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Conclave
to Create &
Strengthen Synergies
Dovetailing Indian
Competence
with Growing African
Needs
By Dev
Varam
India-Africa Partnership
Conclaves have
become the most
important landmarks
in economic relations
between this country
and that vibrant
continent. Organized
jointly by the
Confederation
of Indian Industry
(CII) and the
Export Import
Bank of India
(EXIM Bank) and
supported by the
Indian Ministries
of Commerce and
Industry and External
Affairs, these
conclaves have
become highly-focused
meeting points
of governments
and business communities
of Africa and
India. No wonder,
these conclaves,
starting from
the first edition
held in 2005,
have facilitated
projects in Africa
worth several
billions of dollars
for execution
by Indian companies.
The conclaves
the fifth edition
being held in
New Delhi from
22 to 24 March
2009 have become
the focal points
for carrying out
the ambitious
'Focus Africa
Programme' launched
by the Indian
Commerce and Industry
Ministry in 2002.
Though the conclaves
are manifestations
of growing trade
bonds between
India and Africa,
their roots can
be traced to history.
With Indian Ocean
providing a link
between them,
India and Africa
traded with each
other for centuries.
Indian traders
and seafarers
reached the shores
of Africa centuries
ago and made Africa
their home.
Now, in the second
half of the first
decade of the
21st century,
these conclaves
have grown bigger
with each year
if the numbers
of countries and
delegates attending
them are any indication.
The most significant
contribution of
the conclaves
is creation of
trust among the
business communities
of India and Africa
and strengthening
of institutional
framework in that
continent for
promoting long-term
sustainable economic
relations between
both the sides.
Of course, facilitating
exchange of information
and discussions
on policy frameworks
by decision-makers
in governments
and private sectors
of both Africa
and India have
proved immensely
beneficial for
both sides, The
conclaves have
demonstrated that
Africa's 'Look
East' policy has
paid rich dividends,
if the huge success
of the fourth
edition is any
indication.
The fourth partnership
conclave, attended
by more than 600
delegates from
33 countries led
by 35 ministers,
had been the largest-ever
African delegation
to India. Strengthening
institutional
presence, 15 African
banks participated
in the Conclave.
As many as 153
projects were
put up for discussion.
A $30-million
line of credit
signed by the
EXIM Bank of India
with the AfriExim
Bank was one of
many such loans,
extended over
the years. Currently,
66 LOCs granted
by EXIM Bank of
India, amounting
to $2.25 billion
are in operation
in 47 African
countries. These
LOCs facilitate
import of project-related
equipment and
services from
India on deferred
credit terms.
Many of these
LOCs are aimed
at developing
the crucial sector
of infrastructure
in Africa and
boosting the efforts
of CII to enhance
Indian participation
in African projects.
MOUs were also
signed in the
leather sector,
consultancy as
well as for skills
development. These
were aimed at
creating opportunities
to take forward
the work with
Africa under institutional
guidance.
In between the
conclaves, regional
conclaves and
exchange of business
delegations are
also being held
every year. Preceding
the fourth conclave,
two regional conclaves
in Senegal and
Tanzania and three
delegations to
Mali, DR Congo
& Madagascar
exposed the Indian
delegation of
35 companies to
a vast variety
of projects and
new opportunities.
In fact, between
the third and
fourth conclaves
held in New Delhi,
there had been
six equally successful
regional conclaves,
held in Lusaka,
Addis Ababa and
Accra in 2006,
and in Kampala,
Maputo and Abidjan
in 2007, bringing
together policy-makers
and business communities.
the earlier nine
conclaves.
The fourth edition
of the conclave
also preceded
the first India
Africa Forum Summit,
aimed at giving
a renewed thrust
to the centuries-old
partnership between
India and Africa.
These conclaves
have helped governments
as well as public
and private sectors
of both sides
to better understand
and meet each
others' aspirations
and developmental
needs and priorities.
