localpopulations could not raise enough financial capital to support the economy. This small domestic industrial andfinancial base drove African governments to seek alternativesthat took two forms. The first alternative was to set up state-owned and controlled enterprises to run the economy— commonly known as ‘Parastatals’. These enterprises weresupposed to jump-start industrialisation in the newly independent countries. Such ventures included banking,transport and telecommunication, manufacturing as well asmarketing. Unfortunately, regime members interfered withthe management of these organisations, turning the top management positions into objects of reward for individuals who were “politically correct” — the politicalfinanciers, advisers and sycophants of the ruling presidentand his party. It is no wonder that by the early 1980s suchpublic enterprises had collapsed dueto heavy losses. The second option that was open

to the African countries in theirquest for industrialisation was thatof supplementing their fiscal budgets through economic aid andOfficial Development Assistance.This was done with the view ofaccessing much-needed foreignexchange, and further offsetting balance of payments deficits.African countries reached out tovarious bilateral and multilateraldonors and lenders (World Bankand IMF, among other internation-al financial institutions). It was thusdriven by the need to raise more liquid capital that was crucial for thepurchase of capital goods necessaryfor industrial activity in those early years of independence. Yet inmany countries, the regimes in power used these fundsfraudulently, and in some cases, with blatant impunity —leading to the accumulation of national debts, which reachedcrisis proportions in what became the Africa debt crisis ofthe 1980s and 1990s (Nzau M. 2010).Finally, perhaps the greatest challenge to African leaders

in the early years of independence was purely political.Perhaps this had to do with the question of regime survivaland the intrigues of state formation. Whilst new states wereformed at independence, the regimes that were in power got lured into the trap of popularising and perpetuatingthemselves. Subsequently, they adopted authoritarian styles

or governance and soon towards the late 1960s and early1970s most African countries were either faced with civil wars and rebellions, personal dictatorships and unconstitutional power take-overs through the barrel of thegun. It may be argued that the challenges facing Africanleaders at independence were many and to tackle them,political leaders needed both vision and informed objectivity (Hyden G. and Michael B., 1992). How best African leaders handled these challenges was

perhaps the distinguishing factor between good and badand/or irresponsible governance systems. It is not easy to tellwhich among African leaderships truly wished to form governments for the good of all citizens. Nonetheless, somecountries in Africa can be said to have been formed by greatleaders who had foresight and extraordinary cognitiveendowments, no matter if they were liberal-democratic ortotalitarian, capitalist, socialist or both. Ghana, Senegal,Namibia, Botswana, South Africa (Since 1994), Egypt(under Nasser) and Libya (in Col. Gaddafi’s early years inpower) are worthy examples (Nzau M, 2010). India is a relatively young democracy in the world and

perhaps an older one among thegroup of developing countries.Having attained independence inthe mid-20th century, India hasgone a long way to establish whatwould be termed “a near-mature”participatory and developmentaldemocracy (Pelizzo R 2010, 261-280). Having attained its independence in 1947 and blessedwith a population of 1.2 billion people, in the last decade Indiaboasted an average economicgrowth rate of 6 percent per annum,making it one of the fastest-growingeconomies in the world. There areseveral important lessons for Africaas far as India’s governance experience is concerned (Kholi A.and Basu A., 2007, 251-297).At independence, India was

faced with serious problems of stateformation that were quite similar to the African governancechallenges at that time. On the eve of independence, Indiawas faced with a partition and subsequent war with Pakistan,a weak economy and mass poverty. Some monarchical(princely) states, which wanted to stay independent, alsochallenged the federal setting and unity of India. The aftermath of the partition threatened to tear the countryapart. Nonetheless, Jawaharlal Nehru (India’s first PrimeMinister), who was a staunch believer in liberal democratic principles, worked hard to build a secular andunited state between 1947 and 1964 (Kapur A., 2006).It is also noteworthy that India had a woman Prime

The greatest challenge to African

leaders in the early yearsof independence waspurely political. Perhapsthis had to do with the

question of regime survivaland the intrigues of stateformation. Whilst newstates were formed atindependence, theregimes that were inpower got lured into thetrap of popularising andperpetuating themselves


Minister, Indira Gandhi, as early as 1966, at a time whenhaving women legislators, let alone a prime minister in mostAfrican countries, was almost unthinkable. Indira Gandhimade several governance mistakes during her leadership(1966-1977 and 1980-1984), namely personalising, section-alising and ‘nationalising’ Indian politics; failing to effec-tively decentralise administrativeauthority; and failing to translatepopulist rhetoric to real gains forIndia’s poor. Nonetheless, subse-quent prime ministers in Indiawent a long way to minimise themistakes made by the IndiraGandhi administration, especiallythrough enfranchising and enhanc-ing the participation of the poor andminority groups in national politi-cal affairs and economic processes(Wolpert S. 2003, 451-470).India’s political system slowly

drifted from the unstable formativeyears in the immediate post-inde-pendence period and authoritariantendencies in the late 1970s to onecharacterised by a vibrant civil society, periodic elections,unfettered media and relatively autonomous courts andbureaucracy in the 1990s. In a nutshell, India’s democratisa-tion experience presents worthy lessons for Africa. The mostoutstanding lesson for African countries is that, despite theserious challenges of state formation — poverty, disease andethnic nationalism — at independence, the turbulent years

of Indira Gandhi’s administration and the longstanding conflict with Pakistan and other separatist groups, India neverdegenerated into becoming a military junta or a state of totalregime collapse or genocide. Indeed, despite these challenges,India has slowly risen to major-power status. Better still, Indiaseems to have weathered the storms associated with the

growth of western neo-liberalismsince the end of the Cold War andthe attendant economic governancechallenges and much so to its advantage. At the same time, Indiahas dealt fairly well with its internalpolitical and socioeconomic challenges. That is the test of goodgovernance for Africa.

a case for IndIa’s leadershIp

role In Governance reforms

India’s entry into the nuclearand missile clubs posed a challengeto the non-proliferation and themissile control regimes. It showeda determination to stay the course inits nuclear and missile policies in

the face of international sanctions and pressures, while at thesame time avoiding drifting into a nuclear war with otherpowers in the region (Nayar R., 2001). This took by surprisecritics in the developed world who thought that SouthAsians were not capable of pursuing coercive diplomacywith restraint. Strategically, India stood out as anautonomous player and not as a client or proxy of global


India’s democratisationexperience presents

worthy lessons for Africa.The most outstanding lesson for African

countries is that, despitethe serious challenges ofstate formation, Indianever degenerated intobecoming a military juntaor a state of total regime collapse or genocide

Ghananian artistes performing a dance at the 2nd Africa-India Forum Summit in Adis Ababa, on May 25, 2011.



powers. India has, therefore, been able to project its powerwith an air of solidity among the states of the Indian OceanRim (IOR) and beyond (Ashok K., 2006). In a discussion of India’s foreign policy towards Africa,

Yoshioka (2008, 1-5) observed that despite the absence of acomprehensive strategy, India’s strategic interests in Africarevolve around the urge to assume a leading role and respon-sibility in Africa as a major development and investment part-ner especially in the energy sector and security of the IndianOcean. It should not, therefore, besurprising that India is a formal contender for a permanent seat in theUnited Nations Security Councilwith many African countries supporting this move (Wysoczanska2011, 193-201). In this regard, India has sought

to forge strategic partnerships withleading sub-regional powers inAfrica, including South Africa andNigeria. For instance, in 1997, Indiaand South Africa agreed to establisha strategic partnership based on arelationship beyond bilateral andregional settings. It encompassed issues of South-Southcooperation, United Nations reform and regional cooper-ation in the IOR area (Sardesai and Raju, 2002). As a result,India and South Africa spearheaded the establishment of theIndian Ocean Rim Association for Regional Cooperation(IOR-ARC). Further, India signed a memorandum ofunderstanding (MoU) with the Southern African

Development Community (SADC) on cooperation, andthe two have since worked together in organising jointforums from 2006. India has also continued to strengthen ties with Nigeria,

a leading sub-regional power in Western Africa. India is aleading importer of Nigerian oil. In the same way, in the past10 years, India has sought to enhance bilateral military tieswith littoral states along the Eastern and Southern AfricaIndian Ocean SLOC (Strategic Line of Communication).

India’s world-class military institutions, particularly theNational Defence University, con-tinue to offer training and capacitybuilding to officers from countries,such as Mozambique, Tanzania,Seychelles, Botswana and Lesotho.These countries, particularlyMozambique, held joint militaryand naval exercises between 2003and 2004. During the same period, South

Africa and India signed an MoU ondefence cooperation and defencesupplies for India. India’s defence

industry has made gains in the African market in which sev-eral African countries have bought several air and navalassets, including defence boats and light helicopters fromIndia (Scott D. 2008, 1-20). Most recently at the Africa-India Forum summit held in

Addis Ababa, Ethiopia, in May 2011, India and Africa furtherpledged to strengthen their cooperation in regional and

Indian construction company Punj Lloyd is building a US$290-million Melita-Tripoli Pipeline.

India’s strategic interests inAfrica revolve around theurge to assume a leadingrole and responsibility in

Africa as a major development and investment partner

especially in the energysector and security of the

Indian Ocean



global security, as well as economic and trade areas. Throughthe Addis Ababa Declaration and the Framework for Cooperation, the two sides resolved to cooperate in combating international terrorism, eradicating the menaceof piracy and safeguarding shipping activities in the Gulf ofAden, the Arabian Sea and the Indian Ocean. On the economic front, the two sides sought to enhance

cooperation through stable and long-term investments andcapital flows, especially in the area of infrastructural development. These seem to be bold steps in a positive direction on the part of India and Africa.As far as human security issues are concerned, India’s

pharmaceutical industry continued to offer sustainable solutions to problems of healthcare in Africa. The HIV/AIDSscourge, coupled with many tropical diseases and non-com-municable ones, proved difficult to control and/or contain formost of Sub-Saharan Africa. The patented drugs neededproved too expensive to purchase, especially from dominantwestern drug manufacturing multinational corporations. The production of safe and affordable generic drugs by

Indian pharmaceutical companies proved to be a formidablesolution to these challenges. In January 2011, India organised a conference on

South-South cooperation at Mumbai University, whose central theme was “India, Africa and Food Security”. In thiscontext, it’s important to note that India’s economic diplomacyeffected the debt cancellation of five highly indebted poorcountries in Africa, namely Ghana, Zambia, Zimbabwe,Uganda and Mozambique. These developments point tohealthy gains in as far as India-Africa cooperation in the pastdecade is concerned. Nonetheless, as far as India’s leadership

role in the region is concerned, she must not be seen to bemaking inroads into Africa solely for economic benefitsthrough various forms of investment, while ignoring authoritarianism and misrule — a state of affairs that will makeher a ‘status quo’ emergent power in Africa. Such an approachmay neither be favourable nor sustainable in the long run.

conclusIon

India, therefore, is equipped to play a leadership role inenhancing democratic transformation in the continentthrough Indo-African cooperation that focuses on deepening and institutionalising governance reforms inAfrican countries, thereby spurring positive changes in theirdemocratisation process. Supporting such reforms wouldfurther institutionalise transparency, accountability and therule of law in many African countries. In this regard, India should work to form constructive

and more purposive cooperation aimed at further strengthening anti-corruption commissions, public com-plaints commissions and offices of the ombudsman inAfrican countries. Similarly, India’s federal experiencewould go a long way to inform the processes of administrative decentralisation and devolution of power inmost of Sub-Saharan African countries. Finally, such development cooperation should also

enhance and inform administrative and governance reformsaimed at improving the efficiency and effectiveness of thepublic service and the public sector in African countries.What more? India and Africa’s unique and outstanding his-torical experiences and relationships form the best launch-ing pad for Indo-African cooperation in this direction. n

India is the third-biggest contributor of UN peacekeepers to Africa.



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F U T U R E T R A J E C T O R Y


Over the course of the past decade,Africa has fundamentally reconsti-tuted its role in the global economy.Emerging from the periphery,African economies today are increasingly integral cogs in a vastlyaltered global economic map.Measured by the International

Monetary Fund (IMF), between 2001 and 2010, no fewerthan six of the ten fastest-growing economies in the world(excluding those with populations lower than 10 million people) were from Sub-Saharan Africa (SSA).

Contrasting this performance is the fact that, in the twodecades to 2000, the only African country to rank in the topten was Uganda, surrounded by nine Asian economies.Looking ahead, several African economies are set to register arecord upsurge in national output this year and next. AcrossSSA, growth in 2011 averaged an estimated 5.2 percent in2011, compared to a world average of 3.9 percent. The IMF isfurther predicting that between 2011 and 2015, seven of the

ten fastest-growing economies in the world will be from the SSA region. This positive trajectory is unlikely to alter.Indeed, five major trends will continue to power Africa’sgrowth and reconfigure the continent’s global relevance.These are:1. A larger, younger, more affluent population;2. Rapid urbanisation;3. Increasing absorption of telecommunications;4. Natural resource wealth (including agricultural potential;

and 5. A deepening financial sector.

AfricA’s lArge, youthful, And

increAsingly Affluent populAtion

According to the United Nations, Africa’s current population of 1 billion is expected to increase by an average of 2.2 percent a year over the next decade, meaning that, by2050, it will have doubled from today’s size to reach 2 billion.Two core benefits may spring from this undeniably swift population growth.

Africa UNBOUNDA younger and affluent population, urbanisation, ICT access, natural

resources, and a deepening financial sector are five key trends poweringa fast-developing continent, says Simon Freemantle

CONTINENT OF CITIES: Nairobi, the capital of Kenya. As a result of urbanisation, around 40 percent of Africans live in

the continent’s cities. By 2050, this number is expected to rise to nearly 60 percent.



First, when coupled with the robust economic growth forwhich many African economies are increasingly becomingknown, population growth will enlarge the continent’s consumer base — providing markets for local firms, creatingeconomic opportunities, and drawing in foreign investment.Second, for countries able to provide the necessary infrastructure and services, a youthful and growing populationhas the potential to yield a demographic dividend of young, energetic and increasingly educated workers to power Africa’s services and manufacturing sectors — fundamentally alteringthe prospects of these institutionally stronger economies on thecontinent. Consider a few statistical indicators of these core advantages:l At present, Africa’s median age is 19.7, compared to 32 for

the BRIC nations and 40.1 for Europe. l According to the IMF, Sub-Saharan Africa’s per capita

income has swelled by 70 percent since 2000, compared tothe growth of 15 percent between 1990 and 2000. Withinthe next five years Africa’s spending power will increase by25 percent.

l By 2050, nearly 1.2 billion Africans will be of working age,meaning that one in four workers in the world will beAfrican, compared to one in eight from China, reversingtoday’s balance. Falling fertility rates and improved healthcare (evidenced by enhanced life expectancy) arelowering dependency ratios, providing the means forpotentially profound demographic gains.

A continent of cities

Not only is Africa’s population rising, but it is also urbanising rapidly, deepening the structural foundations of itsongoing economic momentum. United Nations data suggeststhat today around 40 percent of Africans live in the continent’s

cities. By 2050, this ratio will have risen to 60 percent — implying that, within the next four decades, around 800 million Africans will either be born in or migrate to urbanareas. While these shifts are naturally driving the mushrooming of Africa’s main urban nodes, it is interestingto note how upwards of 75 percent of all urban growth on thecontinent is taking place in cities and towns with populationsof less than 750,000.

Urbanisation brings several potential gains, of which twoare particularly important. First, because of the benefits ofagglomeration and economies of scale, urban-based enterprises are generally more productive, and thus contributea greater share to GDP, than their rural equivalents. Second,urban inhabitants have better access to basic infrastructure,including education and healthcare. World Bank analysisshows how over 70 percent of urban inhabitants in Africa haveaccess to electricity, compared to 10 percent of rural inhabitants.

improved ict Access

Across the world, technological advances are fundamentallyaltering the way individuals and firms connect, communicateand transact. Unlike in the past, Africa has not been left stranded behind these trends. In fact, in certain areas, andespecially in mobile banking, Africa has taken the lead. The numbers show how enthusiastically Africa has embracedICT:l According to the International Telecommunications

Union, in 2000 there were 15 million mobile subscriptionsin Africa. By the end of 2010, there were over 500 million;by 2015 it is believed there will be almost 800 million.

l Between 2000 and 2011, internet usage in Africa grew by2,527 percent, compared to a world average of 480 percent.

A youthful and growing population can potentially help yield a demographic dividend packed with energetic and increasingly educated workers

to power Africa’s growth.

F U T U R E T R A J E C T O R Y


l Since launching in 2007, Safaricom’s mobile payments system M-Pesa has amassed over 15 million users in Kenya.Last year, an amount equivalent to 20 percent of the country’s GDP was transferred via mobile phones inKenya. Estimates suggest that by 2015 mobile banking willbe worth over $20 billion in Africa.These trends emerge from Africa’s

rapid economic development — andhelp to reinforce it. The World Bank estimates that a 10 percentage pointincrease in broadband penetration inan average African country could leadto an increase in economic growth of0.73 percentage points. And for every10 new mobile phones per 100 peoplea country adds, GDP could increaseby 0.8 percentage points.

AfricA’s nAturAl resource

potentiAl remAins high

According to the United States Geological Survey, Africais home to 95 percent of the world’s platinum group metalsreserves, 90 percent of chromite ore reserves, 85 percent ofphosphate rock reserves and more than half of the world’scobalt.

Even more importantly, the production and reserves ofcore commodities have been expanding rapidly. For instance,between 2006 and 2010, copper production in Africa increasedby 75 percent. British Petroleum statistics show how crude oil

reserves have doubled since 1990, with natural gas reservesincreasing by 70 percent within the same period.

However, perhaps more critically, Africa’s agriculturalpotential is capturing newfound attention in light of theworld’s population recently reaching 7 billion, raising the spectre of food shortages and the social instability that this may

engender. Indeed, food is widelyexpected to emerge as the ‘new oil’ ofthe 21st century.

While pervasive and meaningfulchallenges confront Africa’s agricultur-al sector, its potential is undoubtedlyimmense. It is estimated that over 60percent of the world’s available andunexploited cropland is in Sub-SaharanAfrica. In Sudan alone, over 80 millionhectares of arable land remain underused. In order to feed a global population of 9 billion in 2050 it is

estimated that over $80 billion needs to be invested in developing world agriculture each year for the next fourdecades. Increasingly, these funds, from private and governmental institutions, will find their way to Africa.Importantly, much of the demand for Africa’s commoditieswill originate from the world’s rapidly advancing emergingnations. China alone accounted for a quarter of total globalplatinum group metals consumption, 65 percent of global ironore consumption, and, together with India, 15 percent of totalcrude oil consumption in 2010.

Increasingly, Africa’s young people are preparing to play a role in the governance of their respective countries. Seen in the picture is a batch

of young Africans who underwent a training programme in governance practices under the auspices of the International Republican Institute.

Africa is home to 95 percent of the world’splatinum group metalsreserves, 90 percent ofchromite ore reserves,85 percent of phosphaterock reserves and more than half of theworld’s cobalt



A rApidly growing finAnciAl

sector with room for expAnsion

As incomes go up, new technologies are absorbed, and urbanisation intensifies, the demand for more sophisticated financial services will inevitably result. Accordingto Bain and Company, the financial services sector in Africaexpanded at a compound annual growth rate of 15 percentbetween 2004 and 2008, and now contributes 8 percent of thecontinent’s GDP.

A range of supporting factors,underpinned by a sounder regulato-ry environment and swifter generalgrowth, will conspire to allow thefinancial services sector to accountfor 20 percent of the continent’sGDP by 2020. Much of this growthwill come from the expansion ofretail banking as Africa’s vastunbanked, or at least under-banked, population gainsaccess to financial services.

An indication of the growthpotential can be found in the fact that, according to IMF data,bank credit to the private sector in Africa represents, on anaverage, 15 percent of GDP, compared to over 100 percent inmany developing economies.

Fewer than one in five adults in key economies such asNigeria, Kenya and Malawi have a formal relationship with afinancial institution. Based on recent growth rates, it is feasible that over 300 million new deposit accounts will beopened in Africa over the course of the next decade.

ties with emerging world Are elevAting

Inspired by the shifts and opportunities outlined above, a host of large, and swiftly advancing, emerging powers are reinvigorating commercial ties with Africa. Indeed, hastened by the ongoing global economic downturn, the rise of the BRIC economies, as well as others such as Turkey, Indonesia and Thailand, are forging a new, fundamentally multi-polar, commercial globe. Importantly,Africa has participated in these alterations. Consider, for

instance, that BRIC-Africa trade hasincreased more than ten-fold since2001. Last year, China-Africa tradereached almost $150 billion, mak-ing it the continent’s largest singletrade partner.

Africa’s abundant naturalresources and fast-growing consumer markets offer vital newopportunities. In turn, new sourcesof capital are providing profoundsupport to Africa’s ongoing economic growth assertions. To be

sure, the advanced economies remain critical components ofAfrica’s broadening commercial vista; a wider array of commercial partners, if managed well, offers the potential forsignificant gains across the continent.

Clearly, towering challenges remain for all Africaneconomies. However, considering the robust trends and the manner in which growth on the continent is finding structural pillars, there is undoubtedly great cause for cheer. n

Lagos, the capital of Nigeria and one of Africa’s largest cities. It is also the second most populous city in the continent after Cairo.

Hastened by the ongoing global economic downturn, the rise of theBRIC economies, as wellas others such as Turkey,Indonesia and Thailand,are forging a new,

fundamentally multi-polar, commercial globe

S H I F T I N G E Q U A T I O N S


There has been a lot of interest in therole China and India play in the development of Africa and the globaleconomy. Much of the interest hasbeen generated by four related reasons.First, there has been nervousness onthe part of European powers and theUnited States, who are concerned

about a resurgent China and India in the global economy.The fact that today the two Asian powers control industrialoutput and exports on the global stage is a matter of worry forthe West. It is an open secret that China and India have greatshares of global manufacturing while many of the westernpowers have remained stagnant or are declining.

Second, for China and India, their large populations are asource of key advantage. It provides them a ready market thatwestern countries can only dream of. The demographic giantsare reservoirs of labour. These huge markets definitely makethe western powers envious. (Amutabi, 2001)

Third, the West is apprehensive about China and India’salleged disregard for patents and trademarks, which have led

to great undercutting of its products. Its profits are radicallyreduced through generic and other practices regarded asunethical in the West but against which they can do little.

Fourth, the proximity to Asian population centres, such as Malaysia, Thailand, Indonesia and other nations, has provided the two Asian powers unprecedented access to neighbouring markets.

China also surprised the world by unveiling one of the most successful industrial undertakings of the century. It overtook five economic powers in the past one decade tobecome the second-largest economy in the world. The Westhas been alarmed by the direct and indirect investment advan-tages secured by China and India in Africa, particularly inregard to resources in Eastern Africa. The role of China in the scramble for ‘colten’ (used for making microchips for computers and cellphones) has been exaggerated in the Westbecause of its geopolitical and geo-economic interests. Thediscovery of oil in Sudan (north and south) and in Ugandacomplicated the whole situation. India’s involvement in thescramble for markets and resources in Africa has equally beenlooked at suspiciously by the West.

EASTERNISATION: A newphenomenon in Africa

The rise of India and China in Africa and on the world stage is causingapprehension and envy amongst leading world economies, who fear

losing out to the resurgent Asian giants, says Prof. Maurice N. Amutabi

Prime Minister Manmohan Singh with African leaders at the opening plenary session of the 2nd Africa-India Forum Summit in Addis Ababa,

Ethiopia, on May 24, 2011.



India is a leader in information and communication technology in the world. Indian cellphone companies such asAirtel and many more are taking the communication sectorby storm and causing a lot of ripples in the financial market.It is against this background that this article seeks to interrogate the tensions that attend the activities of China and India in Africa. The main argument is that there is apprehension and envy that has attended the views and attitudes of Europeans and Americans against China and India,which is based on historical relations and the fear that theycould lose the number one or first-world status to China andIndia. There has been an orchestrated attempt by westernscholars to demonise the activities of China and India in Africa.

Has the time come to talk about Easternisation, in themanner we talked about Westernisation in the past? This is aquestion that is at the core of this article, because there is a need to findout the effects of the relationsbetween Africa and Asia. To have aclear picture, let’s begin by compar-ing the role played by Asia in Africawith that of western powers.

Why are western countries appre-hensive about China and India?What are the factors that lead to thisanxiety about China and India? Are the accusations levelledagainst China and India’s activities in Africa justified? Arethese suspicions about Chinese and Indian activities in Africalegitimate or a part of western propaganda and hegemony?These are some of the key issues that this article seeks to interrogate closely.

Background

India’s independence in 1947 and the success of MaoZedong’s Communist Revolution in China in 1952 have beencited as the two most important events that influenced Africannationalism in the 1950s. Towards the end of the 1950s,Chinese leader Mao Zedong sent thousands of agriculturaland construction workers to African states to expand ties withcountries emerging from colonialism. Kwame Nkrumah, thefirst president of Ghana, cited China and India as among thegreatest influences in his nationalist aspirations (Nkrumah,1965). Julius Nyerere also mentioned the two Asian countriesas veritable influences in his ideas of nation-building becausethey had shared occupation and colonial oppression. Indeeda thorough examination of the Arusha Declaration on whichNyerere’s socialist ‘Ujamaa’ policy was predicated, oneencounters some notions similar to the ‘Great Leap’ ideas ofChairman Mao, as well as notions of the ‘Green Revolution’in India and Mahatma Gandhi’s idea of self-reliance and self-sufficiency.

Today, Kwame Nkrumah and Julius Nyerere are regarded as perhaps some of the greatest leaders Africa has ever produced. It should be noted that before 1957, NelsonMandela experimented with non-violence as a form of

resistance against apartheid. Beyond political and social influences, the greatest influence in Eastern Africa has alsobeen in the realm of economics.

China and India’s relations with Africa are expanding fast,which straddle different realms like social, political and economic. Many African students have been trained in Chinaand India. Over 50,000 Kenyans hold degrees from Indianuniversities. Sino-African and Indo-African diplomatic relations have helped to expand and develop a wide range ofrelations in many areas. China has more consulates in Africathan the United States. China has representatives to regionalbodies such as Southern African Development Cooperation(SADC), the Economic Commission of West African States(ECOWAS) and the Common Market for East and SouthernAfrica (COMESA). India is also represented in many of the

regional economic communities aswell. There is a perception that Chinahas boosted employment in EasternAfrica. China has also made basicgoods such as watches, radios andtelevisions more affordable. On theother hand, there are critics who saythat China has flooded African markets with cheap goods that haveundermined competitiveness of local

products. But these political and economic relationships havecreated possibilities that would help free Africa from Europeanand North American hegemony. Africa had been engaged asa marginal and disempowered partner for a long time.

China and India have created new lending bases outside thedictates of the World Bank (WB) and the InternationalMonetary Fund (IMF). In the past five years, China and Indiahave given more grants and loans to African countries than theWB and the IMF have done in the last 10 years.

Over 40 percent of electronic and other manufacturedgoods sold in Eastern Africa are made in China. Radio, television, telephone sets, watches and computers made inChina, as a result of outsourcing by western companies, areincreasingly flooding the market. While indigenous Chinesecompanies are selling to East Africa more products in thisarea. On the other hand, over 50 percent of generic drugs soldin Eastern Africa are made in India.

In Kenya, from the 1970s to 1990s, about 5,000 universitygraduates were trained at Indian universities. Over 100,000holding key positions in government and the private sectorhave been trained in India. Close to 80 percent of staff atKenya Irrigation Board is manned by graduates trained inIndia. Today, Indian-grown basmati and pishori rice dominatesupermarket shelves. The emerging Asian powers have playedan important role in the development of Eastern Africa inmore pervasive ways as compared with those in the previousdecades.

The presence of China and India is not confined to manufacturing and industrial products alone. It also includesinfrastructure development. The biggest railway development

In the past five years,China and India havegiven more grants and

loans to African countriesthan WB and IMF havedone in the last 10 years



project in post-colonial Africa remains the Tanzania-Zambia(Tazara) railway built by China, linking Tanzania and Zambia.Tazara transformed the development of Tanzania andZambia, and opened up the landlocked Zambia and enhancedits export of copper and other commodities.

Tazara was built in record time and has remained one of the most enduring projects in Africa. Tazara was a culmination of a long relationship between Tanzania andChina, going back to the period of liberation of Africa, inwhich China funded the activities of many liberation move-ments in Africa. Liberation movements such as Mozambique’sFRELIMO, Zimbabwe African National Union (ZANU),Zimbabwe African Peoples Union (ZAPU), African NationalCongress (ANC), and South West African Peoples’Organisation (SWAPO) had bases in Tanzania. This relationship has endured and only recently, China has assisted in the construction of the biggest university inTanzania, the University of Dodoma (UDOM). As China’sdevelopment initiatives are celebrat-ed, India has not been left behind.

There was tremendous amountof excitement in the region whencountries started importing low-costpickups and trucks from India, manufactured by Tata. The Tatatrucks were much cheaper comparedto those from Europe such as Fiat,Leyland and Volvo and MercedesBenz. Soon afterwards, the regionstarted receiving Mahindra cars fromIndia, again a huge hit with low-bud-get buyers. But the greatest influenceof China and India has been in therealm of motorcycles where the

Indian auto rickshaw dominates urban areas in Eastern Africaas taxis and delivery vans. Many of the ‘boda boda’ (bicyclesand motorcycle taxis) are either made in India, China or Japan.China and India are also interested in oil, coltan, platinum,iron, titanium, copper and timber.

TheoreTical imperaTives on The role of china and

india in africa

There are many theoretical thrusts that can direct discussions about states, many of which fall in the realm ofpolitical relations, economy and power. The creation of ChinaInternational Fund Limited (CIFL) and Industrial andCommercial Bank of China (ICBC) as government-supported foreign investment consortia has proved that Chinais a global power. In her book Spreading the American Dream,Emily Rosenberg gives many examples to show how theUnited States used several strategies to ensure its economicand cultural expansion. American expositions “glittered with

artistic splendour and burgeonedwith America’s latest technologicalachievements” (Rosenberg, 1996: 3).America has always tried to make theworld believe that it was the bestthrough many shows and exhibitions. Rosenberg notes that theintention was to demonstrate,“…that America was not just another power that would rise andthen decline but that it was thequintessential civilisation that wouldpermanently culminate some longprogression toward human betterment” (Rosenberg, 1996: 3).

What is interesting is that the U.S.

Another milestone project of China, the Moi International Sports Centre, Nairobi is the largest stadium in Kenya.

There was tremendousexcitement in the region

when the African countriesstarted importing low-costpickups and trucks fromIndia, manufactured by

Tata. The Tata trucks weremuch cheaper comparedto those from Europe suchas Fiat, Leyland and Volvo

and Mercedes Benz



had long realised that China was a potential rival. From thetime of President Woodrow Wilson, the U.S. had identifiedChina as a country of American interests. “In August 1918, theWilson Administration completed plans for the creation of two international consortia of bankers, one to offer loans to China,and one to deal with Mexico” (Rosenberg, 1996: 72). Today,CIFL is playing a similar role that American agencies playedin early 20th century, whereas Rosenberg has noted the U.S.used private capital to serve official foreign policy objectives.

In his book The Location of Culture, Homi K. Bhabha hassuggested that those with hegemonic prowess tend to defineevents and activities for those who do not have power. Thepowerful often name and provide form and direction to thesubordinate. Bhabha has suggested that the dominant culturealways has sway and advantage in defining the ‘other’ becauseit has the requisite instruments of control and domination.Mahmoud Mamdani makes the same argument in his bookCitizens and Subjects, when he says that the colonial project inAfrica created citizens (privileged) and subjects (subordinate)groups, predicated on imperial designs of divide and rule policies. Sino-African relations should be seen in terms ofpower relations. There is always a power relation betweendominant and subordinate states, and China’s relations withAfrica should be seen under this light.

China has four major strands of relations with Africa: economic, intellectual, political and ideological. In the economic mode, China should be seen as an economic powerthat seeks to expand its economic interests regardless of implications to social groups on the continent (Amutabi,2001). There is evidence that China is collaborating withAfrica’s economic elite and rulers such as President YoweriMuseveni of Uganda and President Paul Kagame of Rwanda

to buttress its interests in the continent (Amutabi, 2001). There is also an intellectual explanation for China’s

success predicated on the success of the Chinese model, basedon the vision of Mao Zedong, and strongly embedded inChinese religious pluralism and cultural multiplicity. Theexplanations suggest that the Chinese brand of socialism hassucceeded because it is a hybrid and domesticated in orientalethos and values. One can argue that its success is largely a result of having a marathoner’s mind of endurance and asumo’s body to withstand hard times, underpinned by a Confucian vision. It is a realisation that friendship is betterthan the use of AK47 or arm-twisting. A political explanationof China’s activities in Africa seems to suggest that China isacting according to the way dominant powers have acted, byseeking allies. Africa simply happens to be the stage whereChina seeks to demonstrate its political and economic objectives by getting followers. It is the stepping-stone forChina’s ascendance, just like Britain’s ascendance was throughAmerican colonies before the independence of the UnitedStates in 1776.

Finally, we can interpret the ascendance of China as a resurrection of socialism, as an ideological phoenix of sorts.One can interpret this success as a coup of Sino-socialismagainst western capitalism, coming less than 20 years after thefall of the Berlin Wall in 1989. It is a triumph of ‘Easternism’against ‘Westernism’, or the success of ‘Easternisation’ against‘Westernisation’.

Optimists feel that China can help in the achievement ofAfrica’s renaissance. Sino-optimists, as they are called, see a lotof potential and positive developments coming from Africa’sfriendship with China.

There are so many such optimists in the continent and whoare responsible for granting Chinathe many lucrative contracts onthe continent. They see China asa fresh breath of air in the crudepolitics of foreign aid. Some ofthem have assisted in defendingChina against attacks from western observers, pundits andjournalists.

On the other hand, anothergroup of individuals has alsoemerged in Africa who see Chinain the same light as colonial orimperial powers do. These individuals — the Sino-pessimistssee China as insidious and interested in the resources on thecontinent despite its declared interests of helping Africa as part-ners. These pessimists see Chinaas one of those former Europeanpowers, whose activities and aimswere the resources of the Former president of South Africa Nelson Mandela



continent. There is also a third category of observers in Africa,who perceive China’s actions in Africa in a practical way. Theyargue that the rise of China should be looked at as an example of how Africa can proceed, and not as a saviour of thecontinent. This group, known as Sino-pragmatists, suggeststhat Africa should go back to its indigenous structures andinstitutions just like China has done over the last hundredyears. They seem to echo the views of the African Union,which is pushing for the recovery of African indigenousknowledge systems (IKS).

making a case for easTernisaTion

Looking at the way Chinese motor manufacturer Foton,India’s Tata and South-Korean car models of Kia, Hyundaiand Daewoo, have taken hold in Africa, like the way Japanesemodels of Toyota, Honda and Mitsubishi have become global icons in the industry, it is time to talk aboutEasternisation in Africa and in the world. To me,Easternisation is represented by new forms of collaboration ineconomic, social, political and cultural realms between Asianor Eastern powers, and the rest of the world. Easternisation isrepresented by friendship, and cultural and economicexchanges that have taken place between the East and the restof the world. It includes Asian influences such as yoga, karateand judo in the form of mental and physical exercise and fit-ness solutions, and cultural influences like food and the culi-nary traditions of curry, spices, pepper and roti. Easternisationis represented by the alternative that acupuncture and other

alternative forms of medicine have created in Africa and therest of the world. Easternisation has emerged out of mutualrelations rather than through colonisation. It has been spreadwithout hegemonic ideology but rather through inventivenessand persuasion.

By the mid 2000s, it became clear that Beijing was the nextglobal economic superpower following the financial doldrumsin the American economy and instability in the EuropeanUnion and the rise of the Chinese economy. It had arousedthe interest of American and European think tanks in Sino-African relations. There have been all kinds of alarmingreports from institutions such as the Center for StrategicInternational Studies and Brookings Institution, both inWashington DC. The reports have one thing in common —they are panicky about the growing Sino-African relations andwould rather see an end to such relations.

What many western scholars are penning on the role ofChina and India in Africa vindicates the points that EdwardSaid cited in his book Orientalism, which was about the western conspiracies being hatched to keep the rest of theworld subordinate. Therefore, it’s not surprising to find thealarming writings that described Chinese and Indian activitiesin Africa in a threatening way using terms like ‘dragon’ andagents of ‘exploitation’ and ‘dictatorship’ in Africa. However,in this context, it must be stressed that it’s China, rather thanIndia, which is often the target of such polemics.

Two recent works, Deborah Brautigam’s The Dragon’s Giftand Stefan Halper’s The Beijing Consensus, claimed to have

India’s Minister of State for Commerce and Industry Jyotiraditya Madhavrao Scindia with South African Deputy Minister for Trade &

Industry Elizabeth Thabethe, seen here, following a bilateral meeting at Pretoria, South Africa, on September 21, 2011.



been written, based on research and ‘objective’ analyses ofChina’s role in Africa. They were, however, merely couchedin propaganda. Both works try to portray China and India ascountries keen to exploit Africa’s resources and wealth, whilespreading Asian hegemony in more menacing ways than theWest has done over the years.

Anything about ‘consensus’ reminds Africa of theWashington Consensus pushed down the throat of Africa bythe IMF in the 1980s and the World Bank in the 1990s, whichwas a bitter experience for Africans. The WashingtonConsensus was basically a push for unpopular neo-liberalistpolicies that later suffered disrepute because of their massivefailure in Africa. To refer to China’s policies in Africa as ‘consensus’ is to suggest that China’s policies in Africa is theChinese version of the unpopular ‘Washington Consensus’.However, that is not true. ForAfrican nations, China and Indiahave not been patronising and havenot dispensed aid in a condescendingand belittling manner. It does notmatter to African nations whether it’sa world dominated by Beijing orDelhi or one dominated by Britain orthe United States as long as they geta fair price for what they offer to theglobal market, and due respect andrecognition as equal partners.Easternisation cannot, therefore, beseen in the same light and perspectiveas westernisation.

Easternisation is represented bythe ways in which Asian powers have tried to negotiate for aplace in the global arena through their high quality productsand attractive cultures. It is represented by ways in which theyhave created alternative narratives of success at national andregional levels, largely thorough ingenuity and creativity.There are many similarities and differences betweenEasternisation and Westernisation. Both phenomena are triggered by economic interests, which are sometimes referredto as benevolent acts. Both policies require followers or disciples, with whom they can work or control according totheir convenience and agenda. They also look forward to long-lasting relations, which can bring them benefits to theirrespective countries.

Western and eastern powers are interested in world leadership and dominance. They are all engaged in globalcompetition in which they seek to acquire a share in the global arena. They are both guided by moral questions, wherethe West seeks to follow the Judeo-Christian traditions under the Greco-Roman structure, the East is guided by multifarious influences such as Hindu, Buddhist, Confucian,Zoroastrian, Islamic, Shinto and other traditions that can helpin achieving excellence. It is possible that the attraction ofEasternisation to the present world is predicated on diverse andpluralistic traditions of the East.

Easternisation appears to be benign, benevolent and voluntary while Westernisation was hegemonic, forceful andexploitative. Easternisation seems to be predicated on sharedinterests while Westernisation was driven by hidden motivesof big western powers many of which were colonial.

My submission is that we might be witnessing a new formof globalisation represented by Easternisation in which dominant countries seek to involve themselves in local affairswithout seeking to be hegemonic. It seems that we are moving to an era in which there will be more cooperation andfriendship between countries rather than arm twisting, ‘gundiplomacy’ or the will of the strong. These indicate the emer-gence of a different version of democracy, which is not definedby political institutions but by economic welfare and generalwell-being of citizens of all countries. The increasing

movement of people from the rest ofthe world to Asia implies that peopleare driven by economic and material needs more than democrat-ic appeal. The rate at which westernmultinational corporations areinvesting in the East is also an indication of the shifting power balance in the economic realm.Africa is interested in benefiting fromthe success of Asia, and many Asianfirms and states are increasingly moving to Africa to take advantage.

The negative writings aboutChina and India’s activities in Africaindeed fuels suspicion but African

policymakers and decision-makers are capable of readingbetween the lines and can see the exaggerations. Therefore,there are little chances of being swayed by cheap propagandaand biased writing.

One of the most popular lines, in many of the articles bywestern scholars and journalists, has been that the Chinese arelooking for strategic resources in Africa, especially oil, andthat is the reason they are investing in Africa. The accusationcannot be true because China has been investing all aroundthe globe. Kenya does not have important strategic resourcesbut China has invested massively in infrastructure development in the country (Amutabi, 2011).

In other words, what we hear about the unfavourable activities of Chinese companies in Africa are only partly true,and more often than not exaggerated. We hear that Chinesecompanies bring in their own workers and do not employAfricans. A quick inspection of the labour composition ofworkers on the Thika Superhighway, Nairobi, which is currently under construction, suggests otherwise. There aremore Africans working on the highway than on any publicproject I know of in Kenya. Kenyans or Africans make up themajority of the labourers, though most of the engineers andsupervisors are mainly Chinese. However, in many countriesthe Chinese practice of bringing their own labour has triggered

Easternisation appears to be benign, benevolent

and voluntary whileWesternisation was

hegemonic, forceful andexploitative. Easternisationseems to be predicated on

shared interests whileWesternisation was drivenby hidden motives of big

western powers



a backlash. Chinese labourers have also been involved in smallworks like operating simple machines such as forklifts andearthmovers. There are also claims that China is leading ingrabbing land in Africa. There have been rumours that Chinagrows food in African nations and then takes it back to China.There are reports of land being rented out by African gov-ernments to Gulf states in some of Eastern Africa, in exchangefor oil, but we are yet to hear about the same by China.

infrasTrucTure developmenT

In the past twenty years, China and India have emerged asstrong economic players in world affairs. By 2011, China wasregarded as the second-largest economy in the world and Indiahas made significant strides towards becoming a top-ten economy in the world. The two Asian powers have sharedmany characteristics, because they have both been colonies,occupied by external powers at different times. China andIndia have the highest and second-highest populations, respec-tively, in the world. They have multiple religious traditions,such as Hinduism, Buddhism and Confucianism. Both ofthem are also beneficiaries of great ideas emanating from twopatriarchs — Mao Zedong for China and Mahatma Gandhifor India. Unlike Western powers, which have been hegemonic and domineering, China has been rather benignand inclusive in its activities.

In 1987, China completed the construction of the largeststadium in Kenya on time for the 1987 All Africa Games,which was held in Nairobi. The stadium, later known as MoiInternational Sports Center (Kasarani), was an architecturalwonder in the country.

The stadium was opened with great pompand fanfare, extolling the virtues of Chinesetechnology (Amutabi, 2011). One Kenyanremarked, “The British left us with a 10,000capacity stadium [City Stadium, Nairobi) andthe Chinese built us a 60,000 capacity stadium.Now, tell me, who is better? The Chinesehave shown that they have better technologyand value our relationship. They want us tohave what they have” (Omwambe, 2011).China has boosted employment in Kenya, andin a country where the unemployment rate isabove 20 percent this is a welcome opportu-nity for many as well as the government.

For positive appraisals such as Onyango’s,China was given a contract to construct thesecond National Referral hospital in Eldoret inKenya, between 1991 and 1994. The hospital,which was later named Moi Teaching andReferral Hospital, attracted even more attention to the Chinese prowess in technology. China had proved to Kenyans thatit did not just build stadiums, but could buildhospitals as well. These two government projects thrust China into Kenya’s

development discourse and it came as no surprise when Chinastarted to play a more visible road in infrastructure development in Kenya. China took many road projects suchas the Emusutswi-Kima Road in Western Kenya, which wasalso completed in record time. The road was completed aheadof other road projects commissioned earlier, such as the StandKisa-Ebuyango road. What was also remarkable was that theEmusutswi-Kima road remained steady and free of potholescompared to other roads built after it. It must have come asno surprise to development observers when a Chinese firmwon the contract to build the biggest road project in Kenya,the Thika superhighway, worth 28 billion Kenya shillings.

The Thika Superhighway project was a planning nightmare for engineers, but China was equal to the task.Things were made much better for China when the road wasprojected as one of the projects in the country to be completed ahead of schedule.

Despite the positive appraisal of Chinese investment inKenya, there is also a downside to the relations between Chinaand Africa. Chinese goods are regarded as inferior to thosefrom Japan and the West. Although Chinese goods are regarded as poor and of low quality, they are relatively cheapand affordable to many people. Chinese companies have alsobeen accused of engaging in corruption in Angola, Sudan, theDemocratic Republic of the Congo and Uganda. They havebeen accused of not following proper procurement procedures in Africa (Amutabi, 2011). Their cheap exports toAfrica have been blamed for many problems in Africa. In Kenya, the collapse of textile factories has been blamed on China.

