Vice calls for stronger partnership with India

Vice President Paa Kwesi Amissah-Arthur has observed that television images of Africa migrants seeking entry into Europe in pursuit of jobs or security is a reflection of economic malfunction.

“It tells us that the system has failed the basic needs of many people,” he said. 

 Speaking at the 11th Confederation of Indian Industry (CII) and EXIM Bank Conclave on India-Africa Project Partnership currently ongoing in New Delhi, India, and supported by India’s Ministry of Commerce & Industry and the Ministry of External Affairs and government of India, Vice President Amissah-Arthur suggested the need for greater and long-term collaboration between Africa and India.

Enhancing economic relations with India, he said, will be more responsive to the call for creation of more inter-related stability and security, which is required to get rid of short-term volatility and long-term uncertainty.

“There is considerable uncertainty whether the preferential access to European markets negotiated as part of the post-colonial arrangement with the African Caribbean and Pacific (ACP) countries will survive an exit vote.

“These issues suggest the need for greater long-term collaboration between the 1.1 billion people of Africa’s 54 countries and the 1.2 billion people of India. We believe that India understands and appreciates the structure of our economies and our principles.

“That is why we are optimistic that enhancing economic relations with India will be more responsive to our call to create the more inter-related stability and security that is required for getting rid of short-term volatility and long-term uncertainty.”

He indicated that it is imperative for African economies to be insulated from the vagaries of global trade cycles. This can be achieved by reducing Africa’s dependence on exports of primary goods.

Mr. Amissah-Arthur said Indian companies and investors can play a key role in helping African industries move up the value chain by emphasising deeper bilateral Medium and Small Scale Enterprises (MSME) cooperation, adding that a robust MSME sector ensures more employment opportunities for the youth.

He indicated that Indian investments and trade with Ghana has increased with respect to investment in agriculture, agro-processing, building and construction, real-estate development, manufacturing and services.

Total foreign direct investment from India in the last decade, from 741 discrete projects registered with Ghana Investment Promotion Centre, amounted to about US$1.09billion. In 2005 India was second in terms of the number of investment projects registered by the GIPC, and ninth in terms of value.

India has a key role in Africa’s development process and lays particular emphasis on capacity building in different African countries.

General (rtd.) V. K. Singh, Minister of State for External Affairs, government of India, said India’s economic resurgence will have continued positive bearings on Africa’s development initiatives; adding that the Conclave provides India and Africa the opportunity to plan effective utilisation of major offers made by India at the 3^rd India Africa Forum Summit that was held in New Delhi, October 2015.

He emphasised the mutual cooperation that is fundamental to India-Africa partnerships and indicated the need for deeper bilateral cooperation and partnerships for sustainable development, covering areas like clean technology, solar energy, and climate-resilient agriculture.

According to the Minister, while India-Africa bilateral trade has increased from US$30billion in 2008 to US$72billion in 2015, there is immense scope for increasing the bilateral trade flows.

He urged the Least Developed Countries (LDCs) in Africa to take full benefit from the Duty Free Tariff Preferential (DFTP) Scheme extended to LDCs by the government of India, and thereby increase African LCDs’ share of total African exports to India.

Mr. Singh urged CII and EXIM Bank to make renewed efforts to facilitate simplification of procedures governing India-Africa business and investment engagements.

Mr. Okechukwu Enelamah, Minister of Industry, Trade and Investment of Nigeria, said deliberations at the Conclave should be directed toward critical evaluation of the earlier commitments made by India toward Africa, so that there is greater clarity on what elements of cooperation and assistance need to be carried forward.

Mr. Enelamah said that the private sector can give concrete expression to the vision of Indian and African leadership for long-term bilateral cooperation and partnerships, adding that civil society can also play a key role in this regard.

Referring to the ‘Made in India’ campaign, he said that Nigeria will look to learn from India’s experience in driving local manufacturing growth.

He called for a more liberal visa regime that will facilitate easier people-to-people contacts between India and Africa.

Mr. Sumit Mazumder, President-Confederation of Indian Industry, said that Indian FDI in Africa, which stands at US$13.6billion, accounts for 16% of India’s overall outward FDI. Africa is the second-biggest FDI destination for India, he said.

Mr. Mazumder underscored the growing complementarity between Indian and African economies in terms of manufacturing exports and resource trade.

Mr. Yaduvendra, Mathur, Chairman & Managing Director, EXIM Bank of India, said that large physical infrastructure development projects in Africa present compelling investment opportunities to Indian companies. 

He also called for focused attention on funding of innovations and innovative projects led by young entrepreneurs.

Mr. Noel Tata, Chairman, CII Africa Committee and Managing Director-Tata International Ltd., said that as African economies aim to accelerate their manufacturing growth, India will be an attractive destination market for their products.

Mr. Chandrajit Banerjee, Director General CII, said geographical and product diversification are key to India’s expanded trade ties with Africa; and that this Conclave has engaged the participation of 23 ministers from Africa, over 400 delegates from 37 African countries, and over 400 delegates from India. 

Mr. James Wani Igga, Vice President, Republic of South Sudan, invited Indian companies and investors to participate in South Sudan’s economic and industrial diversification. Currently, South Sudan has high dependence on oil production and exports.

Mr. Igga said that the South Sudan government extends a package of incentives to prospective investors that includes tax holidays, access to land, entry work permits, and easy licencing etc. He also underscored the need for greater joint efforts by India and Africa to meet the UN’s Sustainability Development Goals.

By Ekow Essabra-Mensah, New Delhi, India