Framework for Cooperation Adopted;
Duty-Free Tariff Preference for
African LDCs;
Doubling of LoCs to $ 5 billion
in 5 years;

Taking Trade Ties To
A New Summit

The First India-Africa Forum Summit has been remarkable in its ramifications for India. In a crucial bid that can counter China's growing clout in Africa, Prime Minister Manmohan Singh has announced a number of key initiatives that India will take to win over the continent of countless opportunities. Inaugurating the two-day Summit, the first of its kind, coming after a series of India-Africa Partnership Enclaves, on April 8, Prime Minister Singh announced preferential market access to exports from 34 Least Developed Countries (LDCs) in Africa and agreed to more than double financial package to $5 billion through Lines of Credit (LoCs) for the development of the resource-rich continent.

Welcoming leaders from 14 African countries at the Summit, which began with drum beats, Prime Minister Singh called for working closely with Africa to build a "more equitable global economy and polity" and turning the 21st century into a "century of Asia and Africa".

He stressed the intensification of trade and investment, energy security, capacity-building and infrastructure development as key components of New Delhi's engagement with Africa.

Two documents, including the Delhi Declaration and the Africa-India Framework for Cooperation, which had been adopted at the end of the two-day summit on April 9, provide what Prime Minister Singh had referred to his inaugural speech, as the "blueprint for India-Africa dialogue and engagement in the 21st century.”

Describing Africa as "our mother continent" and the "land of awakening", the Prime Minister said: "It is our intention to become a close partner in Africa's resurgence."

Pitching vigorously for Africa's rightful place in an expanded UN Security Council, the Prime Minister said: "No one understands better than India and Africa the imperative need for global institutions to reflect current realities and to build a more equitable global economy and polity."

"The time has come to create a new architecture for our engagement in the 21st century. We visualise a partnership that is anchored in the fundamental principles of equality, mutual respect and mutual benefit," he said.

"Working together, the two billion people of India and Africa can set an example of fruitful cooperation in the developing world," Prime Minister Singh told the African leaders.

He also stressed the need for India and Africa to have cooperative mechanisms on common challenges like the UN reforms, terrorism, climate change, multilateral trade negotiations, reform of international financial institutions, food security and energy security.

Prime Minister Singh announced a slew of measures aimed at invigorating ties with Africa. These include more than doubling lines of credit to $5.4 billion over the next five years and increasing 'Aid to Africa' budget by investing over $500 million in projects related to capacity building and human resource development.

Other key steps designed to underline India's focus on education and development in Africa included doubling long-term scholarships for higher education, increasing the number of training slots under technical assistance programmes from 1,100 to 1,600 every year, and developing infrastructure projects in the continent.

Leaders from many African countries lauded India's ground-breaking decision to grant preferential market access to exports from 34 least developed African countries - a long-standing demand from African countries and one that was granted by China a while ago. This has the potential of multiplying bilateral trade between the two sides.

The duty-free tariff preference scheme, under which India will unilaterally provide preferential market access for exports to 50 LDCs, including 34 African countries, will cover 94 percent of India's total tariff lines.

African exports of cotton, cocoa, aluminium and copper ores, cashew nuts, sugar, readymade garments, fish fillets and non-industrial diamonds will receive a big boost from the new regime of preferential market access.

This combination of enhanced developmental package and human resource development aimed at the empowerment of Africa could prove to be an effective counter against China's growing economic clout in the African continent.

India's trade with Africa is estimated to be around $30 billion which is half of what China has with the continent. China has also struck lucrative energy and infrastructure deals in the oil-rich countries like Sudan, Angola, Mozambique, Nigeria and Chad.

African leaders also acknowledged India's development-oriented approach towards Africa and recalled India's special bonds with Africa, going back to shared struggle against apartheid and colonialism.

South African President Thabo Mbeki lauded India for its help in the reconstruction of African countries and stressed on increased cooperation between the two sides in areas of the UN reforms.

"We are looking forward to a synergy that will enable us to fight disease, hunger and ignorance," said Joseph Kabila, President of the Democratic Republic of Congo.

Meanwhile, a survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) on 'Strengthening Economic Engagement between India and Africa', concluded that exports to Africa could be doubled.

The survey was carried out among 41 Indian companies which have significant business presence in the continent in diverse fields, ranging from automobiles and energy to gems and jewellery. FICCI released the survey findings a day before the India-Africa summit.

The meet is part of India's concerted effort to increase its imprint on the continent, as it faces stiff competition from China flexing its economic muscle to tap Africa's considerable resources in energy and minerals.

The India-Africa trade volume has increased by 285 percent to $25 billion in the last four years. This has raised Africa's share in India's global trade from 5.8 percent in 2002-03 to 8 percent in 2006-07.

"Given such optimism in trade with African nations, it is felt that doubling of trade to Africa to $50 billion by 2012 is a distinct possibility," the FICCI said in a statement.

According to the survey, the Indian companies felt that the Indian government should adopt more pro-active measures to encourage trade, like entering into preferential trade agreements with individual countries and regional economic communities and enhancing the lines of credit to African countries. They called for a special package to push Indian exports into the African markets.

Besides, the survey called for strengthening the trade promotion cells and economic sections in Indian embassies and high commissions in Africa.