Chinese Vice-President Xi Jinping (R) with South African Vice-President Kgalema

Motlanthe in Beijing on September 28, 2011. Photo: Xinhua Pang Xinglei



Hundreds of textile factories across Kenya have collapsedsince the 1980s following liberalisation because they couldnot compete with cheap Chinese garments. Rift ValleyTextiles (Rivatex), Mount Kenya Textiles (Mountex), KenyaTaitex Mills (KTM), Kisumu Cotton Mills (Kicomi) andRaymond Textiles, have collapsed. Thousands of jobs werelost as a consequence, leading to economic hardships for manyfamilies from which many are yet to recover.

In Dodoma in Tanzania, and Eldoret and Nairobi inKenya, locals have accused Chinese workers of eating theirdogs during the construction of their development projects.In Tanzania, there has been a lot of concern over the activities of Chinese traders in Kariakoo market in Dar esSalaam, which created tensions with local traders. There hasbeen a similar hue and cry in Zambia where there was a crack-down on informal Chinese tradersoperating without permits in Lusaka’sKamwalla market. This is likely tochange even more with the electionof President Michael Sata who wouldlike to see less Chinese involvement insectors where Africans can work.

Many Chinese workers have beenaccused of ignoring local needs andsensibilities during the constructionof their giant projects. Motorists onthe Thika super highway have oftencomplained about the shape and stateof detours they have been forced touse, many of which are muddy, withgully sections that have damaged their vehicles. They arguethat this is different from European and local companies whooften create better roads for detours before vehicles are directed to follow them.

china and human righTs in africa

In 2010, Human Rights Watch released a controversialreport on China’s Non-Ferrous Mining Corporation(CNMC) copper mines in Zambia. The Chinese companywas accused of mistreating African workers. There was a feeling that China was practising a type of racism in whichAfrican workers were underpaid and lived in squalid conditions. The Chinese were accused of systematic violationof labour laws and regulations. They were accused of takingfor granted the safety of Africans. The company was accusedof pursuing what looked like imperial and exploitative objectives. Tensions escalated in 2010 when miners in southern Zambia in a small town called Sinazongwe, complained against pitiable working conditions. Two Chineseadministrators shot at a crowd, injuring at least ten people(BBC, 2011). The response from the West was immediate andalmost predictable in detail, basically taking the line of ‘did wenot warn you about these Asians’, so watch out, for they willdo worse things.

What many writers, most of whom were western, did not

say was the comparative fact that the mines were run by western companies before the Chinese came in, and that neutral reports indicated that the miners were treated betterthan their counterparts in some mines in South Africa,Zimbabwe and the Democratic Republic of the Congo. Theintention by the writers, it appears, was to demonise theChinese company while suggesting that European andAmerican companies were better. Unfortunately, manyAfricans and African scholars saw through the plot and provided counter reports and explanations on what really happened in the mines in Zambia.

After many years of seeing and experiencing Chinese goodssuch as Greatwall television, and construction work such asthe Moi International Sports Centre, Kasarani, and the Moi Teaching and Referral Hospital, there is a need to be

sceptical about myths perpetuated bywestern writers about China andChinese goods and products. Beforethese products were tested and roadsand buildings compared to Europeanones, the assumption was thatChinese goods were inferior and thatChinese buildings were generallycheap but sloppy.

China has received a lot of badpress in the past ten years for whatseems to be Eurocentric reasons.First, the bad press is predicatedlargely on the ascendant ideologicaland continental rivalry where China

and India are pitted against European and North Americaninvestors and other interests in Africa. As the internationalmedia is dominated by media houses from Europe andNorth America, China and India have been at the receivingend. Sometimes one can sense much of the hostility tingedin nostalgia of the Cold War mentality in some of the articles that have been penned on China and India, particularly on China.

Second, China’s name has suffered heavily at the hands ofthe hegemonic and propagandist role of western media andintellectuals, many of whom have been recruited as anti-Chinacrusaders on behalf of the home governments with the hopeof bringing China down, the way they did to the former SovietUnion. Much of this negative press has taken the form of bashing and demonising Chinese economic growth and expansion, usually through axis of human rights, democracyand gender. A few years ago, many western journalists and scholars started China bashing where it is constantly presented as corrupt and undeserving of its new status. A fewyears ago, a commentary in the op-ed page of The New YorkTimes described China as a ‘rogue donor’ while many environmentalists have condemned the China developmentmodel as dirty. China has been accused of causing heavy pollution and for refusing to sign up for the Kyoto Protocol,but which incidentally the United States has also not endorsed.

Being the most powerfuleconomy of the continent,South Africa has much to gain by leveraging its competitiveness,

technological advance-ment and financial

resources and acumen in an expanding market.Its companies are bound

to have an edge



China has also been accused of allowing underage workers inwhat has been described as ‘sweatshops’ where working conditions have been described as inhuman. What is ironic is the fact that many of these factories are owned by or manufacture on behalf of western entities such as AmericanWal Mart or K-Mart or Nike.

Third, many western media houses have pushed the ideaof democracy against China, arguing that China is spreadingnegative ideals across the world, by dealing and promotingrogue and dictatorial regimes such as those in Zimbabwe andSudan. They have pointed out that China does business withbad regimes across the world and its focus seems to be onresources. These arguments have been dismissed by DeborahBrautigam in her book The Dragon’s Gift. AlthoughBrautigam’s book is presented as a defence against China, itsphrasing and presentation of China in unmistakably‘Occidental’ terms as the ‘dragon’ clearly shows bias.(Brautigam, 2009).

Reports on activities of China in Africa have been ratheralarmist and grossly exaggerated. China has been accused ofassisting the genocidal Sudanese regime of Omar El-Bashiragainst Darfur. The accusation has been that China suppliedarms to El-Bashir in exchange for Sudanese oil. This is clearly a case of double standards because the same mediahouses did not condemn western powers for supporting dictators such as Mobutu Sese Seko because of resources.China has also been accused as the only power that stoodbehind dictator Robert Mugabe of Zimbabwe, even as he

presided over a kleptocracy that threatened to annihilate hisown people through bad policies. Even as thousands died offamine and suffered the effects of hyperinflation, nothingappeared to bother Mugabe and China’s backers.

Further, Brautigam suggests that focusing only on the China threat makes the world blind to the actual openings that China’s engagement offers for African development (Brautigam, 2009). Brautigam’s assertion thatthere is very little information about what China is really doingin Africa requires a critical scrutiny (Brautigam, 2009).Contrary to her assertions, there is no lack of informationbecause what has happened is that the West has decided to engage in selective information flow. This is what Edward Said has ably explained in Orientalism in his discourse on selective presentation of the ‘other’.

In a UN report of August 1, 2001, a Thai merchant operating in Beni and the proprietor of Dara Forest Limited,a Democratic Republic of Congo (DRC)-based company,which deals in timber and mineral exports, denied accusationsthat he was connected with President Yoweri Museveni ofUganda or his relatives. However, the merchant concededthat there were some Ugandans with shares in his business(Mugisha and Wasike, 2001: 1). What was significant in thiscase was that there was a connection between locals andinvestors in a company operating in the Democratic Republicof Congo. The revelation was a moral indictment of PresidentMuseveni who had been accused of looting the Congo andsharing resources with outside forces, mainly China.

Ousmane Tandia, Ambassador of the Republic of Mali, interacting with African students of Lovely Professional University, Phagwara, Punjab.



1. Amutabi, Maurice N (2010), “China and Developmentin Kenya: Why Chinese Intentions in Africa are good.”Kenya Social Science Forum, Nairobi, 2011.2. Amutabi, Maurice (2001), “African Plunderers in theCongo and the Paradox of African Solutions for The DRC:The case of Uganda and Rwanda” (with Winston Akala andJoy Williams-Black) Paper presented at the conference on‘Reclaiming the Congo and its Potential for Africa: StrategicPlans for the Reconstruction of the Democratic Republic ofCongo (DRC): The Role of Congolese Intellectuals andfriends of DRC’, University of Illinois at Urbana-Champaign, Illinois, USA, October 11 -13, 2001. 3. Brautigam, Deborah (2009), The Dragon’s Gift: The RealStory of China in Africa. New York: Oxford UniversityPress.4. Colvin, Lucy (2008), “All’s Fair in Loans and War: TheDevelopment of China-Angola Relations,” in KwekuAmpiah and Sanusha Naidu, eds., Crouching Tiger, HiddenDragon? Africa and China. Scottsville, South Africa:University of KwaZulu-Natal Press, 2008, pp. 108--23. 5. Ferreira, Manuel Ennes (2008), “China in Angola: Just aPassion for Oil?” in Chris Alden, Daniel Large and RicardoSoares de Oliveira, eds., China Returns to Africa: A RisingPower and a Continent Embrace. New York: Columbia

University Press, 2008, pp. 295—317.6. Lee, Henry and Dan Shalmon (2008), “Searching for Oil:China’s Strategies in Africa,” in Robert I. Rotberg, ed.,China into Africa: Trade, Aid and Influence (WashingtonDC: Brookings Institution Press, 2008), p. 120.7. Jiangong, Zhou (2011), “Africa Frenzy Feeds China StockBubble,” Asia Times Online, March 27, 2007, available at:www.atimes.com/atimes/China_Business/ IC27Cb01.html(accessed December 11, 2011).8. Halper, Stefan (2010), The Beijing Consensus: HowChina's Authoritarian Model Will Dominate the Twenty-First Century. New York: Basic Books.9. Mamdani, Mahmood (1996), Citizen and Subject:Contemporary Africa and the Legacy of Late Colonialism.Princeton: Princeton University Press.10. Mugisha, Anne & Alfred Wasike (2001), “MerchantDenies Museveni Link” in New Vision, Kampala.http://allafrica.com/stories/ (accessed September 12, 2001).11. Rosenberg, Emily (1996), Spreading the AmericanDream: American Economic and Cultural Expansion in1890-1945. New York: Hill and Wang.12. Swann, Christopher & William McQuillen (2006),“China to Surpass World Bank as Top Lender to Africa,”Bloomberg.com, November 3, 2006.

References

Although the merchant had argued that his activities in theCongo were legal and he had bought timber for export to theUnited States, Japan and China, what was of concern were therelations he had with African governments and the role ofChina in these activities.

The Asian merchant is quoted as saying that he boughtcoltan and caciterate from the local people and exported themto Germany, Thailand and China. The merchant said that hisgoods were transported through Uganda’s Entebbe Airport(Amutabi, 2001). The merchant was responding to accusationsof the UN panel on the DRC which had cited unconfirmedreports that Museveni’s family were shareholders in DaraForest and the company was plundering Congo minerals andforests. The UN report had “also accused Dara of connivingwith China, Switzerland, Denmark, Belgium, Kenya, Japan,United States and Uganda to fraudulently beat timber international certification systems” (Mugisha and Wasike,2001:1). At the time, observers thought that the players in theDemocratic Republic of Congo were not just Museveni andKagame. Yoweri Museveni and Paul Kagame were seen asmere ‘errand boys’ of bigger, global powers. Against this backdrop, China has been accused of not pursuing the humanrights agenda in its pursuits in Africa. Chinese companies havebeen blamed for perpetuating colonial-like policies in extraction. The word “imperial” is now appearing on the lipsof many, to refer to China.

conclusion

From the foregoing, it is obvious that China’s activities in Africa have been misunderstood, largely becauseof western propaganda. What needs to be noted is that, the two Asian economic giants have raised a lot of interest in the global economic arena because of their power to change the discourse on development in manyparts of the world, especially Africa. The emerging economic powers, India and China, have contributed a lotto Africa’s development in the past 20 years than manyEuropean countries have done on the continent in centuries. Projects of enormous proportions such as TazaraRailway in Tanzania and Zambia and Thika superhighwayin Kenya must be seen in order to imagine the kind ofimpact Chinese aid has had on Africa. Foton and Tatabesides other motor vehicle brands from China and Indiaare transforming lives in Africa.

The popular tuk-tuk and other motorcycle brands arealso causing a lot of excitement in the transport industry forthe common man in Africa. What is also instructive are thegood financial terms under which aid from China and Indiaare dispensed in Africa.

On the other hand, India has brought its core expertise in capacity building and human resource development to help in the development of many Africancountries. n

S T R A T E G Y


There are two differences between thefirst “Scramble for Africa” and theunfolding second “Scramble forAfrica”. The first “scramble” was therace among European powers to capture and colonise African lands inthe 19th century’s last quarter. Thesecond one is the ongoing competition

among developed and developing countries to have access toAfrican markets, minerals, energy supplies and cooperation.The differences are notable.

The first “scramble” brought with it violence and conflictsince the motive was subjugation and colonisation of the“Dark Continent”. The European nations were motivatedby self-interest and a belief in the faulty doctrine of the “WhiteMan’s Burden”.

However, in the second “scramble”, the main players —the United States, the European Union, China and India —

are using peaceful methods to help African countries developin diverse ways even as they secure their own interests.

Also, unlike in the 19th century, African nations are todaypassing through a period of renaissance, led by a variety ofthinkers and political leaders. While they express themselvesthrough institutions such as the African Union (AU), theyalso draw strength from the fact that some of the countries inthe union (notably South Africa) offer competition to outsidepowers seeking a footprint on the continent.

South Africa, which used to practise apartheid (a systemof racial segregation), was an ostracised country till the 1980s, shunned by most of Africa and the international community, except the West. Even though South Africa’sneighbouring countries were dependent on it economically,it was given a very limited role on the world stage.

But after a turbulent but fascinating transition between1990 and 1994, a new and democratic South Africa emerged,with Nelson Mandela at the helm.

African AGENDA, the Pretoria way

South African foreign policy’s biggest goal today is to intertwine the‘African Agenda’ with its interests in the continent, says Rajiv Bhatia

India’s Prime Minister Manmohan Singh with South Africa’s President Jacob Zuma, on the sidelines of

the 5th IBSA Summit in Pretoria on October 18, 2011. Photo: PIB



Now, 17 years later, it is a country with enormous political and economic clout in the region, the continent andthe world. The years 2010 and 2011 have been especiallyremarkable due to two international events the country hosted: the FIFA World Cup (for the first time in Africa) andthe 17th Conference of Parties (COP) of the United NationsFramework Convention on Climate Change (UNFCCC).

Becoming a democracy hashelped South Africa craft and conduct an active foreign policy and create and sustain a web of economic relationships with otherAfrican nations. The web is set togrow bigger even though not allAfrican nations love South Africa.

The intensifying “scramble” forAfrica can, therefore, be seen moreclearly if we study South Africa’sinterests, ideological motivations,policies, achievements and setbacks in an in-depth and objective way.

Dual role

I returned to Delhi towards the end of 2009 after a productive and rewarding tenure in South Africa as India’shigh commissioner.

One day in the Ministry of External Affairs, while I wasbriefing a senior colleague, he suddenly exclaimed: “But, sir,South Africa is not Africa!”

The remark was pregnant with meaning, but was partially correct.

While driving the car at 130 km an hour on the gleaminghighway between Pretoria and Johannesburg and looking atthe glass-and-chrome buildings of the Sandton area, I wouldfeel that I was living in Europe or America.

However, my extensive tours of South Africa took me totownships and villages where poverty, unemployment, disease, violence and misery ruled.

It became evident that, like India, South Africa too was anation with dual personalities — it was a rich as well as a poorcountry, a unique cross between a developed and developingsociety, a nation living on the cusp of the 21st century yet

struggling to resolve problems leftbehind by the previous era.

This duality made South Africa a giver as well as a receiver — of assistance, technology, trade concessions and foreign investment.

South Africa’s approach and contribution towards the development of other nations of thecontinent show that it has been guided by its own interests as well asby the idea that promoting Africa’

development would benefit it too, especially its industries,and the continent on the whole.

South Africa’s economy, valued at $525 billion on a public-private partnership (PPP) formula in 2010, is thebiggest in Africa. This economy accounts for nearly a quarter of Africa’s Gross Domestic Product (GDP).

However, after growing steadily for a long time, SouthAfrica passed through a period of recession beginning in 2008.The economy gradually recovered and registered an annualgrowth rate of 2.8 percent in 2010 and is now projected togrow at 4.3 percent in 2012.

With the GDP’s major share coming from mining, manufacturing and services and a minor portion from agriculture, the South African economy needs to strengthencooperation with neighbouring countries, with distantAfrican nations and countries outside the continent.

As an emerging economy, SouthAfrica may be smaller then Chinaand India but when seen in theAfrican context and noting its localand global links, the country hasconsiderable significance.

Plans anD Priorities

If a government is judged by howit articulates plans and priorities, theSouth African regime is ahead ofmany, including that of India.

This fact is best illustrated by thepresentation of details about thecountry’s foreign policy priorities,year after year.

The current Strategic Plan, validfor the period 2011 to 2014, has eightpriorities, three of which touch uponthe theme being discussed here: A statue of Nelson Mandela at Mandela Square in Sandton. Photo: activeeducation.blogspot.com

South Africa’s economy,valued at $525 billion on

public-private partnership(PPP) formula in 2010, is the biggest in Africa.This economy accounts

for nearly a quarter of Africa’s GDP

S T R A T E G Y


promoting the African agenda and sustainable development; strengthening political and economic integra-tion of Southern African Development Community (SADC);and strengthening of South-South cooperation and relations.

The document lists deliverables, timelines and otherdetails which need a close study tounderstand the mindset and theevolved thinking of the policymak-ers in Pretoria and Cape Town.

One of the main goals of SouthAfrica’s foreign policy is to promotethe “African Agenda”.

A lot of literature exists on thesubject and it is the favourite phraseof South African leaders andspokespersons. Put simply, theAfrican Agenda means that South Africa favours peace anddevelopment on the continentthrough “African solutions” and generous foreign assistance,which should be secured in such a manner that South Africagets to play a key role.

Maite Nkoana-Mashabane, South Africa’s Minister ofDepartment of International Relations and Cooperation(DIRCO), spells out Pretoria’s policy. “The focus of SouthAfrica’s engagements on the African continent is to promotesocio-economic development, contribute to the resolution ofconflicts, and the building of an enabling environment inwhich the development of the continent can take place1.”

The duality, which I had referred to, is reflected in thecountry’s foreign economic policy.

South Africa seeks Direct Foreign Investment (DFI) inmarkets where its powerful companies, in the fields of communication and broadcasting, infrastructure, mining,

pharmaceuticals and banking, enjoy a competitive advantage. The officials spell out areas where the country welcomes and facilitates DFI, such as energy,transport, agriculture, agro-processing, mining, manufacturing, green technologies and tourism.

Also, South Africa is currently reforming its externalassistance machinery. For many years, aid was channelled through the African Renaissance andInternational Cooperation Fund (ARF). Now, a processis under way to transform ARF into the South AfricanDevelopment Partnership Agency (SADPA). The transitional period is scheduled to be completed by 2013-14 when ARF will be terminated and SADPAoperationalised. It is set to become an instrument forsecuring the objectives of the country’s developmentcooperation strategy and foreign economic policy.

Multi-tier activisM

South Africa’s external economic relationships shouldbe studied as a set of concentric circles that start in theneighbourhood and go beyond Africa.

At the primary level is the Southern African CustomsUnion (SACU), which welds the country with Botswana,Lesotho, Swaziland and Namibia to form a special arrangement. SACU is the world’s oldest customs union,providing common external and excise tariffs. The union

credits all duties into South Africa’srevenue fund, which are sharedamong the member states accordingto a formula.

In 2010, SACU completed a century and marked a “historicyear”2, said Tswelopele CorneliaMoremi, the union’s executive secretary, on July 29, 2011, at theSACU regional conference held onthe theme of ‘Implementing aCommon Agenda TowardsRegional Integration’.

Yet, SACU appears to be facing anexistential dilemma. On one hand, it has the ambition tospearhead regional integration in the context of a broaderframework of expanding continental unity. “For SACU todevelop as a viable regional economic entity, progress is needed in the intra-SACU policy development and harmonisation,” says the union’s website.3The union aims toencompass industrial policies and strategies, agricultural andcompetition policies, laws and regulations and also promisesto address unfair trade practices. The Heads of State in theunion stand committed to turning it into “an economic community”.

On the other hand, due to the ongoing global financial crisis, the common revenue pool has suffered a deficit, leav-ing behind a huge fiscal impact on smaller SACU economies.

Besides, the asymmetry of their needs as compared to

South Africa seeks DirectForeign Investment (DFI) inmarkets where its powerfulcompanies, in the fields of

communication and broadcasting, infrastructure,

mining, pharmaceuticalsand banking, enjoy a

competitive advantage

Map of the member nations of

Southern African Development

Community (SADC)



those of South Africa and differences over the EconomicPartnership Agreements (EPAs) with the European Union(EU) has deepened the divide.

In my conversations with leaders and officials of Lesotho,I discovered a peculiar mixture of a small kingdom’s scepticism and assertiveness along with an awareness of itsdependence on South Africa, which surrounds this countryand Swaziland, making them both landlocked.

The Southern African Development Community(SADC) and Common Market for Eastern and SouthernAfrica (COMESA) form the next two concentric circles,which overlap but are not identical.

SADC, a 15-member inter-governmental organisation,based in Gaborone, Botswana, was set up in 1992. It emerged from its predecessor, the Southern AfricanDevelopment Coordination Conference (SADCC), established in 1980.

SADC’s mission is “to promote sustainable and equitableeconomic growth and socio-economic developmentthrough...deeper cooperation and integration...”.4 Judgingfrom the communique of its latest 31st Head OfStates/Government Summit, SADC focuses on two areas,both of which benefit South Africa:

i) Review of progress in implementation of infrastructureprojects related to power, information and communicationstechnology and regional corridors such as the Zimbabwe-Zambia-Botswana-Namibia Interconnector along with finalisation of the infrastructure master plan.

ii) Expediting progress in consolidating SADC Free TradeArea by directing the ministerial group concerned to producean agreement on the roadmap for SADC Customs Union5.

The COMESA has 19 members and is based in Lusaka,Zambia. Its aim is “to be fully integrated, internationallycompetitive regional economic community with high standards of living for all its people, ready to merge into anAfrican Economic Community”.

From this motto flows its mission to facilitate the region’ssustained development through economic integration6.

The Eastern African Community (EAC), too, has a similar approach towards regional unity. But South Africa isnot its member.

This explains why the three institutions launched‘Tripartite Grand Free Trade Area Negotiations’ recently.Committed to speeding up negotiations, the member statesare working towards turning the three pillars of a free tradearea, industrial development and infrastructural integrationinto a reality.

The communique issued after the second TripartiteSummit said: “The tripartite initiative is a decisive step toachieve the African vision of establishing the AfricanEconomic Community.”

The community, when it comes into existence, will combine 26 countries, with a population of 600 million andgross domestic product (GDP) of $1 trillion. This will represent 57 percent of Africa’s population and 58 percentof its GDP.

The foregoing analysis of regional integration processes is key to understanding the politics and economics behind it.

The official view of Pretoria is clear: South Africa advocates regional integration in the south and sees itself asintegral to the endeavours towards deeper integration into

Sandton, a wealthy and premier business centre of Johannesburg, South Africa.


S T R A T E G Y

SADC and across southern and eastern Africa. Being the most powerful economy on the continent, South

Africa has much to gain by leveraging its competitiveness,technological advancement, financial resources and acumen inan expanding market. Its companies are bound to have anedge over perceived competitors in Africa (such as Egypt,Nigeria and Kenya) and outside Africa (such as China, India,Brazil and Russia).

However, many outside South Africa evaluate the country’s role differently. Although many of South Africa’spartners are appreciative and supportive of its policyapproach, the country is not without its quota of critics andsceptics.

In this context, two examplesshould suffice.

When a controversy was ragingover the Economic PartnershipAgreements (EPA), RampholoMolefhe, a minister fromBotswana, had said South Africacould no longer be allowed tobehave like a ‘Big Brother’ inSACU and do as it wished.

Recalling this, Molefhe said:“Should this leadership role go toSouth Africa’s head of state, it caneasily get in the way of a harmoniouseffort in southern Africa to consolidate political and economic relations that will preparethe region for a smooth integration into an united Africangovernment in the long run.”7

In a similar manner, intra-SADC tensions come into the

public from time to time. It has been evident that SouthAfrica enjoys a pivotal position in SADC. But SADC’s dependence on this country can become an obstacle.

As South African advocate and lecturer Saurombe Amossaid: “What is obvious is that SADC needs South Africa butat the same time South Africa is at liberty to choose when todrive SADC agenda.”8

South Africa has been proactive in other parts of Africaand within the AU since it is conscious of the adverse reactions its size, strength and policy generate and since itsinterests demand engagement with the larger communitybeyond southern and eastern Africa.

Going beyond that level, SouthAfrica, through its membership ofIBSA Dialogue Forum (which givesit an entry into Asia and LatinAmerica) and the recently acquiredmembership of BRICS (which putsit in the top league of emergingeconomies), has been playing a multifaceted global role. No external power interested in engag-ing Africa can afford to ignore thiscountry. However, there is a ques-tion mark on South Africa’s institu-tional and managerial capacity to do justice to its wide-ranging commitments.

One remembers how foreign ambassadors based inPretoria found South African ministers and senior officialsinaccessible as they seemed to be on a perpetual safari toother African capitals.

Being the most powerfuleconomy of the continent,

South Africa has much to gain by leveraging its competitiveness,

technological advancement, financial

resources and acumen inan expanding market. Its

companies are bound to have an edge

The United Nations Climate Change Conference in Durban in December 2011.



Our experience showed that often progress on bilateralagenda issues suffers because of the work burden on governmental machinery, stemming from South Africa’strilateral, regional or multilateral agenda.

iMPlications for inDia

In formulating and implementing India’s Africa policy,New Delhi needs to include the changing contours, notonly of international competition for Africa, but also ofSouth Africa’s African Agenda. A conflict of interest may notarise but right mix of cooperation and competition needs tobe identified and promoted within the framework of the“strategic partnership” that links India and South Africa.From this flow several implications.

First, in bilateral discussions, India should help SouthAfrica to understand South Asia and South East Asia betterand make it a point to get regular briefings from SouthAfrica about southern and eastern Africa and Africa as awhole. This will appear to be normal, but often it does nottake place in reality. Doing so will help the two countries inbroadening mutual understanding and pave the way forcloser cooperation.

Secondly, the time is ripe for deepening bilateral economic relationships. South Africa and India need toexpedite the implementation of a number of pending initiatives, such as the finalisation of the investment promotion and protection agreement, the India-SACUpreferential trade agreement, effective measures to accelerate growth of bilateral trade and investment flows,and trilateral projects in Africa involving Indian, SouthAfrican and other African companies.

Thirdly, South Africa’s most important economic relationship in Asia, with China, needs to be monitoredclosely. This should not only be done by government agencies but also by Indian academics, for the strengthen-ing of South Africa-China ties in future, as in the past, willhave repercussions on South Africa-India ties.

Fourthly, an unspoken competition between the

India-Brazil-South Africa (IBSA) and BRICS seemsinevitable. South Africa’s interest or disinterest should beassessed through its actions and not words.

It should be the joint endeavour of India and South Africa,along with Brazil, to give priority to IBSA in their foreign policy matters. This means producing long-winded declarations after each summit is no substitute for concrete,tangible and people-friendly projects embodying the interestsand values that bind the three IBSA partners.

Finally, the wisdom behind India’s decision to conduct itsAfrica policy at three different though interconnected levels— bilateral, regional and continental — needs to be appreciated.

A regional dimension, through dialogue and cooperationwith the Regional Economic Communities (RECs), isacquiring momentum. Following the second India-RECmeeting, the African side indicated that it “considered Indiaan important partner and was happy to have a structured dialogue in this format”.9Opening up towards African RECsand a sustained nurturing of the relationship will benefitIndia in the long run.

conclusion

Africa is going through a period of transition. Stakes forits political and economic development are high, but theoutlook for its renaissance is uncertain.

Where the continent stands in 2025 or 2050 will dependon what its leaders, elites, institutions and people achieve.The outcome will also be moulded by what Africa’s partners do.

Will they be driven by self-interest, mutual benefit orimpulse to accord due priority to Africa’s interests? Viewedfrom this angle, South Africa, given the duality of its posi-tion, economy and multi-tier relationships, will have a sig-nificant contribution to make.

India, the benign partner of Africa, should reappraise itsrelationship with South Africa to decide what more needsto be done and what needs to be done differently. n

1. Strategic Plan 2011-14. (n.d.). Retrieved from DIRCO,South Africa: http://www.dfa.gov.za/2. 2011 Speeches. (2011, July 29). Retrieved from SACU web-site: http://www.sacu.int/3. Policy Development and Research . (n.d.). Retrieved fromSACU website: http://www.sacu.int/policy.php?id=4174. About SADC. (2011). Retrieved from SADC website:http://www.sadc.int/5. SADC news, 31st Summit Communique. (2011, August19). Retrieved from SADC website :http://www.sadc.int/english/current-affairs/news/6. About us, Vision and Mission (n.d.). Retrieved from

COMESA: http://www.comesa.int/7. MOLEFHE, R. (2009, June 17). Is South Africa a bully inSACU? Mmegionline http://www.mmegi.bw/index.php?sid=6&aid=8&dir=2009/June/Wednesday178. Amos, S. (Vol 5, Number 3 2010). The role of South Africain SADC regional integration: the making or braking of theorganization. Journal of International Commercial Law andTechnology , 124-131.9. Statements — Press Releases on Second India — RECsMeeting. (2011, November 09). Retrieved from Ministry ofExternal Affairs, New Delhi: http://www.mea.gov.in/mys-tart.php

References

S Y N E R G Y


There is a big buzz around BRIC’s (Brazil,Russia, India, China) investment inAfrica. Rightly so: the emerging powersare spurring the region’s integration intothe global economy as never before,offering unprecedented levels of development assistance under the banner of South-South Cooperation.

Much has been heard about China’s infrastructure building inAfrica and its competitive edge in the race for natural resources.But what are the two democracies within the grouping contributing to the continent?

To distinguish themselves, India and Brazil have identifiedagriculture — on which two-thirds of Africans depend fortheir livelihood — as a priority sector for cooperation. Africanagriculture has long suffered from low output, due in large partto severe under-capitalisation and neglect. The majority ofAfrican farmers work smallholder, subsistence farms, and havepoor access to markets and technology to improve

productivity. Many African countries are thus dependent onfood imports. Therefore, rising food prices and vulnerabilityto external shocks continually threaten their food security.The harm to human life is clear: the Food and AgricultureOrganisation reports that nearly one in three Africans is malnourished!

There are many good reasons for new global players likeIndia and Brazil to get involved. After South America, Africapossesses the largest share of uncultivated arable land in theworld — a land ready for transformation. Here, India andBrazil are providing important inputs in the form of affordable goods and services and badly-needed technicalexpertise. Both countries have had their own agricultural revolutions and are among the world’s top food producers.Together, their venture into Africa’s agriculture sector canreignite a primary engine for growth and prove vital to theregion’s food security.

African policymakers recognise that greater investments in the agricultural sector, particularly in R&D and skill

India and Brazil: Joininghands for FOOD security India and Brazil are investing in Africa to help it become self-sufficient in

agriculture, an involvement that will have far-reaching impact on food security in Africa, says Estefanía Marchán

Bean farming in the Democratic Republic of Congo. Many African countries are dependent on food imports and rising food prices

and vulnerability to external shocks threaten food security in the continent.



development, are essential for poverty eradication and theregion’s long-term development. For Africans, there is plenty of room for Indian and Brazilian investments and both are welcome in the continent.

Independent Investment paths

Individually, India and Brazil are leveraging theirstrengths in affordable low-tech and scientific research toboost Africa’s agricultural productivity. At the second Africa-India Forum in Addis Ababa, Ethiopia in 2011, Indiare-affirmed its commitment to help in boosting Africa’sagriculture and helping the region get closer to achieving theMillennium Development Goal of halving the number ofpeople suffering from extreme hunger by 2015. Indiapledged, among other things, to extend scholarships toAfrican students in the agricultural sciences, and to sendteams of experts from the Indian Council of AgricultureResearch (ICAR) to several African countries to exploreIndia’s role in training human resources. The governmenthas set aside $700 million to establish institutions in Africa,including the proposed India-Africa Institute of Agricultureand Rural Development.

However, India’s most valuable contribution is itsincreasing lines of credit — up to $5 billion now — whichare driving private investment, such as a $15-million loan todevelop commercial agriculture in Sierra Leone (India AfricaConnect, 2011). Indian firms provide what they call TripleA — adaptable, appropriate and affordable — technologies,which are a boon to Africa. These companies offer capital,as well as necessary equipment, like small tractors and irrigation equipment suitable for Africa’s smallholdingfarms. Their investments are India’s comparative advantagein the continent. The Federation of Indian Chambers ofCommerce and Industry (FICCI) is working with Indianbusinesses to invest across many sectors in Africa, but its main focus is agriculture. Indian investment in Ethiopia alone stands at $4.5 billion, dominated mostly byfloriculture and agriculture (Abate,2011). Leading Indian companies, including Karuturi Global Ltd.,Kirloskar Brothers Ltd., Mahindraand Mahindra, Jain Irrigation andRenuka Sugars, have established apresence in agriculture and relatedsectors (Modi, 2011). Over 80 companies have already investedaround $2.3 billion directly intocommercial farming activities in several African countries (Kumar, 2011).

Brazil’s strength, on the otherhand, is in scientific research appropriate to Africa’s agriculturalecosystem. Brazil has launchedresearch and food security initiatives

throughout the continent. Through Embrapa, the country’spioneering agricultural research institute, Brazil has stationed personnel in Ghana, Mozambique, Senegal andMali to share the skills that have transformed its own drysavannah, the cerrado, into one of South America’s most fertile regions. In the 1970s, the agricultural giant was a foodimporter, as its agriculture suffered from low yields. TheBrazilian cerrado was, like much of Africa, tropical andnutrient-poor, but today it accounts for 70 percent of Brazil’sfarm output. Its revitalisation holds important lessons forAfrica. The Africa-Brazil Agricultural InnovationMarketplace, established in 2010, extends research effortsacross the continent, facilitating technology transfer and policy dialogue among African and Brazilian experts andinstitutions, and more importantly, linking projects to funds.

Another important part of Brazil’s aid to the region is theAfrica-Brazil Cooperation Programme on Social Protection,launched in 2009. It is a platform for Brazilian experts andtheir African counterparts to exchange knowledge on socialdevelopment programmes such as Fome Zero (ZeroHunger), Brazil’s revolutionary strategy for combatingdomestic food insecurity by strengthening small-scale agriculture, and introducing innovative schemes such ascash transfers. Small-scale farms employ over 70 percent ofall agricultural workers in Brazil, many of whom belong tothe vulnerable, low-income population. To promote socialand economic inclusion and to energise rural economies,Brazil’s National Programme to Strengthen Family Farming(PRONAF) provides credit and insurance to farmers, whilethe Food Acquisition Programme from Family Farming(PAA) procures food directly from small-scale farmers anddonates it to vulnerable populations and school meals programmes (Rocha, 2009). The PAA is part of the FomeZero strategy. Largely as a result of the Fome Zero programme, the number of Brazilians living in povertydecreased by 20 million from 2003 to 2009, and extremehunger was halved (Oxfam, 2010).

The chairman of Zain Nigeria, Dr. Oba Otudeko (L), in conversation with Sunil Mittal (R),

founder and chairman of Bharti Airtel, India’s largest mobile phone company,

and the company’s managing director (Nigeria), Rajan Swaroop (C), during the launch of the

company’s rebranding effort in Lagos, Nigeria. India’s largest mobile phone

company symbolises the rise of Indian investment in Africa.

S Y N E R G Y


a joInt Investment model

Combined, India and Brazil’s investments seem to be justwhat Africa needs. In Senegal, for example, low-cost irrigationpumps provided by the Indian company Kirloskar BrothersLtd have boosted rice production and, in five years, allowedthe largely agricultural nation to meet twice as much of itsdomestic rice demand (Modi, 2011). Simultaneously,Embrapa has partnered with Senegal, investing in technicaltraining and experimenting with upland rice varieties suitedfor the country.

Senegal has long been dependent on food imports, particularly of rice. Between 2001 and 2005, more than 80 percent of domestic rice consumption in the countrydepended on imports, making Senegal the world’s tenth-largest rice importer (Africa Rice Centre, 2007). In 2008,the government launched the Great Push Forward forAgriculture, Food, and Abundance (GOANA) project, withthe objective of becoming self-sufficient by 2012 (Matsumoto-Izadifar, 2008). Today, India and Brazil are working unilater-ally to help Senegal meet this goal. Their complementary andinterlocking investments could be the new investment modelfor the country and indeed for the rest of Africa. Together,India and Brazil can help develop the skills of the 77 percentof the Senegalese labour force that is engaged in agriculture;and by transferring technology and providing appropriateinputs, they can help Senegal achieve self-sufficiency.

FIllIng the Investment voId

India and Brazil’s investments in Africa’s agriculture couldnot have come at a better time. Agricultural productivity in thecontinent has been declining just as traditional sources of aid

have shrunk. The share of World Bank loans that went to agricultural development in Africa fell from 30 percent to 8 percent between 1978-2006, and agricultural assistance fromthe United States shifted away from capacity-building to foodaid. By 2006, the United States was spending twice as muchproviding free food to the region as it was on helping Africansfeed themselves (Paarlber, 2011). Such aid has done little toencourage Africa’s development or to mitigate widespreadmalnutrition. The global economic slowdown will surely continue to impact food aid.

However, India and Brazil can fill the investment void. To catalyse change, what is needed is a formalised India-BrazilPartnership for Africa’s food security. A partnership can havepositive effects both in Africa and for broader India-Brazilrelations, without hindering each country’s individual effortsin the region. The creation of IBSA, the India, Brazil andSouth Africa trilateral forum, shows India and Brazil’s willingness to cooperate on issues of shared importancebeyond their borders. IBSA’s Facility for Poverty and HungerAlleviation programme, for example, pools $1 million fromeach member to implement small development projects ininterested countries. Yet, while the fund constitutes a pioneering initiative in South-South cooperation, it is neithersystematic nor targeted enough to have far-reaching impact.Because it focuses on one-off projects, it does little to encourage lasting political and economic ties between donorand patron countries.

Now is a propitious time for India and Brazil to capitaliseon the relationships being built with Africa, and with eachother. From 2001 to 2010, bilateral trade between India andAfrica grew from $1 billion to $50 billion, and Brazil-Africa

Then Brazilian president Luiz Inacio Lula Da Silva (L) and South African President Jacob Zuma join hands during a news conference at the

Union Buildings in Pretoria July 9, 2010. Photo: Thomas Mukoya, Reuters



trade grew from $3 billion to $20 billion. Meanwhile, bilateral engagement between India and Brazil has also intensified, deepening just as their presence on the global stagehas increased. These types of secondary and tertiary interac-tions present an opportunity for India and Brazil to buildmutual confidence and demonstrate the commonalities thatexist between them at a time when both countries are emerging as the leaders of the global South.

Their investments to develop Africa’s agriculture sectorare also critical to leveraging the continent’s recent economicupturn. In 2010, Africa was one of the fastest-growing regionsin the world, expanding at an average rate of 4.9 percent.Despite the momentum, high food and oil prices remain athreat to sustained growth.

towards a collaboratIve approach

The memoranda of understanding (MoUs) can beexplored with the Comprehensive African AgricultureDevelopment Programme, the African-led initiative for foodsecurity and agriculture, or regional bodies like the SouthernAfrican Development Community, for cooperation appropriate to specific economic or agricultural climates. WhileBrazil’s topography and climate more closely resemble Africa’s,India’s agricultural ecosystem has many lessons to offer. Theaverage Indian farm is smaller than its Brazilian counterpart(1.3 ha versus 68 ha), and the sector employs more people inIndia than it does in Brazil. Labour-intensive farming is whatAfrica needs, as well as India’s expertise in small-farm mechanisation and experience of empowering womenthrough microfinance and cooperative enterprises. Africaninstitutions can host Indian and Brazilian scientists and privateand social sector leaders to share their know-how.

The funding for this and similar partnerships can besought from international development organisations. In Senegal, for example, the World Bank spent $10 millionto support food security initiatives in 2010 (World Bank,2011). Some of the funds can be used as seed money to develop programmes created in partnership with India and

Brazil and their African counterparts. The Indian Council ofAgricultural Research and the Indian Agency for Partnershipin Development can work with Embrapa and the BrazilianAgency for Cooperation. The World Bank, and governmentsof countries like the United Kingdom, Japan and the UnitedStates already collaborate with Brazilian-led institutions inAfrica. There is no reason why India should not be involved.If the partnership works, then India and Brazil can extend thistype of targeted investment and knowledge-sharing to otherdeveloping countries. IBSA can serve as a springboard forgreater cooperation.

Not so long ago, India and Brazil seemed destined to playthe role of the recipients of foreign aid and technical assistance.Today, however, they are engaging internationally withmarked confidence, offering their leadership and resources totackle global challenges. In May 2011, the Indian Agency forPartnership in Development was created, overseeing $11.3billion of foreign aid over the next five to seven years. The Brazilian Agency for Cooperation, established in 1996,administers an estimated $1 billion annually. India and Brazil’sincreasing engagement in Africa is a clear sign that both coun-tries are embracing their new roles as global diplomats. As theleading developing democracies, India and Brazil have muchto gain from championing Africa’s development. A collabora-tion for Africa’s food security should be seriously considered.

Policymakers and academics have historically called thistype of collaboration ‘South-South cooperation,’ a term meantto distinguish the mutually beneficial interactions developingnations can have with one another versus the oftenunfavourable relationships they have with Western powers.South-South cooperation has long been a popular catchphrasein the Indian and Brazilian diplomatic lexicon, but it is onlynow, with the emergence of these countries as economic powers, that the expression is beginning to carry any realpromise. By joining forces to bolster Africa’s food security,India and Brazil have the chance to break ground on a tangible South-South agenda that could have a far-reachingimpact on a matter of urgent global concern. n

1. Abate, Groum, 2011, ‘Indian investors upbeat aboutEthiopian agriculture’, Africa Quarterly, vol. 51, no. 2,(May–July), pp. 14.2. ‘Fighting Hunger in Brazil: Much Achieved, More to Do’.2010. Oxfam.3. India Africa Connect, 2010. [Online: web] URL:http://www.indiaafricaconnect.in/index.php?param=India-Africa-Projects/7.4. Kumarat, Suresh, 2011, ‘Agriculture as an Emerging Sector:Mutual Interests of India and Africa’, African Review, April. 5. Matsumoto-Izadifar, Yoshiko, 2008, ‘Senegal – Challengesof Diversification and Food Security’, OECD.

6. Modi, Renu, 2011, ’Partnering for food security’, GatewayHouse, 24 June, at [Online: web] URL: http://www.gateway-house.in/publication/analysis-amp-background/books/part-nering-food-security7. Paarlber, Robert, 2011, ‘Famine in Somalia: What Can theWorld Do About It?’ The Atlantic, 2 August, at [Online: web]URL:http://www.theatlantic.com/international/archive/2011/08/famine-in-somalia-what-can-the-world-do-about-it/242960/8. Rocha, Cecilia, 2009, ‘Developments in National Policies forFood and Nutrition Security in Brazil’, Development PolicyReview, vol. 27, no.1, pp.51-66.

Bibliography

N E W T R A J E C T O R Y


Brazil carries several labels in its interaction with Africa: a South AtlanticPortuguese-speaking developing nationand a part of the Africa-South AmericaSummit. Brazil’s current engagementwith the continent is not a new diplomatic strategy. It reflects anemphasis present since the 1970s and

represents a revision of the Brazilian outlook towards Africa. Brazil had supported Portuguese colonialism in Africa at

the United Nations between the late 1940s and 1950s. But fora short period in the 1960s (the so-called “Independent

Foreign Policy” period1), the country began adopting a different stand on the decolonisation of Africa.

Brazil was then interested in diversifying its internationalpartners and the Foreign Ministry began to articulate an African policy, which became a reality only in the 1970s. If during the 1970s, Brazil sought close ties with the developing world, in the 1980s to 1990s, it began to disengageitself from Africa as a result of several economic crises that hitthe country. It was being said that Brazil had turned its backon Africa (Saraiva, 2010).

Brazil today sees Africa as essential to its success in thepursuit of a greater voice and recognition in the international

BRAZIL & Africa: Challengesand opportunities

Buiding upon its historical ties with the continent, Brazil is navigating new challenges to expand its influence in Africa, says Danilo Marcondes de Souza Neto

Brazil’s President Dilma Rousseff during an official visit to Maputo, Mozambique, with South Africa’s President Jacob Zuma (to her left) and

Mozambique’s President Armando Guebuza (to her right) on October 19, 2011. Photo: Agência Brasil

1. ‘Brazil’s Independent Foreign Policy’ period lasted from 1961 to 1964. In this period, Brazil expanded its relationship with new partners, includ-ing countries in Asia, Africa and Eastern Europe.



arena. Brazilian elites believe that, given its size, population andthe size and strength of its economy, the country’s role andposition in the international arena is smaller than what itshould be. The Brazilian government, to reduce the gapbetween Brazil’s aspirations and the reality of internationalpolitics, has appointed several of its nationals to run for elections in international bodies such as World TradeOrganisation, United Nations Educational, Scientific andCultural Organisation (UNESCO) and Food and AgricultureOrganisation (FAO). And in this bid, the support of Africa,which has over 50 votes, is essential.

