India-Africa Economic

Relations

Group 10
Akshay Gupta | Deepanshu Anand | Piyush Jain | Pulkit Jain | Saurabh Dwivedi |

Current Economic Relations

Bi-lateral India-Africa trade increased by an average of
some 32 % annually between 2005 and 2011,
with projections in the USD90 billion range for 2015
Direct investment from India into African economies in mainly key
infrastructure projects such as IT, energy extraction, automobiles,
telecommunications and the like
The private sector has not been lagging and significant economic
linkages have arisen due to the interventions of the private sector from
India
The fact that Indian- African trade and economic relations continued to
grow even through periods of some economic crisis suggests potential
that has yet to be fully exploited

Trade Flows
Bi-lateral India-Africa trade increased
by an average of 32% between 2005
and 2011, reaching $90 billion for
2015
Direct investment from India into
African economies in mainly key
infrastructure projects such as IT,
energy extraction, automobiles,
telecommunications etc.
Africa has run a trade surplus,
recently estimated at $6 billion in
2014

Africa Exports to India

Africas largest imports from India
accounting for just 2 % of its overall
imports
Mineral fuels (mostly non-crude
petroleum oils) are still the single largest
import category (averaging 26 % of total
imports from India during 2010-14)
Vehicles accounted for an average of
some 10.3 % over the last five years,
with pharmaceutical products and
machinery each accounting for an
average of 8.4 % and 5.6 % of total
imports from India, respectively
South Africa was the single largest
importer of Indian goods

Indian investment in Africa

Indian investment into Africa has a
rich and diversified history
It ranges from spices and textiles to
significant investments in the natural
resources sector
Indias dependence on energy
imports, are partly fulfilled with oil

Indian investment in Africa

Export-Import Bank of India signed
a MoU with African Development
Bank (AfDB) to finance Indian
projects totalling $3.4 billion
Line of credit used to develop
chemical, plastics and rubber subsector (31%) and the marketing,
sales and distribution sub-sector
(17%)
India and East Africa - Supporting
Indian Trade and Investment for
Africa (Sita) - Ethiopia, Kenya,
Rwanda, Tanzania and Uganda

Investment in Eastern Africa

East Africa: Indias investment doorway into Africa

Sita Project (Supporting Indian Trade and investment for Africa):

A 6 year project (2014-2020) led by International Trade Center

Targeting specific sectors namely essential oils, sunflower oil, business-process outsourcing,
information and communication technology, leather, spices, cotton, textiles and apparel, coffee, and
pulses
5 investments identified(USD 18 million): construction of two plants for the processing of rice and
beans in Rwanda, a sugar refinery in Tanzania and a pulses processing plant and a unit to process
animal products

Biggest markets:

Ethiopia: Total commitment of USD 4.7 billion with most projects related to agriculture sector (Source:
Consumer Unity &Trust Society (Cuts))

Biggest Competitors: Turkey and China

Kenya: Indian FDI in Kenya amounted to around USD1.511 billion in the 2012-13 fiscal year

Indian firms have been largely active in the telecommunications, banking and insurance, mining,
healthcare, ports and roads, floriculture, and energy sectors
Tanzania: According to the High Commission of India in Dar es Salaam, Indian investments in Tanzania
reached just- over USD2 billion15 over the 1990-14 period

Key focus on manufacturing, communication, construction and trade sectors

Investment in Southern Africa

Role of Mauritius:
According to Indias Ministry of Commerce and Industry, some 24
% (USD9.03 billion) of total FDI flows into the Asian giant
stemmed from Mauritius in the 2014/15 fiscal year. Reason:
Double Taxation Avoidance
Exports to South Africa include vehicles and components
thereof, transport equipment, drugs and pharmaceuticals,
computer software, engineering goods, footwear, dyes and
intermediates, chemicals, textiles, rice, and gems and
jewellery, etc. India-South Africa relations today are warm, cooperative and multi-dimensional

Investment in Western Africa

NIGERIA

Capital imports from India usually account for less than 1 % of the
total capital imports into Nigeria capital imports in this case refers
to foreign direct investment (FDI)

Capital imports from India amounted to only USD15.9 million in

2013, and declined to USD6.7 million in 2014, according to the
Nigeria National Bureau of Statistics (NBS)

A firm foothold on Nigerias hydrocarbon sector owing to Indian

interest in Nigerian oil
GHANA

The value of Ghanas newly-registered FDI projects reached USD3.4

billion in 2014
FDI from India amounted to USD25.7 million in Q1,
2014 representing the largest investment by any country into
Ghana during that quarter

India invested in nine projects in Ghana during the following

quarter becoming the country that invested in the most number
of projects in 2014. In Q2, India was also ranked as the fourthlargest investor21 by value. India invested in a further seven
projects with a total value of USD14.2 million in Q3

Investment in Northern Africa

India is heavily dependent on energy imports, with oil exports from Africa
partly fulfilling that dependence. As a result, Indias leading governmentowned public sector enterprises acquired shares/assets in many countries of
Northern Africa
Indian companies have a strong and dynamic presence in Egypt and a
number of Indian companies have become an integral part of Egyptian
economy
Indian companies are providing direct and indirect employment to
approximately 35,000 Egyptians. The direct employment generated by Indian
companies is more than 21,200 and indirect employment more than 13,500
The top five Indian companies in terms of investment in Egypt, most of them
in labour intensive textile industry, provide direct employment to more than
12,800 Egyptians