Will India Revitalise Its Partnership With Africa?

India’s push to include the African Union as a permanent member of the G20 during its presidency was in line with its enduring commitment towards inclusive global governance and support for Africa, a continent with which it shares close ties. 

While its relations with Africa are rooted in a history of anti-colonial solidarity, India has nurtured its relationship with the continent and further deepened its economic ties with it in recent years, increasing its trade, investment and development cooperation links with Africa considerably in recent years.

No wonder that in his address to the Ugandan Parliament, Indian Prime Minister Narendra Modi stated that Africa is at the top of India’s priorities.

Indo-African Relations: Beyond Trade & Economics

India is Africa’s third-largest trade partner after the EU and China. The value of two-way trade between India and Africa currently stands at about US$ 83.3 billion, of which, India’s exports to Africa are valued at US$ 45 billion and mainly comprise mineral fuels, pharmaceuticals, automobiles and food products. 

That means Africa has a small trade deficit with India. India's imports from Africa are valued at US$ 38 billion, with crude oil, diamonds and copper the top items on the list. South Africa is India’s top export destination, followed by Nigeria, Egypt, Togo and Kenya. South Africa and Nigeria are also the top import sources for India, with a share of 45 per cent of all Indian imports from the continent. 

Indian investments in Africa have also grown substantially. Between 2000 and 2023, India’s overseas direct investments (ODI) in Africa were about US$ 50.4 billion, with Mauritius — a tax haven and a gateway to investments in other African countries — the top recipient, followed by Mozambique, Sudan, South Africa and Egypt. 

Indian investments in Africa span across different manufacturing sectors. India also has a long history of development partnerships with Africa. African countries have been major beneficiaries of India’s scholarships and capacity-building programmes, notably the ITEC (Indian Technical and Economic Cooperation) programme. 

Under its lines of credit programme, India has completed 206 development projects in 43 African countries, with another 65 projects currently underway, encompassing a total expenditure of US$ 12.4 billion. India also acted promptly during the pandemic with its Vaccine Maitri programme, medical diplomacy and food shipments. 

Although India enjoys significant goodwill across Africa on account of its historical relations and recent development initiatives, its current influence in the continent is not commensurate with that history. 

No India-Africa Forum Summit After 2015

India and Africa have not held any India-Africa Forum Summit for nine years, since the third edition of the summit in New Delhi in 2015. While the COVID-19 pandemic and election schedules have often been quoted as the main reason behind the delay, several countries and country groups like the EU, Turkey, US, Japan and Russia have held summits with the African Union in recent years. 

China alone has successfully concluded two summits with the African Union during this period, in 2021 and 2024. In other words, while India regards Africa as its top priority, the African Union doesn't seem to have a reciprocatory feeling. 

Significant changes have occurred since the third India-Africa Forum Summit, which necessitate changes in India’s approach to Africa. Africa’s development trajectory has been severely jolted by a series of shocks — the commodity price shock in 2015, the COVID-19 pandemic in 2019, the Ukraine-Russia war in 2022, and a debt crisis since 2023. 

Africa is also beleaguered by over 35 non-international armed conflicts that have killed and displaced thousands of people. The continent is currently experiencing its worst food crisis in 40 years, with nearly 868 million Africans deemed food insecure.

Several African countries are experiencing debt distress, with four countries, viz. Ghana, Ethiopia, Zambia and Mali, having already defaulted. Africa has a massive debt service burden of US$ 163 billion in 2024, while its total external debt is valued at roughly US$ 1.5 trillion. 

Rethinking India's Africa Strategy

India strived to be the voice of the Global South throughout its G20 presidency. The inclusion of the African Union as a permanent member of the group was a landmark event. 

However, the country now needs to revisit its Africa strategy, to serve the continent’s current needs and expand its actual influence. 

While an entry into the G20 club offers immense opportunities to shape global affairs and advance one’s national interests, the African Union will need partners to push its agenda within the G20. 

Given its longstanding commitment to African development, India must support the African Union in key areas like reforming the global financial system, finding a permanent solution to Africa’s debt crisis, and addressing food insecurity in the continent. 

India must also work towards strengthening its development cooperation initiatives in Africa. India’s development partnership with Africa has been lauded for several reasons, like building African capacity, respect for sovereignty and demand-driven nature — all within the rubric of mutual benefit, rather than a donor-recipient relationship. The country now needs to focus on delivery, and the impact of its development programmes. 

As different countries in the African continent face mounting debt burdens, India should consider expanding the grant component of its development cooperation budget, instead of adding to the continent’s debt burden through more loans. 

While on the one hand, India needs to open its purse strings to support Africa in its hour of need, it must also strive to focus on niche areas for maximum development impact. 

Last but not least, India must push to hold the 4th India-Africa summit as quickly as possible, to jointly create a comprehensive roadmap for future development. Both India and Africa have large and growing populations. Therefore, they must concentrate on harnessing their human resource potential through rapid investments in food security, healthcare, climate adaptation, education and skilling. 

In a nutshell, it is time for India to rediscover and revitalise its longtime partnership with Africa. 

(The writer is a New Delhi-based economist and works as a Senior Fellow and Deputy Director at the Observer Research Foundation. Views expressed are personal)