For example: In June 2010, José Francisco Graziano waselected FAO Director General (for the 2012-2015 tenure)because his campaign on food security appealed to developing countries, especially African nations. He had beenBrazil’s special minister for food security and hunger for twoyears during Lula da Silva’s first government. And when hetook over the new post at FAO inJanuary 2012, he said Africa wouldbe a priority area during his term.2

When it comes to Brazil’sengagement with Africa, its diplomats and the country’s representatives overseas display ahigh degree of professionalism.

As compared to other LatinAmerican countries, Brazil hasmore diplomatic representations inAfrica, with 37 embassies.Seventeen of these opened during Lula da Silva’s tenure (2003-2010). The United States has 49 embassies in the continent, followed by China, 48, France, 36 and Russia, 38.Several emerging economies like Brazil are trying to deepentheir presence in Africa: Turkey has 31 embassies (20 of whichwere opened in the last three years)3 and India has over 30.

AfricA policy during lulA’s tenure

In 2002, Brazilians elected a Leftist politician as their president for the first time since independence in 1822. Lulada Silva, leader of the Worker’s Party (Partido dosTrabalhadores or PT) and a former trade unionist, received53 million votes or 62 percent of the valid votes in his fourthbid for the top job. In his inauguration speech in January 2003,Lula talked about his interest in strengthening the bondbetween Brazil and Africa to help the continent reach its fullpotential (IPEA, World Bank, 2011, p.43).

In fact, even before this, Marco Aurelio Garcia, foreign policy adviser to the Worker’s Party, and later the presidentialadviser on international relations, had said that Brazil neededan African policy4.

Lula campaigned to change the country’s political systemand develop policies that benefited the majority of the population historically marginalised in the absence of inclu-sive policies.

On foreign affairs, he promised to strengthen Brazil’s presence abroad by promoting a sovereign and independentpolicy, including a proactive engagement with the GlobalSouth, especially South America and other countries withsimilar background and aspirations, such as China, India andSouth Africa.

Brazil’s desire to prioritise relations with the Global South,including Africa, is illustrated by the high number of presidential visits to the continent. Both former presidentsFernando Henrique Cardoso (1994-2002) and Lula (2003-2010) served two terms. However, Henrique visitedonly three African nations where as Lula visited 27 on 11 different occasions. Lula also distanced himself from his

predecessor, who was criticised foremphasising Brazil’s relations withEurope and the United States and“forgetting” regions within the South,such as Africa (Saraiva, 2002).

Lula’s decision to bring about achange in Brazil’s international imageneeded the country’s diplomatic corps’collaboration. Brazil’s foreign ministryhas always maintained a level of autonomy on policy-making, evenduring the military rule from 1964 to

1985. While some principles of the Brazilian foreign policy— such as non-intervention, the emphasis on internationallaw, multilateralism and restrictions on the use of force —were preserved, the authorities began to use a more assertivespeech in defending the country’s interests.

In these speeches, Africa was a priority, as part of Brazil’scampaign for an inclusive agenda in terms of economic andpolitical participation on the part of Southern states.

Brazil’s strategy for Africa under the Lula government hadtwo fronts: cooperation with South Africa, due to the country’s economic potential and influence in SouthernAfrica; and cooperation with the Portuguese-speaking countries which had received the Brazilian government’s support to become independent from Portugal in the mid-1970s and currently receive 70 percent of all Braziliantechnical cooperation to Africa (IPEA, 2010).

During the Lula government, the continent becameBrazil’s fourth-largest commercial partner. Trade betweenBrazil and Africa increased from $4 billion in 2000 to $20 billion in 2010 ( IPEA, World Bank, 2011, p. 83). Between2003 and 2010, 48 African heads of state (including presidents

As compared to otherLatin American countries,Brazil has more diplomaticrepresentations in Africa,with 37 embassies.Seventeen of theseopened during Lula daSilva’s tenure (2003-2010)

2. Andrei Netto ‘A África será minha prioridade, diz Graziano’, Estado de São Paulo, January 4, 2012.3. See: João Fellet ‘Brasil tem 5ª maior presença diplomática na África”‘, BBC News Brasil, October 17 2011,

Source: http://www.bbc.co.uk/portuguese/noticias/2011/10/111017_diplomacia_africa_br_jf.shtml Access on January 3, 20114. Marco Aurélio Garcia ‘PT negociará ALCA’ Correio Braziliense, Ocotber 25 2002, p 19.



and prime ministers) visited Brazil and 67 African foreignministers visited the country (IPEA, World Bank, 2011, p. 123). In 2009, the Brazilian National Bank for Social andEconomic Development (BNDES) started a $265-millionline of credit and another worth $360 million in 2010 for companies willing to do business in Africa (IPEA, WorldBank, 2011, p. 7).

Lula also took some social initiatives. In his first year aspresident, a new law made it mandatory for public and private schools in Brazil to offer classes on African and Afro-Brazilian history5. This caused some apprehension in the educational system since it lacked resources and professionals to teach these subjects.

Another initiative, in 2006, was the creation of the post ofSecretary for the Promotion of Racial Equality Policies, toimprove living conditions of Afro-Brazilians and other historically marginalised groups, such as indigenous people.Racial inequality and discrimination is a reality in Brazil andreflects in its external affairs. In 1961, Brazil had sent an Afro-Brazilian writer to Ghana to serve as ambassador.However, it was only in 2011 that the first Afro-Braziliancareer diplomat was promoted to the rank of an ambassador6.

On diplomacy, Lula continued the scholarship programmestarted by president Cardoso in 2002 for Afro-Brazilians

through which theyreceived financial assistanceto prepare for admissioninto the national diplomatictraining institute. A diplo-mat’s is an elite career inBrazil and the examinationfor it is one of the mostcompetitive in the Braziliancivil service. The scholar-ship aimed at makingBrazil’s diplomatic bodymore representative of thecountry’s racial diversity.

During the Lula government, Brazil’s rela-tions with Africa alsoincluded the setting up in2003 of the India-Brazil-South Africa DialogueForum (IBSA). The forumhas a development fund thathas financed projects in

Guinea-Bissau, Cape Verde, Burundi, Palestine and Haiti(White, 2010, p. 238). Bi-regional cooperative efforts alsoinclude the 2004 Mercosur7-Southern Africa Customs Unionpreferential trade agreement, which evolved from the 2000Mercosur-South Africa free-trade agreement (IPEA, WorldBank, 2011, p. 119). Recent initiatives include the Africa-South America Summit (ASA), which the Nigerian head ofstate proposed during Lula’s visit to the country in 2005. It waslaunched in 2006, followed by the South America-Arab StatesSummit (ASPA) in 2005, which has 10 African nations.

Also, during Lula’s regime, Brazil established a diplomatic representation in São Tomé and Príncipe in 2003,the last Portuguese-speaking nation to have a Brazilianembassy. It was also under Lula that Brazil established diplomatic relations with Central African Republic, the lastAfrican nation to obtain diplomatic recognition from Brazil8

before the independence of South Sudan in July 2011. Braziland South Sudan already have diplomatic relations.

The Brazilian government’s intention to strengthen itsrelations within the Global South, however, faced criticismfrom businessmen, analysts and former diplomats associatedwith the Cardoso government. Brazil’s approach to Africa alsobecame controversial, when Lula met leaders, who, as per theWest, had low or non-existent democratic credentials.

Former president of Brazil Lula da Silva with current President Dilma Rousseff during the opening ceremony

of a bridge over Rio Negro on October 25, 2011. Photo: Agência Brasil

5. Law 10693 was sanctioned by the president on January 9, 2003 and can be located at: http://www.planalto.gov.br/ccivil_03/leis/2003/L10.639.htm.Access on January 4, 2012.

6. For the best account of Brazil-Africa relations between 1960 and 1980, including Sousa Danta’s impressions of his time in Africa, see: Jerry Dávila,‘Hotel Trópico: Brazil and the challenge of African decolonization, 1950-1980’. Durham, Duke University Press, 2010.

7. Mercosur refers to the Southern Common Market, created in 1991 and includes Brazil, Argentina, Uruguay, Paraguay as full members and otherSouth American states as associated states.

8. Diplomatic relations between Brazil and the Central African Republic were established on April 27th , 2010. Source: http://www.itamaraty.gov.br/sala-de-imprensa/notas-a-imprensa/estabelecimento-de-relacoes-diplomaticas-com-a-republica-centro-africana Access on January 4 , 2012.



Lula was criticised for meeting Equatorial Guinea’s President Teodoro Obiang Nguema Mbasogo in July 2010,Paul Biya, the President of Cameroon, in April 2005, Denis Sassou-Nguesso, the President of Congo, and Blaise Compaoré, the President of Burkina Faso, in October2007 and Muammar Gaddafi, the Libyan dictator, twice, the latest in July 2009.

On Equatorial Guinea, the government was under pressure from Brazilian and Portuguese activists not to support Mbasogo’s desire to make his country a full memberof the Community of Portuguese Speaking Countries(CPLP). Equatorial Guinea became an observer associate stateof the organisation in 2006. A final decision on its status wasto be taken in 2010, but a series of protests in the CPLP led tothe postponement of a summit meeting in 2012. Brazil’s former foreign minister Celso Amorim supported EquatorialGuinea’s entry. He said that bringing the country closer toBrazil and other Portuguese-speaking countries would havea positive effect on the political situation.

Nonetheless, the controversy generated from Lula’s visitsto Libya and the status of Equatorial Guinea has not beenenough to reduce the symbolism of Brazil reaching out toAfrica. In April 2005, Lula, accompanied by ministers, wentto the island of Gorée in Senegal, which had a fortress fromwhich Africans were once shipped as slaves to the Americas,including Brazil. Echoing a similar visit by Pope John Paul IIin 1992, Lula apologised for the use of African slaves in Braziland recognized Brazil’s historic debt to Africa. At the ceremony, Senegal’s President Abdoulaye Wade called Lula“Brazil’s first African president”9. Under Lula, diplomats hadstressed that Brazil, with 76 million Brazilians of African

descent, had the second-largest African population in theworld after Nigeria.

Although symbolism has played an important role in theBrazilian government’s relations with Africa, its approachtowards the continent is also pragmatic and strategic.

During his visit to Africa in July 2004, Lula waived offGabon’s $35-million debt to Brazil, saying that this amountwould be converted into credit for Brazilian companies thatwant to invest in the country.

Brazil, like other countries that want to be permanentmembers of the United Nations Security Council, knowsthat Africa’s support is essential for a successful candidacybecause of the large presence of African states in the UNGeneral Assembly. Lula, in fact, discussed reforms in theSecurity Council and a permanent seat in the council, duringhis visit to Cameroon, Guinea-Bissau, Nigeria, Ghana andSenegal in April 2005.

The fact that African nations could not reach a consensuson which states could have permanent seats set aside for theAfrican continent was a frustrating outcome for Braziliandiplomacy, which had expected a real reform of the SecurityCouncil on the UN’s 50th anniversary in 2005. Brazil hasbeen seeking a permanent UNSC seat since the 1990s, a pleaconnected to its aspirations from the time of the League ofNations.

Lula’s commitment to Africa and his popularity in the continent is still used to garner support for Brazil’s involve-ment in the continent. After leaving office at the end of 2010,Lula headed the Brazilian delegation in the African Union’s17th General Assembly session in Malabo in June 201110.

AfricA policy during rousseff’s tenure

Dilma Rousseff, Brazil’s first woman president, took overfrom Lula in January 2011. Though coming from the samepolitical party and sharing a similar perspective on promotingBrazil’s development, Rousseff has kept a low profile and hastravelled lesser. In fact, she has made some foreign policychanges that involve distancing Brazil from the Iranian government and seeking closer relations with the UnitedStates (Barack Obama visited Brazil in March 201111).

As president, her first visit to Africa was to attend the IBSA Summit in South Africa in October 2011. The trip also included visits to Angola and Mozambique, the two traditionalallies of Brazil, and important markets for its state-owned and private companies.

In her tenure, Mozambique continues to be a major partner. The Brazilian mining company, Vale do Rio Doce, is building a coal mine there. The project also includes theconstruction of a 210-km railway line to export coal andexpects to double the coal production in the country by 201412.

Fernando Henrique Cardoso, who served as the president of

Brazil from 1995-2003. Photo: Agência Brasil

9. See: Francisco Leali ‘Perdão pelo que fizemos’, O Globo, April 15, 2005.10. See: Sandra Manfrine and João Domingos, ‘Dilma escolhe Lula para chefiar missão diplomática na Africa’, Estado de São Paulo, June 28, 2011. 11. See: ‘Obama’s Brazil visit: Fresh start for ties’, BBC News Latin American and Caribbean

Source: http://www.bbc.co.uk/news/world-latin-america-12731912, Accessed on January 3, 2012.12. See Tânia Monteiro, ‘Dilma defende direito dos governos locais’, Estado de São Paulo, October 20, 2011.



She has also included Africa in Brazil’s new commercialpromotion strategy. All over the world, the Brazilian govern-ment is looking to strengthen the commercial promotioncapacity of its diplomatic representations.

Based on economic growth projections and expecteddemand for Brazilian goods, 12 diplomatic posts in Africawere selected to receive more staff. These posts are in thecities of Khartoum, Tripoli, Rabat, Cape Town, Dakar,Lusaka, Kinshasa, Brazzaville, Lagos, Tunis, Addis Ababa andDar es Salam.13

Also, to boost commercial relationships with Africa, theBrazilian National Bank for Economic and SocialDevelopment (BNDES) has opened a line of credit forBrazilian companies that want to enter the continent. The bank will focus on companies in energy, medicine, banking services, bio-fuel and agriculture sectors. These sectors will complement the three other sectors of oil and gas,infrastructure and mining in which Brazilian companies haveinvested heavily. The bank also wants to increase the exportof high-value industrial equipment, such as electrical and agricultural machinery, to Africa.14

Brazilian multinational companies have been present inAfrica in construction and mining since the 1980s. Odebrecht,a civil engineering and infrastructure company, is today thelargest private employer in Angola, with 14,000 employees, 95percent of them Angolans. Recent partnerships see Africa as amarket for airplanes and executive jets, manufactured byEmbraer. The Brazilian company has sold 130 airplanes to 47airlines in 19 countries.15

However, Brazil’s relationship with Africa in the Rousseffgovernment is not merely commercial. Since Brazil has a non-permanent seat in the UNSC 16, it was called to take a position on Africa’s security problems. On the political crisisin Ivory Coast, the government supported a negotiated solution and expressed concern over the possibility of a military intervention. Brazil held a position similar to otheremerging powers such as India and South Africa, also servingas non-permanent seats in the UNSC. Brazil has traditional-ly expressed concern on UNSC resolutions that called for “all means necessary” (meaning the authorisation of militaryforce, as per the UNSC resolution of 1975) to resolve conflicts, such as the one in Ivory Coast. Brazil, with India andSouth Africa, has said that the African Union should play aleading role in helping find a solution to the crisis in the country. Although Brazil favoured protecting civilians whowere under threat in the country, it was concerned about thepossibility of expanding the mandate to include other

functions, such as military intervention, which, it felt, couldbring more harm than good.17

Brazil has also made contributions to peace and security inAfrica by sending in military and police observers to variousUN missions and by serving as chair of the Guinea Bissauworking group in the UN Peacebuilding Commission.

development cooperation

Brazil has been receiving development cooperation sincethe 1950s, especially in its north and northeast regions. As earlier described, in the 1970s, Brazil tried to deepen anddiversify its foreign relations and became a provider of development cooperation as well as continued to be a recipient. It was only under Lula’s regime that Brazil startedbecoming an important non-DAC (Development AssistanceCommittee) donor18. Several African and Latin Americancountries were the first to receive aid from Brazil and continue to be the focus of Brazil’s aid programme.

The Brazilian government19 and external actors, such asOverseas Development Institute (ODI), are key players in thecountry’s aid programme. Brazil rarely provides aid in cash,preferring to implement capacity building and professionaltraining initiatives (ODI, 2010; IPEA, 2010). The coopera-tive efforts are coordinated by the Brazilian CooperationAgency (Agência Brasileira de Cooperação (ABC). The agency was created in 1987. But it lacks institutionalautonomy and remains a branch of the Foreign Ministry. It isstaffed by career diplomats and other foreign ministry officialsand by staffers hired on contract with the United NationsDevelopment Programme (UNDP) in Brazil.

Therefore, there is a need to create a professional career,within the civil service, of employees exclusively dedicated tointernational cooperation. At the moment, the Brazilian presidency is analysing a project to include the creation ofsuch a category. In addition to the problems with staffers andthe lack of autonomy, Brazilian cooperation is dispersed overa group of more than 120 institutions, including several ministries (Sousa, 2010, p. 3).

By the end of 2010, Brazilian and international media started noticing the country’s new role as a provider of development cooperation. At that time, ABC was developing77 technical cooperation projects, more than half of them inAfrica. In 2009, African nations accounted for 50 percent ofABC’s budget and in 2010 this increased to 60 per cent (IPEA,World Bank, 2011, p. 45).

As mentioned, it was during Lula’s government that Brazilraised its profile as a provider of cooperation as part of a desire

13 See Daniel Rittner, ‘Governo usará embaixadas em ofensiva comercial’, Valor Econômico, November 15, 2011. 14. See: Ricardo Leopoldo, ‘BNDES vai apoiar negócios com a África’ Estado de São Paulo, November, 17 , 2011. 15. For the website of the company see: http://www.embraer.com/pt-BR/Paginas/Home.aspx , Access on January 3, 2012. 16. Brazil was a member since 2010 and left the Security Council at the end of 2011.17. Eliane Oliveira e Fernanda Godoy ‘Brasil pede negociação na União Africana’, O Globo, April 8, 2011.18. DAC refers to the Development Assistance Commitee of the Organisation for Economic Co-operation and Development (OECD).19. The Brazilian government only produced its first mapping of Brazil’s development cooperation in 2010, covering the 2005-2009

period. The report was produced by the Institute of Applied Economic Research (IPEA).


for greater participation in international politics. A report fromthe Institute of Applied Economic Research (IPEA) says thatBrazil received $2 billion in development cooperation andprovided $1.7 billion between 2009 and 2010. IPEA has calculated Brazil’s agrreggated development assistance, including technical assistance worth $480 million, its expenses on peacekeeping missions, like the one to Haiti, aswell as budgetary contributions to UN agencies such as Foodand Agriculture Organisation (FAO) and the World FoodProgramme (IPEA, 2010).

During Lula’s tenure, emphasis was on agricultural cooperation with Africa. To help Brazil’s domestically developed technology, Lula stressed on energy sufficiency andpromoted sugarcane-based ethanol production to help reducethe country’s dependency on fossil fuels. The BrazilianAgricultural Research Corporation (EMBRAPA) opened anoffice in Accra in 2006 and today has projects in 13 Africannations. Brazilian plants and seeds have been introduced inAfrica for over 20 years (Sotero, 2009, p 20).

Africa has also benefited from the social programmesimplemented during Lula’s tenure. Representatives from several African countries visited Brazil as part of the Africa-Brazil Cooperation Programme on Social Protection(ABCP) to learn about these programmes which focus onsocial development strategies, child labour reduction and cashtransfers, creating incentives for families to send children toschools (Sotero, 2009, p. 19).

Brazil, along with China and India, is also interested in thearable land available in Africa. In August 2011, the governmentof Mozambique allocated 6 million hectares to a group ofBrazilian farmers to plant soy, corn and cotton. The land wasgiven at a concessional rate for 50 years, and is renewable for

another 50 years. The Brazilian farmers, whowill have to pay the Mozambican governmenta symbolic amount for the use of the land, areinterested in exporting crops grown inMozambique directly to the Chinese market.Mozambican authorities said the decision wasmade because they wanted Brazilian farmers toimplement in Mozambique what Brazil experienced in the 1970s in terms of the expansion of the agricultural frontier. The onlycondition was that 90 percent of the workforceshould be Mozambican.

In the agriculture sector, Mozambique hasthe largest project outside of Brazil by theEMBRAPA. Brazilian farmers are looking forland abroad following an increase in land pricesat home. Similarities between Brazil and Africain terms of climate, vegetation, crops, cultures

and languages facilitate the engagement between the two.Grain production and cattle grazing in Brazil needs conditionssimilar to the ones in several regions of Africa.

Nevertheless, despite cultural similarities and political affiliations, Brazil is also aware of the fact that Africa now hasa competitive scenario in terms of partnerships, and is therefore drawing attention to advantages beyond the common culture. Brazil’s former minister of agriculture,Roberto Rodrigues, has said that China is in Africa to extractits riches where as Brazil’s intentions are technology transferand improvement of the local situation20.

Brazil also wants to reproduce, at the start of 2012, a successful national programme that has increased family-basedagricultural production. The programme will support thecapacity of African and Latin American nations to increase productivity. It wants to designate $640 million for Africa.Ghana and Zimbabwe have already signed agreements withthe Brazilian government while Kenya, Mozambique,Tanzania, Cameroon, Namibia and Sudan have applied forsimilar deals. Brazilian authorities say the programme includesa strategic dimension since it will increase the capacity of Brazilian companies to export agricultural machinery to Africa.21

ABC and EMBRAPA also run a Cotton-4 Project in Mali,which benefits Benin, Burkina Faso and Chad. The projectaims to increase cotton productivity in the four countries toempower local producers and reduce poverty22 (IPEA, WorldBank, 2011, p. 56).

Mozambique has also received Brazil’s cooperation inhealthcare. Lula in 2003 had announced the construction of afacility to produce generic drugs for HIV treatment (Sotero,2009, p. 18). In 2010, Brazil inaugurated a FIOCRUZ23 office


Brazil’s former president Lula da Silva and President of Senegal Abdoulaye Wade at a

parade in Dakar on April 13, 2005. Photo: Agência Brasil

20 Patricia Campos Mello, ‘Moçambique oferece terra à soja brasileira’, Folha de São Paulo, August 14, 2011. 21. Mauro Zafalon, ‘Nove países de candidatam a ter programa Mais Alimentos’, Folha de São Paulo, November 19, 2011. 22. Further information on the project can be found in English at ABC’s website: http://www.abc.gov.br/projetos/Cotton4I.asp 23. FIOCRUZ refers to the Oswaldo Cruz Foundation, a governmental research foundation created in 1900 and renowned for the

production of vaccines and studies on tropical diseases such as yellow fever and malaria.



in Mozambique. Brazil today has 53 agreements in healthcooperation with 22 African nations (IPEA, World Bank, 2011, p. 5).

Education is another area of cooperation. Brazil has been providing scholarships to African students to do their graduate and undergraduate studies in Brazilian public institutions.

Brazil has helped Cape Verde create its first higher education institution in 2006. In 2010, it inaugurated theFederal University for Afro-Brazilian Integration24 for students and teachers from Africa. The university is locatedin Redenção, the first Brazilian district to abolish slavery in1883, before the same ban was imposed across the country in1888 (IPEA, World Bank, 2011, p. 81).

Earlier, a similar initiative was taken in southern Brazil topromote integration with South American nations.

In formulating its development cooperation policy, Brazil,like China and India, does not participate in the Organisationfor Economic Co-operation and Development’s (OECD)Development Assistance Committee (DAC) and does notabide by the Paris Declaration. Therefore, it has drawn criticism from Western donors for not supporting the promotion of democracy and accountability in countries thathave benefited by its aid programmes. Brazil initially refusedto sign the declaration, but agreed to sign it as a recipientcountry and not as a donor.

Brazilian diplomats have said that the cooperative North-South relations are often characterised by the imposition of standards to donors and that the country seesSouth-South cooperation as an alternative to this hierarchicalrelationship (Sousa, 2010, p.2). As aid disbursement is not

systematically reported, it is difficult to assess the resourcesavailable for Brazil’s aid programmes, which vary between$340 million to $1 billion (Sousa, 2010, p. 2). In the words ofLula, Brazil’s development cooperation is not based on thedonor and recipient logic, but on the perception that the initiatives should be an exchange with mutual benefits to allparties involved (IPEA, 2010). Like Lula, Rousseff, while inMozambique, said that local governments should have a sayon how foreign investment was distributed.

In evaluating Brazilian cooperation in Africa, it is important to note that most of the projects were implement-ed less than 10 years ago, making it too recent to properly evaluate the impact of these initiatives (IPEA, World Bank,2011, p. 5). One important element of success for the initiatives is the fact that Brazil only exports social technolo-gy successfully implemented domestically. Brazil’s successstory in Africa involves the perception that it is better to investin a small number of long-term projects in order to promotepartnerships with local actors ( IPEA, World Bank, 2011, p. 40).

Although Brazilian authorities have praised the country’semergence as an important donor contributing to an increasein the country’s international profile, Brazilian NGOs haveexpressed concern because of the lack of financing and theincapacity to compete with African NGOs for internationalassistance. Similar reactions have been recorded in theBrazilian Congress where the representatives from the poor-est states in Brazil have expressed scepticism towards Brazil’srole as a donor. They claim that some regions in the countryhave social indicators worse or as low as some African or LatinAmerican countries that benefit from Brazilian cooperation.

The inaugural ceremony of the second Africa-South America Summit in Porlamar, Margarita Island, in progress on September 27, 2009.

Representatives from 60 countries attended the summit.

24. The university’s website with information in Portuguese can be found at: http://www.unilab.edu.br/ 25. See Janaina Figueiredo and Fabio Fabrini, ‘Dilma: Brasil não pode ter opinião sobre tudo’, O Globo, February 1, 2011



BrAzil And the ArAB spring

The Arab Spring that swept three Northern African countries also impelled Brazil to modify its stance on Africanissues. When questioned about Brazil’s position on theprotests in Cairo, Rousseff, with less than a month in office,was cautious. She affirmed that Brazil could not have a say onan Egyptian internal question.25 The Brazilian governmentsaid that it intended the outcome of the crisis to be a democratic solution that involved social inclusion and prosperity of the population. Foreign Minister AntonioPatriota said that Egypt was an important trade partner and asper the Brazilian government, the protests started in the wakeof frustration about the economic situation and the lack ofsocial inclusion.26

On account of this cautious tone on Egypt and later onLibya, the Brazilian government’s foreign policy decisionswere criticised. Soon after taking office, Rousseff, a formerpolitical prisoner during an earlier military dictatorship, hadsaid human rights would play a central role in the country’sforeign policy.

However, even as Brazil expressed concern about theUNSC’s actions in Libya, it voted in favour of expelling Libyafrom the UN Human Rights Council in March 2011.

The Libyan situation reveals tensions regarding Brazil’sperception of its role in the international arena. Brazil believesthat human rights should play an important role, and is doubtful about the implementation of these rights by outsiders, especially in a scenario where the country had pursued commercial interests that can be threatened by foreign action and could legitimatise emerging normativeprinciples such as the Responsibility to Protect27, which Brazilis uncomfortable with.

Brazil supported the UNSC resolution of 1970 (approvedduring Brazil’s February presidency of the UNSC) thatrequired the Libyan regime to stop human rights violations butabstained from the resolution of 1973 which supported international action (approved in March).

When NATO started bombing Libya, three majorBrazilian multinational construction companies were operat-ing in the North African country (one of them with a 2.3-bneuro contract) along with the Brazilian state oil company,Petrobrás, who had started projects in Libya in 2005. Duringthe bombings, 500 to 600 Brazilians were living in Libya28.

Between 2008 and 2010, Libya had become the seventhmajor destination for Brazilian exports to Africa.29 In March2011, the Brazilian government had rejected calls from theLibyan government to act as mediators between the rebels andthe authorities. Lula had met Muammar Gaddafi on fouroccasions during his twin terms. He had met the leader on twovisits to Libya in 2003 and 2009 and twice in two summits andused to refer to him as a brother and a friend.30

Brazil resisted recognising the National TransitionalCouncil (NTC) as Libya’s government and it was only in Julythat the government sent a senior diplomat to Benghazi toestablish informal talks with the rebels.

According to sources in the Brazilian media, representa-tives of the NTC were not receptive towards the Brazilianenvoy, but assured that all contracts with Brazilian companieswould be honoured.31

In Libya, Brazil found itself in a situation similar to Russiaand China, whose companies also had contracts with theLibyan government which the rebels were threatening to cancel because the countries had opposed NATO airstrikesand UNSC action.32

On meeting the rebels, the Brazilian foreign minister saidthat Brazil would only recognise the rebel government as theofficial government after the United Nations took a positionon the case. Brazil was also the last Western country to removeits ambassador from Tripoli.33 Brazil’s position also expressedsome division in Latin America, where the governments ofCuba, Venezuela and Nicaragua supported Gaddafi and otherstates such as Colombia, Ecuador and Panama recognised the rebel government. Colombia’s president received representatives of the rebel movement in late August andPanama recognised the new government in mid-June.34

Amorim criticised the UNSC resolution of 1973, callingthe document ambiguous and praised the Rousseff government for abstaining from voting in the resolution.

Brazil’s concern was that the language of the resolution infavour of protection of civilians would in practice bring moreviolence to the country, allowing for unlimited military actionfrom Western countries.35

It was only on September 16 that the Brazilian governmentrecognised the new Libyan government after voting in favourof its participation in the UN General Assembly. Brazil’s decision was not shared by other Latin American nations, such

26. Fernanda Godoy, ‘Desigualdade alimenta revolta, diz Patriota’, O Globo, February 11, 2011.27. The idea of claiming that the Libyan case was an example of a Responsibility to Protect case is not without controversy, however, it is not the intention of

this article to discuss the issue. Resolution 1973 does mention the national responsibility of the Libyan state in protecting its civilian population andauthorizes the international community to use all means necessary to protect the civilian population uder attack.

28. Fabiana Ribeiro et al, ‘Itamaraty aguarda para resgatar brasileiros’, O Globo, February 22, 2011.29. Claudia Antunes, ‘Brasil envia equipe para limpar minas líbias’, Folha de São Paulo, November 26 th 201130. Fabiana Ribeiro et al “ Itamaraty aguarda para resgatar brasileiros” O Globo, February 22, 2011.31. See Lisandro Paraguassu, ‘Líbia cumprirá contratos com Brasil, diz Patriota’, Estado de São Paulo, August 24, 2011.32. See ‘Punição inédita no Conselho de Direitos Humanos’, O Globo, February 26, 2011.33. Marcelo Nino, ‘Rebeldes líbios recebem com frieza o enviado do Itamaraty a Benghazi,’ Folha de São Paulo, August 24 , 2011.34. Newton Carlos ‘América Latina exibe dissenso sobre Gaddafi,’ Folha de São Paulo, September 8, 2011.35. Amorim critica texto aprovado na ONU, Estado de São Paulo, March 29, 2011.36. See: clippingmp.planejamento.gov.br/cadastros/noticias/2011/9/17/brasil-reconhece-novo-governo-da-libia, Access on January 3, 2012.



as Venezuela, Bolivia, Cuba, Ecuador and Nicaragua, andAfrican countries such as Angola, Zimbabwe, Malawi andKenya.36

Contemporary events in Libya also revealed some of thepast relations between Brazil and Libya. By the end ofSeptember, several Brazil-made military vehicles, ammunitionand armaments (including 70 mm rockets and vehicles with90 mm cannons) were found in Libyan government warehouses. These products, made between 1975 and 1981,were no more usable, and were sold at a time when Brazil wasan important arms manufacturer in the Third World. Lightarmaments, such as bullets, meant for the Libyan police werehowever, exported in 2005.37

As a goodwill gesture towards the new government, Brazilsent a de-mining team to Libya in November. The team wassupposed to confirm the possibility that some of the landmines, stocked by the Gaddafi regime and used against therebels, were made in Brazil in the 1980s and early 1990s beforeBrazil banned landmine production.

The Brazilian government also donated $100 million to theUN for de-mining in Libya.38

Recent events in Libya and Egypt illustrate that Brazil’sgrowing involvement in Africa will also have to take intoaccount the possibility of political changes in the region. Brazil,India and South Africa faced high visibility on the Libyan

situation because theywere serving on non-permanent seats atthe UNSC then.

Nevertheless, coun-tries that wanted tohave a voice in theinternational arena, willhave to get used to taking a stand on global issues, whetherthey were on theUNSC or not andmight even have toadapt to emergingnorms, such as theResponsibility toProtect.

conclusion

While consideringthe future challenges toBrazil’s presence in

Africa, regional considerations become important. Brazil’slocation in South America is an advantage, in terms of security concerns that otherwise challenge the strategy ofemergence of other countries. Brazil is in a peaceful zonecompared to the surroundings regions of Russia, India andChina. Brazil’s location might also set the limits of its South-South strategy and further cooperation with Africa.

Since the creation of Mercosur in the early 1990s, Brazilhas been pursuing a strategy of uniting South America politically, socially and economically, while staying a regional power. This strategy has led to large Brazilian investments in the region and the country accepting thedemands of its less powerful neighbours such as Bolivia andParaguay and Argentina on trade. South America and LatinAmerica, as a whole, have been playing a crucial role in Brazil’spolicy of South-South cooperation, since the country wantsto assert itself as a regional leader39 and this might limit possibilities of it increasing its presence elsewhere, either inAfrica or the Far East.

The commitments to Haiti show the limitations of Brazil’sglobal aspirations. Ninety-six percent of Brazil’s troop contributions to UN peace missions has gone to Haiti. The troops are part of the Mission des Nations Unies pour lastabilisation en Haïti (MINUSTAH). Because of this, Brazilhas been unable to take part in other UN missions, in places

Former Brazilian president Luiz Inacio Lula da Silva meeting Army soldiers, who were part of the United

Nations Stabilisation Mission in Haiti in May, 2004. Photo: Agência Brasil

36. See: clippingmp.planejamento.gov.br/cadastros/noticias/2011/9/17/brasil-reconhece-novo-governo-da-libia, Access on January 3, 2012.37. Roberto Godoy, ‘Blindados brasileiros são encontrados em Sirte,’ Estado de São Paulo, September 23, 2011.38. Claudia Antunes, ‘Brasil envia equipe para limpar minas líbias’, Folha de São Paulo, November 26, 2011.39. Claudia Antunes, ‘Brasil envia equipe para limpar minas líbias’, Folha de São Paulo, November 26, 2011.40. It is important to stress that while sending an additional military contingent to a location other than Haiti, would pose a logistical challenges for the Armed

Forces, Brazil has also used its military commitments to the Haitian mission as an excuse in order not to be pressured to involve itself in missions in loca-tions it might feel there is a high political risk, such as the Sudan.



1. Barbosa, Alexandre et al, ‘Brazil in Africa: AnotherEmerging Power in the Continent?’ Politikon, vol 36, n. 1,2009, pp 59-86.2. IPEA, World Bank. Ponte sobre o Atlântico. Brasil e Áfricasub-saariana. Parceria Sul-Sul para o crescimento. Brasília, 2011.3. IPEA. Cooperação brasileira para o desenvolvimentointernacional, 2005-2009, Brasília, 2010.4. Saraiva, José Flávio S. ‘The new Africa and Brazil in the

Lula Era: The rebirth of Brazilian Atlantic Policy’, RevistaBrasileira de Política Internacional, vol 53, special edition,2010, pp 169-182.5. Sotero, Paulo, ‘Brazil’s as an emerging donor: Hugepotential and growing pains’, Special Report, DevelopmentOutreach, World Bank Institute, 2009.6. White, Lyal, ‘Understanding Brazil’s new drive for Africa’,South African Journal of International Affairs, vol. 17 n. 2,2010, pp 221-242.

References

such as Sudan and the Democratic Republic of the Congo,limiting its presence to sending military observers and notbattalions.40

Practical challenges also add to the limitations. For Brazilto establish contact with Africa is difficult. There are few flightsbetween Brazil and Africa. At the moment, there are onlythree direct flights — from Fortaleza in north-east Brazil toPraia in Cape Verde, from Rio de Janeiro to Luanda in Angolaand from São Paulo to Johannesburg. To go to other Africandestinations, one has to first fly to Europe or the US. But withseveral non-Western airlines, mostly from the Middle East,now going to Brazil, there is a chance that Brazilians will usethese airlines to reach Africa. In addition, there is excessivebureaucracy which increases the time ships take to travelbetween Africa and Brazil. Another challenge is the stereotyp-ical image of Africa and Brazil (IPEA, World Bank, 201, p. 40).

Returning to political challenges, Brazil’s efforts to expandits commercial space in Africa is part of an effort to offer analternative to the increase in Indian, Chinese, South Korean,Turkish and Malaysian influence on Africa. Brazil is trying topreserve its traditional markets and old political allies such asthe Portuguese-speaking nations and extend its presence tounexplored markets. Brazil’s commercial presence in Africa —70 percent of its exports are to South Africa, Nigeria, Egyptand Angola — is an additional limitation (Barbosa et al, 2009,p 79). Brazil needs to diversify and Rousseff’s initiativestowards this show that they are working at it.

Brazil’s final challenge is the country’s own status as an aidreceiver. Brazil’s new profile as an international donor has led to a decrease in international assistance to projects in thecountry from NGOs in the Northern nations. Since the second semester of 2010, Brazilian media has been reportingthat international NGOs have been leaving the country. They feel it no longer needs attention and financial supportfrom international donors. Statistics have demonstrated that

the average support received by domestic NGOs from international donors has been reduced by 50 percent from2009-2010.41 Most of the aid, the media says, has been relocated to Asia and Africa.42

However, there are some advantages too. Brazil is seen tohave a more balanced approach towards Africa than otheremerging powers. There is a perception of partnership andreciprocity and the creation of a middle ground between theChinese state-led approach and the Indian strategy based onprivate sector investment (White, 2010, p. 239).

Brazilian authorities are aware that the country’s dealingwith Africa takes place in the context of the growing interestof emerging powers in the continent. Lula said that Brazil andChina are competitors in Africa and Brazil needed to promoteits comparative advantages, which included better qualityproducts and providing employment to locals (IPEA, WorldBank, 2011, p.106).

To conclude, two episodes reveal the challenges that Brazilfaces in Africa as it tries to expand its presence. Last December,a young Brazilian diplomat died of malaria after returningfrom a short mission to Equatorial Guinea. Her death was saidto be due to lack of medical care and monitoring on the partof the Foreign Ministry after her return. As a rare gesture,Brazilian diplomats wrote a letter to the minister asking for animprovement in the medical assistance and pre-departure orientation of diplomats told to serve in areas of harsh conditions, such as some countries in Asia and Africa.43

The second episode involves a kidnapping attempt, bypirates off the coast of Tanzania, of a Petrobrás (a Brazilianstate oil company) ship in October, 2011. The attempt wasfoiled by Tanzanian authorities.44

The two episodes show that Brazil will have to deal withnew challenges to increase its presence in Africa, and in a waythat benefits Africa nations as well as Brazil. The Brazil-Africarelationship continues to be a work in progress. n

41. Clarice Spitz & Leticia Lins, ‘Com economia forte no Brasil, ONGs correm risco de fechar as portas’, O Globo, October 17, 2010.42. Duda Teixeira, ‘A caridade foi para outro lugar,’ Veja, August 4, 2010. The European Union has recently announced that it will cut all of its social,

educational and environmental programs in Brazil by 2014. See: Jamil Chade, ‘UE decide acabar com ajuda financeira ao Brasil, Estado de São Paulo,December 8, 2011.

43. ee: http://www1.folha.uol.com.br/bbc/1027964-em-ato-raro-diplomatas-questionam-itamaraty-sobre-morte-de-colega.shtml, Access on January 4, 2012. 44. For information in Portuguese see: http://g1.globo.com/mundo/noticia/2011/10/tanzania-prende-7-piratas-apos-ataque-navio-da-petrobras.html, Access

on January 3, 2012.

A W A K E N I N G


The rise of China and India as economicpowerhouses has transformed international relationships, and engineered a shift in the balance ofpower — from the West to the East.Following them is Russia, buoyed bythe commodities boom, and Brazil,reaping the rewards of economic

reforms, with BRICS (Brazil, Russia, India and China andSouth Africa) becoming an investment and expansion destination of almost all multinational companies from the West.

South Africa, Africa’s economic powerhouse, has alsodeepened its engagement with China, India and Brazil, evenas it has expanded its engagement with the rest of the continent. The acquisition of 25 percent equity in StandardBank by the Industrial and Commercial Bank of China

(ICDC) is a clear indication of South Africa’s role as a nodefor BRICS’ entry into Africa. The emergence of these newsouthern powers on the world stage and their increasingengagement with the African continent shows that the North-South relationship is being superceded by theSouth-East relationship. Africa’s relationship with the global south will have implications for Africa’s development.

The political and economic prominence of BRICS hascoincided with the political and economic gains throughmuch of Sub-Saharan Africa as markets continue to open upto foreign competition and private capital flows pour into the continent.

Spurred largely by China’s foray into the continent,BRICS has turned its gaze towards Africa for future growthbecause of the continent’s untapped market and naturalresources. On account of this increased attention fromBRICS, Africa’s traditional Western trading partners have

The Russian COMEBACKThe Russian government is working towards increasing its share of tradewith the continent, but needs to be more proactive to take on competition

from other countries, says Alexandra Arkhangelskaya

Russian President Dmitry Medvedev with his South African counterpart Jacob Zuma (right), during a meeting in the Russian Black Sea resort of Sochi on July 4, 2011. Photo: RIA Novosti, Presidential Press Service



renewed their interest in the continent for fear of losing their strategic and economic interests to these rising southern powers.

For example, at the conclusion of the first BRIC Summitheld in Yekaterinburg, Russia, on June 11, 2009, the leadersof Brazil, Russia, India and China called for greater representation of developing countries in global financialinstitutions, and for ending the dominance of the US dollaras the world’s standard reserve currency. Such triumphantstatements by the leaders of BRICS have raised hopes inAfrica and the developing world as a whole that the emerging southern powers are likely to represent the interests of developing countries in major internationalforums in order to democratise global economic governance,which is favourable to developing countries.

However, there is apprehension among Africans aboutthe long-term effects of a BRICS-Africa engagement on thecontinent’s development, and whether these new partnerswill forge the same unequal relationship that exists betweenAfrica and the West. After the collapse of the Soviet Unionin 1991, Russia, an ideological friend and ally of severalAfrican nations during the Cold War, started to disengageitself from the continent and other developing countries. Butnow, with it showing a renewed interest in the continent, canwe talk of Russia’s return to Africa?

hiStorical linkSAfrica and Russia have a long history of friendship going

back to the days when the Soviet Union (USSR) assistedmany African countries in gaining independence and helpedend apartheid in South Africa. The USSR supported theAfrican National Congress (ANC) and the South AfricanCommunist Party (SACP) in South Africa, MovimentoPopular de Libertação de Angola (MPLA) in Angola, Frentede Libertação de Moçambique (FRELIMO) in Mozambiqueand Zimbabwe African Peoples Union (ZAPU) inZimbabwe.

The USSR’s initiative in 1960 pushed the UN GeneralAssembly to adopt the ‘Declaration on Granting ofIndependence to ColonialCountries and Peoples’ even assome Western states refused to votefor it. During the time of the erstwhile USSR, more than 50,000African nationals had been trainedin the country’s institutes and universities. Many African leadersreceived training and support fromthe USSR.

During the 1990s, Russia’s relationship with Africa weakened.The USSR’s collapse ended most ofRussia’s ties with African countries.The Soviet ideological mission offostering socialism also ended.

Russia was unable to continue giving subsidies to its “client”regimes. The relationship with Africa dipped in priority, andin 1992, Russia closed nine embassies and four consulates inthe continent. Most cultural centres ceased to exist. From 20centres, only seven are left today. Diplomatic relationshipswith several African states worsened in 1991 when the thenRussian President, Boris Yeltsin, ordered an end to all foreignaid and demanded immediate repayment of outstandingdebts. But gradually, things began to change, not only becauseof Russia’s economic recovery, but also due to a more broadminded and rational perception of the modern worldby a new Russian leadership.

The goal set in the Russian Foreign Policy Doctrine,approved by Russian President Dmitry Medvedev in July2008, is to expand cooperation with African nations on bilateral and multilateral bases within the G-8 and G-20framework1. The Russian president visited Angola, Namibiaand Nigeria in June 2009 and gave an impetus to these crucial bilateral relationships. He was accompanied by a delegation of 400 businessmen and they signed several economic agreements in areas such as mineral resources andnuclear energy.

Medvedev has stressed that Russia’s position in Africaneeds urgent strengthening amid deepening competitionfrom other countries. “At one time, we might have lost interest in the development of relations with the African continent. And now our task is to catch up all that was lost.

We have a lot of good, interestingand important plans and ideas ofhow to develop our cooperation.Russia without jealousy looks for thepresence of other countries in Africa,but she intends to defend its interestson the continent,” he has said.

peacemakingPeace is important to Africa.

And though Russia is not playing aleading role in peacemaking, itspresence in this field is growing.Today, 230 Russian citizens are partof UN peace missions and operations on the continent.

After the collapse of theSoviet Union in 1991,

Russia, an ally of severalAfrican nations during the

Cold War, started to disengage itself from the continent. But now, with it showing a renewed

interest in the continent,can we talk of Russia’s

return to Africa?