For India, trade
and investment
go hand in hand.
It is with this
in mind that Indian
companies are
making robust
investments in
Africa in sectors
ranging from horticulture
and agriculture
to power generation
and mining.
Africa is generating
enormous demand
for appropriate
infrastructure
technologies,
products, engineering
services and capacity
building, especially
for setting up
manufacturing
capabilities for
local value addition
as well as for
generating employment.
India has made
strides in manufacturing
and technology
by pursuing a
model of development
which is believed
to be most accessible,
appropriate, affordable
and relevant in
the African context.
About 131 projects
worth over $10
billion were discussed
during the 3 day
conclave, according
to the organizers.
For India Inc
it represented
big opportunity.
The conclave focussed
on four main areas:
technology, agriculture,
human resources
and energy.
Several African
countries are
already India's
trade partners.
Nigeria is India's
second largest
source of imported
crude petroleum;
South Africa,
the fourth-largest
source for gold
imports; and Morocco
and Senegal, leading
sources of India's
global imports
of inorganic chemicals.
The economic growth
pattern of Africa
has dramatically
changed with real
GDP estimated
to have grown
by almost 6.0
percent a year.
And India, the
world's fourth
largest economy,
is also one of
the fastest growing.
Two-way trade
between India
and Africa rose
from $5 billion
in 2001-02 to
nearly $25 billion
in 2006-07, a
five-fold growth
in as many years.
Indo-Africa trade
has increased
appreciably since
1991, and particularly
in 2006-07, when
Indian exports
to Africa were
at $8.4 billion
and imports from
Africa were at
$11.4 billion.
The bilateral
trade in 2008
was estimated
at $30 billion.
Over the years,
India has also
signed Trade Agreements
with 29 countries
in Africa.
The conclaves
have no doubt
achieved their
objective, that
is to create a
feel good factor
about the opportunities
between the two
regions. At each
conclave, all
participating
countries and
their ministers
invited Indian
companies to invest
and set up shop
in their respective
countries.
The question that
the conclaves
have been trying
to answer is whether
Indian companies
will become shareholders
and stakeholders
in the development
of this rich continent
by putting in
equity rather
than operating
on build, operate
and transfer model
and by taking
a long term view
of their operations,
or will it just
be a on a case-to-case
basis. Time will
tell.
Efforts for Direct
Import of Diamonds
The Fourth Conclave
also preceded
the First India-Africa
Forum Summit organized
a month later
in April, 2008.
The government
took taken initiatives
to ensure the
success of the
summit. This includes
an effort to establish
systems for the
direct imports
of rough diamonds
from Africa. Minister
of State for Commerce
Jairam Ramesh
had reportedly
taken a high-powered
delegation including
senior representatives
of the Gems and
Jewellery Export
Promotion Council
(GJEPC) to Namibia
and Angola.
The idea was India
must buy rough
and uncut diamonds
directly from
these and other
African countries,
Ramesh told media
on the eve of
his six-day trip.
He said he would
also be visiting
shortly other
important diamond
producing countries
like South Africa
and Botswana as
well. Ramesh said
that in future
India would find
it difficult to
source rough diamonds
unless it demonstrates
to African nations
that it would
collaborate actively
in helping them
move up the value-chain.
Though nine out
of ten rough diamonds
in the world are
cut and polished
in India, they
are all imported
through a variety
of sources with
the bulk of it
coming through
Antwerp in Belgium.
Most of diamonds
originate in Africa.
Namibia accounts
for about 6.0
percent of world
rough diamonds
production. Angola
and Namibia are
the world's fifth
and sixth largest
producers of diamonds
respectively after
Botswana (25 percent),
Russia (22 percent),
Canada (12 percent)
and South Africa
(12 percent).
Third Conclave
During the third
India-Africa conclave
300 business projects
worth $17 billion
were discussed.
