Harnessing New Opportunities In Africa Imperative After PM's Visit

A careful examination of the strengths of these countries in Africa and Latin America would show that they present sizeable business opportunities to India Inc. These countries can provide the raw materials needed for India’s growth engine and help achieve its goal of self-sufficiency in pursuit of Aatmanirbhar Bharat.

Exploring Ties With Ghana & Namibia

In the African continent, Ghana and Namibia, where the PM visited, do not have direct air connectivity from any Indian cities. However, geography today is more of an impediment to harnessing business opportunities.

China, for example, looked beyond geography to harness the natural resources in Africa and Latin America. It has already boosted logistics and developed ports, critical for the expansion of business, in several places in these two continents.

Comparatively, India is geographically and culturally closer to Africa, including the Western region of the continent, that can be harnessed rather seamlessly from the UAE and Qatar.

While the English-speaking Eastern Africa and Southern Africa along the Indian Ocean Region have historically been associated with the Indian government and businesses, it is now time to shift gears and expand the horizon to the Atlantic Coast, where Ghana and Namibia are located.

The territories may be unfamiliar to the Indian businesses, but moving out of the comfort zone of Eastern and Southern Africa, Europe, and North America will be beneficial.

PM’s trips to Ghana and Namibia provided a glimpse of what Western and South Western Africa can offer in terms of critical minerals, diamond mining, uranium and gold deposits, besides traditional energy products and resources that are imperative for India’s growth story.

West & South-West Africa: Another Catchment Area

There also exist opportunities for infrastructure development in terms of ports along the various countries in Western and South Western Africa - Namibia, Angola, Ghana, Ivory Coast, to name a few.

As India’s defence exports grow and Indian companies scout for markets, Africa presents a huge opportunity. India-made defence products will not only be suitable but will also be cost-effective for African states that battle radicals, terrorists and pirates.

Indian private defence companies need to make a foray in Namibia if Windhoek accepts the offer of the Line of Credit for defence announced during PM Modi’s visit.

The foray into the Namibian defence sector may open up opportunities in other Western and Southern African states.

Angola Is A Key Nation

Besides Namibia, relations between India and Angola, one of the major oil producers in Africa, are underpinned by a vibrant energy partnership which dates back to the pre-independence era of Angola.

India has been among the top three trading partners of Angola for several years. At present, it is second after China, sharing about 10 per cent of Angola´s external trade.

India, being the second largest oil importer of Angola and accounting for 90 per cent of bilateral trade, can avail additional opportunities both in the downstream and upstream sectors.

There is a big opportunity for Indian businesses in retail, hospitality, agriculture, plastics, metal, pharmaceuticals, diamonds and automobile sectors. 

While India’s economic partnership with Ghana could expand following PM Modi’s visit, Accra could be a springboard for India in Western Africa, including the Francophone states.

Next Stop Mineral-Rich Côte d’Ivoire

Bordering Ghana is the Ivory Coast, once the crown jewel of French outreach to the region.

The mineral-rich Côte d’Ivoire holds a prominent place in Francophone West Africa due to its long history of agricultural production. It is one of the largest economies within the eight-member West African Economic and Monetary Union, contributing 40 per cent of the Union’s gross domestic product.

Big opportunities exist in sectors like cocoa beans, coffee, palm oil, cotton, rubber, oil and the development of new gold mines.

Needless to say, PM Modi’s visit may bring in a dynamic shift in India’s foreign policy.