Share of world production (2009)

AFRICA RUSSIA

OIL 12.4 16.7

GAS 6.5 24.8

COAL 16.6 6.3

HYDRO 3.0 7.3

NUCLEAR 0.0 9.7

Source: International Energy Agency Statistics

A W A K E N I N G


Russian aviation groups in Sierra-Leone, Sudan and Chadare making special contributions. Up to 400 African peacemakers are annually trained in Russia. At the height of the civil war in Sierra Leone, a Russian contingent of 115 men was deployed there, along with four Russian military transport planes with crews. The UN Commandappreciated the performance of the airmen and awardedpeace medals to some of them. Nine groups of Russian observers were incorporated into UN peacekeeping forces. Twenty-five military observers were dispatched to Western Sahara, 29 to DemocraticRepublic of Congo, four to the UN mission in

Côte d’Ivoire and 40 military experts to the UN operationin Burundi.

In 2006, there were 34 Russian military and police officers in the UN mission in Sudan, and 133 men in an aviation unit. Although the figures are optimistic, they alsoindicate that Russia lags behind many countries in providingpeacekeepers. For example, China sent 1,271 representativesto take part in the UN peacekeeping operations.

aid for developmentRussia has written off $20 billion of debt from several

heavily indebted African countries. Allocations for

trade and economic relationS of ruSSia and african StateS



development aid from the RussianFederal budget grew from $50 million in 2003 to $215 millionin 2006. From 2009 to 2012, Russiaallocated an additional $100 millionas aid to the poorest countries.

Based on Russia’s Participationin International DevelopmentAssistance 2007, the annual allocation to all developingcountries was expected to grow to$500 million. However, the globalfinancial crisis of 2008 compelled theRussian government to change theseprojections. The objective now is toassure a stable trend, leading to theappropriation of approximately 0.7 percent of the grossnational product (GNP) for aid, as recommended by theUnited Nations.

Before 1990, as many as 25,000 Africans received theirhigher education in the erstwhile Soviet Union. Today, 4,050Africans are pursuing higher education in Russia. TheRussian government grants 750 scholarships annually toAfrican students. Unfortunately, many remain unused.

The Russian government in 2008 started the ‘Education

for All’ programme and by 2012, aims to allocate $43 million to the World Bank for the implementation of the international programme of raising the quality of basic education. Russia’s contribution to the Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM) is $40 million. During 2007- 2009, Russia contributed $20 million to the World Bank’s anti-malaria programme for Africa. From 2008 to 2009, Russia paid $18 million

to help World Health Organisation(WHO) to help end polio.

Since 2005, Russia has been making regular payments to theUnited Nations World FoodProgramme (WFP). In 2007, themoney was spent on emergencyfood aid to Kenya ($2 million),Somalia ($1 million), Guinea, theDemocratic Republic of Congo andMali. In 2008, Russia rendered aid to Ethiopia ($4 million) and Kenya($2 million). In April 2008, at thefirst joint meeting of the AfricanUnion and United NationsEconomic Commission for Africa,

Russia’s ambassador to Ethiopia announced a $500 milliondevelopment assistance package and a $20 million aid to theWorld Bank’s anti-malaria programme for Africa.

economic intereStSRussia’s interests in Africa are not focused on natural

resources — the country’s own reserves are significant. (Still,the profitability of production and quality of raw materialsdoes put Africa on the front row). For Russian companies,

Africa, with a population of one billion, is a potential consumer of goods and services.

Medvedev’s visit to Africa in 2009 was projected as aneconomic trip, stressing that its goals was to assist Russianbusiness and develop mutually beneficial relationships withAfrican countries. In Cairo, a 10-year strategic cooperationpact was signed. Under the deal, the supply of arms to Egyptwas to be renewed.

In 2006, there were 34 Russian military andpolice officers in the UNmission in Sudan, and 133 men in an aviation

unit. Although the figuresare optimistic, they also

indicate that Russia lags behind many

countries in providingpeacekeepers

ruSSia - africa trade (value uS$ bn)

8.0

7.0

6.0

5.0

4.0

3.0

2.0

1.0

02000

Export

Import

TotalTrades

2005 2006 2007 2008 2009

Source: UN COMTRADE, AfDB


A W A K E N I N G

Russian Host Country/ Industry Type of Value YearInvestor Company Investment

Norilsk Nickel South Africa Gold mining and M&A (acquired 30% US$1.16 billion 2004

Gold Fields processing of gold fields)

Norilsk Nickel Botswana Nickel mining M&A (acquisition of US$2.5 billion 2007

Tati Nickel and processing Canada Lion Ore

Mining gave it 85%

state in Tati Nickel)

Sintez South Africa, Oil, gas, diamonds Greenfield exploration US$ 10-50 million 2006

Namibia and and copper

Angola exploration

Lukoil Côte d'Ivoire Oil exploration M&A (acquired US$900 million 2010.

interest in 10,500

square km deep

water blocks

Rusal Nigeria Aluminum M&A (acquired US$250 million

ALSCON refining majority stake in

Aluminum Smelter

Company- ALSCON

of Nigeria)

Severstal Liberia Iron ore M&A (acquired control US$40 million 2008.

of iron ore deposit in

Putu Range area of

Liberia- ALSCON

of Nigeria)

Gazprom Algeria Natural gas Joint exploration and US$4.7 billion 2006.

Sonatrach exploration development projects and US$7.5 billion

by debt write-off

agreement and

rams deal

Alrosa Angola, Namibia Diamond mining Greenfield investment US$300- 1992.

and DRC and hydroelectricity 400 million

Rosatom Egypt Nuclear power Ongoing negotiations US$1.8 billion 2010.

to build Egypt's first

nuclear power plant

(Sources: Media and Russian company websites)

(Russia's Economic Engagement with Africa. Africa Economic Brief, Volume 2, Issue 7, May 11, 2011.)

major inveStmentS of ruSSian companieS in africa



The Russian government-owned RosAtom is aiming fora $1.8-billion contract to help build the first nuclear powerplant in Egypt, almost half of the going rate of $3.5 billion perreactor. RosAtom’s presence would threaten the chances ofFrance’s Areva, General-Electric-Hitachi and Toshiba breaking into the civilian nuclear market in the Middle East.

Next, Medvedev went to Nigeria, Africa’s largest exporterof oil. A $2.5-billion joint project between the Russian government-owned Gazprom and Nigerian NationalPetroleum Corporation (NNPC) to develop large oil andgas fields and lay a gas pipeline fromNigeria to Europe was discussed.But Gazprom failed to make the deal a reality.

In Angola, Medvedev finalised anagreement on economic cooperationand arranged a $300-million loan tosupport the launch of Angolan satellite ‘Angosat’. Also, Russianresources company Zarubezhneft isseeking greater access to Angolan oil fields and wants to broaden cooperation with Angolan state oilcompany, Sonangol.

Meanwhile, many Russian companies are seeking access to

Namibian uranium reserves. Leading Russian companiessuch as Alrosa, Rusal, Renova, Rosneft and Gazprom areeither involved in Africa or are seeking deals there.

Yet, Russia’s trade with Africa is far behind that of Chinaand India, let alone the United States. Russia’s enormousenergy resources are located in areas that are inaccessible,sparsely populated and have an unfriendly climate. So developing these areas would be costlier than developingthe same resources in Africa.

Some African leaders are still grateful to Russia for its assistance in their liberation struggles, but they need delivery, notdeals. Russia’s record is not commendable on this count. Thecompetition for Africa is under way.In recent years, the traditional pool ofplayers: Europe, U.S. and Japan —followed by BRICS and then SouthKorea, Vietnam, Indonesia, Turkeyand the Gulf countries, have becomeactive on the continent.

The business community seemsunaffected by the changing investment climate in Africa: if inBotswana, all seems well politicallyand economically, there was a civil

Russia’s trade with Africais far behind China andIndia, let alone the U.S.

Russia’s energy resourcesare located in areas that

are inaccessible and havean unfriendly climate. Sodeveloping these areaswould be costlier thandeveloping the sameresources in Africa

Russia’s Gazprom Group drilling for the first prospecting well, Rhourde Sayah-2, within the El Assel licence area in Algeria. The project began in March 2101. Photo: www.gazporm.com


A W A K E N I N G

war-like situation in the Democratic Republic of the Congo.But all the risks pale before the abundance of cheap labourand favourable weather conditions, providing one of the highest rates of return for economic projects and trade. As foreconomic cooperation, there is common ground. Africa andRussia own over 60 percent of the world’s natural resourcesand their interaction in this field is natural and will benefitboth sides.

However, Russia is short of several minerals, which is covered by imports: manganese (100 percent), chrome (80 percent) and bauxite (60 percent). The main bauxite supplier is Guinea — one of the world leaders in bauxite production. The deposits of 35percent of minerals in Russia,including manganese, chrome,bauxite, zinc and tin — are losingprofitability. The bulk of undevel-oped deposits are buried in theremote areas to the east of the UralMountains. It is less expensive toextract and transport minerals fromAfrica than to mine these depositsin Siberia and the Far East. Africahas 30 percent of the planet’s natural resources and partnershipswith its countries in raw materialscan be beneficial.

Russia will have to compete for African resources withEurope, the United States, China, India and other emergingpowers. Russia and China have irreconcilable geopoliticalinterests in Africa. Russia is resource-rich while China isresource-poor. Both countries have, however, cash reservesto invest in the African economy, but China has better accessto financial resources, because the Chinese government helpsChinese investors in Africa and they receive money from Exim-Bank, China Development Bank and its FundChina-Africa.

Russia’s trade with Africa is low compared to others inBRICS. China’s share in BRICS volume of trade with Africa

is 2/3, India’s 20 percent, Brazil’s 11 percent and Russia’s 4 percent. From 2003 to 2009, China invested$28 billion in 86 projects in Africa,India $25 billion in 130 projects; Brazil$10 billion in 25 projects and Russia$9.3 billion in 47 projects2. Russia’strade turnover with Africa in 2010 was$8.66 billion, and half of it came fromEgypt. But China’s trade with Africa in2008 exceeded $100 billion and in2010, it stood at $114.6 billion3.

There is a lot of room for expansion in Russia-Africa trade.According to the Federal Customs

Russia’s trade with Africais low compared to othersin BRICS. China’s share in

BRICS volume of tradewith Africa is 2/3, India’s20%, Brazil’s 11% and

Russia’s 4%. From 2003 to2009, China invested

$28 billion in 86 projects inAfrica and India $25 billion

in 130 projects

The Rössing Uranium Mine in Namibia, one of the largest open-pit mines in the world, located in the Namib Desert.



Service, the share of southern Africa, including South Africa,in trade with Russia is 0.1 percent. (The share of Brazil is 1 percent, India 1.6 percent and China 7 percent). This lowshare does not correspond to the level of the political relationship. Russian foreigndirect investment (FDI) in Africa is $5 billion, with a totalinvestment of to up $10 billion.The FDI is led by large multina-tionals. The largest companiesoperate in oil and gas, and thesmaller ones in the processing ofmetals. (“Russia’s EconomicEngagement with Africa”. AfricaEconomic Brief, Volume 2, Issue7; May 11, 2011.)

There are 18 big Russian companies active in 13 countriesof Africa. The total amount ofexisting and planned projects is 40.Most active are Gazprom (eight projects), Lukoil (six), Alrosa,Rusal, Renova, Rosatom, Norilsk-Nickel, Sintez (three each).The leading host countries are South Africa (10 projects),Libya (seven), Angola (five), Algeria, Democratic Republic ofCongo and Namibia (four each), Nigeria (three), Egypt,Botswana, Côte d’Ivoire, Ghana and Togo.

Some important Russian projects in Africa include —

diamond extraction in Angola (Alrosa),building Nigeria-Alger (Gazprom), extract-ing nickel in Botswana (Nornickel), devel-oping oil deposits in the coastal zone of Côted’Ivoire and Ghana (Lukoil), developingmanganese and vanadium deposits in SouthAfrica (Renova and Evraz) and extracting oilin Equatorial Guinea (Gaspromneftegas).Most projects are not complete with manyRussian companies registered abroad. Alongwith the exploitation of mineral resources,the major areas of Russian cooperation withAfrican countries include energy, infrastruc-ture, telecommunications, fishing, educa-tion, health, tourism and the military (tech-nical assistance). The approximate cost ofRussian assets currently in Africa is $3-3.5billion.

However, there are a number of obstaclesto the development of Russia-Africa relationship. One is the lack of knowledge inRussian government and business circles

about the actual situation and specific counterparts in Africa,consequently, potential areas of partnerships have been underexplored.

First of all, Russia needs to build a foreign policy to reflectthe interests of Russian business.There are some positive trends inthis direction, but everything isbeing done slowly. And, unfortu-nately, Africa is still not among thepriorities of the Russian foreignpolicy. The effectiveness ofRussia’s new engagement in Africaremains to be seen.

Many potential Africanexporters still have negative perceptions about Russia and itsmarket, often comparing it toexport opportunities offered by theUnited States, Europe and China.Experts say Russia’s market is yet to

open up and African exporters do not understand Russianbusiness approaches and strategies well.

Thus, the demand for informational and financialsupport to Russian business entering African markets ishigh. Apparently, Russia is rapidly becoming aware of itsinterests in Africa and is trying to catch up for lost decadesin the continent. n

1. Russia introduces its new Foreign Policy Concept. People’sDaily Online. July 17, 2008.

2. El Pais (Spain). March 15, 2010. 3. The Telegraph (London) February 24, 2011.

References

There are a number of obstacles to the development

of Russian-African relationship. One is the lack

of knowledge in Russian government and business circles about the actual

situation in Africa, consequently, potential

areas of partnerships havebeen underexplored

An artist’s perception of Angosat, the $327-million satellite Angola is preparing tolaunch with the help of Russian space technology.


A S I A N C H A L L E N G E

India and China, the two emerging econom-ic powerhouses of Asia, have made no secretof their desire to engage Africa as they seeknew partnerships to fuel their boomingeconomies. Besides their decades-old tiesand major thrust provided by the South-South cooperation, the deepeningrelationship of the two countries with the

region is understood to have a significant impact on theeconomic transformation of Africa.

It is in this context that an analysis of the current interests of China and India and their role as drivers of growth in developing East African economiessuch as Tanzania is of immense importance.

Developmental aiD

In recent years, India and China have increased theiroverseas developmental aid to low-income countries, especially those in Sub-Saharan Africa.

China

The existing data indicate that Chinese aid to African coun-tries has exceeded the aid provided by many traditionaldonors. But China prefers to keep the details of aid given toAfrican countries a closely guarded secret. There could bethree possible explanations to this.2 First, the Chinese gov-ernment feels that their own people may object to such aidas the fund could instead be utilised for the welfare of thepoor in China. Secondly, China feels that information aboutaid is sensitive for recipient countries, as they argue that itis up to African countries to decide if they wish to report thevolume of aid. Thirdly, China does not want African coun-tries to compare with each other the amount of Chinese aidreceived by them.

We, however, believe that the Chinese government is notvery open in this regard because of the traditional commu-nist penchant for secrecy that has been eventually extendedto its aid relations with Africa.

China has had aid cooperation with Africa since the

Engaging TanzaniaWith India and China looking for expansion in Africa, their pattern of

engagement in the continent may have wider repercussions for countriessuch as Tanzania, say Darlene K. Mutalemwa and Deo P. Mutalemwa

Prime Minister Manmohan Singh and Tanzanian President Jakaya Mrisho Kikwete visiting the Tele-Medicine Unit, at

the India-Tanzanian Centre in Information and Communication Technology, in Dar es Salaam, Tanzania on May 27, 2011.



1950s and 60s when China began establishing agriculturaland health projects and building factories in the new Africanstates that were emerging out of colonial bondage. The Tanzania-Zambia Railway (TAZARA) is perhaps themost suitable example of early Chinese lending. Built in theearly 1970s, the $500 million-project that employed approx-imately 50,000 Chinese was the largest foreign aid projectundertaken by China at the time. The project entailed the building of a 2,000-km railway line between the copper belt region in the landlocked Zambia and the portin Dar es Salaam.3&4

In Tanzania, China has been providing technical assistance to other sectors as well, including, agriculture,industry, mining, and social services. Specific projects thatbenefited from China’s assistance also included theTanzania-China Friendship Textile Mill, which isTanzania’s largest textile factory, built in the 1960s, theMbarali Rice Farm (privatised in 2006) and China SisalFarm that offered Tanzania an insight into Asian methodsof planting, harvesting and cashing in on both grain and cashcrops.

The Wami-Chalinze and Dodoma water projects havebeen financed jointly by Tanzania and the Chinese gov-ernment, while another project was the 60,0000-seaternational stadium built at a total cost of $43.5 million — 53percent of the cost financed by the government ofTanzania and 47 percent ($20.5 million) financed through

a soft loan from China.5 The station opened in 2007.In the field of social services, since1968 China has been

regularly dispatching medical teams from ShandongProvince to Tanzania. In 2009, approximately 1,000 medi-cal workers were sent to the country. The Chinese medicalworkers often share their knowledge by teaching localTanzanian health practitioners the Chinese system ofmedicine.6

Analysts say that China’s aid to Tanzania and otherAfrican countries is unconditional as compared to foreignaid by Western countries, which typically demand compli-ance with human rights, strong free-market economic man-agement, environmentally responsible policies and politicalopenness on the part of recipient governments.

Chinese aid is also directed towards infrastructure projects in difficult terrains such as remote rural roads,bridges over deep escarpments and fast flowing rivers anddeep-sea ports, which traditional Western donors are reluctant to fund.7 Thus, African governments valueChinese aid for helping to dis-enclave economies, therebyspurring economic growth and making businesses morecompetitive.

india

As for India, concrete statistics on her aid to Tanzania arealso difficult to get as India does not report its aid flows tothe Organization for Economic Cooperation and

Development (OECD) andthe Development AssistanceCommittee (DAC), thedonors’ club establishedwithin the OECD. However,Tanzania has been one of thelargest aid recipients ofIndia’s bilateral OverseasDevelopment Aid (ODA)outside South East Asia.8

India’s ODA to Tanzania is amix of project assistance, pur-chase subsidies, lines of cred-it, travel costs, and technicaltraining costs incurred by theIndian government and evenextends to the defence sector.

In addition, an outstand-ing technical assistance project9 was established in1973. The National SmallIndustries Corporation(NSIC) of India continues tosupport the Small IndustryDevelopment Organisation(SIDO) in Tanzania that isnow an established organisa-tion with branches throughoutTAZARA Railways, a 2,000-km-long railway line between Zambia and Dar-es-Salaam,

was developed with Chinese aid.



the country. Tanzania has also been one of the largest ben-eficiaries of India’s ITEC/SCAAP10 programme since 1966.Beginning with 24 trainees annually, the number of traineesunder the programme was increased to 120 per annum in2009 and now their number exceeds 1,200. Tanzania is alsoa major beneficiary of Indian scholarships and other educa-tional assistance, which includes self-financing seats inIndia’s higher learning institutions. About 5,000 Tanzanianstudents are estimated to be currently in India under thescheme. Furthermore, two Indian funded projects are underimplementation, namely — the Centre of Excellence inICT by C-DAC and the Pan-African e-Network projectbeing executed by TCIL.11

Under an agreement signed on June 5, 2009, theGovernment of India has provided a line of credit $40 mil-lion to Tanzania for improving its agriculture sector.12

Tanzanian Prime Minister Mizengo Pinda flagged offthe first consignment of 288 tractors in October 2010, outof the total of 1,860 tractors provided by India. It was to support the Tanzania government’s much-publicised‘Kilimo Kwanza’, a clarion call to revamp the agriculturalsector and achieve a green revolution in Tanzania — a concept borrowed from the Indian experience.

During his three-day visit to Tanzania in May 2011,Prime Minister Manmohan Singh unveiled an aid package

for the nation that included$191 million in lines of credit,$180 million for water supplyprojects, $10 million for capac-ity-building projects in socialand educational sectors and $1million for development. Indiaand Tanzania have also signeda double taxation avoidanceagreement to promote greaterinvestment and a pact to pro-mote small-scale industries hasalso been signed.

traDe

India was the largest sourcecountry for Tanzania’s importsfor three consecutive yearsfrom 2008 to 2010. Tanzania’smajor imports from Indiainclude mineral fuels, oils, iron

and steel, pharmaceuticals, motor vehicles, electricalmachinery/appliances, plastic products, rubber items, cot-ton fabrics and cereals, among other things. Its majorexports to India include vegetables, pulses, cashew nuts,raw cotton, gemstones, cloves and other spices, wood, etc.

In comparison, China imports ores (not only copper andprecious metal ores but also smaller quantities of niobium,tantalum, vanadium, zirconium and manganese), vegetableand animal products from Tanzania. Since 2004, ores havedominated the Chinese imports.

Tanzania’s trade relations with the two emerging Asianeconomies have both a direct and an indirect impact on itseconomy. The direct effects range from higher export vol-umes and prices of certain raw materials to the availabilityof Chinese and Indian products to a broad spectrum ofTanzanian consumers. However, it still remains to be seenhow this trade relation will impact poverty in Tanzania.

Nonetheless, the growth of exports can impact positive-ly in terms of reducing poverty, if it translates into higherinvestment, higher capacity utilisation, higher employmentand expanded output. This will, in turn, result in an increasein per capita income.

On the other hand, Chinese and Indian imports presenta big challenge to the small Tanzanian economy. Tanzaniahas negative trade balances with the two countries15which

2008 2009 2010

India Export in US$ ( million) 859.73 772.87 895.01

India Import in US$ ( million) 171.82 187.58 226.19

Total 1031.55 960.45 1121.2

Source: World Trade Atlas data

table 1: indian trade with tanzania 2008-201013

1000

900

800

700

600

500

400

300

200

100

0

China’simports fromTanzania

China’s exportto Tanzania

US

& m

illion

1995

1997

1999

2001

2003

2005

2007

Figure 1: Sino-tanzanian trade 1995-200814

Source: World Trade Atlas data



defies the whole purpose of the bilateral trade agreementsbetween Tanzania and the two countries. India and China,in turn, encouraged Tanzania to export more of its productsto them. Moreover, Tanzania has failed to control the floodof imported goods from the two countries that contain significant quantities of counterfeits and items with questionable pricing.

The case in point is a 2008 report by Swain published inthe UK’s The Sunday Times according to which the country’s only flip-flop sandal factory was dying. A fewyears ago, it employed some 3,000 people and sold footwearacross the continent. Now it employs only 1,000 people.

Its Lebanese manager complained that he could not compete with cheap Chinese imports that were sold for lessthan their flip-flop’s cost price. In his report, Swain alsoadded that it had been reported that the Chinese were ship-ping goods in diplomatic containers to their embassy in Dar es Salaam, avoiding customs and import duty, whichcould, however, be merely a fictional story.16

On a related note, research carried out by Mashindanoet al in 2007 indicated that China topped the list of coun-tries which exported counterfeit products to Tanzania.China was followed by India, the U.A.E. and Kenya.Counterfeit goods are affecting the Tanzanian economy inseveral ways, including the loss of government revenue,employment opportunities, health hazards (diseases and deaths), spreading poverty and promotingunfair competition that tends to harm domestic manufac-turing industry.17

The government and various stakeholders have taken anumber of measures to address the problem. Regulatoryauthorities such as Tanzania Foods and Drugs Authority(TFDA), Tanzania Revenue Authority (TRA), TanzaniaBureau of Standards (TBS) and the manufacturers’ associ-ation (CTI) have intensified efforts and scaled up their cam-paigns against the entry of sub-standard products into thelocal market. These efforts are being complemented by the

initiatives to review laws and regulations that wouldempower the regulatory organs to curb the problem moreeffectively.18

inveStment

India was the second amongst the top ten investors inTanzania from 1990 to 2009, with a total investment of $1.31 billion. Major areas of investments were export processing zones (EPZ), tourism, natural resources, ener-gy, manufacturing, telecom, banking and insurance, transportation, and infrastructure. Among examples ofmany Indian investments in Tanzania, the latest is the first-ever private EPZ owned by an Indian group, the KamalGroup of Industries, set up near Dar es Salaam. It is designedto accommodate 80 industrial units spread over 300 acres.Tanzanian President Jakaya Mrisho Kikwete inauguratedthe EPZ on July 25, 2010.19

Tanzania has also benefited from Chinese foreign directinvestments (FDIs). According to Tanzanian governmentstatistics, the aggregate Chinese share of FDI in Tanzaniastood at 2.4 percent of the total FDI flow to Tanzaniabetween 1990-2006. The manufacturing sector received thelion’s share of the total Chinese FDI during the period, followed by agriculture and natural resource.20

Tanzania’s domestic and foreign investments are affect-ed by its poor business climate. Tanzania dropped in theannual worldwide ranking of ‘Doing Business’ report from126 in 2009 to 131 in 2010.21 Further assessment shows thatTanzania’s ranking in ‘Doing Business’ hasn’t been consis-tent vis à vis ongoing reforms in the country. In spite of this,the country often ranks lower compared to other countriesin the region and it, therefore, discourages potentialinvestors in the sector. Reasons for such lower ranking havebeen linked with bureaucratic inefficiencies in starting busi-ness, dealing with licences, environment for competing fairly, employment of workers, registering property, get-ting credit, protecting investors, paying taxes, trading across

A Chinese shipping line off the Tanzanian coast. Counterfeit products are flooding the Tanzanian market.



An Export Processing Zone set up by the Kamal Group of Industries in Tanzania.

Project name Farming Activities No. of Employees Investment Worth(US$ million)

Arusha Farms Ltd. Sisal Estate 407 0.54

Tan Farms Ltd. Sisal Estate 385 0.37

Tanagri Ltd. Paw paw Farming 15 0.74

The Bombay Burmah Trad. Corp. Tea Farming 147 0.39

Mayambe and Digoma Farms Ltd. Mixed Farming 85 0.02

Tanzania Plantations Ltd. Agricultural crops & Diary 197 0.38

Euro Vistaa (T) Ltd Commercial farming 450 27.77

Mega Cashewnuts & Allied Plant. Cashew nuts plantations 205 1.80

Agro processing activities

Coastal Millers Ltd Grain Millers 30 2.57

Sun Cape Edible Oil 70 2.44

NSK (T) Ltd. Edible Oil 73 1.51

Nipha Pamba Engineering Co. Ltd. Ginnery 86 5.07

Nipha Pamba Ltd. Ginnery 59 2.13

M. A. Kharafi (T) Ltd. Cashew nut Processing 100 1.75

Mega Cashewnuts & Allied Plant. Cashew nut Processing 223 8.47

Bidco Tanzania Ltd Oil Refinery Plant 500 3.33

Olam Tanzania Ltd Cashew nut Processing 3730 10.15

Bake Food International Ltd Biscuits Manufacturing 200 1.16

Indo-African Essential Oils Essential Oil Extraction 120 2.59

Mount Meru Seeds Ltd Seed Processing Plant 52 1.41

Source: Tanzanian Investment Centre 2010

table-2: SeleCteD tanzania inveStment Centre’S regiStereD agriCulture projeCtSwith “inDian intereStS”, inCluDing agro proCeSSing aCtivitieS, For 1990-2007



the border, enforcing contracts coping with food securityand addressing the issue of increasing carbon footprint.These economy-wide factors also bear heavily on invest-ments in the agriculture sector of the country.Notwithstanding these challenges, India is an importantpartner in Tanzanian agriculture for the following reasons:

First, Tanzania needs support to start its own ‘GreenRevolution’ that has been the cornerstone of India’s agricultural achievement.

Secondly, Indian private sector investments have tradi-tionally focused on countries where the Indian diaspora hasa significant presence.22 This approach is rapidly shifting,as they are now increasingly seekinginvestments in non-Anglo-Africancountries. A case in point is ExportTrading Group, whose headquar-ters are in Dar-es-Salaam,Tanzania.23 The group’s activitiesrevolve around agriculturealthough group investments24 alsocover information technology,mining, leisure, forestry, transportand port infrastructure.

Thirdly, enterprise surveys in Sub-Saharan Africa revealthat Indian entrepreneurial networks are woven togetherwith strands of information, shared contacts, sometimesfinance (credit or investment), and a degree of trust (fre-quently backed up by group-based sanctions).25 Wordeddifferently, they have played an invaluable role in the growthof the African private sector by bringing into the countrybetter skills, financial resources, and networking channels.

Lastly, as evident in the Table-226, Indian firms havepreferred to invest in the agriculture sector of Tanzania,which had been shunned by other foreign investmentproviders. Indian firms use a significant amount of raw

materials directly from the agriculture produce. With Tanzania’s proclaimed ‘Kilimo Kwanza’, a renewed

call for higher and robust efforts to revamp agriculture, anumber of additional areas for investments by Indian orjoint ventures are being planned. One area is the cashew nutprocessing industry in Tanzania, which witnessed activeoperations in the 1970s when over 25 factories were estab-lished as public enterprises with machinery imported fromIndia. However, collapse of the parastatal regime inTanzania in the mid 1980s and early 1990s left most of thesefactories in a poor state. Since the launch of privatisation inthe last decade, efforts are being made to start or even reha-

bilitate the processing factories,where the use of Indian technologyhas been sought. Now, over 40 per-cent of Tanzania’s production ofcashew nut is shipped raw to theIndian market. In India, the rawmaterial is processed under labourintensive technology to kernels andre-exported to large brand proces-sors and distributors in industri-alised countries,27 thus generating

substantial value addition and employment outsideTanzania.

migration

In the 19th century, most immigrants flocking to Africa— businessmen, explorers, missionaries and soldiers —came from Western Europe. In East Africa, and Tanzania inparticular, Indian immigrants were possibly the largestgroup. But they were mainly indentured labourers or midand low-ranking colonial civil servants.

On the other hand, the Chinese, whether legal or illegalmigrants, work in trade and construction sectors. They are

Indian entrepreneurs haveplayed an invaluable role

in the growth of the Africanprivate sector by bringing

into the country betterskills, financial resources,and networking channels

With Tanzania’s proclaimed ‘Kilimo Kwanza’, a renewed call for higher and robust efforts to revamp agriculture, a number of additional areas

for investments by Indian companies or joint ventures are being planned.



doing everything from developing giant state-financedinfrastructure projects, building roads and railways to small-er enterprises selling consumer goods, and they competedirectly with Tanzanian entrepreneurs and labourers.

Regarding Indian migrants, the commercial and businessrelationship between India and Tanzania is driven by thepresence of a large community of Tanzanians of Indian ori-gin.28 It is estimated that there are about 40,000 people ofIndian origin who are mainly concentrated in urban centressuch as Dar es Salaam, Arusha, Dodoma, Morogoro,Zanzibar, Mwanza and Mbeya.29 Many of the top and suc-cessful business establishments such as MohammedEnterprises Tanzania Ltd (METL) and the KarimjeeJivanjee enterprises are essentially family-based establish-ments and owned by Tanzanians of Indian origin. In addi-tion, about 10,000 Indian nationals (expatriates) live andwork in Tanzania, mainly in industry and services; theyrepresent a broad mix from all over India.30

Several possible reasons explain the motives for theChinese to emigrate to Tanzania and other African coun-tries to start businesses31, and to some extent they are truefor the Indian migrants as well. First, the Chinese are moreentrepreneurial and are, therefore, able to identify and takeadvantage of even small opportunities that the locals areunable to realise.

Secondly, there has been a boom in Chinese investmentsin African minerals and other natural resources. This isattracting other types of Chinese economic activities into theregion.

Thirdly, those individuals who decide to leave China inquest of economic opportunities in Africa are likely to be farmore entrepreneurial and risk-taking than the•averageChinese (and also the average African). Lastly, Chineseentrepreneurs have considerable experience running busi-

nesses in murky and often corrupt/less legal environments.They are able to capitalise on this skill in the African con-text.

Chinese workers have been accused of taking away localjobs while stealing local natural resources, violating labourstandards and labour law, and deepening corruption. ManyAfrican countries — Tanzania is no exception — have a highunemployment rate and want the Chinese-run firms to hiremore local workers. On big construction projects, whereverpossible, the Chinese insist on importing their own workforcefrom China, including unskilled labour. However, someTanzanians feel that the Chinese have made little or no effortto adopt local customs, learn the language, and much lessmarry locals. Nonetheless, the Chinese are not associated withthe lavish lifestyles of their counterparts from Western aidagencies. Chinese workers live in sprawling accommodation,a picture of frugality, hard work and adaptability.

ConCluSion

The expanding and deepening ties of India and China withTanzania present the country with a significant opportuni-ty for growth and economic transformation. Ultimately, itwill depend on wise visionary leadership and the strengthof Tanzanian institutions to shape China and India’s engage-ment for the benefit of Tanzanian people. The two emerg-ing powers are unlikely to apply western-style political con-ditionality to their aid, investment or trade cooperation withTanzania. They will seek opportunities for their respectivenational interests, which is a significant lesson forTanzanians. This does not exclude straightforward altruis-tic assistance to Tanzania from time to time; but it is bet-ter seen as realistic mutual benefit in bilateral cooperation.

China and India will not transform Tanzania:Tanzanians will transform Tanzania! n

Specific projects that have benefited from China’s assistance include the Tanzania-China Friendship Textile Mill,

which is Tanzania’s largest textile factory, built in the 1960s.



1. Davies ( 2007), cited in Huse, Martine Dahle and StephenL Muyakwa ( 2008), China in Africa: lending, policy spaceand governance, Norwegian campaign for DebtCancellation and Norwegian Council for Africa,http://www.eldis.ids.ac.uk/go/topics/resource-guides/nor-wegian-research/aid&id=35901&type=Document,accessed 25th May 2008 2. Brautigam, Deborah (2008), China’s African Aid:Transatlantic Challenges, GMF paper series,http://www.gmfus.org/doc/Brautigam0410aFINAL.pdf,accessed 25th May 2008 3. Swain, Jon (2008), Africa, China’s New Frontier, TheSunday Times, February 10, 2008, http://www.timeson-line.co.uk/tol/news/world/africa/article3319909.ece,accessed 25th May 20084. Moshi and Mtui ( 2008), Scoping studies on Africa-ChinaEconomic Relations: The Case of Tanzania, A Revisedreport submitted to AERC, Nairobi5. Johanna Janson, Christopher Burke and Tracy Hon(2009), Patterns of Chinese Investment, Aid and Trade inTanzania. A briefing paper for the Centre for ChineseStudies. Prepared for World Wide Fund for Nature ( WWF).October.6. Lancaster, Carol ( 2007), The Chinese Aid System,Center for Global Development Essay ,http://www.cgdev.org/content/publications/detail/13953,accessed 25th May 20087. Bijoy C.R.(n.d), India: Transiting to a Global DonorSpecial Report on South-South Cooperation 2010, Availableat http://www.realityofaid.org/userfiles/roareports/roare-port_3ce2522270.pdf, accessed 20th December 20118. www.mea.gov.in/meaxpsite/foreignrelation/tanzania.pdf,accessed 12th December 20119. mea.gov.in/mystart.php: ITEC/SCAAP denote IndiaTechnical Economic Cooperation (ITEC) and SpecialCommonwealth African Assistance Programme10. Ibid11. MEA publications12. www.mea.gov.in/meaxpsite/foreignrelation/tanzania.pdf,accessed 12th December 201113. Johanna Janson, Christopher Burke and Tracy Hon(2009), Patterns of Chinese Investment, Aid and Trade inTanzania. A briefing paper for the Centre for Chinese Studies.Prepared for World Wide Fund for Nature ( WWF). October14. Moshi and Mtui (2008), Scoping studies on Africa-China Economic Relations: The Case of Tanzania, A

Revised report submitted to AERC, Nairobi15. Swain, Jon (2008), Africa, China’s New Frontier, TheSunday Times, February 10, 2008, http://www.timeson-line.co.uk/tol/news/world/africa/article3319909.ece,accessed 25th May 2008 16. Moshi and Mtui (2008), Scoping studies on Africa-China Economic Relations: The Case of Tanzania, ARevised report submitted to AERC, Nairobi17. Ibid18. www.mea.gov.in/meaxpsite/foreignrelation/tanzania.pdf,accessed 12th December 201119. Moshi and Mtui (2008)20. World Bank (2010), Available at t www.doingbusi-ness.org, accessed 12th December 201121. Indian investments or investment with Indian interestsare used and referred liberally here and onwards as invest-ments from (i) non-resident Indians who are Indian citizens holding Indian passports and residing in Tanzania(ii) Tanzanians of Indian origin who were once citizens ofIndia or whose spouses, parents, grandparents or greatgrandparents were once citizens of India.22. Interview held with ETG officials, December 2010.23. Eight countries in Western Africa, countries in Eastern,Southern, the horn of Africa, India, UAE24. Brautigham D (2003), Local Entrepreneurship in SouthEast Asia and Sub-Saharan Africa: Networks and Linkagesto Global Economy in Asia and Africa in the Global econ-omy ( Eds, Aryeetey E, E Court, J., Nissanke, M and Weder,B) United Nations University Press, New York, pp 106-127; Ramachandran V and Shah M.K. ( 1998) MinorityEntrepreneurs and Firm performance in Sub-SaharanAfrica, World Bank, RPED Paper no. 86 25. Only those processed through the TanzaniaInvestment Centre are benefitting from special investmentincentives26. African Agribusiness and Agro-Industry DevelopmentInitiative27. The Indian origin can be a bit misleading connotation:in local parlance sometimes it includes people of bothIndian and Pakistan origin.28. www.mea.gov.in/meaxpsite/foreignrelation/tanzania.pdf,accessed 12th December 201129. Ibid.30. Rodrick, Dani (2007), Chinese Entrepreneurs in Africa,http://rodrik.typepad.com/dani_rodriks_weblog/2007/08/chinese-entrepr.html, accessed 12th December 2011

References

N E W E Q U A T I O N S


Africa’s economy is expected to grow ata rate of between 5.5 and 6 percent in2012, according to internationalfinancial institutions like the WorldBank, International Monetary Fundand Africa Development Bank(AfDB). However, in spite of the projected positive growth, Africa may

continue to face significant development challenges in thecoming years.

Africa represents more than 10 percent of the global economy but accounts for only 2 percent of global economic output and less than 1 percent of global trade. Its economic growth relies significantly on the export ofunprocessed or little processed raw materials and minerals.It is seen as a magnet attracting many countries. The AfDB

estimates that Africa’s export to BRIC countries (Brazil,Russia, India and China) in 2009 accounted for 32.4 percentof all exports, up from 21.7 percent in 2000. China’s investment in Africa has touched $150 billion, up from justover $700 million in 1992. In 2010, India invested over $40 billion in Africa. Brazil invested at least $10 billion in2010. Its natural resources are attracting not only the majoremerging powers such as China, India and Brazil but alsomiddle-range powers such as Saudi Arabia, United ArabEmirates (UAE) and Turkey. It is interesting to note thegrowing interest of such countries in Africa.

Turkey is the latest serious entrant with a definitive strategy that makes it different from other players. China’spresence is strongly driven by the state while India’s engagement is driven by the private sector. Turkey’s Africapolicy is an arena in which, for the first time, the interests

MIDDLE powers zero in on Africa opportunity

Turkey, Saudi Arabia, the UAE and the Gulf states join emerging powers to leverage new opportunities emerging in the continent,

says Sandeep Chakravorty

Turkey aims to deepen its security sector involvement in Africa and is also contributing financially to six of the existing eight UN missions.

With Egypt, it co-chaired the International Donors Conference for the Reconstruction and Development of Darfur, in Cairo in 2010.



of civil society organisations, business sectors and the statehave converged.

Turkey is also increasing its security sector involvementin Africa. It is currently providing personnel and contribut-ing financially to six of the existing eight UN missions inAfrica. Turkey co-chaired with Egypt the InternationalDonors Conference for the Reconstruction andDevelopment in Darfur in Cairo in March 2010. Turkeyalso hosted the Istanbul Somalia Conference organisedwithin the UN framework in May 2010. The conferenceprovided support for the Djibouti Peace Process and theTransitional Federal Government. The Istanbul Declarationadopted during the conference constitutes a road map forthe settlement of the Somali issue.

The Turkey-Africa Cooperation Summit (TACS) heldwith the participation of 49 African countries from August18-21, 2008, in Istanbul, marked the beginning of a steadyand sustainable cooperation processbetween Turkey and Africa. Viewedin the context of the Japan’sTICAD (launched in 1993),China’s FOCAC (2006), the India-Africa Forum Summit (2008, 2011), Turkish efforts toreach out to African countries aresignificant. Since the TACS,Turkey’s African script is unfolding according to a plan and adense network of institutionalmechanisms have emerged. The increasing political engage-ment between Turkey and African countries also has led to heightened diplomatic, economic, developmental, andsecurity cooperation. Today, Turkey, along with China andIndia, is among the only three countries with which theAfrican Union has strategic partnerships. The second TACSis scheduled to take place in an African country in 2013.

What is impressive about Turkey is the synergy betweengovernment policies, business strategies and humanitarianactivities. At the government level, they had started considering the idea of entering Africa by the end of the1990s under the late Foreign Minister Ismail Cem Ipekçi.But it was only after 2005 that the Justice and DevelopmentParty (AKP) government took a new approach to Africa asan integral part of its foreign policy. The number ofembassies was raised from 12 in 2005 to 22 in 2011. Thisyear, Ankara is planning 10 new embassies. The Turkishleadership is making well-focused visits to Africa and within G-20, Turkey is emerging as the voice of Africa. In the meantime, many small and medium-sized Turkishcompanies are establishing themselves in Africa, resulting insubstantial economic engagement.

Saudi Arabia has also markedly deepened its engagementwith Africa. A forum, called the Saudi East African Forum,is one of the initiatives which helps foster trade and

investment relations amongst the Middle East’s most influential country and seven East African countries, namely Ethiopia, Djibouti, Tanzania, Kenya, Somalia,Uganda and Rwanda. The first meeting of the forum tookplace in the Ethiopian capital Addis Ababa from November14-17, 2009. The Saudi delegation consisted of four ministers and representatives from 50 big companies. The objective of the forum is to promote partnership andcooperation between the business communities of SaudiArabia and East African countries in the areas of development of agriculture and agro-industry, which arecapable of exporting produces to Saudi Arabia and satisfying the needs of the local markets.

Saudi Arabia is one of the world’s biggest food importers.Africa has approximately 60 percent of the globe’s yet-to-becultivated arable land, as noted by the McKinsey GlobalInstitute. Saudi Arabia finds the East African region

attractive not only because it is easily accessible but also because theregion offers rich and fertile agricultural land, competitivelabour and favourable climate foragriculture as compared to the aridcountry. Commerce and IndustryMinister of Saudi Arabia Abdullahbin Ahmed Zainal Alireza told theSaudi East African Forum that hiscountry was keen to boost econom-ic partnership with countries of theregion. “Saudi Arabia is committedto combating hunger, to provide

support for the host country but also to generate exports. We are not to impose our needs above the needs of local population,” he said. “We will engage in various developmental activities in the continent in general and inthe East African region in particular for the reason of geographical ties to Saudi,” he added.

Speaking at the Gulf Africa Investment Forum organisedin Riyadh from December 4-5, 2010, MozambiquePresident Armando Guebuza invited businessmen from thecountries of the Gulf Cooperation Council (GCC) to investin Mozambique, particularly in agriculture, in light ofdiverse micro-climatic regions that Mozambique was hometo. Agriculture is of particular interest to the GCC countriesas they import almost 60 percent of their food needs and thepopulation is expected to rise from 30 million in 2000 to 60million in 2030.

Like Saudi Arabia, the UAE is also strengthening its presence in Africa. According to data from the UAE’sMinistry of Foreign Trade, its overall trade with six non-Arab African countries alone (Angola, Kenya, Nigeria,Ethiopia, South Africa and Tanzania) reached $6.2 billionin 2010. In fact, trade patterns have been acquiring newdimensions in recent times. For example, a few years ago,the UAE’s most important trading partner in Africa used to

The Turkey-AfricaCooperation Summit, in2008, in which 49 Africancountries participated in

Istanbul, marked the beginning of a steady and sustainable cooperation

process between Turkey and Africa

be South Africa. In recent years, however, trade betweenSouth Africa and the UAE has been declining — droppingto $870 million in 2009 compared to $380 million in 2008— a substantial fall of almost 77 percent. Other countrieson the African continent, on the other hand, have beenemerging as the new trade partners for UAE. Nigeria, forexample, has become an importantdestination for UAE’s exports andre-exports. Notably, UAE’s tradewith Nigeria recorded the biggestincrease — among the six Africancountries mentioned above — dou-bling to $863 million in 2009 from $430 million the previous year.Tanzania too has emerged as animportant trade partner for UAE inrecent times. Trade betweenTanzania and UAE rose sharply in2010 to $870 million from $510 million the previous year.

Interestingly, not only is theUAE one of the leading exporters of goods to several Africancountries, it is also among the top 10 importer of goods andcommodities for as many as 10 African countries — includ-ing Kenya. It is estimated that UAE’s total non-oil trade withAfrica was worth $19.1 billion in 2010 — and this figure isexpected to rise further in coming years as the UAE makes

concerted efforts to further diversify their trade and busi-ness interests on the African continent.