It saw 326 delegates
from various African
countries and
375 Indian businessmen
discussing projects
covering different
sectors, including
infrastructure,
Information Technology,
agriculture, banking,
finance, insurance
and small and
medium industries
(SMEs).
Importance of
3As
In one of the
conclaves, EXIM
Bank Chairman
and Managing Director
Venkat Subramanian
stressed the relevance
of Indian technology
as the most accessible,
affordable and
appropriate for
the developing
African nations.
A top External
Affairs Ministry
official said
India-Africa relations
rested on "the
tripod of technology,
trade and training."
The second conclave
held in 2005 on
the theme: Expanding
Horizons' was
addressed by then
President APJ
Abdul Kalam. The
first conclave,
held a year before,
resulted in the
two sides discussing
over 70 projects
valued at over
$5 billion.
Coverage of the
Fifth Conclave
With India's strides
in R&D, manufacturing,
SMEs, skills development
etc., the Fifth
Conclave will
be looking at
opportunities
in Africa with
its growing requirements
in the fields
of:
• Human
resource development
• SMEs •
Software products
for banking, insurance,
e-governance,
telecom •
IT education and
training, which
is a priority
for governments
in Africa •
Increasing infrastructure
requirements of
roads, railways,
housing &
power
• Project
consultancy &
execution
The Fifth Conclave
is aimed at creating
synergies between
Indian competence
and African needs.
The underlying
objective of this
initiative is
to catalyze Indian
participation
as a key partner
in Africa's developmental
processes and
to ensure African
countries benefit
from this partnership.
According to CII,
the conclave is
a platform to:
• Build
upon the momentum
gathered with
the launch of
the India Africa
Forum Summit and
take forward the
actionable agenda
put forward during
the deliberations.
• Promote
partnerships at
three levels
• Government
• Institutional
• Enterprise
• Increase
outreach of information
on Indian enterprise
in the identified
sectors to Africa
• Increase
interaction between
the Indian industry
and Africa to
address specific
opportunities
• Discuss
possibilities
for Indian participation
in long term projects
• Capacity
building initiative
including resource
mobilization
The key
sectors that are
targeted for specific
action are:
• Agriculture
• Agro processing
• Construction
• Railways-infrastructure
& rolling
stock •
Consultancy
• Minerals
• Transport
infrastructure
- road, waterways,
ports & airports
• Power
& non conventional
energy
• Pharmaceuticals
• Healthcare
• Institutional
capacity building
• Information
& Communication
Technology
• Iron &
steel •
Education and
skill development
• Water
& sanitation
• Housing
- low cost housing,
community buildings
• Oil &
Gas • Turnkey
manufacturing
projects
• Tourism
• MSMEs
• Biotechnology
• Fast moving
consumer goods
Key Features of
the Conclave are:
• An informative
exhibition •
Place for High
Commissions and
Embassies to promote
the country to
an Indian audience
• A bankers
arena •
Session to discuss
the current state
of the Indian
economy •
Discussions on
sector-specific
projects for private
sector execution
• Signing
of MOUs that would
create facilitating
environment for
industry •
Discussions on
finance options
from the banking
and financial
institutions including
the GOI lines
of credit through
institutions like
EBID and others
• Discussions
with regional
organizations
Participation
from Africa includes:
• Delegations
led by Ministers
•Private
sector delegates
with specific
projects/ requirements
• Senior
representatives
of various African
Chambers of Commerce
& Industry
• Senior
government officials
from sector-specific
departments with
decision making
powers over projects
to be discussed
• Representatives
from the target
sectors •
Representatives
of the investment
promotion agencies
of the governments
• Senior
representatives
of the banking
and financial
institutions.
All invitees have
been requested
to share project
details with CII
to invite appropriate
participation.
Participation
from India includes:
• Senior
representatives
of industry, both
in the private
and the public
sector, from the
target sectors
enumerated •
Senior government
officials from
the target sectors
• Banking
and financial
institutions including
private sector
banks •
Project consultants
• Academics
& think-tanks
• Media
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