ADDIS ABABA: Prime Minister Manmohan Singh unveiled a slew of initiatives to help African nations build local capabilities, continuing the Indian strategy of treading softly on a continent where there is a scramble for natural resources.
India pledged a $5 billion line of credit for development initiatives and an additional $700 million for education and skill development in Africa, Singh said at the plenary session of the second India-Africa summit here.
India has traditionally adopted a light-footed approach to economic diplomacy in Africa and there have been concerns that the Indian engagement lacked consistency and is not as effective as that of China.
Officials accompanying the prime minister insisted that India's is not being outsmarted by the Chinese, pointing to the Indian initiatives to build local institutions and capacity in agriculture, education and training.
"The Chinese are absent in many of these areas. We don't agree that China has outflanked us here. There is enough place to do what we are good at,'' said a senior official.
Africa, with a population of 1 billion, is being wooed by developed and emerging powers because of its potential as a huge market and a continent with vast mineral and oil resources. China, in particular, has pursued an aggressive strategy of acquiring oil and mineral concessions while building large infrastructure projects.
The $5 billion line of credit will be for three years, Singh said at the summit, attended by 15 African nations. A substantial chunk of the credit line, $300 million, will be to support the development of a new Ethio-Djibouti railway line linking Addis Ababa and the port of Djibouti.
To boost engagement in the agriculture and allied sectors, the prime minister announced the formation of an India-Africa food processing cluster. "This would contribute to value addition and the creation of regional and export markets," he said. Furthermore, an India-Africa Integrated Textile Cluster will support the cotton industry and the processing of the raw material into high-value products.
India, which is looking at close coordination with the Africans in climate change negotiations, has also pledged support for weather forecasting technology. "This will harness satellite technology for the agriculture and fisheries sectors as well as contribute towards disaster preparedness and management of natural resources,'' Singh said. India had announced a $5.4 billion line of credit in 2008 at the first India-Africa summit in New Delhi but much of it remains unutilised.
India-Africa trade, which is about $45 billion now, is expected to reach $75 billion by 2015. Nigeria, from where India imports more than a tenth of its crude, and South Africa, are the two main trading partners. But neither attended the summit.
China's trade with Africa is expected to double from its present level to $300 billion by 2015. Indian investment in Africa is driven by the private sector in contrast to China, where state-run enterprises dominate.
Many Africa analysts complain that while China is unwavering in its focus on Africa at the highest level, India has been fitful. The Chinese premier or the president visit Africa every year but Indian prime ministers' visits are few and far between.
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