Investments from the UAE are also rising. Dubai Worldhas some 30 investment projects spread across Africa, whichincludes marine terminals in Djibouti, Algeria, Dakar(Senegal) and Maputo (Mozambique), wildlife reserves in

Rwanda and South Africa as well asa hotel project on the ComorosIslands. Etisalat, UAE’s telecomoperator, also has stakes in severalAfrican telecom companies incountries like Sudan, Tanzania,Benin, Burkina Faso, Togo, Niger,the Central African Republic,Gabon and Ivory Coast. Forinstance, Dubai Ports has investedin the Doraleh container terminalbuilt in Djibouti. Djibouti awardedDP World of Dubai a 20-year con-cession to run its port. Dubai alsoagreed to build a $400-million oil

terminal and a container terminal. Djibouti would own atwo-thirds stake in each, with Dubai holding the rest.Throughout the Horn of Africa, the Djibouti port has trig-gered spin-off investments from businesses interested inentering Ethiopia. Djibouti’s turnaround has prompted theinvestors to look elsewhere in Sub-Saharan Africa.

N E W E Q U A T I O N S


UAE’s overall trade with six non-Arab African countries — Angola,

Kenya, Nigeria, Ethiopia,South Africa and Tanzania

— reached $6.2 billion in 2010. The trade patterns have been

acquiring new dimensionsin recent times

Africa has approximately 60 percent of global yet-to-be cultivated arable land. Saudi Arabia finds the East African region attractive not only

because it is easily accessible but also because the region offers rich and fertile agricultural land, competitive labour and favourable climate.

For investment centres in the Gulf such as Abu Dhabi,Dubai and Qatar, Sub-Saharan Africa is a vast, untappedmarket full of competitive assets. The Gulf companies alsoview their assets in Africa as a hedge against losses sufferedin the U.S. and European banking and real-estate deals.Private Saudi investors have opened banks in Sudan andsigned agricultural deals. Ras Al Khaimah, one of the emirates, is building residential communities in theDemocratic Republic of Congo.

In an effort to scale up trade and investments betweenthe GCC countries and Africa, theUAE-based Gulf Research Centreand the Council of Saudi Chambersjointly organised the AfricaInvestment Forum 2010 in Riyadh.The presidents of Mozambique,Angola, Benin, Zambia, Kenya,Senegal and Ghana and severalministers and senior officials fromother countries, including SouthAfrica, attended the two-day event. The main purpose of theforum was to create opportunities to network and establishworking opportunities as the institutional relations betweenthe GCC states and Africa are still in their infancy. TheGCC-Africa trade relations are also strengthened by othersimilar high-level exchanges like the Africa-Arab BusinessInvestment Forum that brings together business leaders andgovernment institutions from Africa, the GCC countries

and international institutions to discuss and explore investment opportunities.

The organisation held a conference on November 17,2010 in Dubai. Importantly, the Gulf Research Centreorganised the first Gulf-Africa Strategy Forum in CapeTown, South Africa, in 2010. The unique conference provided an unprecedented opportunity for governments,academics and the private sector to discuss the state of cooperation between the GCC countries and Africa andoffer recommendations on how to further strengthen

this partnership in the comingyears. The conference is expectedto be organised every year fromnow on.

Africa is increasingly beingrecognised by many emerging andmiddle powers as a continent ofopportunity. The Gulf countriesseem to have focused on trade andinvestment, particularly in

agriculture and infrastructure, whereas Turkey seems to bemore interested in strengthening its political and diplomatic ties with African countries. The efforts of coun-tries such as China, India and Brazil in enhancing their ties with Africa is known to the world, but the middle powers’ growing involvent with the continent is alsobecoming increasingly prominent, a trend that deserves acloser analysis. n



1. Chinua Akukwe, “Development Challenges for Africa in 2012”,World Press.org, 8 January, 2012; http://www.worldpress.org/Africa/3865.cfm2. Margaret Coker, “Persian Gulf States Bet on Africa DespiteDownturn”, Wall Street Journal — The Outlook, 24 February, 2009;http://www.google.co.in/url?sa=t&rct=j&q=gulf%20states%20africa&source=web&cd=2&ved=0CDYQFjAB&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB123535584342445343.html&ei=0AUVT7u7FZDKrAeSg_iMAg&usg=AFQjCNFtt-sq9ySsZTk1aajimq_Up4a-AQ3. Mehmet Özkan, “Turkey discovers Africa: implications andprospects”, Today’s Zaman, September 2008; http://www.todaysza-man.com/newsDetail_getNewsById.action?load=detay&link= 4.Joost Lagendijk, “Turkey in Africa”, Today’s Zaman; http://

www.todayszaman.com/columnist-241234-turkey-in-africa.html5. Alain Vicky, “Turkey Moves into Africa”, Le MondeDiplomatique, May 2011; http://mondediplo.com/2011/05/08turkey6. Tesfa-alem Tekle, “UAE-Africa Trade on the Rise”, AfricaBusiness Pages, November 2009; http://www.africa-business.com/features/uae-africa-trade.html7. Gulf Research Centre, “The Gulf-Africa InvestmentConference 2010: Fostering Economic Relations”, 4-5 December,2010; http://www.grc.ae/index.php?PK_ID=291&frm_action=show_event&frm_module=events&sec=events&sec_type=d8. All Africa.com, “Guebuza at Gulf-Africa Investment Forum”,5 December, 2010; http://allafrica.com/stories/201012061198.html

References

For investment centres inthe Gulf such as Abu

Dhabi, Dubai and Qatar,Sub-Saharan Africa is a

vast, untapped market fullof competitive assets.

E N E R G Y S E C U R I T Y


Emerging economies have registeredunprecedented growth. It has been sostrong that these have even weatheredthe 2008 global financial meltdown.While Western economies facedtremendous stress during the meltdown and are still struggling tocope with it, these new economies have

stayed on the growth path. Their growth has had repercussionson the global energy market too, as energy demand in thefuture is likely to come from countries such as China and India.

The World Oil Outlook says: “China and India are theemerging giants of the world economy and international energy markets. Energy developments in China and India are transforming the global energy system by dint of their sheer size and their growing weight in international fossil-fuel trade... The momentum of economic developmentlooks set to keep their energy demand growing strongly. As they become richer, the citizens of China and India are using more energy to run their offices and factories, and buying more electrical appliances and cars. These developments are contributing to a big improvement in their quality of life, a legitimate aspiration that needs to be accommodated and supported by the rest of the world.”1

This article looks at the foray of these economies into theAfrican oil sector to meet their growing energy needs. The analysis, however, restricts itself to major Asian countriessuch as India, China, Malaysia and South Korea. These Asiandrivers have sizeable investments in the African oil sector.And all these countries, barring Malaysia, face energy scarcity.

On one hand, these countries have limited domestic oilreserves and on the other hand, their growing economies needmore and more energy. They are forced to look for oil inAfrica and other locations across the world.

These countries have successfully entered the African oiland gas sector, which, for decades, was dominated by Westernmultinationals. They are also competing to acquire oil and gasassets in the continent.

The Western companies, which now face stiff competition,have started a campaign to malign Asian oil companies. Theallegations of human rights violations and corruption are someof the key weapons in their campaign. Are these allegationstrue? Are these above these allegations?

IndIa’s energy footprInts

India best illustrates how energy scarcity is forcing its oilcompany to look for new sources in Africa. India is a fastgrowing economy and is likely to maintain a high growth rate.The country, however, can grow only if energy supply is continuous, reliable and affordable.

A few years ago, India was the world’s fifth-largest energyconsumer. Today, it has overtaken Japan and reached thefourth position. The country is expected to become the third-largest consumer, overtaking Russia, by 2030. Its demand for oil is likely to increase at an average rate of 2.9 percent annually over the next few decades.2

African OIL, Asian growth Emerging economies of Asia are investing in African

oil-producing countries only for their energy security. The West’s criticism of the Asian foray is unjustified, says Manendra Sahu

A deep water oil field in the Mediterranean Sea off the coast of

Alexandria in Egypt. Photo: neftegaz.ru



India produces nearly 880,000 barrels of oil a day against the requirement of 3 million barrels a day. The domestic resourcesare barely enough. India has 3,600 operating oil wells, butmost of these are old and the output is falling.3

The discovery of Bombay High is a good case study. Theoffshore oil well was discovered in 1974 and commercial production started in May 1976.4 The well has been steadily supplying oil for three decades and has now reachedits peak. So, the supply from Bombay High is falling and Indianeeds many such large discoveries to fulfill its oil needs.

In the last 10 years, India has pursued an aggressive policyfor the discovery of oil by launching a New ExplorationLicensing Policy (NELP).

However, even after nine roundsof NELP, no major oil discovery hasbeen made. There was, however,some success such as the discovery ofoil and gas in the Krishna Godavari(KG) basin in 2002.

Mangala oil field in Rajasthan,with oil reserves of one billion barrels, is another important discovery made in 2004. These newsources have, however, providedonly temporary relief and the country is far from achieving self-sufficiency. As a result, to meetthe demand-supply gap, the country has no option but toimport oil. Today, India imports more than two-thirds of itsoil requirement.

The Government of India, realising the limited potentialof domestic oil production, has set its eyes on the internationaloil sector. In its policy document, India Hydrocarbon Vision-2025, it stated the desire to become globally competitive. It mentions one of its objectives as: “To develop hydrocarbonsector as a globally competitive industry, which could be benchmarked against the best in the world through

technological upgrade and capacity building in all facets of theindustry.” It stated that to meet the demand, the countryshould “acquire acreages abroad for exploration as well as production”.

The document also makes following recommendations:i) Put in place a comprehensive policy to include total

deregulation of overseas Exploration and Production(E&P) business and empowering them to compete withinternational oil companies with the provision of fiscal andtax benefits.

ii) Evolve a mechanism to leverage India’s “Buyer Power” toobtain quality E&P projects abroad.

iii) Have a focused approach forE&P projects and build strong relationships in focus countries withhigh attractiveness like Russia, Iraq,Iran and North Africa.5

The India Hydrocarbon Vision-2025brought about a sea change in India’senergy outlook. Indian oil companiesstarted looking for investmentopportunities abroad, which was nota strategy in energy sector after thecountry’s Independence in 1947.Indian oil companies now have a global footprint, Africa included.

ONGC Videsh Limited (OVL), a subsidiary of the state-owned Oil and Natural Gas Corporation, invested first inSudan and later in other African countries. At present, OVLhas sizeable investments in Africa. It has invested in Sudan’sGreater Nile Oil Project, where it holds 25 percent stakethrough its subsidiary, ONGC Nile Ganga BV. It has alsoinvested in two more blocks in Sudan. In Egypt, it has invested in the North Ramadan Block located in the Gulf ofSuez. It also holds 33 percent stake in Egypt’s North EastMediterranean Deepwater Concession (NEMED). In Libya,

An offshore oil extraction platform of India’s Oil and Natural Gas Corporation.

ONGC Videsh Limited(OVL), a subsidiary of the

state-owned Oil andNatural Gas Corporation,invested first in Sudan and

later in other African countries. At present, OVL has sizeable

investments in Africa

it has a 49 percent stake in two onshore blocks.6

Two more public sector oil companies have invested inAfrica. Oil India Limited (OIL), along with Indian OilCorporation (IOC), has jointly invested in two blocks inLibya. Private sector oil companies too are not far behind increating oil assets in Africa.

Videocon Industries has launched a joint venture withBharat Petroleum Corporation (BPCL) in Mozambique anddiscovered gas of up to 15-30 trillion cubic feet.

Mittal Steel Limited, in a joint venture with ONGC, hasformed the ONGC Mittal Energy Limited (OMEL) and hasacquired 45 percent stake in offshore oil and gas fields inNigeria. Essar Oil has three exploration blocks in Madagascar.

The relationship between India and Africa does not stop

at oil imports. India also sends back refined petroleum toAfrica. India has a vibrant downstream oil sector and it is saidthat India may become the “refinery of the world”.

India has 17 public sector refineries and two private ones.Their combined refining capacity is estimated to reach 235mmt by 2012, which will provide a surplus capacity of 86 mmt for exports.7

The refineries of Reliance Industries (RIL) in Jamanagar,Gujarat, are one of the largest in the world with a cumulativecapacity of 62 mmt. Essar Oil-run refinery has a capacity of32 mmt.

India has a vibrant and competent downstream oil sectorwith excess refinery capacity. Africa is woefully short of refinedoil products. The refineries in Africa are not able to meet the



Major oIl producIng countrIes of afrIca

N.B.: This map predates the emergence of South Sudan as anindependent country following thebifurcation of Sudan on July 9, 2011.

local demand.8 Africa thus provides an opportunity to Indiancompanies to bridge the gap between demand and supply.India has, therefore, emerged as a major supplier of refined oilproducts to Africa, mainly to the Indian Ocean littorals. Therefined oil products are today India’s top export commoditiesto Africa.

The case of Angola is illustrative. India regularly importscrude oil from Angola and at the same time exports refinedproducts regularly back to Angola. So, several Indian companies, seeing an opportunity in the downstream sector,have made investments in Africa. Reliance Industries Limited(RIL) has acquired East Africa’s oil retail company Gulf AfricaPetroleum Corporation (GAPCO) while Essar Oil has invested in a refinery in Kenya.

afrIca resources, asIan InvestMent

Africa is rich in oil and gas. The continent contains 9.5 percent of the world’s oil reserves and has a 12.2 percentshare in global oil production.

Similarly, it contains 7.9 percent of the world’s natural gasreserves and has a 6.5 percent share in global gas production.

However, African nations consume a mere 3.9 percent ofthe global oil production and sell the rest.

Libya has the largest reserves ofoil in Africa. But sanctions imposedby the United Nations have kept oilexplorers away and the reservesremain largely unexploited. Nigeriahas the second largest reserves of oilon the continent, followed by Angolaand Algeria.9 Over the years, oil has been found in several places in Africa.

In 1990, its oil reserves stood at58.7 thousand million barrels thatincreased to 93.4 thousand millionbarrels after the year 2000. Thereserves today stand at 132.1 thousand million barrels. Thus, in 20 years, the reserves have doubled.

Two big developments in oil explorations have been the Gulf of Guinea and discovery of oil and gas in non-traditional resources.

The discoveries in Gulf of Guinea (adjacent to Nigeria),Equatorial Guinea, Sao Tome and Principe, has drawn theattention of all major oil companies.

The rise of non-traditional oil producers is also important.The latest findings in East Africa have changed the outlook.Earlier, few thought Uganda, Tanzania and Mozambique had oil and gas, but today it is a reality. Africa’s contributionto global oil production is no less significant. The productionin the year 2000 stood at 7,804 thousand barrels daily. This has increased to 10,098 thousand barrels in 2010. Sixmajor oil produces in Africa — Nigeria, Angola, Algeria, Libya, Egypt and Sudan — contribute over two-thirds of the total oil production in Africa. Production from

Angola and Sudan has also risen significantly in the last 10 years.

In 2000, Angola produced 746 thousand barrels daily. This increased to 1,851 thousand barrels in 2010. Sudan’s oil production has more than doubled in the last 10 years. In 2000, it stood at 174 thousand barrels a day and rose to 486thousand barrels a day in 2010.

While these six countries are pulling in investments, smalloil producers have seen mixed growth in 10 years. On onehand, production has multiplied in Equatorial Guinea andChad, on the other hand, production in Cameroon, Republicof Congo and Gabon has actually fallen.10

As mentioned earlier, Asian countries have successfullyforayed into the African oil sector. China is the big playerhere. It has made large investments in Africa over the last 10years and today. Africa is a major oil supplier to the Asian giant.

Chinese companies — Petrochina (CNPC), ChinaPetrochemical Corporation (Sinopec) and China NationalOffshore Oil Corporation (CNOOC) — have a presence inAfrica, and of China’s oil import of 4.8 million barrels a dayin 2010, the African share was 1.5 million barrels a day, thatis, nearly 30 percent of the total import. Chinese investmentshave also made Angola its largest oil supplier, along with Saudi

Arabia — the two countries togetheraccounting for a third of the import.In fact, oil import from Angola is solarge that for a few months it evensurpassed that from Saudi Arabia!11

China buys 45 percent of Angola’soil export. Chinese companies havemade large investments there.Sinopec has bought 40 percent stakein an oil block after declaring a $ 1.1-billion signature bonus. Angolahas received a $2-billion loan from China in exchange for oil deals. Another $ 1 billion was

added to it in 2006.12

Now, there are other countries as well on the Chineseradar. Petrochina signed a deal with Nigerian NationalPetroleum Corporation in 2005 for the supply of 30,000 barrels a day of crude. In 2006, China bought a stake in an oiland gas field for $2.3 billion in Nigeria. The country’s government gave the power of “the first right of refusal” toPetrochina on four oil blocks after China committed to invest$4 billion in infrastructure. The deal involved China buyingcontrolling stake in a Nigerian oil refinery and building rail-ways and power stations. In Algeria, Sinopec signed $525-million deal in 2002 to develop an oilfield. Petrochina,too, bought refineries for $ 350 million and signed a deal toexplore oil in two blocks in Algeria in 2003.13

Sudan is another investment destination for the Chinese.Petrochina holds 40 percent stake in Greater Nile PetroleumCompany. Petrochina and Sinopec have 40 percent and 3 percent stake, respectively, in Petrodar, a company



The rise of non-traditionaloil producers is also important. The latest findings in East Africa

have changed the outlook.Earlier, few thought

Uganda, Tanzania andMozambique had oil andgas, but today it is a reality



operating out of Sudan. As such, 60 percent of Sudanese oilexports go to China.

In other oil-producing countries such as Ivory Coast,Gabon and Democratic Republic of Congo, Chinese companies have signed exploration and production deals.

China is also set to look for oil in Kenya, an emerging oilproducer. In Namibia, the Chinese are establishing an oilrefinery and are looking for oil exploration in the north of thecountry. They are also present in Ethiopia and Madagascar. In Uganda, CNOOC bought two-third stake in Tullow Oil’sthree blocks in October 2010.14

Malaysia and South Korea are the other Asian countriesinvesting in Africa. The Malaysians are present in Sudan.Petroliam Nasional Berhad (Petronas), a public sector company, holds 30 percent stake in Greater Nile PetroleumCompany.

In Melut Basin, the company holds 40 percent share inPetrodar. In White Nile Petroleum Operating Company,which operates Block 5A, Petronas has a 69-percent holding.Malaysia buys 11 percent of Sudan’s oil exports. In Egypt, Petronas has investment in the northeastMediterranean deep-water block. Apart from oil assets,Petronas has invested in the downstream sector in South Africathrough its subsidiary, Engen Petroleum Limited, which operates a refinery in Durban and sells petroleum productsthrough outlets in Sub-Saharan Africa.15

South Korea has investments in Nigeria and Libya. In Nigeria, the Korean National Oil Corporation (KNOC)signed an agreement in March 2006 to invest in a deep-waterexploration block, which it is prospecting at present. In Libya,KNOC, along with four other companies, Daesung Group,Daewoo International Corporation and HyundaiCorporation, invested in the Elephant oil field in central-west Libya.16

undue crItIcIsM

Asia’s bid for African oil and gashas attracted criticism from theWest. The charges levelled againstAsian national oil companies arethat of human rights violations andcorruption.

Many African oil-producingcountries in Africa have also beenaccused of human rights viola-tions. NGOs have accused theSudanese government of genocidein Darfur. In Nigeria, residents ofthe Niger Delta often raise theirvoices against government brutal-ities. Similar allegations have beenraised in North Africa. NGOsallege that Asian companies over-look human rights situations whileinvesting in oil fields. Their col-laboration with tainted

governments worsen human rights conditions in the companies, the NGOs say.17

The West’s criticism of Asian companies, however, isunjustified. In fact, the track record of Western MultinationalOil Companies (MOCs) is far more serious.

The killing of rights activist Kennule ‘Ken’ Besson Wiwain Nigeria allegedly at the behest of Shell, an American MOC,is an apt example. He led a campaign demanding better livingconditions for the workers in Niger Delta. Shell was accusedof forcing the Nigerian military government to arrest Wiwa.The court gave him a death sentence, amid protests fromacross world. Human rights group in the United States movedcourt against Shell for its alleged involvement in Wiwa’s death.After a prolonged battle, Shell accepted an out-of-court set-tlement and agreed to pay compensation to Wiwa’s family. 18

There have been many such charges against WesternMOCs. Thus, instead of criticising Asian companies, the Westshould set its house in order. The second criticism againstAsian companies is that they encourage corruption in governments. Incidentally, this charge comes from a groupwhich itself has been corrupting the oil sector for a long time.The MOCs have let corruption grow so much that citizens of many oil producing countries are today reelingunder poverty while their rulers are accumulating wealth.

It was thus that the ‘Publish What You Pay’ movement waslaunched to put an end to the nexus between the MOCs andgovernments of oil-producing nations.19 It called for goodcorporate governance and bringing in transparency and accountability, while asking MOCs to declare all themoney paid to African rulers. Once there is transparency,embezzlement of funds from governments to private overseasaccounts can be stopped and money thus saved utilised fordevelopment.

In its anxiety to criticise Asian companies, the West

A class in progress at the India-Tanzania Centre For Excellence in ICT.



created a new category, Asian National Oil Companies(ANOC). This category suited them since most oil companies from the West are privately owned unlike thosefrom Asia. The West further questioned the functioning ofANOC.

ANOC has the support of Asian governments for theirAfrica operations, unlike the West. The West said ANOC wassupported through diplomatic channels. It also said thatANOC’s operations were financially buttressed by the nation-al exchequer and thus they cared little for the financial viability of investments.

It is also alleged that ANOC has not been transparent intheir dealings, as they did not have to publish accounts tostockholders in stock markets. Also, the African oil-produc-ing states give undue preference to ANOC, it said.20 In suchan environment, MOCs found it hard to compete.

These allegations are uncalled for and do not square upwith reality. Governments support ANOC in their national interest for energy security. In fact, the Indian government hasbeen extending diplomatic support as part of a strategy toachieve energy security. The government’s policy document,Integrated Energy Policy, says: “Since 80 percent of global hydrocarbon reserves are controlled by national oil companiescontrolled by respective governments, oil diplomacy establishing bilateral economic, social and cultural ties canreduce supply risk.”21

Thus, there is no harm in using diplomatic channels to promote national interest. But the claim that Western governments do not support MOCs is dubious. Many times,Western diplomats have promoted MOCs.

The creation of the ANOC category is an effort to distort

reality, at least in the case of India. The involvement of oilcompanies in Africa is not at all restricted to the public sector;Indian private sector companies too have made large investments in Africa. Reliance, Essar and Videocon are constantly looking for opportunities to expand operations inAfrica. Private sector companies from South Korea too are present in Africa. This article argues that the creation ofANOC is faulty and should be done away with.

conclusIon

Emerging economies, Asian in particular, have impactedthe global oil market. These economies face challenges: on onehand, they have limited domestic oil resources and on theother hand, they need more energy. In such a situation, theseeconomies are forced to look for oil across the globe. Africa,with its vast oil reserves, is an apt destination to secure oilsupply. As such, many of these countries have invested in oilassets there.

However, these investments have made competition toughfor MOCs in Africa and as a result, Asian investments havedrawn criticism. These criticisms originate from the fear that the supply of oil to the West would be affected due toincreasing demand from the emerging economies.

There is a need to bring in a fundamental change in theWest’s usage of energy. In terms of per capita energy consumption, the West consumes more than Asia. GrowingAsian economies need more energy and are justified in looking for oil in Africa. The consumption of oil is likely togrow more. So, the West, instead of blaming Asian countriesfor the increase in the demand for oil, should try to limit itsown energy usage. n

1. Organisation of Petroleum Exporting Countries, World OilOutlook, 2007. (Vienna: OPEC Secretariat, 2007).2. Tanvi Madan, Energy Security Series: India, The Brookings ForeignPolicy Studies, Brooking Institution, Washington D.C., November2006. 3. US Energy Information Administration. www.eia.gov.4. Li Guoyo, World Atlas of Oil and Gas Basins, John Wiley and Sons,2011.5. Naik, S.R., Sinha, ST., Singh, SJ., Pant, S.K.C., Singh, S.N.K.,Report of the Group on India — Hydrocarbon Vision 2025, Governmentof India, February, 2000.6. ONGC Videsh Limited, www.ongcvidesh.com.7. Ministry of Petroleum and Natural Gas, petroleum.nic.in/ refin-ery.pdf.8. ‘African Union: Fuelling Africa’s Sustainable Development:The Oil and Gas Perspectives, AU/EXP/OG/5 (I), Report of FirstAfrican Union Conference of Ministers responsible forHydrocarbon, Cairo, December 11-15, 2006.9. British Petroleum, BP Statistical Review of World Energy, June2011, London: British Petroleum p.l.c., 2011.

10. ibid.11. US Energy Information Administration, www.eia.org.12. Taylor Ian, China’s Oil Diplomacy in Africa, International Affairs(London), Volume 82, Number 5, September 2006, pp. 937-959.13. ibid.14. List of Chinese investments abroad is provided in thereport by Julie Jiang, Jonathan Sinton. Overseas Investment byChinese National Oil Companies: Assessing the Drivers and Impacts,International Energy Agency, February, 2011.15. Petronas, www.petronas.com.my.16. www.knoc.co.kr 17. Matthew E. Chen, Chinese National Oil Companies, and HumanRights, Orbis,Volume 51, Number 1, Winter, 2007.18. Ingrid Wuerth, Wiwa V. , Shell: The $15.5-Million Settlement,ASIL Insight, Volume 13, Issue 14, September 9, 2009.19. Publish What You Pay, www.publishwhatyoupay.org20. John Mitchell, Glada Lahn, Oil for Asia: Brief Paper, ChathamHouse, March 2007.21. Government of India, Integrated Energy Policy: Report of the ExpertCommittee, Planning Commission, New Delhi, August, 2006.

References

M A R I T I M E S E C U R I T Y


With Africa fast emerging asa major market andinvestment destination,besides being blessed withabundant agricultural andmineral resources, the bigpowers are eyeing thecontinent, especially its

island nations, with a long-term strategic vision. The islandnations of Africa can provide a foothold to littoral and non-littoral naval powers in the Indian Ocean. Therefore,not surprisingly, the island nations of Africa have come tooccupy greater importance in the strategic plans of the bigpowers. The island nations situated on the eastern African

coast have greater relevancetoo, because of its geographi-cal location. While India is anIndian Ocean Rim nation andhas island territories to provide sustenance to its maritime assets and interests,the other big and powerfulnations like the United Statesand China are lacking in thisrespect and, therefore, feel agreater need to develop strate-gic partnerships with theseisland nations. In fact, some ofthe smaller islands, which areuninhabited, can be used fornaval and air bases and asplaces for rest and recreation.Their importance can beunderstood from the kind offacilities the Diego Garcia basenear Mauritius provides to theU.S. forces. This islandbelongs to Mauritius but theBritish retained control overDiego Garcia and handed itover to the American militaryon a long-term lease. The

Diego Garcia base is a major outpost for American forces inthe Indian Ocean, giving the U.S. sole and unchallengednon-littoral military power and capability to exercise control over the Indian Ocean.

China, which is also a non-littoral power and has increas-ing economic and strategic interests in deepening relationswith Africa, aspires to have similar facilities for its naval armin the Indian Ocean. If China succeeds in getting such afacility, the U.S. and China will be sitting face to face witheach other on the Indian Ocean. Such a development, however, would reduce India’s comfort level in the IndianOcean. The announcement by the Chinese DefenceMinistry on December 13, 2011 that Seychelles had invited the Chinese navy to establish facilities for resupply

Island Nations: Highstakes on high SEAS

If India wants to exercise predominant influence in the Indian Ocean area,it must have a proactive and multifarious policy of engagement with the

strategically located island nations of Africa, says Ranjit Kumar

President Pratibha Devisingh Patil with Mauritius’ Prime Minister Navinchandra Ramgoolam

at Clarisse House, Mauritius, on April 25, 2011.



and recuperation of international ships during escort missions, has attracted much media attention worldwideand there is wide speculation that this could be in fact thefirst step in finally helping the Chinese set up a naval baseon the Indian Ocean. As Seychelles is only 600 km awayfrom the U.S. naval base at Diego Garcia, the Americanstrategists would also be concerned.

The Chinese Foreign Ministry, however, later clarifiedthat its naval fleet would only seek supplies or recuperate inSeychelles during anti-piracy operations. Earlier, theForeign Affairs Minister of Seychelles, Jean Paul Adam, saidthat his government had invited China to set up a militarypresence on the archipelago to helpfend off pirates. The United Statesalready has a drone base on one ofthe islands of Seychelles.

India has only since the lastdecade started focusing on developing capabilities to safeguardits interests more vigorously in itsmaritime neighbourhood. Manyinternational strategic observersoften say that India regards theIndian Ocean as its backyard andthe island nations, therefore, as itsnatural outposts. If India wants toexercise predominant influence inthe Indian Ocean area it must have a very aggressive policyof engagement with the island nations of Africa. Indiaalready has a very good working relationship with other

major non-African islands like the Maldives and Sri Lanka.China too has made deep inroads into India’s close maritimeneighbourhood and is trying to woo Maldives. The 19thcentury American naval strategist, Alfred Thayer Mahan, isoften quoted by Indian strategic analysts as having said,“Whoever controls the Indian Ocean dominates Asia and inthe 21st century the destiny of the world will be decided onits waters.”

Though the Chinese often critically say that the IndianOcean is not India’s ocean, Indian strategic observerscounter this assertion by saying that as the most populouscountry and a major economic and military power in the

Indian Ocean region, India has anatural claim to assert its presencefor safeguarding its economic andstrategic interests. With two majorchains of islands, the Andaman andNicobar and the Lakshadweep,India’s Exclusive Economic Zone(EEZ) and territorial waters extendup to a major portion of the IndianOcean. Indian security planners,therefore, view with suspicion anyundue claim from outside powersover the Indian Ocean.

Strategically, the island nationsof Africa on its eastern coast are

gaining geopolitical importance because of the covert andovert rivalry among the big powers on the Indian Ocean. Asthe biggest economy among the Indian Ocean Rim nations

The Diego Garcia base is a major outpost for the U.S. forces in the Indian Ocean

As the biggest economyamong the Indian OceanRim nations and with a

stake in maintaining peaceand stability in the

maritime area, India has anatural claim to deeperfriendship with the islandnations of the Africa in the

Indian Ocean


and with a stake in maintaining peace and stability in themaritime area, India has a natural claim to deeper friendshipwith the island nations of the African continent in the IndianOcean, namely, Comoros, Seychelles, Mauritius andMadagascar. India and China seemto be competing in providing maximum civilian and military support, though as an Indian Oceanpower, India seems to have a natural inclination for special relations with these island nations.But it must be noted that China hasalso been successful in establishinga special rapport with the rulers ofthese island nations, especially indefence cooperation. These islandnations can provide a foothold toany country in the Indian Ocean,especially to China, which is amajor emerging power seeking to assert its presence on theIndian Ocean. The Chinese government, of late, has beenmaking special overtures to some of these island nations.With China trying to gain mining rights in the central IndianOcean, which will provide an excuse for its naval assets tobe positioned in the area, India will have to brace up for anew era of rivalry in the Indian Ocean, in which the islandnations of Africa on its eastern coast will play a major roleas a platform for the navies of the big powers.

InstItutIonal MechanIsM

India has given an institution-al shape to its relations with thelittoral navies through the grandinitiative of the Indian OceanNaval Symposium, of which theisland nations of Africa areimportant invitees. At a timewhen China has positioned itselfon the Indian Ocean with its‘string of pearls’ strategy throughits ports development projects inGwadar (Pakistan), Hambantota(Sri Lanka), Myanmar andBangladesh, the Indian navyregards it as a lost opportunityperhaps because of India’s slight-ly strained relations with theseimmediate neighbours.However, now with India seeking to position itself on thehigh seas through the via mediaof deeper strategic relations withthe island nations of Africa, theIndian navy may be able to markits presence in the coastal watersof Africa, mainly the

Mozambique channel in the Indian Ocean, which is also amajor trade and energy supply route.

The increasing strategic importance of Africa can only begauged from the fact that the U.S. had set up a special and

separate command for Africa in2006, called Africom. The DefenceDepartment’s newest geographicunified command, headquarteredin Germany, works to assist the militaries of the African nations.When Pentagon made thisannouncement, Chinese PresidentHu Jintao was travelling to Africa.The Chinese reacted strongly tothis move, saying, “the Americaninitiative stood for the Cold Warbalancing and this move was reject-ed by the African countries”.According to reports, the U.S.

Department of Defence is seriously looking for a suitableplace in Africa for its headquarters, but has not yet been successful. There are reports that it is looking for one of theislands on the Eastern Coast of Africa for its headquarters.

coMoRos

Comoros, a former French colony, consists of fourislands, though it has control over only three, which includesthe largest island of Grand Comore with its capital city of

Prime Minister Manmohan Singh with Seychelles’ President James Alix Michel in New Delhi on

June 2, 2010. India signed the Bilateral Investment Promotion and Protection Agreement with

Seychelles during the visit.

With China trying to gain mining rights in thecentral Indian Ocean,which will provide anexcuse for its naval

assets to be positioned in the area, India will have to brace up for a new era of rivalry in the Indian Ocean




Moroni. With a population of 800,000, the country has 250people of Indian origin. On December 23, 1974, the GrandComore, Moheli and Anjouan voted for independence whileanother island Mayotte preferred to stay with France. ThusFrance has retained its strategic foothold in the island nationand may discourage Comorian leaders from extending strategic support to the Chinese military. Though Comorosis a poor nation and depends entirely on international help,its Sunni population and its membership of the Organisationof Islamic Cooperation and the Arab League makes it apotential candidate for a pro-Islamic orientation and open toChinese appeasement.

Being a former colony of France, the impoverishedisland nation gets a third of its budgetary requirements fromthe French government. But China seems to have found aniche for itself in Comoros by helping to build develop-mental projects of a sensitive nature in recent years. Theseinclude setting up a radio and TV station in Moroni andbuilding a number of government buildings like thePresidential Palace, the National Assembly, MoroniInternational Airport, and a donation of 5 million euro tosupport basic education by building schools. China has alsocommitted 4.65-million euro assistance for building a 100-bed hospital in Anjouan.

India hosted the then president of Comoros, AhmadAbdullah Mohamed Sambi, in November 2007 and set upa vocational training centre in Moroni to support skill development in plumbing, welding, electricity, civil works,

and information technology. Comoros is alsopart of the Pan African E-Network that seeks tobring tele-medicine and tele-education toAfrican people. Comoros was linked to the net-work in September 2010.

This e-network can assist the people ofComoros mainly with medical advice and higher education. Almost 50 countries of mainland Africa are already taking advantage ofthe network. In 2008, the Indian governmentalso announced the lifting of a ban on the exportof non-Basmati rice to help relieve the food crisis in Comoros. However, there have been nobilateral high-level visits between the two coun-tries. The president of the island state has visited India only once for a multilateral meet.The visit of the Comoros Minister for ExternalAffairs and Cooperation to India was also underthe aegis of the Least Developed CountriesConference from February 18-19, 2011.

Though Comoros supports India’s case forpermanent membership in the Security Councilof the United Nations and regards India as a rolemodel for development, India has not been veryaggressive in supporting development programmes in Comoros.

seychelles

India has been trying to strengthen its relationship withSeychelles by offering military assistance. The February2012 visit of President James Alix Michel to India indicatesa deepening of political relations between the two nations.In recent years, India has been making some efforts to estab-lish an intimate security grid with the island nations ofSeychelles, Maldives, Madagascar and Mauritius. Chinaseems to have joined India, besides the United States, in therace by offering these island nations security cooperation,which will allow her to extend its influence in the IndianOcean.

The visit of the Seychelles’ president to Beijing in May2010 was significant. The Chinese offered Seychelles a newwarship, a step the Indian navy had taken way back in 2005when it gifted INS Taramugli to Seychelles for patrolling thewaters around the island. Of late, Somalian pirates, whohave extended their tentacles up to the Seychelles Sea, cameunder severe pressure in the Gulf of Aden after the deployment of international warships, including those fromIndia. Somalian pirates have seriously jeopardised theSeychelles tourist business. Later, the Indian navy deployedone of its warships mainly to protect the traffic aroundSeychelles.

In fact, in the name of fighting the Somalian sea piratesin the Gulf of Aden, many big powers have been offeringunsolicited aid to the island nation. As the Indian navy isreported to have set up radar facilities for monitoring other


naval movements in the region, the Americans have steppedin with attractive offers of infrastructure development in lieuof which the Pentagon has successfully bargained to stationits P-3-C Orion maritime surveillance aircraft on one of theislands of Seychelles. The chief of the U.S. CentralCommand is reported to have visited Mahe, the capital ofSeychelles, and personally negotiated with the president ofSeychelles in mid-2010.

In the name of fightingthe sea pirates, the Americanshave found an opportunity todeploy its maritime reconnaissance aircraft inSeychelles, extending itsfootprint in the Indian Oceanfrom the controversial DiegoGarcia military base. Thenew naval air base near DiegoGarcia will help the U.S. inkeeping a better watch onsurface and subsurface navalmovements of other naviesover the southern IndianOcean.

Situated only 600 milesEast of Diego Garcia, thestrategic importance ofSeychelles is obvious. BesidesSeychelles, other islandnations of Africa can also beregarded as India’s strategicoutposts in the Indian Ocean.Therefore, of late, India hastaken some initiatives formaintaining its security profile in the Indian Oceanby developing close strategic

and defence partnerships withthe island nations of Africa on theIndian Ocean.

MaDaGascaR

France is already present inthe Indian Ocean with itsextended maritime territory onthe Reunion Island nearMadagascar.

However, China has beencourting Madagascar with anaggressive engagement policy,though the island was underFrench rule and became independent only in 1960. Theworld’s fourth-largest island afterGreenland, New Guinea and

Borneo, Madagascar is situated in the southwestern IndianOcean and is a member of the African Union and SouthAfrican Development Community (SADC).

With a population of 21.3 million, the country is arounda sixth of India’s size. Out of this population, roughly 20,000People of Indian Origin live in the island country, whereasmore than a 40,000-strong Chinese community inhabits




the island nation, besidessome 10,000 new expatriates from China.

These expatriates aremostly small traders,against whom localresentment is brewing.Yet the Chinese havebeen successful in devel-oping strong militarybonds. The defence minister of Madagascarwas invited to Beijing in2005 and a defence cooperation programme,especially in training,was chalked out.

Considering the geo-graphical distance, themanner in which theChinese government’sengagement policy withthe island has helped settle a considerable number of Chinese citizens is indica-tive of China’s aggressive policy of engagement with thecountry. Frequent high-level bilateral visits, according to asenior Chinese official, has strengthened relations betweenthe armed forces of the two countries.

The island country is rich in mineral resources, includ-ing hydrocarbons, limonite, nickel and graphite and is alsoan important source for gems. Though Madagascar was thefounding member of the African Union, for long itremained on the margins of Africa’s mainstream affairs.

In 2007, India set up a listening post in northernMadagascar with a view to enabling the Indian navy to monitor ship movements. This listening post has beenequipped with radars and surveillance gear, which can intercept maritime communications. This is said to beIndia’s first naval monitoring facility in the Southern IndianOcean. The increasing petroleum traffic across the Cape ofGood Hope and the Mozambique Channel offers the Indiannaval facility in Madagascar a close view.

The year 2003 was the high time for Indian naval diplomacy when it bagged a contract from Mozambique toprovide maritime security for the African Union summit.

MauRItIus

Nearly 900 km east of Madagascar, Mauritius is anoth-er of India’s bulwarks in its maritime strategy. India hasestablished an extensive and perhaps the deepest everdefence relationship among all the littoral states of IndianOcean with Mauritius.

According to an official background paper, India’sdefence relations with Mauritius have been multifarious.For example, roughly 45-50 personnel from the Mauritian

Police Force are trained annually in Indian defence trainingestablishments. India has been deputing a Diving and aMarine Commando (MARCOS) training team toMauritius for two-three weeks since 2008. At the request ofthe government of Mauritius, Indian naval ships regularlyundertake surveillance and joint patrolling of the vast EEZof Mauritius with a view to providing deterrence to piracyand illegal fishing activities in the region.

In November 2009, Dhruv, an advanced light helicopter,was delivered to the government of Mauritius with a grantof $10.42 million from India. A Coastal Radar SurveillanceSystem (CSRS), which was commissioned in April 2011,was financed by a grant of 2.46 million euros. A bilateralagreement for the supply of an offshore patrol vessel (OPV)to the Government of Mauritius is currently being implemented with the OPV being designed and construct-ed by GRSE Ltd. at a cost of $58.5 million. The OPV isfunded partly by an EXIM Bank line of credit ($48.5 million) and partly by a grant ($10 million).

Considering the depth of bilateral defence relations,Mauritius can be called India’s closest ally in the IndianOcean, which has fully relied on India for enhancing itsdefence capabilities. In fact, for the last few decades, Indiahas been providing the island nation with military expertiseand weapons systems. Besides, a number of naval and airforce personnel are also deployed in the Mauritius coastguard.

The Mauritian government has also signed an agreement with the Indian navy for hydrographic work nearthe Mauritian coast. This will enable safer navigation andbetter management of the Mauritian EEZ for which anIndian Navy ship has been deployed. n

K I N S H I P


Africa has now joined the list ofemerging economies as the steadygrowth rate in several African countries has made the continent anattractive investment and trade destination. Africa is the new frontier, with its vast reserves ofuntapped natural resources. As a new

emerging economic region, the continent is of special interest for other emerging economies such as India, Chinaand Brazil, each looking for new regions for economic engagement.

Increasingly, private enterprises from high-growtheconomies are coming to Africa, drawn by the availability ofabundant raw materials, a young workforce, and growingdemand. While growth levels in the United States and Europelanguish, several sub-Saharan economies have grown at anaverage of 6.6 percent in the past few years.

India, China and Brazil have had long links with Africa andthese links have been in part nurtured by their diasporas. Eachof these countries is now using those links to further trade and

commercial ties. Despite the global economic slowdown,Africa’s economic transformation has continued. India, Chinaand Brazil had marginal roles in Africa’s trade volume a decadeago. Today, China accounts for 13 percent of Africa’s trade,while India has increased its share from 2.3 percent in 2000 toover 5 percent in 10 years. Brazil’s trade has also doubled during this period.

Indians have had historical ties with Africa. The IndianOcean has been host to a regular trading network betweenIndia and the eastern coast of Africa since ancient times. Indianand African traders were familiar with the coastal regions ofeither side of the Indian Ocean. There are now more thanthree million People of Indian Origin (PIO) in Africa, spreadacross the Anglophone, Francophone and Lusophone regions.They had either travelled or migrated to Africa at differenttimes and in different capacities, such as indentured workers,artisans, traders, professionals, and, more recently, asentrepreneurs and economic migrants.

The largest population of PIOs is in South Africa, EastAfrica and other Anglophone countries. But recent migrantshave moved to newer places in Africa. Small Indian commu-

A bridge called DIASPORAIndia, China and Brazil have had longstanding links with Africa which havebeen sustained and deepened by their diaspora, says Shubha Singh

Aasif Karim, a former captain of Kenya’s national cricket team, and his family at their home in Nairobi, Kenya. People of Indian origin have

gone on to occupy key positions in their adoptive countries and have made seminal contributions. Photo: Preston Merchant



nities, numbering a few thousands to amere handful, dot the African continentfrom Lesotho to the Ivory Coast. Thereare now about 25,000 Indians in Nigeria,about 8,000 of whom are Nigerian citizens; some 6,000 Indians live inBotswana while Eritrea has a populationof just about 500 Indians.

Just as the Indian diaspora in the U.S.helped in fostering better ties betweenIndia and that country, it has also playeda significant role in improving tiesbetween their country of residence andthe former homeland. Indianentrepreneurs in countries such as Liberiaand Togo have facilitated contacts andprovided easier access to these countries.

Upjit Singh Sachdeva went to Liberia20 years ago to work in a relative’s timberbusiness. Starting his own business venture a few years later, Sachdeva went on to foster fruitfulcontacts between India and Liberia.

In recognition of his efforts, the Indian governmentappointed him its Honorary Consul-General in Liberia.Indian investments in Liberia have increased from $450 million in 2005 to more than $2 billion in 2009. Today, Indiais the main supplier of pharmaceutical products and eggs toLiberia. There are a number of individuals in different Africancountries who have played a similar role in helping to deepen India’s ties with their host countries.

There is a historical similarity in the nature of Indian andChinese contacts in Africa. Both regions had ancient tradingcontacts; a regular migration of indentured workers took placeduring the colonial times; and, in the wake of African independence, both India and China befriended the newlyindependent nations.

India sent teachers to African countries, while Beijingoffered the services of its doctors. However, China’s domestic preoccupations reduced its contacts with Africa inthe later decades till Beijing began opening up its economy andushering in reforms. On the other hand, India’s politicalengagement with Africa had deepened through the Non-Aligned Movement.

China’s links with Africa go back several centuries. Tracesof those are visible in Chinese coinsand porcelain discovered at severalAfrican sites. There is evidence oftrade between China and the EastAfrican coastal region from the 12thcentury. There are early Chinesewritten records of travellers’ impressions of Africa. In early 15thcentury, Chinese Admiral Zheng Hewas known to have travelled as far asEast Africa with a large fleet of ships,

returning with cargo-loads of fine product and exotic animalsand plants never before seen in China. However, a more activeinteraction between China and Africa began in the colonialdays. As the European powers established new colonies indifferent regions of Africa and slavery was abolished in theWest, the latter needed workers to tend plantations in the newcolonies. The two main sources of labour in that period wereChina and India. Descendents of those indentured workersand other migrants of that time today form the core of theIndian and Chinese diaspora in Africa.

Brazil and africa

As one of the emerging nations with a booming economy,Brazil is keen to seek out new markets and Africa was a natu-ral destination given its geographic proximity. Brazil began itsnew thrust towards Africa in 2005, when its then President,Luiz Inacio Lula da Silva, visited 12 African countries andopened 16 embassies on the continent.

Lula elevated Africa to a priority area in Brazil’s foreignpolicy, referring to “moral and historical obligations” andstressed that Brazilian society was built on the sweat andblood of Africans. Again, it was the historic ties betweenAfrica and Brazil that President Lula invoked to open doorsin Africa, stressing on the transportation of thousands of

Africans, taken as slaves to the countries of the New World.

It is said that Brazil has the largestpopulation of people of African origin outside Africa. Most of themare descendants of slaves who werebrought from West Africa in the 16thcentury. The slave trade continuedfor 300 years. Slavery was abolishedin Brazil only in 1888. In fact, almost49 percent of Brazilians have African

Overseas Chinese workers at a factory in South Africa. Chinese companies are today major

players in Africa’s infrastructure sector.

Indians have had historicalties with Africa. The IndianOcean has been host to a regular trading

network between Indiaand the eastern coast ofAfrica since ancient times

K I N S H I P


ancestry. Afro-Brazilians have a major influence on Brazil’sculture and society, especially on music, dance, food and art.Large multinational and Brazilian companies have found iteasier to route their investments through Afro-Brazilians.

Agri-business has become an important segment in theBrazil-Africa commercial engagement with the production ofethanol from sugarcane.

Though Brazil is a relative newcomer to Africa comparedto India and China, the cultural similarities between Brazil andcountries of West Africa and its geographic proximity to theAfrican continent give Brazilian enterprises an edge in WestAfrica. Brazilian businessmen, especially those of African origin, have the advantage of a shared culture and languagewhen dealing with the former Portuguese colonies in Africa.It makes it easier for them to do business in African countries.

Africa has also opened up to embrace its diaspora. It hasmade moves towards engaging with the larger African diaspora around the world. The constitution of the AfricanUnion states that it will “invite and encourage the full participation of the African diaspora as an important part of ourcontinent, in the building of the African Union”.

The African diaspora has been defined as “consisting ofpeople of African origin living outside the continent, irrespective of their citizenship and nationality and who arewilling to contribute to the development of the continent andthe building of the African Union”.

Several countries such as Ghana and Nigeria have governmental programmes focusing on the diaspora. Africa’sengagement with its diaspora has encouraged its immigrantcommunities to strengthen contacts with their ancestralhomelands.

A major part of Brazil’s trade with Africa is through its oilimports from Nigeria, but it is in Angola, another formerPortuguese colony, where Brazilian private enterprises have

established a big presence. Brazil’s trade, investment and technology transfer to African countries was initially part ofthe larger paradigm of South-South cooperation but the roleof the diaspora has given it a further momentum.

china and africa

For China, Africa has become a major source of raw materials. The Chinese presence in the continent began fromthe mid-1800s when thousands of Chinese workers werebrought to Africa to work in the mines, to build railroads andto toil in the sugarcane plantations. Poverty and rural distressled to large-scale migration out of the Chinese coastalprovinces to South East Asia and further west to Africa. Smallto large Chinese settlements grew up in the territories whereChinese workers had been brought in as unskilled labour.There was another smaller wave of Chinese migrants toAfrican countries when hundreds of Chinese fled the mainland after the Communist takeover.

There were substantial Chinese communities in SouthAfrica, Madagascar and Mauritius in the 1950s; some of theChinese residents were second- and even third-generationoverseas Chinese. Most of them had little contact with mainland China and most of them were involved in farming, market gardening or owned small provision storescalled ‘baihou’. Besides some amount of trade in Chinesegoods, there was little interaction between China and overseas Chinese in Africa.

Chinese businessmen left Shanghai in large numbersafter the Communist takeover in China and some of themreached Africa where they sought to set up similar businesses they had at home. As Africa began decolonising,Beijing began to take interest in the newly-independentAfrican states; the 1955 Afro-Asian Conference in Bandunghelped give greater depth to Beijing’s ties of friendship with

An elderly woman of Indian origin shops at the City Park Traders Market, a development project of the Aga Khan Foundation

in Nairobi, Kenya. Photo: Preston Merchant



African countries. China took up infrastructural projectssuch as the construction of railways in Africa and sent alarge number of doctors to African countries. Later, as Chinainitiated economic reforms and opened its economy, it sawAfrica as a good source of naturalresources and as a market for consumer goods.

As Beijing laid emphasis onexports, it found the Chinese diaspora settled around the worldas a good conduit to introduceChinese goods to the countries theywere living in. As China gained inimportance, the diaspora alsolooked towards China for businessopportunities. There was growingdemand in African countries forcheap consumer goods, a demandthat China could meet through thehelp of the overseas Chinese. Together with increasing trade,China also entered the infrastructure sector in Africa.

Chinese companies took the help of local Chinese residents to find their way through African economies, bidding for large infrastructure contracts. Many of Africa’sChinese residents got in touch with relatives back homeinviting them to explore growing business opportunities inAfrican states. As the Chinese bagged industrial projects,they brought in semi-skilled and skilled workmen to buildthem. The enterprising Chinese workmen later moved onto set up their own business ventures.

Overseas Chinese have taken enormous pride in China’srise as an economic powerhouse. The Chinese living inAfrica also began trading in Chinese goods. While tradition-ally, Chinese businessmen brought in skilled workers tohelp build their businesses, latter-day Chinese migrants

came in themselves as traders, setting upshops and bringing in members of theextended family to help run those shops.

Shortly, Chinese textiles swamped theAfrican market with their low-cost waresthat were better presented and priced thanlocal fabrics and garments.

The Chinese in Africa also built up localnetworks for retail and brought in Chinese-made goods that were far cheaper than western products and affordable to theAfrican consumer. In fact, Chinese com-munities provided small loans and assistanceto its members to help set up businesses. AChinese trader would travel to China everyfew months and stock up on goods thatcould be sold through the local Chinese retailnetwork. Today, the presence of the Chinesediaspora has helped Chinese transnationalcorporations locate in African countries.

Over the years, Africa has become an important market for Chinese goods. There are few accurate estimatesof the size of the Chinese diaspora in Africa. Estimates rangefrom half a million to one million. But the numbers of

Chinese businessmen, traders, work-ers and farmers are growing distinct-ly in several African countries.

Lesotho has a brand newChinese-built Parliament buildingand its main industry, textiles, ispartly Chinese-owned. There arealso a string of Chinese shops andrestaurants in several remote townsin Lesotho.

india and africa

The Indian diaspora in Africa isestimated to number about three mil-lion — they include descendants of

the indentured workers who were taken to Natal in the late 19thcentury and descendants of workers brought to build railroadsin East Africa. From the “dukawallas” (small shop-keepers) ofearlier days, Indians have entered almost all aspects of social lifein the countries where they are settled.

Initially, the main Indian foray into the African economywas through its public sector companies, but as the Indianeconomy opened up, Indian-African economic interactionwas increasingly began driven by India’s private sector.

Indian communities, which are well-entrenched inAfrican countries, have been a source of competitive advantage for incoming Indian companies as consumers ofIndian goods as well as facilitators and partners for attracting investment. Diasporic communities have becomean asset for India, China and Brazil in their engagement withAfrica. n

Indian communities, whichare well-entrenched inAfrican countries, have

been a source of competitive advantage for incoming Indian

companies as consumersof Indian goods as well asfacilitators and partners for

attracting investment

People of African origin playing drums in the city of Salvador in the Bahia state of Brazil.

Afro-Brazilians have a major influence on Brazil’s culture and society, especially on music,

dance, food and art. Photo: Lalo de Almeida for The New York Times


D O I N G B U S I N E S S W I T H A F R I C A

India plans to set up joint ventureswith African countries to step up itsoil and gas imports from the

resource-rich continent thereby reduc-ing its dependence on any particularregion. The country’s energy needs aregrowing to fuel a $1.8 trillion economyand Africa is emerging as an alternativehydrocarbons hub. “We have been trying to diversify

our sources of oil and gas imports so asto reduce our dependence on any par-ticular region of the world,” UnionFinance Minister Pranab Mukherjeesaid at the third India-AfricaHydrocarbons Conference in NewDelhi on December 9. “In the comingyears, Africa will play a major role inmeeting the growing demand for crudeoil and gas in India,” he said while inau-gurating the two-day conference. Currently, the Middle East accounts

for 70 percent of India’s oil and gasimports. Saudi Arabia is the largest sup-plier of oil to India, followed by Iran.Africa accounts for one-fifth of India’soil imports. He said the import of crudeoil from Africa had increased from near-ly 22 million tonnes per annum in2004-05 to more than 35 million tonnesin 2010-11.“Today, more than one-fifth of

India’s crude oil imports are fromAfrica, with the major suppliers beingNigeria, Angola, Algeria, Egypt,Cameroon, Equatorial Guinea andSudan,” he said.He said India’s refining capacity

would increase from 194 million to 238million tonnes per annum by 2013.“This means we need about 40 milliontonnes of additional crude per annum.” “Similarly, our government’s

emphasis on increasing the share of nat-ural gas in the country’s energy basketfrom 10 percent to about 20 percentmakes it necessary to look for increas-ing our LNG (liquid and natural gas)imports,” he said.African countries have proven oil

reserves of 132 billion barrels, while the

annual oil production in the region is478 million tonnes, which is about 12percent of the world’s total oil produc-tion. He said Indian companies wereinterested in buying equity stakes in oiland gas assets in Africa and other partsof the world in a bid to enhance thecountry’s energy security.“It is my firm belief that in the

hydrocarbon sector India and Africa arepoised for a long-term partnershipbased on mutuality of interests. In thedays to come, we will witness growinginvestments by Indian companies inAfrica and vice-versa,” he said.Petroleum Minister S. Jaipal Reddy

said that Indian companies were keenon entering into partnerships and form-ing joint ventures for enhancing oil andgas exploration activities in Africancountries. “Our preferred approach willbe to go in for joint ventures withAfrica’s national oil companies. There isno limit. We are interested in buying asmuch oil and gas from Africa as we can.”He said Indian firms such as GAIL

(India) Ltd and Indian Oil Corporationwere interested in sourcing oil andLNG on long-term basis from Africa.He said Indian companies were also

interested in exploring “possibilities ofequity participation in existing or pro-

posed LNG liquefaction projects, busi-ness opportunities in gas processing andgas-based petrochemical projects inAfrica and farm-in opportunities in pro-ducing gas blocks for conversion toLNG and dispatch to India”.He also said that India’s premier

public sector oil companies — ONGC,IOCL and GAIL — would train 450personnel from Africa’s oil and gas sec-tor over the next three years.At present, India’s oil companies

have a presence in 24 countries, includ-ing Egypt, Kenya, Uganda, Tanzaniaand Mauritius.With Africa emerging as an alterna-

tive to the volatile Middle East, theworld’s leading powers as well asemerging powers like China, India andBrazil have intensified their energydiplomacy in the continent. Chinasources over 30 percent of its oil importsfrom Africa, with Angola contributingthe bulk of it.As China has entrenched its pres-

ence in leading oil-producing Africancountries, India, too, has raised its stakesby building on historical goodwill it hasenjoyed in the continent to secure ener-gy assets there through targeted invest-ments, infrastructure deals and lines of credit. n

India to import more African oil

Finance Minister Pranab Mukherjee adressing the 3rd India-Africa Hydrocarbons Conference in New Delhi on December 9.



The West African country ofBenin has invited Indiancompanies to help develop

its oil and gas sector. “There are a lot of unexplored

mineral reserves in Benin, especial-ly in the oil and gas segment. We want India’s expertise in exploration to find these resourcesand use them,” Chirstophe Kaki,Director of Cabinet in the BeninoisMinistry of Petroleum and MineralResources, said in New Delhi onDecember 10. “I want to invite Indian companies

to come and work with us in a mutually beneficial partnership,” he said, on the sidelines of the 3rd India-Africa Hydrocarbon Summit 2011 inNew Delhi on December 10.Unlike neighbouring Nigeria and

Ghana, Benin’s resources remainunderexplored. Kaki felt that these could

be explored in collaboration with Indiancompanies. Benin has also soughtIndia’s support in the fields of educa-tion and infrastructure development. “We need geologists and other

related professionals in the explorationfield. India can also help in terms of providing education in this segment,”he said. “In terms of infrastructure, thereis also an opportunity to collaborate.” His views were corroborated by

Gurjit Singh, Additional Secretary, Eastand South Africa, in the Ministry ofExternal Affairs. Singh said that Indiawas looking at developing long-termpartnerships with African nations.“We look at Africa not as a source of

natural resources only. We believeAfrica’s biggest resource is its inhabitants. Our policy is focused ondeveloping human resource and capacity in Africa, so that Africans canuse this for their own benefit,” he said.He also said that though India’s

footprint in Africa’s oil and gas sectorwas smaller than that of China, it was amatter of time before the country caughtup. “Our footprint in the oil sector issmall, whereas some other countrieshave a larger footprint. But in manyother sectors, we have a bigger footprintand it is only a matter of time and opportunity that our footprint becomesbigger.” n

Benin invites Indian oil firms

An offshore oil platform in Benin.

An Indian IT major is assisting theEthiopian Revenues andCustoms Authority (ERCA)

transform its valuation methodology toa transaction cost system from a minimum price setting system to pre-vent under-invoicing. The 3.5-million birr (about $203,000)project is being undertaken by theIndian government-run Centre forDevelopment of Advanced Computing(C-DAC) to enable the ERCA comply

with the World Trade OrganisationAgreement on Customs Valuation. The contract was signed in September2011. India’s Central Board of Exciseand Customs is the consultant for theproject at no cost to ERCA, according toFekadu Bekele, ECRA’s director of customs valuation.The new system will depend on

invoices provided by importers asopposed to the existing database of minimum prices of an estimated 7.5

million goods. The automated system isexpected to eliminate under-invoicing.The new system is expected to be

ready for trial in six months, enablingERCA to obtain up-to-date price information for every sector and eliminate problems associated with outdated prices.ERCA hopes that the new system

will help the authority achieve its targetof collecting revenue of 70 billion birr (about $4 billion). n

India has asked Nigeria to allocatemore oil and gas to India and helpit in its energy security efforts. “India has expressed an interest to

procure extra crude oil and liquefiednatural gas from Nigeria,” Minister ofState for Petroleum and Natural GasR.P.N. Singh told the Parliament on

August 11, 2011. As India’s refiningcapacities increase, it would requiremore crude oil and gas, which Nigeriahad the ability to sell, he said. India’srefining capacity is projected toincrease from 185 million metrictonnes per annum to 240 million by2012-13. n

C-DAC automating Ethiopian customs system

India seeks extra oil from Nigeria


IIFT to open overseas centre in Uganda

The government-run IndianInstitute of Foreign Trade(IIFT) is all set to open its first

overseas campus in Uganda. The centrewill assist students understand the nuances of globalisation and capacity-building in Africa.“We are setting up an institute in

Kampala, which will be our first full-fledged overseas campus. TheUgandan government will provide usthe necessary infrastructure for the project,” said IIFT director K.T.Chacko. “We have already signed anagreement in this regard with theUganda government. The process hasbeen set in motion and we plan to startwith some executive programmes,soon,” he said.The new institute, named India-

Africa Institute of Foreign Trade(IAIFT), is being set up as a part of theIndian government’s initiative to helpdevelop a higher education system inAfrican countries in specialised fields.“Initially, the institute will be run by

the IIFT. Later, we will hand it over to Uganda,” said Chacko. He added

that the Indian government, throughIIFT, would bear the cost of all softinfrastructure, such as, faculty, libraryand expenses on information and communication technologies requiredfor running the institute.“It will be a pan-Africa institute —

part of India’s commitment for capaci-ty-building in Africa,” Chacko said.Established in 1963 by the govern-

ment of India, IIFT runs some

specialised programmes in collaborationwith foreign institutions, but it has nofull-fledged overseas campus in anycountry. The institute offers a two-yearmaster’s degree in international businessand a one-and-a-half-year executivemaster’s degree in the same stream incollaboration with the Institute ofFinancial Management in Dar esSalaam, Tanzania.Headquartered in New Delhi, IIFT

also has a campus in Kolkata. Apart fromthe full-time master’s in business management courses, the institute alsooffers part-time management coursesand short-term diploma programmesfor executives. The courses to be offeredon the Kampala campus will be on thesame lines as offered in India, said theIIFT director.During the India-Africa Forum

Summit in 2008, Prime MinisterManmohan Singh had announced that India would help establish 19 educational institutions in Africa. IIFTis one of them. The African Union hadzeroed in on Kampala as the site for theinstitute. n

India and South Africahave agreed to give impetus to trade and

investment between the twocountries and strengthenbilateral cooperation in micro, small and mediumenterprises sector.Minister of State for

Commerce and IndustryJyotiraditya M. Scindia held talks withSouth African Trade and IndustryMinister Elizabeth Thabethe to discussthe areas of business cooperation.Thabethe was in New Delhi onNovember 15.Scindia reiterated India’s offer of

cooperation in the development of micro,small and medium enterprises (MSME)sector in South Africa, according to a

statement released after the meeting. Heoffered India’s cooperation with respect

to the structural issues andthe dovetailing of informa-tion technology (IT) into thehandicrafts and handloomsector. He also offered collaboration in the field of vocational training and ITskills. Thabethe appreciated the

development of micro, smalland medium enterprises in India, espe-cially of rural artisans, as well as the ‘clus-ter model’ adopted in many sectors. Thabethe was in New Delhi to

participate in the 31st edition of theannual India International Trade Fair.South Africa had put up a ‘NationalPavilion’ at the fair showcasing artisanal craft products selected fromacross South Africa. n

India, South Africa to cooperate in MSME

India has offered tohelp South Africa in terms of IT integration and vocational training

The India-AfricaInstitute of ForeignTrade in Kampala will be IIFT’s firstoverseas centre




Airtel Africa, a division of Indiantelecom operator Bharti Airtel,has built a 50-million strong

customers base in Africa, where itacquired telecom operations in a $9 billion debt-funded deal in 2010.“Bharti Airtel Limited today

celebrated a significant milestone whenit acquired its 50-millionth mobile customer in Africa,” said a companystatement on November 30. “It hasachieved this milestone within just 17months of acquiring Zain’s mobileoperations in 16 African countries andhas added 14-million new mobile customers during this period.” Airtel Africa had invested $1 billion

in the network infrastructure in Africa.The company is now launching thesame technology being rolled out in Europe and the United States. The company has already been awarded 12 3G licences across its operations and launched the first 3Gnetwork in Congo. Earlier this year, the company

expanded its footprint by securing alicence to operate a GSM network inRwanda. In addition to building thenecessary infrastructure, Airtel has

signed agreements with leading companies like Nokia, Samsung andBlackBerry. “I shall like to thank thegovernments and regulators for theirsupport and would like to reiterate thatwe share their vision of bridging thedigital divide with affordable telecomservices,” said Manoj Kohli, ChiefExecutive Officer (International) andJoint Managing Director, Bharti Airtel.Meanwhile, Airtel Nigeria was in

the midst of a project to put in place 250

solar energy base stations across thecountry in the first phase as part of itsefforts to reduce carbon dioxide emissions by eliminating the use ofdiesel and petrol to generate power atthe base stations, an official said.The first phase of the project start-

ed in November 2010 and would endin February 2012. The second phasewould follow soon after that, ChiefOperating Officer Deepak Srivastavasaid in Lagos on December 7.Srivastava said the company had

invested 93 billion nairas (about $600million) in the past year to fund its network expansion to improve its services. The new solar energy base station is expected to handle about1,200 subscribers receiving and makingcalls at the same time. Bharti Airtel on January 17 this year

launched its 3.75G platform in Zambia,enabling customers to experience high-speed mobile broadband accessand make video calls and watch television live. “The 3.75G technologywill give our customers the opportuni-ty to interact with data in a differentway,” said Fayaz King, ManagingDirector, Airtel Zambia. n

Bharti Airtel touches 50-millon mark in Africa

Mobile phone manufacturerLava will invest $5 millionin the coming fiscal to

develop service centres and brandbuilding in Nigeria, where it sells nearly 50,000 units per month.“We will go ahead and invest $5 mil-

lion to develop the service centre andbrand building in Nigeria. “This investment will also benefit

our operations in Ghana, as it sourcesa lot of content from Nigeria,” Sunil

Raina, Chief Marketing Officer of LavaInternational, said in New Delhi onDecember 22. He said the company’s phones had

been well received in the African country.“Consumer wants in India and

these markets are similar and we arefocusing on providing products whichhave long battery life with standard fea-tures,” he said. The company said that it would

tweak a few features like languageoptions from English-to-French to luremore customers.He said Lava was targeting 10 per-

cent of handset market share in Nigeriawhere it started offering phones fourmonths ago. “It is a 2 million to 2.5 million per

month market. We are targeting nearly 10 percent of the total marketshare in the coming quarter,” the ChiefMarketing Officer said. n

Lava to invest $5 mn in Nigeria


Agroup of Indian experts is helping revive tea cultivation in Malawi in

southern Africa and has so far succeeded in bringing 8,500 acresof land under tea cultivation.The move follows a slackening

of interest in tobacco farming dueto low global prices for the crop,Sujeet Katoch, general manager ofthe Kawalazi Estate Company inMzuzu, said. Speaking on the sidelines of the

Fairtrade Africa Convention in Accrain November 2011, Katoch said:“Malawian farmers have for a long timedepended on tobacco farming but thedrop in global prices for tobacco hasrenewed interest in tea cultivation andsome of us have been recruited to helpin the building of tea estates.”

Agriculture is the mainstay ofMalawi, a country of 13 million people.Katoch said although Indian interest

in Malawian tea cultivation dated backto the 1960s it had not been sustained.“For the past three years, we have beentrying to introduce the concept ofsmallholding farms in tea growing areas

and have so far been able to get 10,000 farmers interested ingrowing tea.”He said the Kawalazi Estate was

opened by the Smallholder TeaAuthority in the early 1960s, butfollowing the inability of the smallholders to manage it, GlobalTea and Commodities (GTC), thecurrent owners, took over in 2001.Katoch, who is from Assam, a statein the northeast of India, said sincethe takeover of the Estate, “the

company has done all-time high croptwice already”. “The company employsa total workforce of nearly 2,400 menand women in its tea and macadamiaoperations, making it one of the largestemployers in the private sector in thenorth of the country,” he said. — Francis Kokutse n

Malawi’s tea estates on revival path

A tea estate in Malawi.

Apremier Indian agricul-tural research institutehas tied up with an

Ethiopian institute to help it increase the country’s agricultural output.The Ethiopian Institute of

Agricultural Research (EIAR)and the Indian AgriculturalResearch Institutes (IARI) signeda memorandum of understand-ing (MoU) in Addis Ababa inDecember 2011 to carry out agricultural research that would helpboost agricultural production inEthiopia.IARI is India’s premier

national institute for agriculturalresearch and education. It wasresponsible for research leading toIndia’s Green Revolution in the 1970s.Ethiopia’s Agriculture State Minister

Wondyerad Mandefro said the MoU

would help enhance the bilateral relations between the two countries. He added that the two institutes

would get a chance to undertakejoint agricultural research thatwould help in increasing production.Indian Ambassador to

Ethiopia Bhagwant Bishnoi saidthe MoU would further consolidate the relations betweenthe two countries. He said Indiawas interested in sharing its agricultural experience with

Ethiopia.The agreement would also enable

India to undertake research on meatand dairy development in Ethiopia.In addition to conducting

research, the EIAR is charged withthe responsibility of coordinatingagricultural research across thecountry, and will also advise the government on agricultural researchpolicy formulation. Currently, theEIAR has 55 research centres. n

India to help Ethiopia boostagricultural output

The Ethiopian Institute ofAgricultural Research andthe Indian AgriculturalResearch Institutes (IARI)signed an MoU to carryout agricultural research




The Indian fertiliser industry,facing a rise in the demand andcost of importing raw material,

is eyeing mineral assets in Africa. “Thereis a possibility of buying stakes in mines,which are in initial stages of operations,”A. Vellayan, Chairman of the FertiliserAssociation of India (FAI), said in NewDelhi in December. He is also GroupChairman of Murugappa Group, basedin Chennai. Some of the key miningareas the industry wants to enter are inEritrea, Ethiopia, Congo and Ghana.Vellayan said the prices of fertilisers

and the subsidies given by the government would also be reduced iffertiliser companies entered into jointventures with mining companies.“This will have a significant impact

on the prices. Currently, there are someIndian companies in South Africa,Tunisia and Morocco, and many ofthem are considering expanding theiroperations to other African countries.But the government’s support isrequired from that,” Vellayan said.Fertiliser manufacturers have asked thegovernment to create a $20 billionsovereign fund to buy overseas mineralassets.“Although there were discussions

about allocating $1 billion for asovereign wealth fund for public sectorcompanies, we have discussed with thegovernment for a sovereign fund ofabout $20 billion for potash and

phosphates,” he said. “Either we can goand buy, or else the government paysthe same amount ($20 billion) in subsidies.”India, which consumed 58 million

tonnes of fertilisers in 2010-11, lacks keymineral ingredients for the manufactureof fertilisers such as potash and phosphatic rock and has to depend onimports. The country imports 100 percent of potash and 90 percent ofdiammonium phosphate (DAP). In 2010-11, the country imported 7.41 million tonnes of DAP and 4.5 million tonnes of potash.The rising input costs have led to a

rise in the prices of DAP — these havedoubled from `9,350 a tonne in April2010 to `18,500 a tonne.The government has given a `900

billion fertiliser subsidy to farmers toprotect them from the fluctuating international prices, including a budgetary provision of `335 billion for

phosphatic and potash-based fertilisersfor 2011-12.Industry watchers say the ownership

of mineral reserves can bring long-termrelief and security to the sector which isreeling under high import costs due tothe depreciation of the rupee. Also, foreign producers such as Russian company Uralkali, which is part of alarger international cartel, have denieddiscounts on potash to Indian companies.“In the long term, we need assured

supplies, as we cannot depend anylonger on one or two suppliers. We area big country and have a huge population to feed,” said SatishChander, FAI’s Director General. “It will be more economical than buying the minerals from a few suppli-ers,” he said.Big names such as BHP-Billton,

Rio Tinto and Vale are eyeing Africanassets to mine potash. n

Indian fertiliser companieswant to buy mines in Africa

Karuturi Agro Products, a sub-sidiary of KaruturiInternational, is set to establish

a sugarcane factory in Ethiopia.The factory, with a capacity of crush-ing 7,000 tonnes of cane a day, is to bebuilt in Gambella regional state. Some

15,000 hectares of Karuturi land inGambella will start producing sugar-cane in three years, said Assefa Arega,manager of Karuturi’s plantation, inDecember 2011. The company expectsthe plant to be ready in time for theharvest. Karuturi is currently doing a

feasibility study on the project. Workon the sugarcane crushing factory,including site identification, supplyingand installation, is expected to com-mence early in 2012. The plantationand the factory will be set up adjacentto each other. — Groum Abate n

Karuturi to set up sugar factory in Ethiopia


F E A T U R E S

An Indian-origin woman — oneof the many second-generationIndians living in West Africa

— strives to give back to Ghana, acountry where her grandfather arrivedas a 14-year-old seeking greener pas-tures and eventually became a suc-cessful businessman.

Sonya Sadhwani’s grandfatherRamchand Khubchandani laid thefoundation of the family’s retail chainbusiness in Ghana in 1929. He startedoff as a store boy and went on to builda retail chain business, the GlamourStores, which his son, Bhagwan,turned into the Melcom Group.

However, her idea of working inGhana is far different from that of hergrandfather’s. Decades later, Sonya ischanging the company’s goals toinclude corporate social responsibilityand is getting into charity work in a bigway through Melcom Care, the chari-ty arm of the Melcom Group ofCompanies. “Ghana is my home andam very attached to the people of thiscountry,” says Sonya.

There are over 4,000 Indians in atotal population of more than 24 mil-lion in Ghana.

Like her grandfather and her father,Sonya finds Ghana so welcoming thatshe calls it a paradise.

“The people of Ghana are very sin-

cere and very accommodating and donot make you feel like an outsider,”says Sonya.

Like others of her generation,Sonya and her friends have little con-nection with their grandparents’ coun-try of origin. However, they havemaintained a close bond of friendshipwith one another.

“We meet regularly to dine out and(meet at) other social charity activities,”says Sonya.

Born in Accra in October in 1965,Sonya attended the elite GhanaInternational School (GIS) for a while

before joining her father in HongKong. “I didn’t like the cosmopolitannature of Hong Kong but had toremain there until I left for the UnitedStates for higher education.”

She moved to New YorkUniversity where she earned a degreein business education.

“After earning my degree, I wentback to Hong Kong and started teach-ing at the Sears Rogers InternationalSchool,” she added.

Soon after this, Sonya says, “I gotengaged and had to leave Hong Kongto join my husband in Nigeria wherewe lived for eight years until wemoved to Ghana where my husbandwas running the Crown StarElectronic Industry.” She became amother during this time and so spentlittle time working at the Melcom headoffice.

“Seven years ago, I was given myfirst project to run for the companyand slowly graduated to the Director ofBrand Management.”

Sonya’s dream is to give back tosociety through charity work. Shespent time teaching in the AmericanInternational School in Lagos, Nigeria,and at GIS, but her big dream is to takeher charity work to the next level andthis she wants to do full time. n

— Francis Kokutse

Indian-origin woman givesback to Ghana

Sonya Sadhwani who is using corporate socialresponsibility to help Ghanaian society

From just two dozen people in themid 1970s to nearly 3,000 fami-lies now, Hinduism is spreading

in Ghana and has made its way intoneighbouring Togo too.

Hinduism began to grow in Ghanaafter African spiritual leader Essel ji wasinitiated by Swami Krishnanda jiSaraswati into the Holy Order ofRenunciation in 1976, said Kwesi

Anamoah, the national president of theAfrican Hindu Temple here.

“Today, there are 2,000 to 3,000Hindu families all over the countrywhich is a big increase from the 24 peo-ple who participated in the first-everspiritual camp in 1976 to become disci-ples,” Anamoah said.

“We have achieved this through thesimple lives we lead,” he said.

“We invite people to the monastery todevelop a better understanding ofHinduism. We have been able to changetheir perception that it was a form of cul-tural enslavement,” said Anamoah.

Christians form nearly 70 percent ofthe 24-million population of Ghana,while the population of six million inTogo includes nearly 30 percentChristians and 20 percent Muslims. n

Hinduism spreads in Ghana, reaches Togo


The majority of tweets in Africaare made by young peoplefrom their mobile devices,

thus driving the growth of TwitterAfrica, a new research has revealed.

The study ‘How Africa Tweets’says African users of Twitter agedbetween 20 and 29 are also activeacross a range of social media, includ-ing Facebook, YouTube, Google+and LinkedIn.

The research by PortlandCommunications and Tweetminstersays Twitter is helping form new linkswithin the continent.

“It is clear that Africa’s Twitter revolution is really just beginning,”Beatrice Karanja, associate director andhead of Portland Nairobi, was quotedas saying.

“Twitter is helping Africa andAfricans to connect in new ways andswap information and views. And forAfrica — as for the rest of the world —that can only be good,” says Karanja.

The report says Twitter is becom-ing an important source of informa-tion in the continent, with 68 percentof those polled saying they use Twitterto monitor news while over 22 per-cent use it to look for employmentopportunities.

Analysts say Twitter will play a cru-cial role as Kenya gears up for general elections either in Decemberor in early 2013.

All of Kenya’s presidential candidates, including Prime MinisterRaila Odinga, Vice President KalonzoMusyoka and Finance MinisterUhuru Kenyatta are active Twitterusers.

The survey analysed over 11.5 million tweets originating from thecontinent during the last three monthsof 2011.

“Twitter in Africa is widely used forsocial conversation, with 81 percent of

those polled saying that they mainlyuse it for communicating withfriends,” the report says.

Latest figures from theCommunications Commission ofKenya (CCK) also say mobile telecom-munications are driving the country’srapid internet growth.

The CCK’s latest telecommunica-tions and internet report says Kenyanow has 14.3 million internet users,and most of them — 75 percent —

access the internet using mobiledevices.

The study finds that South Africa isthe continent’s most active country byvolume of tweets, with about five million tweets during the fourth quar-ter of 2011.

It was followed by Kenya with 2.5million tweets, Nigeria 1.65 million,Egypt 1.21 million and Morocco745,620, to make up the top five mosttweet-active countries in Africa. n


Young people drive Twitter’s growth story in Africa

F E A T U R E S


Africans take home Indian ideas

On a socio-economic train voy-age of India, Isaac AbeikuOtoo, a youth leader from

Ghana, realised what one could do withjust $20. Inspired by Infosys founderN.R. Narayana Murthy’s success story,the 34-year-old wants to motivate peo-ple in his country.

Otoo was one of the 35 foreignnationals, several of them from Africa,who took part in ‘Jagriti Yatra’ (journeyof awakening) from December 24, 2011to January 8, 2012. They joined over 400Indian youngsters on the 15-day trainjourney, spanning 7,000 km and stop-pages at 13 institutions that have devel-oped unique solutions to India’s chal-lenges, in an effort to awaken the spiritof entrepreneurship among them.

Bangalore, India’s Silicon Valley, wasone such halt. Participants visited theInfosys campus where NarayanaMurthy went down memory lane andtold them how he started his businesswith merely $20 in his pocket.

Out of the 35 foreign nationals invit-ed to Jagriti Yatra, the Public DiplomacyDivision of the Ministry of ExternalAffairs sponsored eight Africans.

“Every day was a new learning expe-rience on a train. There’s diversity at

every level, so many cultures, languages,challenges,” Brian Abel from SouthAfrica said. On the train, the participantsshared ideas about their own countriesand social commerce.

“Meeting people who don’t havehuge resources but can start from apoint, just one day at a time, one personat a time, and decide to make a change— think it has really struck me,” NanaAma Tima Boakye, another participantfrom Ghana, said.

Participants learned about develop-ment in communities throughentrepreneurship, something many saidthey could relate to. “I have the samechallenges in my country and I under-stand that if we are going to be able tocreate some change, you have to start tounderstand the roots of the problem,”Boakye from Accra said.

Boakye works in the shippingindustry in the West African nation. Alocal Member of Parliament who vis-ited India told her about the pro-gramme. She describes the relationshipbetween India and Ghana as one of“sister countries”.

Other participants from Africa camefrom the Democratic Republic ofCongo, Kenya, South Africa and

Zambia. Their interests and educationin social economics range from engi-neering to politics to environment.

These participants visited a village inBihar completely transformed throughsocial entrepreneurship and businessmentoring —one in Karnataka lit up bysolar energy and another in Tamil Naduwith a world-class eye care centre,among other places.

“I have learned that even with $20,you can start from somewhere and endup wherever you want to if your man-agement and skills are in the right place,”said Frank Arnold Okyerie, a commu-nity politician who works as secretary tothe Member of Parliament of Ghana’sCentral Region. He wants to impart theknowledge he has acquired to youth inhis country “who are running their ownbusinesses in local villages”.

“I will look at the kind of businessesthey are doing and show them how togrow them,” says Okyerie.

Some participants were also think-ing about bringing experiments like thisto their own country.

“I have acquired some knowledgethat at the end of the day I am not goingto keep to myself, but parley it to youthin Africa,” says Okyerie. n

Participants of the ‘Jagriti Yatra’.



Indians, Africans connect through traditional crafts

The flavours of Africa live in itscolourful arts, crafts, peopleand magnificent landscapes.

Eighteen African craftspeople fromfive countries — Kenya, Ethiopia,South Africa, Uganda and Rwanda —were in India’s capital New Delhi,showcasing their crafts at the 25thannual ‘Dastkari Haat Crafts Bazar’.

The spread of African craft at thefair, which was inaugurated by DelhiChief Minister Sheila Dikshit, includ-ed bead work, leather craft, embroi-dery, woven ware, jewellery and metalware in a riot of colours and tradition-al designs. The African showcase,‘Handcrafting Promises’ for the CraftsSkill Development and Natural DyeWorkshop generated interest withcrowds thronging the vends and anopen-air exhibition that displayed thewares.

The crafts exchange between Indiaand Africa at Dilli Haat was supportedby the Ministry of External Affairs.The Dastkari Haat Samiti, a non-prof-it crafts forum founded by cultureactivist and promoter Jaya Jaitly, imple-mented it as a follow-up action to thepromise made by India to help theAfrican crafts sector at the ‘India-AfricaForum Summit’ in Ethiopia in 2011.

Jaitly said the exchange activityincluded skill training workshops forAfrican craftspeople in basketry,leather beadwork, embroidery, weav-ing and natural dyeing. The 18-mem-ber African crafts delegation was led bysix resource persons — Eugenie Drakefrom South Africa, Rahab Naisotuaefrom Kenya, Jennifer Mulli fromKenya and Kinene Nusulah fromUganda. “‘Handcrafting Promises’came about as a follow-on event of the‘India-Africa Summit’. We took 20Indian craftspeople to Ethiopia andthey presented 30 of their craftsper-sons,” Jaitly said.

“The group of 50 interacted forthree days to address issues like genderempowerment, organisation building,natural dye workshop and skill training— sectors in which the African sidewanted India to help the continentdevelop its arts and crafts,” she said.

The crafts activist said the mostimportant component of the pro-gramme was natural dyeing becausechemical dyeing was still common inAfrica. “Four Indian dyeing expertsfrom different corners of the countrywill teach the African craftspeople howto extract colours from natural sub-stances and ways to apply them,” Jaitlysaid.

Rights and environment activistsVandana Shiva, Sandeep Dikshit andPurnima Rai (Crafts Council)addressed the African delegation onempowerment of gender in crafts asthe bulk of Africa’s traditional craftstrade is controlled by women.

“The programme is spread overfour years between 2011-2014. It ismeant to foster people-to-people con-tact between India and Africa and allowa wider display for their crafts,” RaviBangar, Joint Secretary, West Africa,Ministry of External Affairs, said.

Designer Ritu Kumar, who attend-ed the event, said: “The material andmediums used by the African crafts-people like beads, shells, embroidery,weaving and bright dyes are commonto India. All traditional cultures havesimilarities in their crafts.”

As many as 190 craftspeople fromacross India participated in the fair. n

— Madhushree Chatterjee

An Indian craftswoman with Kenyancraftswomen at a training workshop in NewDelhi on January 2 . (Left) An Ethiopian

craftsman at the workshop.

F E A T U R E S


Breaking the stereotypes associat-ed with madrassas, a 50-year-oldIslamic seminary in Uttar

Pradesh teaches subjects like personali-ty development and home science; runsan elaborate teacher training pro-gramme; has a higher girl enrolmentratio; and has students who are no lessactive on social networking websitesthan their counterparts in metro cities.

Welcome to Jamiatul Falah, amadrassa in Bilariyaganj town ofAzamgarh district that has kept pacewith modern education. The studentswho come here from across the countryare taught subjects which are rarelytaught in Islamic institutions.

Jamiatul Falah, which means‘University of Eternal Success’, alsostarted a mini Industrial TrainingInstitute (ITI) and a public hospital in2011. The institution now aims to intro-duce paramedical courses for students.

“Madrassas across the country nowunderstand the need to train teachersbecause they play a key role in any edu-cational system,” said Falah managerMohammad Tahir Madani.

“The modern subjects help studentsunderstand religious commandmentsand also give them self-confidence,” hesaid.

“If our students don’t know otherlanguages, then they won’t know othercultures as well. Nowadays, English hasbecome an important language, learn-ing which can boost their confidence,”Madani explained.

More than 50 percent of the studentsin the institution in higher classes areconversant with the internet and mosthave a Facebook account.

Shahid Habib, a student, has 425Facebook friends. “I access the internetto send e-mails and browse for infor-mation,” he said.

Of the 4,300 students, 2,600 are girlsand the majority of the outstation stu-

dents are from Bihar, West Bengal,Uttarakhand, Maharashtra and Nepal.

The enrolment ratio for girls inhigher classes is also high. “Educatingthe girl child is necessary to empowerthem. The ratio of educated girls hasincreased in our society. Girls fromeconomically poor families also geteducation here,” Falah headmistressSalma Jaleel said.

“Poor students do not pay fees. Weeducate them because we believe it isour responsibility,” Madani said.

Falah, which has a monthly fee ofless than `100, provides free education,accommodation and meals to at least 30percent of its students.

The institution’s alumni are pursu-

ing research in various universities inIndia and abroad. The Al-Falah Hospitaloffers allopathic, ayurvedic, homeo-pathic and Unani treatment to patientsfrom across the country.

It serves at least 100 patients daily andprovides free service to the poor, irre-spective of caste, creed or faith.

Azam Beg, an alumni of Falah whohails from Rajasthan, went on to studyUnani medicine from Aligarh MuslimUniversity and was twice elected stu-dents’ union president.

“Falah is a junction of both curricu-la — the divine and the modern. I havelearnt a lot from here and it is enough toopen up my mind,” said Beg, who nowruns 12 schools and colleges and fourmadrassas in different parts of Rajasthan.

Laying emphasis on bringing aboutchanges in the educational system of themadrassas, Madani said: “Madrassas fol-low an old style of teaching system andit requires certain changes in the syl-labus.”

“The teaching pattern in madrassasdepends on books and not subjects; weneed to change it now,” he pointed out.

Falah has a panel in place to check thequality of education. It also conducts aparent-teacher meeting every threemonths, which is a rare practice inmadrassas.

Students are also encouraged to makewall magazines in different languagessuch as Arabic, Urdu and English atJamiatul Falah.

Mohammad Arif, a doctor at Al-Falah Hospital, believes that madrassasshould be at the forefront of change inevery field.

According to Madani, there is a mis-conception that only Muslim studentsare allowed to study in madrassas. “Ourdoors are open for students of any faith,caste or place. Hindu students too havebeen part of Falah in the past,” he said. n

— Abu Zafar

A progressive madrassa in theheart of Uttar Pradesh

The entrance to the Jamaitul Falah madrassa in Bilariyaganj town of Azamgarh

district in Uttar Pradesh.

“Falah is a junction ofboth curricula — the divine and the

modern. I have learnta lot from here and itis enough to open up

my mind...”



The chill still hung heavy in theair — misting the brick andmortar facade of Dilli Haat in

New Delhi on January 8. It was almostnoon. Comrades-in-arms Jennifer Mulliand Millicent Seela, both from Kenya,were almost inured to the mist or thefreezing bite in the air. Their nimble fingers fly on swathes of

Indian hand-woven silks as they learnttheir first needle strokes of the tradition-al kantha — a stitch from the lush plainsof Bengal.

The Kenyan craftswomen were inan open-air classroom experiencing thecenturies-old heritage of Indianembroidery and textiles at a craftsexchange programme, ‘HandcraftingPromises’, between Africa and India.

Jennifer Mulli, director of KatchyKollections (under a Kenyan craftslabel called ‘Jiamini’), bead weavers bytradition, said she was looking at dif-ferent types of beading from India.“India has a wide variety of beading tra-ditions and we want to find out howbead crafts from the two countries cancomplement each other,” Mulli said.

Mulli was also taking part in the

dyeing workshops at the crafts fair. “I am learning the use of natural dyebecause we still use chemical dye inour country. Most of our weavers andcraftspeople do not know the processof extracting natural dyes but we haveall the spices and natural spices andflowers that are used for colours inKenya,” she said.

Mulli and her mate Millicent werekeen to tie up with Indian artisans todevelop their range of brassware. “Wealso craft in brass, but India has richerbrassware. We want trade partners inbrass as well as silver,” she said.

Horn carving is common to bothIndia and Kenya. Indian craftsmen have

been sculpting in ivory, buffalo, deer andrhino horns for centuries like Africancraftspeople, who craft a bigger portfo-lio of horn artefacts and jewellery culledfrom many more animal species, thecrafts resource person from Kenya said.“But in India, horns are carved differ-ently. This is a craft we want to look at...how it is done in India. We also want tolearn Indian weaving,” Mulli said.

Mulli had adapted many tradition-al jewellery into contemporary acces-sories to make for comfortable wear.“We have culturally changed ourindigenous beaded chokers craftedwith wires to leather and bead design-er wear which does not hurt the skin.Our traditional wire and bead neck-laces are stiff and uncomfortable.

“We loom our beads on leather sothat they resemble fabrics. The coloursof our beadware are more subtle andWestern unlike the earthy Africanshades so that the market can identifywith the jewellery,” she said.

Necklaces in Africa had no pen-dants. But we have introduced pen-dants in our necklaces,” she added. n

— Madhushree Chatterjee

Indian touch to Kenyan craft

She looks in awe at the shimmer-ing piles of Gujarati shawls,embroidered with coloured

thread and mirrors. “India is a sensoryoverload. We don’t have so many tex-tiles, not to this extent, in Africa as onefinds in India. The tonalities of coloursare wider and the textures are so differ-ent,” said Eugenie Drake, a leadingSouth African handicrafts promoter anddesigner, who was in India with a craftsshowcase from her country.

Drake is exhibiting her wares — aquaint medley of bead necklaces, Zululove girdles, ethnic love-letter pendants,leg-ring bangles, embroidered fabricsand ethnic silverware — at the 25th

Dastkari Haat Samiti in Dilli Haat.Drake manages ‘Piece’, a 10-year-old

niche crafts boutique in Johannesburgthat blends traditional crafts from theethnic Zulu, Ndebele and Venda com-munities of South Africa with contem-porary western motifs to create wear-able accessories.

“The big thing about our creations isto make as many young people wearwhat we make because they are con-temporary... and yet at the same timethe grandmother of a girl who wears ourproducts feels proud because she seesher culture reflected in the child,” Drakesaid. “I make woven grass-fabric andbead bangles inspired by the traditional

leg-rings (chunky anklets) which noone wears now. I have designed neck-laces by improvising on the traditionalZulu betrothal necklace and colouredlove-letter pendants.”

The colours of her beads convey dif-ferent messages, Drake said. “Zulu cou-ples earlier conducted their courtshipswith love-letter bead pendants — smallsquare multi-coloured charms that dan-gle from neck-pieces.”

The size of the African beads varyfrom tribe to tribe, she said. Her list ofbuyers include the likes of MichelleObama, Bill Clinton, Elton John andOprah Winfrey. n

—Madhushree Chatterjee

India a sensory overload: African designer

“In India, horns arecarved differently.

This is a craft we wantto look at... how it is

done in India. We alsowant to learn Indian

weaving...”

B O O K S & I D E A S


Is it always famine in the heart ofAfrica? Pause and think again. It’s time to rediscover Africa

through the eyes of love, the true Africaof laughter, joy, creativity and playfulness, says celebrated Nigeriannovelist Ben Okri in a lyrical meditationon the continent that has been trappedin clichés.

“There is Africa in all of us. Africa isour dreamland and our spiritual motherland. We have to rediscover thetrue Africa of laughter, joy, creativity andplayfulness,” said Okri at the JaipurLiterary Festival held in the colourfulnorth-western desert state of Rajasthanfrom January 20-24. He was reading out

from his new book, A Time for NewDreams, a string of poetic essays and epigrams on Africa.

“We have to discover the Africa ofmysticism, divination, myths and mysticism,” intoned the novelist in hisrich baritone, casting a spell over theaudience in the Durbar Hall of DiggiPlace that hosted the literary carnivalattended by thousands of book-lovers.

Okri, who won a Booker for hismuch-acclaimed novel, The FamishedRoad in 1991, eloquently argued for dismantling negative stereotypes thatportray Africa as the place of famine, disease, bloodshed and mindless cruelty, and spoke about the need to

create a new narrative for this vibrantcontinent and its people.

“Africa was seen for many decadesthrough greed. This justified all kinds ofviolence. The world should begin to seelight in Africa, its beauty and genius,”said the novelist. “Africa has been waiting for centuries to be discoveredthrough the eyes of love and lover. We need to rediscover Africa in us forregeneration of society.”

“It is Africa’s turn to smile. That’sthe loveliest gift the world can give tokeep Africa smiling,” he said.

“It is easy to dismiss Africa. It is easyto patronise Africa. It is easy to professto like Africa. It is easy to exploit Africa.And it is easy to insult Africa,” read theopening lines to “O, Ye Who Invest inFutures”, a series of poetic statementsabout Africa in A Time for New Dreams.

“I am not asking for a romantic view,just clear-seeing, to discover the fullrichness of people for who they are. To see afresh without romance, exaggeration and distortion,” said thepoet-novelist. “I am talking about transforming the perception of a people.It’s always famine in the heart of Africa.We must explode the stereotypes,” saidthe author. “You must fight fire withfire,” said Okri.

Okri underlined the need for greatAfrican writers to counter the bleakbut powerful vision of Joseph Conradin The Heart of Darkness. The writerargued that Conrad’s Heart of Darknesscontinues to shape the perception ofAfrica to the outside world, as it is sucha powerful, rich and persuasive text.“There is only one way to counter it,and that is with good writing, to write back.” n

Making Africa sMileand busting stereotypes

There is a need to rediscover Africa while discarding the clichés that have distorted the image of the continent, insists Ben Okri

Ben Okri



London meets Lagos meetsDurban meets Dakar meetsNew York. And now Jaipur.

‘American accent, European affect,African ethos.’ A new breed of hybridinklings called Afropolitans gathered tochant and enchant the word-besotted atthe world’s biggest literary jamboree inJaipur in January.

Taiye Selasi, a London-born writerand photographer of Nigerian andGhanaian origin enthralled bibilophilesby reading out extracts from the essaythat launched the expression,Afropolitans. Selasi, better known forher Granta debut story The Sex Lives ofAfrican Girls, talked eloquently aboutthe African literary landscape and theAfropolitan sensibility. Teju Cole,New York-based Nigerian-Americanwhose debut novel Open City has putthe literary world in a fever of excite-ment, was one of the star attractions atthe literary show that cuts across

geographies, cultures and nationalboundaries.

Cole’s much-acclaimed novelrevolves around the solitary walks ofthe half-Nigerian, half-German narra-tor in multi-racial New York, where hemeets an eclectic set of migrants wholaunch him into erudite soliloquies,interspersed with learned quotes fromRoland Barthes and Yoruba mythology.

Much like his narrator, Cole, whogrew up in Lagos and came to Americain 1992, juggles multiple cultural iden-tities, making him a quintessentialAfropolitan, a “chutnified” solitary, inSalman Rushdie’s words, who has multiple homes but belongs to none. “A writer has a gift to convert experienceinto language... and to bear testimony tothe truths of the world,” says Cole.

Selasi coined ‘Afropolitans’ in anessay entitled Bye-Bye Babar in LIP magazine in 2005 to describe what shecalled “Africans of the world”. Since

then, it has become a chic buzzword inthe literary and cultural world todescribe those multilingual Africanswho are simultaneously at home andnot at home in Western metropolises,but who tie their sense of self to Africa.

Who exactly are Afropolitans?“You’ll know us by our funny blend ofLondon fashion, New York jargon,African ethics, and academic successes.Some of us are ethnic mixes, e.g. Ghanaian and Canadian, Nigerianand Swiss; others merely culturalmutts: American accent, Europeanaffect, African ethos,” she writes.

“There is at least one place on theAfrican continent to which we tie oursense of self: be it a nation-state, a city, oran auntie’s kitchen. Then there’s the G8city or two (or three) that we know likethe backs of our hands, and the variousinstitutions that know us for our famedfocus. We are Afropolitans: not citizens,but Africans of the world.” n

Homeless Afropolitansrevel in Hybrid identityThe term ‘Afropolitans’ has been used to describe those multilingualAfricans who are simultaneously at home and not at home in Western

metropolises, but who tie their sense of self to Africa

Shubnum Khan, Teju Cole, Taiye Selasi, Philip Gourevitch participating in a discussion moderated by ICCR’s Director General Suresh Goyal

(extreme right) at the Jaipur Literary Festival.



The absent Salman Rusdhie mayhave stolen the headlines, butthe five-day Jaipur Literary

Festival (January 20-24, 2012) will beremembered for its many incandescentmoments when poetry intersected with polemics, science duelled withspirituality, rationalists cohabited withmystics and the truths of art competedwith the lies of politics and bigots.

Billed as the “mahakumbh of theword”, a metaphor for redemption andtranscendence through words bred inthe solitude of writers, the festival soaredbeyond bigots who have no hunger forfreedom, but subsist on a sparse diet ofcertitudes.

The fifth edition of the festival,which exposed an eclectic crowd of over100,000 people to literary giants, stellarintellectuals and celebrity playwrights,such as Top Stoppard, MichaelOndaatje, Richard Dawkins and StevenPinker, was by far the biggest since thefestival started on a tentative note in2007. African literary giants like BenOkri and Ghana-American writer Teju Cole brought in a whiff of the continent brimming with creativity andliterary gifts.

Going by the count of footfall,122,000 people, more than twice thenumber last year, came to savour thisfeast of stories at the Diggi Palace heritage hotel that has become a land-mark in this ‘Pink City’ of Jaipur. The sheer logistics of the festival werestaggering: There were over 250 invitedauthors, more than 1,000 journalists andaround 2,500 invitees who participatedas delegates.

On all five days of the festival, therewere five parallel sessions, with two tothree authors and speakers, from dawn

to dusk. And 24 corporate giants,including Tata Steel, Google and Bankof America, stepped in generously tobankroll creativity. In five days, the twobookstores at Diggi Palace sold booksworth over $100,000.

“I feel so happy here. The Indiansare so open to the beauty of words andfeelings,” says Argentinian writer PolaOxoriac, the author of The WildTheories. ”It’s an absolutely unique,spectacular show. It’s amazing how literature can connect to people,” saysKamin Mohammadi, the London-basedIranian writer and journalist.

The themes chosen for discussioncriss-crossed genres and geographies,displaying an eclectic range. “Debutantwriters and unheard voices share the skywith international stars and popularbestsellers here,” says Namita Gokhaleand William Dalrymple, well-knownwriters themselves and the organisers ofthe festival.

From Africa to the Middle East, thestate of the world, especially its conflictzones like Kashmir and Palestine figured in discussions. Literature’sperennial romance with revolution andits genius for subverting the status quocame in for critical gaze and werereflected in the discussions on the ArabSpring, writing and resistance, thedemocratic renaissance in Myanmar,and the new breed of cultural hybridscalled ‘Afropolitans’.

Rushdie or no Rushdie, the shadowof god loomed large over a secular feteof letters with the presence of celebrityatheists and sceptics like RichardDawkins, Steven Pinker and A.C. Grayling. And it wasn’t just thefundamentalists who were hustling Godinto this carnival of creativity.

Fittingly, the festival started with sessions on soul-stirring Bhakti poetryand the vision of Sikh gurus and endedwith a stirring debate on ‘This Housebelieves that Man has replaced God’.

Bigots tried to spoil the party by forcing the author of The Satanic Versesto stay away and made sure that hisscheduled video-link address was alsoscrapped, eliciting howls of outrage, butthey couldn’t quite kill the creative exuberance of the festival.

The five-day fest was interspersedwith soulful devotional singing byShabnam Virmani, the famous singer ofKabir songs, and Parvathy Baul.

It was also a festival where revolutionaries rubbed shoulders withsocialites, the swish set togged out intrendy clothes partied with panache, literary-minded Bollywood stars floatedaround and foreign women writers fellin love with the sari.

The festival had many lightermoments, fusing discourse and discos,as it were. The performances by theJaipur Kawa Brass Band and fire-eatingdancers of Rajasthan Josh were simplymesmerising, getting many inspiredsouls to shake a leg or two.

The crowds were overwhelming,but in the end, it is the commingling ofcrowds with creative geniuses that havemade the JLF such a powerful brand, aplace to be seen and heard, justifying themoniker by celebrity editor Tina Brownas “the greatest literary show on earth”.

“It’s an egalitarian festival, anybodywho loves can come in. If this festivalinspires people to buy at least two booksof the writers they heard speak, I wouldcall it a success,” says a Delhi-based writer and blogger who has been com-ing to the JLF for the last few years. n

A carnival of literAry delights

African literary giants like Ben Okri and debutant writer Teju Cole brought in a whiff of the continent, brimming with creativity and literary gifts



THE NAGUIB MAHFOUZ CENTENNIAL LIBRARY: 20 VolumesBy Naguib Mahfouz; 9000pp; Egypt; American University in Cairo;Hardback; £395.00

This exclusive limited edition is a definitive 8000-pagecollection presented in 20 hardbound volumes bringingtogether for the first time all the translated works ofNaguib Mahfouz, Egypt’s most celebrated writer. Soldas a set, the Centennial Library comprises Mahfouz’s 35novels, including his first, Khufus Wisdom, published in1939, and his last, The Coffeehouse, which appeared in1988, as well as a new translation of his masterpieceMidaq Alley by award-winning translator HumphreyDavies. The volumes also contain 38 short stories, aselection from Mahfouz’s very short fictions TheDreams, and his Echoes of an Autobiography, personal and reflective commentaryon situations and events that shaped his life.

LIFE TIMES: Stories 1952-2007By Nadine Gordimer; 560pp; UK; Bloomsbury; Hardback; £30.00

THROUGHOUT HER career, noted South African writer Nadine Gordimerhas built a literary reputation with her incisive short sto-ries as much as with her acclaimed novels. Together withher essays, this highly imaginative body of work won herthe Nobel Prize for Literature in 1991. In the opinion ofthe Academy: “Through her magnificent epic writing shehas — in the words of Alfred Nobel — been of very greatbenefit to humanity.” About short story writing,Gordimer had said that while novelists took the reader bythe hand developing “a consistency of relationship thatdoes not and cannot convey the quality of human life,where contact is more like the flash of fireflies, in and out,

now here, now there, in darkness. Short-story writers see by the light of the flash;theirs is the only thing one can be sure of the present moment.” Spanning sixdecades, the 35 stories in this book are drawn from her 10 published collections.

ENVIRONMENT AT THE MARGINS: Literary and Environmental Studies inAfricaBy Byron Caminero-Santangelo & Garth AndrewMyers (Eds.); 304pp; USA;Ohio UP; Paperback; £30.99

THE ESSAYS bring togetherscholarship in geography, anthropology, and environmentalhistory with the study of Africanand colonial literatures and with literary modes of analysis.Contributors analyse writings bycolonial administrators and literaryauthors, as well as by such promi-nent African activists and writers asNgugi wa Thiongo, Mia Couto,Nadine Gordimer, WangariMaathai, J. M. Coetzee, ZakesMda, and Ben Okri. These post-colonial eco-critical readings focuson dialogue not only among disci-plines but also among differentvisions of African environments.

POSTCOLONIAL FRANCOPHONE AUTOBIOGRAPHIES: From Africa to the AntillesBy Edgard Sankara; 232pp; USA; University of Virginia Press; Paperback; £21.99

BRINGING A COMPARATIVE perspective to the study of autobiography, Edgard Sankaraconsiders a cross-section of postcolonial francophone writing from Africa and the Caribbean in orderto compare for the first time their transnational reception. Sankara not only compares the ways inwhich a wide selection of autobiographies were received locally (as well as in France) but also jux-taposes reception by the colonised and the coloniser to show how different meanings were assignedto the works after publication. Sankara’s geographical and cultural coverage of Africa and its dias-pora is rich, with separate chapters devoted to the autobiographies of Hampâté Bâ, ValentinMudimbé, Kesso Barry, Patrick Chamoiseau, Raphaël Confiant and Maryse Condé.

�� Literature

A selection of new books on Africa and by African writers from www.africabookcentre.com



AFRICAN AWAKENING: The Emerging RevolutionsBy Sokari Ekine & Firoze Manji (Eds.);324pp; UK; Pambazuka; Paperback; £17.95

THE TUMULTUOUS uprisings of citizens inTunisia, Egypt and Libya have been characterisedas ‘Arab revolutions’ by media analysts. However,what have been given less attention are the con-current uprisings in Benin, Gabon, Senegal,Swaziland, Ethiopia, Djibouti, Uganda and in otherparts of the African continent. The uprisings acrossAfrica and in the Middle East, the book argues, arethe result of common experiences of decades of declining living standards, mass unemployment, land dispossessions and impoverishment of the majority, while a few have engorged themselves with riches.

AS LONG AS THEY DON’T BURY ME HERE:Social Relations of Poverty in a Namibian ShantytownBy Inge Tvedten; 216pp; Switzerland; Basler Afrika Bibliographien;Paperback; £27.00

AN INCREASING number of Southern Africans live inurban slums. Focusing on four shantytowns in the north-ern Namibian town of Oshakati, this book analyses thecoping strategies of the poorest sections of such populations.The study is based on fieldwork conducted intermittentlyduring a period of 10 years. It combines theories of politi-cal, economic and cultural structuration, and of the mate-rial and cultural basis for social relations of inclusion andexclusion. As the poorest shanty dwellers are excluded fromvital urban and rural relationships and forced into socialrelations of poverty amongst themselves, they tend to give

up improving their lives and act in ways that further undermine their position.

AFRICA AND INTERNATIONAL RELATIONS IN THE 21ST CENTURYBy Scarlett Cornelissen, Fantu Cheru & M. Timothy Shaw (Eds.);272pp; UK; Palgrave; Hardback; £57.50

AT THE start of the second decade of the 21st centu-ry, Africa is viewed in a much more positive light by ana-lysts, investors, observers and policy makers. China’srecent involvement with the continent has set the tonefor new forms of engagement between Africa and therest of the world. The contributors discuss the implica-tions for Africa’s future trajectories and how to under-stand the continent’s position in the international sys-tem. They also demonstrate how the study of shifts inAfrica’s international relations can help explain broaderdynamics and the changing foundations of the worldorder.

� � Economy and Politics DEFEATING DICTATORS: Fighting Tyranny in Africa andAround the WorldBy George B.N. Ayittey; 288pp;UK; Palgrave; Hardback;£18.99

DESPITE BILLIONS of dollarsof aid and the best efforts of theinternational community toimprove economies and bolsterdemocracy across Africa, violentdictatorships persist. As a result,millions have died; economies arein shambles; and states are on thebrink of collapse. Political

observers and policymakers arestarting to believe that economicaid is not the key to saving Africa.So what does the continent need todo to throw off the shackles of mil-itant rule? African policy expertGeorge Ayittey argues that beforeAfrica can prosper, she must befree. Taking a hard look at the fightagainst dictatorships around theworld, from Ukraine’s orange rev-olution in 2004 to Iran’s GreenRevolution last year, he examineswhat strategies worked in thestruggle to establish democracythrough revolution. Ayittey alsooffers strategies for the West tohelp Africa in her quest for free-dom, including smarter sanctionsand establishing fellowships forAfrican students.

EATING FROM ONE POT: The Dynamics of Survival in PoorSouth African HouseholdsBy Sarah Mosoetsa; 220pp;South Africa; WitwatersrandUniversity Press; Paperback;£19.99 The book draws on AmartyaSen’s notion of cooperative con-flict to argue that in times of cri-sis there is more conflict thancooperation in the poorest house-holds. Poverty seriously under-mines the collective character ofhouseholds and creates divisions

along generational and genderlines. The book documents thehumiliation many men feel at theloss of their role as providers, andthe resulting escalation of domes-tic violence and alcohol abuse.Sarah Mosoetsa conducted morethan 100 intensive interviews. Inthe first three chapters she pro-vides a vivid account of individu-al lives, perceptions and experi-ences. The case studies are thendiscussed in relation to therestructuring of the country’swelfare and social policies, andthe extension of social grants.Mosoetsa argues that these poli-cies shape the livelihoods thatpeople pursue in order to surviveunder desperate conditions, butfail to address the root causes ofpoverty and inequality.



POSTCOLONIAL ARTISTS AND GLOBAL AESTHETICSBy Akin Adesokan; 248pp; USA; IndianaUniversity Press; Paperback; £16.99

What happens when social and political processessuch as globalisation shape cultural production?Drawing on a range of writers and filmmakers fromAfrica and elsewhere, Akin Adesokan explores theforces at work in the production and circulation ofculture in a globalised world. He tackles problemssuch as artistic representation in the era of decoloni-sation, the uneven development of aesthetics acrossthe world, and the impact of location and commodity culture on genres, with a distinctiveapproach that exposes the global processes transforming cultural forms.

THE SCENT OF INVISIBLE FOOTPRINTS: The Sculpture of Pitika NtuliBy Antoinette Ntuli; 200pp; South Africa;Unisa Press; Hardback; £60.00

A fusion of poetry, prose and sculpture and givesthe reader a glimpse into the complex and restlessmind of Pitika Ntuli who spent 32 years of his lifein exile. Pitika carries us into the world of wood,stone, bone and metal turning the familiar intonovelty; demystifying daily objects; powerfullyconveying human feeling and sensibilities ideas,philosophies and dreams ooze out of solid, appar-ently inanimate, objects. His works are full of humour, wit and magic, andare imbued with profound indigenous insights, whilst at the same time con-versing with Western artists like Modigliani, Giacometti and Picasso.

SUDAN LOOKS EAST: China, India and the Politics of Asian AlternativesBy D. Large & Luke A. Patey (Eds.); 192pp; UK; James CurreyPublishers; Paperback; £16.99

BY SUCCESSFULLY turning to China, Malaysiaand India from the mid-1990s, amidst civil war andpolitical isolation, Khartoum’s ‘Look East’ policytransformed Sudan’s economy and foreign relations.Sudan, in turn, has been a theatre of Chinese, Indianand Malaysian overseas energy investment. Whatbegan as economic engagements born of pragmaticnecessity later became politicised within Sudan andwithout, resulting in global attention. This book pro-vides a ground breaking analysis of Sudan’s ‘LookEast’ policy. It offers the first substantive treatmentof a subject of fundamental significance within Sudan

that, additionally, has become a globally prominent dimension of its changinginternational politics.

� � Arts



AFRICA TOWARD 2030: Challenges for Development PolicyBy Erik Lundsgaarde; 320pp; UK; Palgrave0; Hardback; £60.00

WITH THE deadline of the MillenniumDevelopment Goals approaching, governmentsare considering the main elements for a globaldevelopment policy reference system after 2015.Adapting insights from the scenario analysis tradition, the contributors identify six majorunderlying causes of change and key uncertain-ties affecting Africa’s development prospects.These drivers of change which are consideredvital in shaping Africa’s future include demogra-phy, climate change, technology and innovation, domestic political development,new actors in international development, and global governance. Moreover, theauthors outline several generalised scenarios for the continent’s future and discussthe implications of the changing African development context for the prioritiesand organisation of European development cooperation.

HIS STORY IS HISTORY:Rural Village Future through the Eyes of a Rural Village BoyBy Tlou Setumu; 206pp; South Africa; Unisa Press; Paperback; £20.99

HOW MANY doors have been slammed in one’s face in this world? How manydoors does one find closed? Yet, while wasting timein front of a closed door, other doors are waiting tobe opened. Told in fascinating detail, this memoir isa chronicle of the fight against poverty towards a lifeof achievement. Having endured a lifetime of strug-gle, from childhood on into his adult life, TlouSetumu shares with readers a personal account of hisrural and urban experiences in South Africa. Not oneto shy away from asking deep-seated questions,Setumu explores the myth that poverty and rural lifeare synonymous. He looks for answers to this humanquandary in a broader context of human existence, not

accepting the condition as a given.

INTRODUCTION TO PARTICIPATORY COMMUNITY PRACTICEBy Rinie Schenck, Hanna Nel & Huma Louw; 376pp; South Africa; Unisa Press; Paperback; £35.99

AN EXPERIENCED team of authors unpacks the definition that people-centred community practice is a management process. This process is facilitated with a communi-ty of people to take action to increasingly actualise their fundamental human needs toenhance the quality of their lives and those of the wider community which they are part of.The book’s approach to community practice is consistent with fundamental social work values. This approach ensures that even beginners would work with communities in arespectful way so that communities would not be imposed upon or disempowered in theprocess.

� � Development discourse MENDING THE BROKENPIECES: Indigenous Religion and SustainableRural Development in NorthernGhanaBy Amenga-Etego, RoseMary; 348pp; USA; AfricaWorld Press; Paperback;£24.99

ADDRESSING THE existingpolarised debate on the subject,this book debunks the popularnotion that Africa’s religio-cul-

tural traditions are stalling devel-opment. Using the Nankani ofNorthern Ghana as an example,Rose Mary Amanga-Etego illus-trates how the religio-culturaltraditions of Africans constitutea frame of thought that can bevery beneficial to sustainabledevelopment given the rightcontext.



TOP 10: NON-FICTION

1. Steve Jobs:The ExclusiveBiographyAuthor: WalterIsaacsonPublisher:HachettePrice: `799

2. Thinking, Fast and SlowAuthor: Daniel KahnemanPublisher: Allen LanePrice: `499

3. RahulAuthor: JatinGandhi andVeenu SandhuPublisher:PenguinPrice: `499

4. QuestAuthor: DanielYerginPublisher: Allan lanePrice: `1,199

5. Boomerang: The MeltdownTourAuthor: MichaelLewisPublisher: AllanlanePrice: `599

6. Non-StopIndiaAuthor: Mark TullyPublisher: PenguinPrice: `499

7. Lucknow BoyAuthor: Vinod MehtaPublisher: PenguinPrice: `499

8. Where China Meets IndiaAuthor: Thant Myint-UPublisher: Faber & FaberPrice: `699

9. Whatever The Odds: TheIncredible Story Behind DLFAuthor: K.P. Singh, Ramesh Menonand Raman SwamyPublisher: Harper CollinsPrice: `699

10. No HigherHonourAuthor:Condoleezza RicePublisher: Simon &SchusterPrice: `799

TOP 10: FICTION

1. The Secret ofthe NagasAuthor: AmishTripathiPublisher:WestlandPrice: `295

2. TheImmortals of MeluhaAuthor: Amish TripathiPublisher: WestlandPrice: `195

3. Zero DayAuthor: David BaldacciPublisher: PanBooksPrice: `350

4. Revolution2020

Author: Chetan

BhagatPublisher: RupaPrice: `140

5. NarcopolisAuthor: JeetThayilPublisher: Faber& FaberPrice: `499

6. TheLitigatorsAuthor: John GrishamPublisher: HodderPrice: `350

7. The Timeof My lifeAuthor:CeceliaAhernPublisher:HarperCollinsPrice: `250

8. The Sense of an EndingAuthor: Julian BarnesPublisher: Random HousePrice: `599

9. Our Ladyof AliceBhattiAuthor:MohammedHanifPublisher:RandomHousePrice: `499

10. NoonAuthor: Aatish TaseerPublisher: 4th EstatePrice: `499

Indian journalist M.J. Akbar’s “Tinderbox: The Past and Future of Pakistan” leads the non-fiction section of the bestseller list while “Home Boy” by H.M. Naqvi leads the fiction chart

Bestsellers in India

(Source: Bahri Sons, New Delhi, www.booksatbahri.com. All the books listed above are available online)


D O C U M E N T S / S P E E C H E S

Address by Prime Minister Manmohan Singh at the 66th Session ofthe United Nations General Assembly inNew York

24/09/2011

Allow me at the outset to congrat-ulate you on assuming thePresidency of the General

Assembly. I wish to assure you of India’sfull cooperation in the conduct of thesixty-sixth session of the Assembly.

It is also my great pleasure to welcome in our midst the new State ofSouth Sudan. We meet at this session ofthe United Nations General Assembly ata time of great uncertainty and profoundchange. Till a few years ago the worldhad taken for granted the benefits of globalization and global interdependence. Today we are beingcalled upon to cope with the negativedimensions of those very phenomena.Economic, social and political events indifferent parts of the world have coalesced together and their adverseimpact is now being felt across countriesand continents. The world economy is introuble. The shoots of recovery whichwere visible after the economic andfinancial crisis of 2008 have yet to blossom. In many respects the crisis hasdeepened even further.

The traditional engines of the globaleconomy such as the United States,Europe and Japan, which are also thesources of global economic and financial stability, are faced with contin-ued economic slowdown. Recessionarytrends in these countries are affectingconfidence in world financial and capital markets. These developments arebound to have a negative impact ondeveloping countries which also have tobear the additional burden of inflation-ary pressures. Declining global demandand availability of capital, increasing barriers to free trade and mounting debtpose a threat to the international monetary and financial system.

Questions are being asked about the effi-cacy of the Bretton Woods institutions.

There has been unprecedented socialand political upheaval in West Asia, theGulf and North Africa. People of theseregions are demanding the right to shapetheir own future. Energy and food pricesare once again spiraling and introducingfresh instability, especially for developingcountries. The Palestinian question stillremains unresolved and a source of greatinstability and violence. India is steadfastin its support for the Palestinian people’sstruggle for a sovereign, independent,viable and united state of Palestine withEast Jerusalem as its capital, living with-in secure and recognizable borders sideby side and at peace with Israel. We lookforward to welcoming Palestine as anequal member of the United Nations.

Terrorism continues to rear its uglyhead and take a grievous toll of innocentlives. New threats to international security have emerged. At a time whenthe world needs more internationalcommerce, the sea lanes of communica-tion across the Indian Ocean are undersiege. Acts of piracy are being carried outwith impunity from lands that arebeyond the writ of any functioning stateor international accountability.Iniquitous growth, inadequate job andeducation opportunities and denial ofbasic human freedoms are leading togrowing radicalisation of the youth,intolerance and extremism. We have nochoice but to meet these challenges.

We will succeed if we adopt a cooperative rather than a confrontation-ist approach. We will succeed if weembrace once again the principles onwhich the United Nations was founded— internationalism and multilateralism.

More importantly, we will succeed ifour efforts have legitimacy and are pursued not just within the frameworkof law but also the spirit of the law. The observance of the rule of law is asimportant in international affairs as it iswithin countries. Societies cannot bereordered from outside through militaryforce. People in all countries have theright to choose their own destiny anddecide their own future. The interna-tional community has a role to play inassisting in the processes of transitionand institution building, but the idea thatprescriptions have to be imposed fromoutside is fraught with danger. Actionstaken under the authority of the UnitedNations must respect the unity, territo-rial integrity, sovereignty and indepen-dence of individual states.Correspondingly, governments are dutybound to their citizens to create conditions that enable them to freelydetermine their pathways to develop-ment. This is the essence of democracyand fundamental human freedoms.

There are many other things that wecan do. We must address the issue of thedeficit in global governance. We need astronger and more effective UnitedNations. We need a United Nations that

‘Adopt a cooperative approach’

Prime Minister Manmohan Singh addressing the 66th Session of the United Nations General Assembly in New York on September 24.



is sensitive to the aspirations of everyone— rich or poor, big or small. For this theUnited Nations and its principal organs,the General Assembly and the SecurityCouncil, must be revitalised.

The reform and expansion of theSecurity Council will enhance its credibility and effectiveness in dealingwith global issues. Early reform of theSecurity Council must be pursued withrenewed vigour and urgently enacted.We should not allow the global economic slowdown to become a triggerfor building walls around ourselvesthrough protectionism or erecting barriers to movement of people, servicesand capital. Effective ways and meansmust be deployed to promote coordina-tion of macro economic policies of majoreconomies. The reform of governancesystems of international financial institutions ought to be pursued withspeed and efficiency. The developmentagenda must be brought firmly back tothe centre stage of the United Nations’priorities. We need a much more deter-mined effort to ensure balanced, inclu-sive and sustainable development for thebenefit of vast sections of humanity.

In the last few decades India has lifted tens of millions of its people out ofabject poverty. We are in a position tofeed our population better, to educatethem better and to widen their econom-ic choices. But we still have a very longway to go. We wish to quicken the paceof India’s transformation in partnershipwith the international community. A fastgrowing India can expand the bound-aries for the global economy. A democratic, plural and secular Indiacan contribute to tolerance and peacefulco-existence among nations. Developingcountries need investment, technologyand market access for their products.They need assistance in the areas of education, health, women’s empower-ment and agriculture. During the recent-ly held 4th United Nations’ LeastDeveloped Countries Conference, Indiahas strengthened its partnership with theLeast Developed Countries through significantly enhanced lines of credit andassistance in capacity building. We haveto pay particular attention to Africa.

Africa’s richest resources are not its minerals but its people. We have toempower them and open the doors forthem to human advances in technology,education and skill development. At thesecond India-Africa Forum Summit inAddis Ababa earlier this year Indiaoffered lines of credit worth $5 billionand an additional $700 million grant forhuman resource development, transferof technology and building new institutions.

The United Nations should leadefforts in the area of food security. We need more cooperation in agricul-tural technologies, water conservation,land usage and productivity and stabilityin commodity prices. Developing countries need a peaceful external environment to grow. The fight againstterrorism must be unrelenting. Therecannot be selective approaches in dealingwith terrorist groups or the infrastruc-ture of terrorism. Terrorism has to befought across all fronts. In South Asiathere are encouraging signs of coopera-tion in the area of security, as exemplifiedin India’s cooperation with Bangladesh.

Such cooperation is adding to the security of both our countries. Therecent assassination of ProfessorBurhanuddin Rabbani in Kabul is a chill-ing reminder of the designs of the enemies of peace in Afghanistan. It isessential that the process of nation-build-ing and reconciliation in that countrysucceeds. This is vital for ensuring peaceand security in the region. India will playits part in helping the people ofAfghanistan to build a better future forthemselves, just as we are doing in othercountries in South Asia. We will do sobecause prosperity and stability in ourregion are indivisible.

We wish to see an open, inclusive andtransparent architecture of regional

cooperation in the Asia Pacific region andpeaceful settlement of disputes. I callupon the United Nations to evolve acomprehensive and effective response tothe problem of piracy in the Red Sea andoff the coast of Somalia. As a littoral stateof the Indian Ocean, India is ready towork with other countries in this regard.Simultaneously, the international community should continue with effortsto restore stability in Somalia.

We have joined international effortsto provide humanitarian assistance to thecountries afflicted with severe famineand drought in the Horn of Africa,specifically Somalia, Kenya and Djibouti.Nuclear proliferation continues toremain a threat to international security.The Action Plan put forward by the lateRajiv Gandhi for a nuclear weapon freeand non-violent world provides a con-crete road map for achieving nuclear dis-armament in a time-bound, universal,non-discriminatory, phased and verifi-able manner. I commend the UnitedNations for its efforts in focusing worldattention on nuclear safety. Our plansfor utilising nuclear power to meet ourenergy needs hinge upon full satisfactionabout the safety of nuclear energy. We have undertaken a thorough reviewof the safety of our nuclear plants. Wesupport international efforts under theaegis of the International Atomic EnergyAgency to enhance levels of safety.

The perspectives that I have outlinedto this august assembly are the ones thathave guided our actions in the SecurityCouncil since India became a non-per-manent member of the Council inJanuary this year. There are still millionsliving in poverty across the world. Theirplight has worsened, for no fault oftheirs, due to the global economic andfinancial crisis of the recent years. Theactions of governments around theworld are therefore under close scrutiny.

It is vitally important that through ouractions and deeds we renew people’sfaith in the charter and objectives of the United Nations. I am confident we can do this through statesmanship,foresight and collective efforts. India stands ready to play its part in thisnoble endeavour. n

We should not allowthe global economicslowdown to becomea trigger for building

walls around ourselves



The Joint Statement by India and Malion the occasion of the visit of the Presidentof Mali on January 11, 2012

1. His Excellency Mr. President of theRepublic of Mali Amadou ToumaniTOURE paid a State visit to India onJanuary 11-12, 2012. The Presidentwas accompanied by First LadyMadame Toure Lobbo Traore and ahigh-level Ministerial and Businessdelegation. The Ministerial delegation included TheirExcellencies, Bocary Tereta,Minister of Livestock and Fisheries;Soumeylou Boubeye Maiga,Minister of Foreign Affairs andInternational Cooperation;Aghatham AG Alhassane, Ministerof Agriculture; Habib Ouane,Minister of Power and Water;Modibo Ibrahim Toure; Minister ofPost and New Technologies;Sambou Wague, Minister in Chargeof Budget.

2. The President was accorded an official ceremonial reception atRashtrapati Bhawan in the capitalNew Delhi on January 11, 2012. The President laid a wreath at thememorial to Mahatma Gandhi atRajghat. During the visit, PresidentToure met the President of IndiaPratibha Devisingh Patil who hosted a banquet in his honour. He held talks with Prime MinisterManmohan Singh. E. Ahamed,Minister of State for External Affairscalled on the President.

3. President Toure met leaders ofIndian business and industry in NewDelhi.

4. President Toure appreciated theachievements made by the State, theGovernment and people of India inall fields in the course of nationaldevelopment which has increasing-ly enhanced the role and standing ofIndia in the region and the world.

5. The leaders of the two countriesexchanged views in an atmosphere ofwarmth, cordiality and mutual truston all aspects of bilateral cooperationas well as on the regional and international issues of mutual interest. They welcomed the development of the friendship andcooperation between India and Mali.

6. The leaders expressed satisfaction atthe intensification of diplomatic contacts between the two countriesfollowing the opening of residentEmbassies in New Delhi andBamako in 2009 and 2010 respectively.

7. Both sides agreed to further enhancehigh-level visits and meetingsbetween the two countries. The leaders noted that there stillremained considerable potential forcooperation and agreed to stronglyenhance the partnership between thetwo countries in all areas of mutualinterest.

8. Both sides called for an early convening of the first meeting of theJoint Ministerial Commission following the signing of theAgreement on Political, Economic,Scientific, Technical and CulturalCooperation between India and Maliin October 2009.

9. The leaders agreed to further deep-en the partnership, by adding moreconcrete programmes and projectsand broadening it to new areas forcooperation. Both sides agreed tocontinue strengthening cooperationin the areas of economy, trade andinvestment, finance, humanresource development, culture, agri-culture, fisheries, etc., while strivingto expand cooperation into otherpotential areas such as mining,hydrocarbons, agriculture, food pro-cessing, ICT, science and technolo-gy, public health. Both sides agreedto find ways and means of enhanc-

ing and further expanding the bilat-eral trade and promoting mutuallybeneficial cooperation. India notedwith appreciation Mali's offer forIndian participation in their mining industry, agriculture, food process-ing, dairy and poultry farming, cotton cultivation, pharmaceuticalindustry, leather industry, automo-bile and two-wheeler segment andother commercial activities andexpressed its willingness to collaborate with Mali in these areas.

10. Both sides noted with satisfactionthat the two-way trade had increasedsteadily in the recent years. PresidentToure affirmed that Mali would create favourable conditions forIndian enterprises to invest in thecountry. Both sides agreed to step uptrade and investment linkages, inter-alia by encouraging cooperation.

11. The Malian side welcomed theenhanced training slots provided byIndia under ITEC for training andcapacity building of Malian defenceforces.

12.During the visit, the followingAgreements were concluded: anAgreement for grant of aGovernment of India Line of Creditof $100 million for a PowerTransmission Project connectingBamako and Sikasso via Bougouniin Mali and MoU on Co-operationin the Field of Geology and MineralResources.

13. President Toure highly appreciatedthe support and assistance of theGovernment and people of Indiarendered to Mali's development process over the past years andwarmly welcomed the announce-ment by the Prime Minister of Indiato continue to assist Mali in its socio-economic development.

14. The leaders affirmed their desire anddetermination to work together forpeace and stability in the region and

India and Mali welcome friendship and cooperation



Address by Minister of State for ExternalAffairs Preneet Kaur at the UnitedNations General Assembly on NewPartnership for Africa’s Development, inNew York

11/10/2011

It gives me great pleasure to addresstoday’s Joint Debate on the NewPartnership for Africa’s

Development and the promotion ofpeace and development in Africa,including in its efforts to fight malaria.

In the immortal words of India’s firstPrime Minister, Pt. Jawaharlal Nehru,Africa is our “sister continent”. India’slinks with Africa are civilisational. Theyare anchored in centuries of trade acrossthe Indian Ocean; in the shared struggleagainst the yoke of colonialism; in our

endeavour of post-colonial nation-building, and in our common quest tounshackle our people from the bondageof poverty, disease, hunger, illiteracy,and apartheid.

We also owe a debt of gratitude tothis great continent for being the politi-cal birthplace of the Father of ourNation, Mahatma Gandhi, who firsttested his central precepts of non-vio-lence and peaceful resistance in SouthAfrica.

Ten years after the adoption of NewPartnership for Africa’s Development(NEPAD), it is befitting to recognise thenoteworthy progress made so far in pursuing sectoral priorities in agricul-ture, infrastructure, health, education,science, information technology, andenvironment. Nevertheless, this decadalmilestone also offers an opportunity for

sober reflection on the unfinished tasksahead in fulfilling the vision of socio-economic growth and sustainabledevelopment that was envisaged whenthis framework was first conceived.

Particularly relevant to this discus-sion is the pivotal contribution of international cooperation in Africa’sdevelopment, especially in its efforts tomake progress towards the MillenniumDevelopment Goals and in surmount-ing the difficult challenges confrontingpost-conflict and transitional societies inAfrica. As rightly emphasised by theSecretary-General in his report, theinternational community needs to stepup its efforts and bridge the gap betweenpromise and delivery. The shortfall ofUS$ 18 billion in meeting ODA com-mitments to Africa is a cause of concern.In these times of political uncertainty

‘World needs to bridge promise and delivery gap’

the world, and agreed to furtherstrengthen cooperation at regionaland international fora, especially theECOWAS-India as well as in AU,WTO, WIPO, UN and the Non-aligned Movement.

15. The Malian side underlined the pio-neering role played by India in con-sistently extending support andcooperation to African countrieswithin the framework of South-South Cooperation. This hasacquired an enhanced and significantrole following the successful organisation of India-Africa ForumSummit in 2008 and the Africa-IndiaForum Summit in 2011 leading tothe strengthening of Africa-Indiarelationship.

16. Both sides also agreed to closelycooperate to promote dialogue andcooperation in Africa with the aim of promoting peace, stability,development and prosperity in thecontinent.

17. The two sides agreed to strengthen

cooperation to effectively address thechallenges posed by non-traditionalsecurity threats such as climatechange, environmental degradation,natural disasters, energy security etc.

18. The Indian side thanked Mali for itssupport to India's candidature forpermanent membership in anexpanded United Nations SecurityCouncil.

19.On the situation in the Middle East,the two sides condemned any forms of violence and urged the protagonists to resume dialogue andreiterated their support for the “RoadMap” of the “Quartet”.

20. The two sides strongly condemnedterrorism in all its forms and mani-festations and resolved to increasecooperation in the common effortsof the international community inpreventing this scourge in a com-prehensive manner. Both sidesagreed to closely cooperate for anearly finalisation of aComprehensive Convention on

International Terrorism, for whichIndia had presented a draft at theUnited Nations in 1996.

21. The Indian side appreciated theregional peace-keeping efforts ofMali in Africa and reiterated its offerfor providing training facilities toMali to augment its peace-keepingcapabilities. India appreciated theConference on Peace, Security andDevelopment in the Sahelo Saharianregion organised by the Governmentof Mali in 2010, in order to addressissues on cross-border crimes andterrorism affecting the region.

22. President Amadou Toumani Toureexpressed his gratitude to the State,Government and friendly people ofIndia for the warm reception andhospitality accorded to the Presidentand the Malian delegation duringtheir State Visit to the Republic ofIndia. He invited the President andthe Prime Minister of India to payState Visits to Mali. The invitationswere accepted. n



and fragile transitions in manyAfrican countries, it is more incum-bent than ever for the continent’sdevelopment partners to stay thecourse and help African countriesachieve their developmental goals.

On India’s part, we have togeth-er with our African partners transformed our age old and specialengagement into an enduring andmulti-dimensional relationship.After careful nurturing over succes-sive years, today our partnershipwith Africa is aligned with the priorities integral to the developmentalgoals of Africa and is built on the foundations of mutual equality andcommon benefit. Sectoral areas of coop-eration that have been accorded highpriority include infrastructure develop-ment, capacity-building, agriculture,health, food security and technologycooperation. Earlier this year, we reaf-firmed our abiding commitment toworking with our African partners at thesecond India-Africa Forum Summit inAddis Ababa in May 2011. At theSummit, India announced fresh lines ofcredit worth US$ five billion over thenext three years for Africa and an additional US$ 700 million grant assistance for human resource develop-ment, transfer of technology, and build-ing new institutions and training programmes, in consultation with theAfrican Union, the Regional EconomicCommunities and our African partners.In keeping with NEPAD’s emphasis oninfrastructure development, we havealso decided to support the developmentof a new Ethio-Djibouti Railway line atUS$ 300 million. We are also discussingwith the African Union the augmenta-tion of capacities for the developmentof regional structure in railways.

Building on the success of the PanAfrican E-network project that shareswith all African countries our expertisein the fields of healthcare and educationthrough satellite, fiber optics and wireless links, we are looking at settingup an India-Africa Virtual University.The proposed University will set aside10,000 new scholarships for African students. We are further going to signif-

icantly raise the number of African beneficiaries of our scholarships andtraining slots, including under our flagship technical and economic assis-tance initiative- the Indian Technicaland Economic Cooperation Programme(ITEC). We have committed ourselvesto offering more than 22,000 scholar-ships to African students over the nextthree years. With a view to encouragingtrade and investment flows, there is alsoa proposal to establish an India-AfricaBusiness Council. India is already unilaterally making available duty freeand quota free market access for goodsfrom 34 Least Developed Countries inAfrica. This covers 94 percent of India’stotal tariff lines and provides preferentialmarket access on tariff lines that comprise 92.5 percent of global exportsof all Least Developed Countries.

India’s private sector has played anincreasingly important part in recentyears in supporting trade and investmentflows. Indian companies have madelarge investments in Africa in industry,agriculture, services, human resourcedevelopment and infrastructure. The Indian conglomerate Tata hasemerged as the second largest investor inSub-Saharan Africa. New initiatives toestablish an India-Africa FoodProcessing Cluster, an India-AfricaIntegrated Textiles Cluster, an India-Africa Civil Aviation Academy, anIndia-Africa Centre for Medium RangeWeather Forecasting, and an India-Africa Institute of Agriculture andRural Development are on the anvil.

India has also contributed actively inefforts to maintain peace and security on

the African continent through oursix decade long involvement in UNpeacekeeping efforts. Our most sub-stantial presence remains in Africa,including in the latest peacekeepingmission in South Sudan.

Further, India will contributeUS$ 2 million for the African UnionMission in Somalia in line with ourconsistent support to the develop-ment of African capacities in themaintenance of peace and security.We have consistently held the position that the international

community must further encourageregional and sub-regional organizationsin Africa to play a more important roleboth in peacekeeping and peacebuildingissues within Africa.

Before concluding, I would like tospeak to the global anti-malaria campaign, particularly in Africa, dealtwith in the WHO Report transmittedby the Secretary-General. The Reportemphasises the need to intensify effortsto reach the recently revised and moreambitious targets by 2015.

The analysis presented in the Reportdraws on empirical evidence to suggesta strong link between injection of significant funding and rise in the num-ber of lives saved as a result of anti-malarial efforts. The fact that fund-ing has stagnated in the past two years istherefore particularly worrisome. Wewould urge all donors to step up effortsat this critical juncture. India’s owncooperation agenda with Africa includescapacity building programmes for med-ical and health specialists to tackle pan-demics like malaria, filarial polio, HIVand TB. India’s private sector has beeninvesting in establishing pharmaceuticalmanufacturing facilities in African coun-tries. We are willing to do more.

In conclusion, India’s vision of the21st century sees a great and dynamicrole for Africa as an emerging growthpole of the world. We will offer ourfullest cooperation to translate thisvision into reality. We will take our part-nership from pillar to pillar founded onmutual solidarity and kinship to harnessthe great potential of the more than 2.1billion Indians and Africans. n

Minister of State for External Affairs Preneet Kauraddressing the United Nations General Assembly

on October 11, 2011.



Address by Prime Minister Dr. Manmohan Singh’s at the IBSASummit in Pretoria, South Africa

18/10/2011

At the outset I would like toexpress my profound gratitude to President JacobZuma, the Government and

the people of South Africa for makingexcellent arrangements for the 5th India,Brazil and South Africa (IBSA) Summit.I would also like to thank and convey myappreciation to our Ministers, officials,Focal Points and others who havepainstakingly worked to ensure the success of our meeting. I would also liketo welcome President Dilma Rousseff toher first IBSA Summit. I am sure that wewill benefit from her vision and leader-ship in the strengthening and consolida-tion of the IBSA Dialogue Forum.

Our grouping derives its strength andglobal influence from the fact that it consists of three major developingdemocracies located in three continents.We share the principles of pluralism,democracy, tolerance and multicultural-ism. We have similar views on manyglobal issues such as the primacy of thedevelopment agenda, a just and equitableinternational order, a multipolar world,

a rule based international trading system,climate change and reform of the UnitedNations. Our cooperation is under-pinned by three pillars — political consultation and coordination; multi-sectoral trilateral cooperation; and execution of development projects inthird countries through the Trust Fund.The IBSA framework is unique becauseit goes beyond just government-to-government interaction. It touches thelives of our people by facilitating dialogueamong civil society and other importantsections of society. The IBSA Forum hasalso helped us in strengthening our ownbilateral relations with each other.Through its 16 Working Groups and 6people-to-people fora IBSA has broughttogether our officials, technical experts,business representatives, intellectualsand academicians. Despite the geographic distance between us, ourcooperation has grown in all areas. Yetthere is a lot more that IBSA can do tobring tangible benefits to our peoples.

The year 2011 has special salience onaccount of the fact that we are allMembers of the United NationsSecurity Council. We have demonstrat-ed our cohesion and coordination onvarious issues under discussion in theUnited Nations, particularly in the context of developments in West Asia

and North Africa. The visit of an IBSAdelegation to Damascus in August thisyear and their interaction with the Syrianleadership demonstrated the politicalrole which IBSA can usefully play. Weshould build upon this experience. Westand united in our efforts to address thedeficit in global governance. The UnitedNations Security Council must beenlarged in order to reflect present dayreality and to make it representative andeffective in responding to global challenges. The IBSA Trust Fund is anovel initiative. Through this we havebeen able to share our developmentalexperience with other developing countries in the true spirit of South-South cooperation. We should strength-en IBSA’s ownership of the projects executed under the Trust Fund andbring their focus back to what was originally envisaged, i.e., hunger andpoverty alleviation. We could considernew projects in areas such as agricultureand agro-processing, environment andenergy, including new energy resources.These will help our partner countries inaddressing the challenges of food andenergy security. The IBSA Trust Fundprojects could also useful focus on education and skill development, whichis a key requirement of almost all developing countries. Despite the global economic slowdown our threeeconomies have registered a steadygrowth rate. Our intra-IBSA trade isalmost touching the 20 billion dollarmark. This augurs well for realizing ourtarget of $25 billion by 2015, and forbeing even more ambitious. The earlyconclusion of India-SACU-MercosurTrilateral Trade Arrangement wouldgive a boost to South-South trade. Withthe conclusion of this trilateral arrange-ment, Africa could emerge as a bridgelinking South Asia and Latin America.The sovereign debt crisis in Europe andrecessionary trends in the traditionalengines of the global economy — theUnited States, Europe and Japan aresending negative signals to world finan-

IBSA framework is unique: PM

Prime Minister Manmohan Singh addressing the Plenary Session of IBSA Summit at Pretoria in South Africa on October 18, 2011.



cial and capital markets which are showing signs of distress. Developingcountries cannot remain untouched bythe negative impacts of these develop-ments. Their ability to address theirdevelopmental challenges has beenadversely affected. We hope that effectiveand early steps will be taken by Europeand other advanced economies to calmthe capital and financial markets and prevent the global economy from slipping into a double dip recession.

The G-20, of which all of us aremembers, has played an important rolein pursuing the agenda of reform ofinternational monetary and financialinstitutions. We should coordinate ourpositions in the run up to the G-20

Summit in Cannes to ensure that thepriorities of the developing economiesare adequately reflected. Our coopera-tion on environment and climatechange issues is important. The BASICGroup has proved to be an effectiveforum for projecting the viewpoint ofthe developing world. We should maintain the momentum of coordina-tion and consultation in the run up toDurban.

I wish South Africa under PresidentZuma’s leadership all success for theDurban Conference. I also wishPresident Dilma Rousseff all success forthe Rio+20 meet in Rio de Janeiro inJune next year. The issue of IBSA’s outreach is one of the important items

on our agenda. IBSA has deservedlyreceived considerable attention since itsestablishment in 2003. It is important tofurther consolidate our achievementsand maintain the unique identity ofIBSA. We should preserve the commonprinciples and values we stand for.

India remains committed and willing to work closely with its IBSApartners in our collective endeavour tofurther deepen our cooperation. I havepleasure in extending a most cordial invitation to you all for the next Summitmeeting of IBSA in India in 2013. Iwould like to heartily congratulate thepeople of South Africa as they prepare tomark the 100th anniversary of theAfrican National Congress next year. n

Statement by Prime Minister Manmohan Singh prior to his departureto South Africa for the 5th IBSA Summit

17/10/2011

Iwill leave tomorrow on a visit toSouth Africa to attend the 5th IBSASummit being hosted by President

Jacob Zuma in Pretoria on 18 October2011. The Summit is expected to focus,among other things, on coordinationamong IBSA countries in UnitedNations Security Council, sustainabledevelopment, the forthcoming meetingsof the Conference of Parties under theUNFCCC and the Conference ofParties to the Kyoto Protocol being hosted by South Africa later this year, theRio+20 Conference being hosted byBrazil in 2012 and other matters relatedto deepening of cooperation under IBSA.

The IBSA Dialogue Forum hasmatured considerably over the years.There is greater cooperation across awider canvas. Above all, the idea of threelarge developing democracies, Brazil,India and South Africa working togeth-er in a highly complex global environ-ment has taken root, and has receiveduniversal welcome by our peoples.

It is a happy coincidence that during

2011 India, Brazil and South Africa aremembers of the United NationsSecurity Council.

We have shown significant cohesive-ness and coordination in our approachto issues under discussion in theSecurity Council.

I also look forward to an exchange ofviews with our IBSA partners on thecurrent global economic and financial

situation especially in the context of theforthcoming G 20 Summit in France.We expect to issue an IBSA JointDeclaration at the Summit.

During my stay in Pretoria, I lookforward to holding bilateral meetingswith President Jacob Zuma andPresident Dilma Rousseff to exchangeviews on global, regional and bilateralissues of mutual interest. n

‘IBSA dialogue forum has matured’

Prime Minister Manmohan Singh being received by the South African Minister for Social Justice Bathabile Dlamini, on his arrival at Waterkloof Air Force Base, Pretoria,

for the 5th IBSA Summit in South Africa on October 17, 2011.



Statement by Prime Minister Manmohan Singh’s after conclusion ofthe 5th IBSA Summit

18/10/2011

At the outset I would like toconvey my profound gratitude to President JacobZuma, the Government and

the people of South Africa for the warmthand cordiality with which we have beenreceived here in Pretoria.

It is always a pleasure and privilege tovisit this beautiful country. This is acountry with which India and the peopleof India have very deep rooted links —links that have changed the course ofIndia’s history. The people of India owea deep debt of gratitude to South Africafor giving us the Mahatma. India joinsthe people of South Africa as they prepareto mark the centenary celebrations of theAfrican National Congress (ANC) nextyear. We cherish our historical and deepemotional links with the ANC. Theelimination of apartheid was one of themost seminal events of the 20th century.We have just concluded a very fruitfulexchange of views on a wide range ofissues of interest to all the three countries.We have heard the results of the meetingsof the Working Groups and Forums whomet before our Summit. We have discussed ways and means to further consolidate our cooperation and collaboration under the India BrazilSouth Africa (IBSA) Dialogue Forum. Ihave had the privilege of attending all theIBSA summits. I am, therefore, witnessto the flowering of this unique organisation and this is a matter of greatsatisfaction for me. We have defied theskeptics and shown how three like mind-ed countries can pool their resources andgenius to help each other and others.

IBSA countries are already membersof groupings such as Brazil, Russia, Indiaand China (BRICs), Brazil, South Africa,India and China (BASIC) and the G-20.We have a tradition of collaborating on

global economic issues and challengessuch as international economic and finan-cial crisis, climate change, energy securi-ty and food security.

This Summit is special because it hastaken place in a year when all three of usare members of the United NationsSecurity Council. We have acted in con-cert on the global stage, dealing with com-plex regional and international political

and security issues, including recently inWest Asia. This suggests that IBSA canplay a role in promoting the cause of international peace and security.

The IBSA framework is uniquebecause the interaction under IBSA transcends the realm of government-to-government activity to encompass dia-logue among civil society and people-to-people exchanges.

Its cooperative framework in the form

of 16 Working Groups and 6 people-to-people fora brings together our officials,technical experts, business representa-tives, intellectuals and academicians.These have helped to expand our cooperation considerably. The IBSATrust Fund is another unique feature ofour outreach activities, which we haveagreed to promote further.

There is, however, vast potential toincrease and expand our cooperation.Intra-IBSA trade is now close to US$ 20billion. I am therefore confident that wewill be able to cross the target of US$ 25billion by 2015. We need to do muchmore to address the present deficit ofintra-IBSA linkages in terms of people’stravel, transport facilities and other related infrastructure.

As three developing democracies, weshare very similar aspirations. We seekthe empowerment of our people and betterment of their lives through inclusive socio-economic development.Our cooperation so far indicates that weare on the right path.

India looks forward to working closely with its IBSA partners in our collective endeavours to further deepenour cooperation. I have offered that wewill be happy to host the next IBSASummit in India in 2013. I thank you. n

IBSA meet fruitful, says PM

Prime Minister Manmohan Singh, President Jacob Zuma of South Africa and President DilmaRousseff of Brazil at the 5th IBSA Summit in Pretoria in South Africa on October 18, 2011.

Intra-IBSA trade is now close to $20 billion. I am,

therefore, confidentthat we will be able

to cross the target of$25 billion by 2015



Statement by External Affairs MinisterS.M. Krishna upon the conclusion of theCouncil of Ministers’ Meeting of IOR-ARC in Bengaluru

15/11/2011

We have just concluded avery successful interac-tion of Indian OceanRim Council of

Ministers.This is the first time that the

IOR-ARC meeting was held in India atthe apex level. India would be chairingthe Association for the next two years.Thereafter Australia would assumechairmanship for a further period of twoyears in 2013. I am delighted that mygood friend and colleague, ForeignMinister Kevin Rudd, joined me as ViceChair in the deliberations.

I am also pleased to welcomeSeychelles back into the Association’sfold, taking our number to 19. Wewholeheartedly facilitated the re-entryof Seychelles ensuring that they couldrejoin us at Bengaluru itself. All 19 of usare sea faring nations, enjoying thebounty of the mighty Indian Ocean. We

also have the responsibility at the sametime, to further strengthen maritimesecurity and do everything possible toenhance, all round cooperation amongIOR nations. The Indian Ocean is ofstrategic importance to all our membernations. India is committed to take initiates to address the contemporarychallenges and developmental aspirations of all nations on its rim. Wehave taken a decision in the meeting tofully harness the potential of all IORrelated institutions that have been estab-lished over the years.

I am very encouraged by the overwhelming support for India’sChairmanship and enthusiasm for making Indian Ocean Association avibrant grouping for promoting economic and trade relations, coopera-tion in education, tourism, fisheries,strengthening maritime security, combating piracy, disaster management,share best practices and experiences —to cite a few examples. We welcome theelection of the new Secretary General ofthe Association, High Commissioner K.V. Bhagirath. He will take up his post on1 January 2012. You would have seenthe communiqué which spells out our

vision. I would refrain from going intofurther details at this stage. I also took theopportunity, over yesterday and today,to have a series of meetings with visitingheads of delegations, including FinanceMinister Rudd of Australia, FinanceMinister Dr. Dipu Moni of Bangladesh,Finance Minister Arvin Boolell ofMauritius, Sr. Minister of InternationalMonetary Cooperation of Sri Lanka,Minister of East African Cooperation ofTanzania, FM Al — Qirbi of Yemen andthe Finance Minister of Seychelles.

I reviewed the state of play of ourbilateral relations with my interlocutors,consulted them on infusing new syner-gies in the Indian Ocean Association ofnations, as well as, exchanged views onregional and international issues ofinterest. All my interlocutors weredelighted that this important event hadbeen held in Bengaluru and are goingback with very positive impressions ofthe city and State.

Last but not the least, I will like totake this opportunity to sincerely thankChief Minister of Karnataka, the stategovernment and the people ofBengaluru, for their unqualified supportand spontaneous warmth. n

India ready for challenges: EAM

The participating council of ministers at the 11th IOR-ARC meeting in Bengaluru on November 15, 2011.



‘Coordination is key’Opening statement by External AffairsMinister S.M. Krishna at the Councilof Ministers’ Meeting of 11th IndianOcean Rim Association for RegionalCooperation in Bengaluru

15/11/2011

Over six decades ago, ourfirst Prime MinisterPandit Jawaharlal Nehruenvisioned a grouping of

countries bordering the Indian Oceanthat could help one another in tackingcommon challenges. This extraordi-narily perceptive idea was realised in1997 with the formation of ourAssociation. We reaffirmed then thatthe Indian Ocean is an integral part ofour collective destiny, and that we needa holistic vision for a cooperativeresponse to current challenges for thisregion.

The key east-west arteries of international trade — especially incommodities and energy sources —run through our ocean. Maritimesecurity issues impact on our strategicsecurity and the conventional securityof our boundaries. Technological evolution and the rising cost of naturalresources have made it economicallyviable to harvest new resources fromour seabeds. The sustainability of oureconomic development in today’s ecologically challenged world requiresefficient management of our sharedseas. Conservation and sustainable harvesting are vital for the security ofour marine food resources.

These are both opportunities andchallenges for collaboration, whichreinforce the cultural and civilisation-al factors that have historically unitedour region. Our association is based onan open regionalism, permitting multiple channels of interaction inareas of regional and sub-regionalinterest. Piracy is a priority challenge.It increases the direct cost of trade. Itadds indirect costs through increased

insurance premia and a human cost tomany of our nationals involved in theshipping industry. We need to buildupon existing national, regional andmultilateral measures to enhance coordination to combat piracy.

We can build functional relation-ships between our Navies and CoastGuards to enhance the security of ourwaters. Our port and customs authorities, as well as our shippingfirms, need to address issues of transport infrastructure and connectivity that hinder trade.

The growth of intra-regional tradehas been limited by poor connectivity,market complexities and inadequatetrade facilitation. Our intra-regionalinvestment flows are modest, thoughmany of our economies are importantdestinations for foreign direct investment from outside our region.We need to promote initiatives to rectify this situation.

We should strengthen connectionsbetween our disaster managementagencies. India is willing to share itsexperiences with the TsunamiWarning System for the Indian Ocean.

Our hydrology, marine biology andweather systems research institutionscan develop mutually beneficial collaborative projects, share best prac-tices and enhance national capacities.We can invite the Indian Ocean Naval

Symposium, of which all our countriesare members, to make a presentationon its work at our future meetings.

Our international technical cooperation programme, ITEC, offerscapacity-building courses in a numberof areas of priority interest to ourAssociation. Our Foreign ServiceInstitute has developed training modules that could be of interest todiplomats in our member-countries.More regular educational, cultural andtourism exchanges can play a key rolein promoting people-to-people understanding. Our officials have beendiscussing ways of simplifying procedures for utilization of ourSpecial Fund. It should become aneffective instrument for financing projects and studies of common interest. With this objective, India hasdecided to provide additional fundingof $1 million to the Fund.

From our meetings over the lastfew days, we get the sense ofwidespread impatience for ourAssociation to move from discussion toaction. India shares this sentiment andwould like our meeting today to impartthe required momentum in this direction. We have asked all our Headsof Mission in your countries to attendour deliberations here, so that they cantake forward our agenda in priority sectors of interest. n

External Affairs Minister S. M. Krishna at the 11th Meeting of the Council of Ministers of IOR-ARC in Bengaluru on November 15, 2011.



Address by External Affairs Minister S. M. Krishna at the conference on‘Indian Lines of Credit: An Instrumentto Enhance India-Africa Partnership’ inNew Delhi

22/11/2011

It gives me pleasure to be here thismorning with you to address thisConference attended by represen-tatives from over 40 African

countries. It is indeed heartening to notethe overwhelming response to our invitation. We are here today on a common platform to discuss how Indiaand African countries can work together to achieve the goals of ensuringinclusive growth and sustainable development. We face similar challengesin transforming our economies for thewell-being and prosperity of our people.

There are striking complementaritiesthat exist between Africa’s requirements and India’s capabilities inmany areas. I am confident that our partnership will continue to grow as wemove forward on this path. PrimeMinister Dr. Manmohan Singh, whileaddressing the Second India-AfricaForum Summit earlier this year,observed “India will work with Africa torealise its vast potential. We believe thata new vision is required for Africa’sdevelopment and participation in global affairs”. In this spirit, India is readyto share its experience with our Africanbrothers and sisters. African economyexpanded by 4.5 percent in 2010. Indianeconomy expanded by around 8 percentin the same period. India and Africatogether comprise a market of 2.2 billionpeople with a combined Gross DomesticProduct (GDP) of US$3 trillion. Tradebetween India and Africa, which stood at$11.9 billion in 2005-06, increased to$53.3 billion last year. There has been anincrease in investments in both directions as well.

All this, of course, is impressive but

there is still vast potential for furthergrowth. India is engaging with Africa atbilateral, regional as well as continentallevels. The India-Africa ForumSummits have lent a contemporarydimension to our relations.

Our economic engagement is directed at meeting the socio-economicdevelopment aspirations of developingcountries in the spirit of South-Southcooperation. This takes several forms,including Indian Technical andEconomic Cooperation (ITEC) pro-grammes that are tailor-made to respondto the capacity-building needs of ourpartner countries. Several initiativesunder our Focus Africa Programmesunderline our political commitment tobuild mutually beneficial partnerships.

Lines of Credit (LoC) are an important instrument in this contextand are the focus of this conference. Atthe India-Africa Forum Summit in Maythis year, the Indian Prime Minister hadannounced $5 billion over the next 3years under lines of credit to help Africaachieve its development goals. TheseLoCs provide support at highly concessional terms to least developedcountries and developing countries in

the African continent. We note a greatdeal of interest from our partners tocooperate in this framework. As we takeour cooperation forward, it is ofparamount importance that we followtransparent and fair selection proceduresbased on competitive bidding for awardof contracts and their execution. Suchtransparency will ensure best value formoney and quality of delivery under thescheme. I believe that you will be having detailed discussions on our poli-cies, procedures and methodology onhow to access and make best use ofIndian Lines of Credit. We value yourinputs and hope that you will find thediscussion useful and enriching. I amsure that the experiences to be sharedduring the Conference by the seniorofficials of the Ministry of ExternalAffairs, Ministry of Finance, ExportImport Bank and Confederation ofIndian Industry (CII) would addimmense value to the deliberations dur-ing the Conference. The perspectives ofthe visiting representatives from theAfrican countries, who are the primeactors for taking advantage of the IndianLoCs, would also be of enormous usefor the Indian side. n

‘We complement each other’

External Affairs Minister S.M. Krishna and Deputy Minister for Humanitarian Affairs and Disaster Management of South Sudan, Sabina Dario Lokolong, in New Delhi

on November 23, 2011.



Address by National Security AdviserShiv Shankar Mennon at the GulfForum-2011 on ‘Global Power Shiftsand the Role of Rising Powers’ atRiyadh, Saudi Arabia

05/12/2011

Iwish to thank the Institute ofDiplomatic Studies and theMinistry of Foreign Affairs of theKingdom of Saudi Arabia for the

honour of speaking at this prestigiousforum on the Gulf and the Globe.

Allow me to make a few points tostart off a discussion on the topic thatwas suggested to me, namely, GlobalPower Shifts and the Role of RisingPowers.

We live in a time of unprecedentedchange. No one knows this better thanthe sub-region where we are today. Itis hard to think of another area whichhas been as transformed in the last 50years as the Gulf. Often the scope andpace of change is beyond explanationor comprehension and our thinkingstill has to catch up with reality. Thisis true of the economic shift that hasaccelerated after the financial crisis of2008. It is also true of the rapid shiftsin regional and global balances ofpower. Some of the change is positive.For the first time in history 60 percentof mankind has been exposed to sustained growth rates of over 6 percent for an extended period.Balance of power shifts and techno-logical change are creating a worldwhere power is more widely held. Weseem to be moving to a situation ofmultiple major powers in the international system with the ability to produce or influence outcomes.

Unprecedented change also bringswith it unprecedented uncertainty andinsecurity. This is evident around us.Globalisation has created interdepen-dence, knitting the world together. If

the centre of gravity of world politics,and soon the economy, has shifted toAsia, including the Gulf, Asia is nowalso the cockpit of rivalries and thestage on which international competition is played out. Uncertaintyand insecurity lead powers to followhedging strategies, each acting on theirown worst fears, and thereby riskingmaking them come true.

But the same change that creates newchallenges also opens up space for creative diplomacy. There is space opening up in the international systemfor medium powers and others to play amore active role in this world of multiple powers, economically inter-linked and embedded in a new balanceof power.

What are the drivers of this change?They range from technology (such asnuclear fission, ICT and uses of outerspace), to economics, to politics, and tonew issues like climate change and theuses of soft power in an interdepen-dent world. Technologies like information and communicationstechnology (ICT) have empoweredsmall groups and individuals and thestate itself, opening up new domainswith new rules and practices, and newforms of contention.

We see the effects of these powershifts all around us. Developments inNorth Africa, West Asia and Gulf areevidence. The epicentre of globalgrowth shifting to Asia is another. Ifthis transformation is to be continued,for the benefit of the global economy,energy will be the key, and the Gulfwill be critical to the rest of Asia’sgrowth and therefore to global eco-nomic health.

The flip side of common prosperity is common security. Asia’ssecurity is also interlinked across thisgreat continent. India has thereforeargued for an open, inclusive Asiansecurity architecture to be evolved bythe powers of the region itself. We facecommon challenges of proliferation,terrorism, and maritime security andneed to find a way to ensure the peaceand stability that is essential to ourfutures.

What is the role of emerging pow-ers in this situation? First, a problem ofdefinition. Many of these so calledemerging countries are really re-emerging powers, better described asrapidly developing countries ratherthan as rising powers. Today, the worldis fortunate to have several growthpoles simultaneously in East Asia,South Asia, South East Asia, the Gulfand in Africa.

The larger countries in this category, (irrespective of whether you

We are moving towards a multi-polar world: NSA

Shiv Shankar Menon

We seem to be moving to a situation

of multiple major powers in the interna-tional system with theability to produce orinfluence outcomes



call them rising or emerging powers),are likely to continue to have severalpoor people even as they accumulatepower in the international system,unlike the situation in the 19th or 20thcenturies when Europe and NorthAmerica developed. They are thereforeunlikely to behave as the older or traditional powers did, and theirdomestic imperatives will take priorityin policy formulation. I can only speakfor India, and give you one Indian’sview on the role of so-called emergingpowers. We in India still have a longway to go in realising our domestic goalof transforming India to the pointwhere each Indian has the opportunityto fully realise his potential. The scale ofour domestic task is enormous, and fora long time to come our primaryresponsibility will be to sustain the paceof inclusive growth at home. I remem-ber a Chinese friend saying once thatthe best contribution that India andChina can make to global food security is to feed themselves. There isconsiderable truth in that.

Over the last two decades years Indiahas averaged over 6 percent growth,which has accelerated to between 8-9percent in the last five years. With adomestic savings rate of 35 percent andinvestment rate slightly higher than thatthe economy can sustain high growth

rates. India’s economic prospects aregood and the fundamentals are strong.We also recognise that we live in anincreasingly interdependent world andthat India’s own success is increasinglybound to the fate of the rest of the world.

When we began economic reformstwenty years ago only about 14 percent

of our GDP was related to the externaleconomy. Today, that proportion iscloser to 40 percent. (That figure isalmost twice that for China.) We will,therefore, work with our internationalpartners, contributing within ourcapacity to creating an enabling externalenvironment for the domestic transfor-mation of India. That is what India andSaudi Arabia have attempted to dotogether in the G-20.

This requires an external environ-ment of peace. It is important that ourstrategic partnership also extend to creating that climate of peace working

together on issues of regional security.For India Saudi Arabia and the Gulf

are vital partners. Almost 6 millionIndians live and work here, and ourtrade is now over 100 billion dollars ayear. India has a stake in issues relatingto peace and stability in the wider Gulfregion including Iran and Iraq.

India and Saudi Arabia enjoy cordialand friendly relations reflecting centuries of economic and social ties.The landmark visit of His Majesty KingAbdullah bin Abdulaziz to India inJanuary 2006 opened a new chapter inIndia-Saudi Arabia relations, which wascarried forward by the visit of PrimeMinister Manmohan Singh in 2010,giving new impetus to our strategicpartnership.

One thing I can assure you. Indiawill not be like the traditional big pow-ers. Mrs Indira Gandhi used to say Indiawill be a different power, a power thatworks for development, peace andinternational understanding, in its owninterest and in that of its friends andpartners abroad, Asia is not Europe andour indigenous strategic cultures arestrong and lasting. I am confident that,working together, India and the Gulfwill be able to face the challenges thatthe new geopolitics are throwing up andtake advantage of the opportunities thatthese changes are opening up. n

(Left to right) President Dmitry Medvedev of of Russia, President Lula da Silva of Brazil, President Hu Jintao of the People’s Republic of Chinaand Prime Minister Manmohan Singh of India at the BRICS Summit in Brasilia in Brazil on April 16, 2010.

We recognise that welive in an increasinglyinterdependent worldand that India’s own

success is increasing-ly bound to the fate ofthe rest of the world



Address by Foreign Secretary RanjanMathai at the India Africa HydrocarbonConference in New Delhi

10/12/2011

Iam honoured to have the opportunity to address the participants of the India-AfricaHydrocarbon Conference. The

high participation in the third edition ofthe Conference demonstrates the success of the Conference and the factthat India and Africa can do a lot togeth-er. India and Africa have deep historicallinks from the time the valleys of Nileand Indus were cradles to the earliestcivilisations of the world. We had linksthrough trade and commerce across theIndian Ocean throughout history. (Thewest coast of India in particular.) Someof these linkages were weakened duringthe colonial era. Now, India and Africahave a renewed partnership in political

and economic endeavours. The growthcentres of the world are shifting fromWest and North to East and South andwe see Africa as an emerging growthpole of the world. We are clear that inreforming the UN Security Councilthere has to be appropriate representa-tion for Africa as well as India asPermanent Members. As emergingeconomies both India and the nations ofAfrica have a lot of complementarities,which need to be exploited to their fullpotential in order to fulfill the develop-mental aspirations of our citizens.

Earlier this year, we reaffirmed ourabiding commitment to working withour African partners at the Second India-Africa Forum Summit in Addis Ababa inMay 2011. Addressing the Summit ourPrime Minister Dr. Manmohan Singhsaid; I quote: ‘We (therefore) need a newspirit of solidarity among developingcountries. We must recognise that in thisglobalised age we all live inter-connect-

ed lives in a small and fragile planet. Wemust work together to uplift the lives ofour people in a manner that preservesthe sustainability of our common air,land and water.’

And let me add — that energy is themost fundamental element in development, i.e., the process by whichthe lives of people are uplifted — asmentioned by our Prime Minister.Working together in the field of energyis therefore critical to our partnership.

Let me assure you that while we mayspeak of Africa as a continent, we havethe highest respect for the uniqueidentity and individuality of each coun-try. At the Summit, India announcedfresh Lines of Credit worth US$5 bil-lion over the next three years and anadditional $700 million grant assistancefor human resource development,transfer of technology, and buildingnew institutions and training programmes. Areas of cooperation that

‘Energy the most fundamentalelement in development’

Minister of State for Petroleum and Natural Gas and Corporate Affairs R.P.N. Singh at the valedictory session of the 3rd India-Africa Hydrocarbons Conference in New Delhi on December 10, 2011. To his left is India’s Foreign Secretary Ranjan Mathai.



have accorded high priority includeenergy and infrastructure development,capacity-building, agriculture, health,food security and technology cooperation. In the Ministry of ExternalAffairs we are working to develop theseprogrammes country to country keeping in mind that each country hasspecific requirements; but many successful programmes in health andeducation span a number of countries.

Turning to Energy in the India Africarelationship: Let me say that I am happyto hear about the Conference outcomewith ideas for new paradigms in ourenergy relationship with Africa. We cansee three particular complementarities:From the perspective of energy cooperation between India and Africa,the first, and the most obvious, is thecomplementarity of resource endow-ments and supply-demand dynamics.Africa is estimated to have 9.5 percent ofglobal proven oil reserves, 7.9 percent ofthe proven global gas reserves and about3.8 percent of the global coal reserves.These estimates are likely to grow in thefuture and Africa is already one of themost lucrative energy destinations forinvestment. Outside the traditional areaof North Africa, the main focus has beenon West Africa and countries along theGulf of Guinea which have been seen asthe major locus of hydrocarbon reserves.But we have recently been informedabout substantial discoveries onshoreand offshore — in the East Africanregion also (most recently in Uganda,Tanzania, and now off the coast ofMozambique). This should make us re-evaluate the geological potential of theentire Indian Ocean basin. On the otherhand, the Indian economy has been oneof growth stories of the world economy,but heavily dependant on imported ener-gy. As a result, there has been a steadyincrease in India’s imports of crude oil,liqified natural gas (LNG) and otherpetroleum products from Africa. Toquote an example, even on a year-on-year basis, our crude oil imports fromAfrica have steadily increased from 15.68percent in 2009 to 20.62 percent in thefirst ten months of 2010. Therefore, wewould naturally be seeking commercial

partners in Africa to meet large portionsof India’s energy needs through importsof crude oil, LNG and other petroleumand energy products. This makes for atruly win-win proposition as our partners seek assured markets.

The second is that of structural complementarities in the hydrocarbonsector. Africa is not only a geographywell endowed with hydrocarbonresources; it also represents a number ofdynamic countries whose own demandfor fuel, petroleum products, technolo-gies, jobs, skills and investments is onthe rise. This opens avenues to explorefor more opportunities for equity investment in the African markets andtwo way tie-ups. With our proven expertise in refining, consultancy, training and infrastructural develop-ments, we perceive potential for mutually beneficial business tie-ups. It isin this spirit that at the second AfricaIndia Forum Summit in Addis Ababa,India has offered large numbers ofTraining positions to African nationals

in Oil & Natural Gas sector (nearly 450positions), and Hydro, thermal, PowerGrid sector (nearly 370 positions).

The third complementarity is that ofenergy poverty and energy access. Weare all familiar with the fact the millions in our countries have no accessto commercial energy. India has beenan ardent advocate of renewable energy in the international arena, particularly in popularising the conceptof ‘Energy Access for All.’ We do thisboth because of the requirement ofenergy and to tackle the need for a lesscarbon intensive energy future. It isclear from the International ClimateChange Conferences (including theone underway now at Durban) that the

advanced industrial countries see thetransition to an era of new energysources and environmental technolo-gies, as a means to retain their technological and industrial edge overthe rest of us. We have no alternativebut to build on our success so far inharnessing renewable energy, especial-ly solar, wind and biomass. We have toexpand cooperation between Africa andIndia in this sector in terms of trainingand capacity building, as we in the tropical regions have some advantagesin these sectors. But we need a bridgeto the bright new era of renewables,and for this we would have to rely onincreased production and distributionof natural gas that is relatively less carbon intensive than coal, whichbrings us back to cooperation and collaboration in hydrocarbons.

I understand that there have beensome very fruitful deliberations in the3rd India-Africa HydrocarbonConference, making it a very successfuland mutually beneficial undertaking.The range of activities and discussionheld in these two days are evidence of theresolve with which India and the Africancountries wish to develop their relation-ship in the hydrocarbon sector. I am surethat with the passage of time, this energy relationship between India andthe nations of Africa would develop intoa very symbiotic relationship, extendingbeyond the hydrocarbon cooperationagreements and joint working groups, toa situation where we are jointly able toprovide affordable energy to our respective people and fulfill their development aspirations. In a sense thismakes us geo-economic and strategicpartners and I hope by the time of the 4thConference, some of what you have discussed today, will start becoming areality.

I also take this opportunity to con-gratulate Ministry of Petroleum andNatural Gas and the Federation of IndianChambers of Commerce and Industry(FICCI) for successful organisation ofthe 3rd India-Africa HydrocarbonConference, which deals with the vitalsubject of energy security, one of the priorities of Indian foreign policy. n

We have no alternative but to build

on our success in harnessing renewable

energy, especiallysolar, wind and

biomass



Extract from the speech by ForeignSecretary Ranjan Mathai at theConference on ‘Economic Policies forEmerging Economies’ in New Delhi

14/12/2011

During the deliberationstoday you may have dealtwith definitional issues inthe context of the emer-

gence of “emerging economies”, andjust how many economies fit thedescription. It is, therefore, not myintention to go back to the GoldmanSachs Global Economics PaperNumber 66, which brought Brazil,Russia, India and China (BRICs), intothe jargon of international discourse.But the last ten years have propelledBRICs further forward in popular imag-ination, as well as much as in the realityof their contribution to the global economy. Obviously Indonesia, Mexicoand Turkey and some other countriesmay need to be added to the acronym.Or just as we have IBSA we could havefurther sets of emerging economies whoacquire prominence when groupedtogether. Such groupings are arbitraryas the emerging economies are not necessarily cohesive. But whether collectively or severally the emergingeconomies are set to become poles ofeconomic and political power in a multi-polar world. Such predictions are bynature dangerous. In the 1960s HermanKahn had more or less convinced somethat by the end of the century we wouldall need to speak Japanese to survive.There are other examples to show that— in the long run not only are we alldead but all our predictions are dead!

Now, the Financial Times ofDecember 7 carried the headline ‘Brazilgrowth shudders to halt’. The articlesuggests a somewhat eager anticipationof a hard landing or slowdown for allfour BRICs countries. Some slowingmay be inevitable over time but to drawa conclusion that the long-term trends

are negative is probably a case of prema-ture schadenfreude. However, policieshave clearly to be set in place if the trendlines are to stay steady. Evidence fromthe growth path of China and India showthat there are key features of the economic environment that are neces-sary to sustain growth, hence good point-ers to the economic policies necessary:(i) The liberal open economic order

built over the last sixty years with, stable trading rules, a reliable international reserve currency, protected commons through whichmerchandise and invisibles can beexchanged globally, has been identi-fied by Ashley Tellis as a key enabler.

(ii) India’s case is not one of trade-driv-en growth. But the unleashing of animal spirits which has enabled us toleverage a 34 percent savings rate, isnot purely a domestically drivenmechanism. The success stories ofIndian software professionals weremade possible through integration inglobal communication networks andthe relatively open system of tradingin services. Global success of the services sector imparted new imagination and confidence to our country, apart from financing a boomin domestic consumption, and creating a wider domestic consensuson the benefits of participation in theglobal economy.Emerging countries would,

therefore, do well to play their part inpreserving the viability of global regimesand systems of trade and transport,tweaking them to remove distortionswhich deliberately work against them.But individually or as a group, emergingeconomies must encourage greateremphasis on trade and connectivity.

A second critical area is the policiesthat affect our energy choices. There isno getting away from the fact that eventoday sustained growth will require whatLenin called ‘electrifizia’. With 40 percent of the population still withoutaccess to commercial energy in India one

of the greatest challenges of economicpolicy is to stimulate energy investments,efficiencies and innovations.

As the recent Durban discussionsshowed, there will be continued pressure to slow down the emergence ofemerging countries, through mecha-nisms of legally binding agreementswhich would curtail critical energy andinfrastructure development. In our owninterest, as much as in our responsibilityfor the planet, emerging economies haveno alternative but to become Greenfocussed economies within one generation. This will call for a techno-logical revolution, which points to anoth-er set of economic policies necessary.

Emerging economies will have to takeaccount of the fact that their spectaculargrowth in the last 2-3 decades began atlow levels of development. Most hadresources that remained underemployedbecause of lack of opportunities or lack ofwhat Tellis calls ‘catalysing mechanisms’.Economic reform helped with factoraccumulation, and at the same time theemerging economies benefited from the‘late industrialisation’ syndrome of usingproduction techniques, technologies andprocesses already tried and tested elsewhere. In telecom, for example, wewere able to leapfrog an entire stage ofdevelopment and did not have to dig upthe whole country with copper wire fora nation-wide landline network, beforemoving as we have to a stage where over800 million people have telecom connectivity. The future will depend to amuch greater extent on productivity. Ofcourse, availability of capital, technology,higher education and efficient infrastruc-ture will be necessary. But as an ADBstudy looking at the year 2030 notes“what will differentiate countries is theirability to adopt technologies — the skilllevel of workforce, appropriate capital andinfrastructure, openness to trade andFDI, and more generally the investmentclimate”. The so called demographic dividend can be one only if productivitygains become the norm. n

Emerging poles of power



�� K. MATHEWS is Professor of International Relations at the Addis Ababa University, Ethiopia. Earlier, he was Professor ofAfrican Studies and the Head of the Department at the University of Delhi. He has lectured in several leading universities in Africa for 20 years with over 90 publications to his credit, including his widely referred book, Africa, India andSouth-South Cooperation (edited in collaboration with N.N. Vohra).

�� SANJUKTA BANERJI BHATTACHARYA is Professor of International Relations at the Department of InternationalRelations, Jadavpur University, Kolkata, India. She taught History at Delhi University and Gargi College before joiningJadavpur University. She has written three books and has published over 50 articles in national and international journals andedited volumes to her credit. She has also received the prestigious Fulbright Fellowship twice, in 1987 and 2004. Her academic interests include foreign relations, Third World studies, conflict resolution and American Studies.

�� RAJIV BHATIA is a retired career diplomat. He has served as India’s High Commissioner to South Africa, Lesotho, and Kenya. He is a Visiting Senior Research Fellow at the Institute of Southeast Asian Studies, Singapore.

�� PROF PAUL MUSILI WAMBUA is Associate Professor of Maritime and Commercial Law at the University of NairobiSchool of Law.

�� MUMO NZAU is Lecturer of Political Science at Catholic University of Eastern Africa.

�� SIMON FREEMANTLE is Senior Analyst, African Political Economy Unit, at Standard Bank Research.

�� MANISH CHAND is Editor of Africa Quarterly, a journal focused on India-Africa relations and African issues. He is SeniorEditor with IANS, a leading Indian media company. He has written widely on international issues and presented papers on theAfrican resurgence and the rise of emerging powers in the African continent.

�� DANILO MARCONDES DE SOUZA NETO is a Professor at the Institute of International Relations at PontificalCatholic University in Rio de Janeiro.

�� ESTEFANÍA MARCHÁN is a Researcher at Latin American Studies Programme, at Gateway House: Indian Council onGlobal Relations, a think tank based in Mumbai.

�� DARLENE K. MUTALEMWA is a Lecturer and Researcher at Mzumbe University, Dar es Salaam Campus College,Dar-es-Salaam, Tanzania.

�� DEO P. MUTALEMWA is a development economist consultant and a former international civil servant living in Tanzania.

�� ALEXANDRA ARKHANGELSKAYA teaches at the Institute for African Studies in the Russian Academy ofSciences, Moscow.

�� SANDEEP CHAKRAVORTY is a senior diplomat in India’s Ministry of External Affairs. He has travelled to many Africancountries and written on African issues. He is currently Director (China and East Asia) in the Ministry of External Affairs,New Delhi.

�� RANJIT KUMAR is Diplomatic Editor with Navbharat Times, a leading Hindi Daily. He is the author of the book South Asian Union.

�� MANENDRA SAHU is Senior Lecturer at the Centre for African Studies, University of Mumbai. He specialises on energy issues in Africa.

�� SHUBHA SINGH is a senior journalist and has been writing on foreign affairs for over two decades. She is the author oftwo books on Indian diaspora, Fiji: A Precarious Coalition and Overseas Indians: The Global Family.

�� MAURICE N. AMUTABI (Ph.D) is Professor, Department of Social Sciences, Faculty of Arts and Social Sciences, The Catholic University of Eastern Africa.

�� Contributors



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Manuscripts submitted to Africa Quarterly should be typed double space on one side of the paper and twocopies should be sent. A diskette (3 ½” ) MS-Dos compatible, and e-mail as an attachment should be sentalong with the two hard copies. Authors should clearly indicate their full name, address, e-mail, academicstatus and current institutional affiliation. A brief biographical note (one paragraph) about the writer mayalso be sent.

The length of the article should not normally exceed 7,000 to 8,000 words, or 20 to 25 ( A-4 size) typedpages in manuscript. Titles should be kept as brief as possible.

Footnote numbering should be clearly marked and consecutively numbered in the text and notes placedat the end of the article and not at the bottom of the relevant page. Tables (including graphs, maps, figures)must be submitted in a form suitable for reproduction on a separate sheet of paper and not within the text.Each table should have a clear descriptive title and mention where it is to be placed in the article. Place allfootnotes in a table at the end of the article. Reference numbers within the text should be placed after thepunctuation mark.

Footnote style: In the case of books, the author, title of the book, place of publication, publisher, dateof publication and page numbers should be given in that order, e.g. Basil Davidson, ‘The Blackman’sBurden: Africa and the Curse of the Nation State’, London, James Curry, 1992, pp. 15-22.

In the case of articles, the author, title of article, name of the journal, volume and issue number in brack-ets, the year and the page numbers should be given in that order.

In addition to major articles and research papers, Africa Quarterly also publishes short articles in the sec-tion titled News & Events. They may not exceed 2,000 words in length. Contributions of short stories andpoems are also welcome.

Contributors to Africa Quarterly are entitled to two copies of the issue in which their article appears inaddition to a modest honorarium. Contributors of major articles accepted for publication will receive up toa maximum of `4,000.

Contributions may be sent by post to:The Editor

Africa QuarterlyIndian Council for Cultural Relations

Azad BhavanIndraprastha EstateNew Delhi-110 002

Contributions may be e-mailed to:

[email protected]

Note to Contributors


Indraprastha EstateNew Delhi — 110 002

E-mail: [email protected] with the Registrar of Newspapers of India

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RISE OF EMERGING POWERS IN AFRICA RISE OF EMERGING POWERS IN AFRICA

SPECIAL EDITIONVolume 51, No. 3-4

Africa quarterly special on emerging powers.pdf

Documents

Transcript of Africa quarterly special on emerging powers.pdf