A public-private partnership initiative to create "Africa Promotion Council" was recommended, which could have sub-councils focusing on each of the five regions in the African continent.

Further, the Indian companies called attention to barriers encountered in fully reaching the potential of trade with Africa - from prohibitive costs of shipping, shortage of shipping line, high transaction costs and delay in obtaining visas.

"Brand India is still in infancy in many of the African countries. There is a need to promote products from India in the African countries. This is particularly important if we are to add more and new products to our export basket," said the survey report.

India also underlined its "distinct" approach towards Africa reiterating its support for the continent's place in an expanded UN Security Council. Speaking on the eve of the Summit, India's Minister of State for External Affairs Anand Sharma said, "India's ties with Africa are time-tested, distinct and different. It can't be compared with those of any other country." He was responding to a question whether India's engagement with Africa was to counter the growing Chinese presence in the continent.

He underlined India's unique approach towards Africa that aims at empowerment of the African people through capacity building and skills development as opposed to commerce-driven approach of some countries.

"India is helping Africa develop its own infrastructure and in value addition of its resources. India believes in the philosophy of jointly developing resources to the mutual benefit of both India and Africa," Sharma said.

"Wherever Indian private sector or public sector enterprises have gone in Africa, they are creating opportunities for the African people to be employed in these projects," he said after a meeting of the foreign ministers of 14 African countries participating in the Summit.

"This scepticism originates from those who are not adequately informed about the history of India-Africa engagement," Sharma said while stressing that India has no vested interests in Africa but is guided by the overarching desire to empower the continent and its people.

While bilateral trade between India and Africa is growing and is estimated to be around $30 billion, it is still half of the China-Africa trade. China's presence in the hydrocarbon sector in Africa far surpasses that of India.

To illustrate India's development-centred approach, Sharma alluded to India-assisted Pan-African e-network that seeks to digitally connect 53 countries of the African Union by linking universities and super-specialty hospitals in India and Africa.

"All African countries acknowledge India's steadfast support to Africa's development," he said.

"There is complete agreement between India and the African leadership on the steps needed to consolidate the partnership. Two documents have been frozen and finalised, which will be unveiled by Prime Minister Manmohan Singh at the end of the summit Wednesday," said Sharma.

"The summit is not only historic, but will also give a new dimension and direction to the partnership that is evolving between India and Africa," he said. "India will support the African Union consensus on African nations' candidate for the UN Security Council," Sharma said.

"There has been unanimity in African position at the country-level and at the level of regional communities for India's rightful place as the world's largest democracy in an expanded UN Security Council," he said.

The 53-nation African Union is crucial to the success of any plan to expand the UN Security Council. India is trying to reach an understanding with African leaders on presenting a common plan, along with other G4 countries including Japan, Germany and Brazil, for an expansion of the UN council.

The Delhi Declaration
After the two-day deliberations, the Summit culminated in an Africa-India Framework for Cooperation and a Delhi Declaration which included an action plan for deepening India's strategic and economic engagement with the resource-rich continent. Following is the text of the Delhi Declaration.

1. We, the Heads of State and Government and Heads of Delegation of Africa, representing the Continent, the African Union and its Institutions along with the Prime Minister of the Republic of India, have met today in New Delhi, India, to consolidate the process of deliberations and discussions with a view to redefining and re-invigorating the decades-old partnership and historical and civilizational links between the African continent and India.

2. We recognize that Africa and India have undergone enormous positive changes, in particular over the last two and half decades, and that Africa and India have historically been close allies in the struggle for independence, equality, human rights, freedom and democracy. We are neighbours across the Indian Ocean. We note that there has been significant positive transformation of the political, economic and social environment in Africa and the strengthening of democracy, particularly with the adoption of the Constitutive Act and the establishment of the African Union with its institutions, such as the Pan-African Parliament, the Economic, Social and Cultural Council, the African Court on Human and People's Rights as well as its programme the New Partnership for Africa's Development (NEPAD) and the African Peer Review Mechanism (APRM) and the Peace and Security Council. During this period, the Indian economy has evolved into a more mature and fast growing economic mode and Indian democracy has further strengthened. We have, therefore, decided to build upon these positive achievements with a view to helping each other to become more self-reliant, economically vibrant, at peace with ourselves and the world and to work together to strengthen our close partnership.

3. Bearing in mind that African countries and India have enjoyed close, cooperative and multi-sectoral partnership encompassing political, security related, economic, science and technology, human resource development, social, cultural and other areas of mutual interest, we have adopted today a Framework for Cooperation which will further strengthen our partnership in all these and other areas for our mutual benefit.

4. This partnership will be based on the fundamental principles of equality, mutual respect, and understanding between our peoples for our mutual benefit.

5. The international community is today addressing a series of critical issues such as environmental degradation, including climate change and decertification, multilateral trade negotiations, reform and democratization of international institutions, particularly the United Nations and the Bretton Woods Institutions, respect for human rights and fundamental freedoms, the fight against terrorism, combating illicit trafficking in small arms and light weapons, non-proliferation of nuclear and other weapons of mass destruction, the fight against drugs and most importantly, promotion of pluralism and democracy, the pursuit of sustainable development underpinned by social justice, eradication of hunger, poverty as well as combating diseases. Africa and India reiterate their intention to ensure that in all these matters, the interests of developing countries are kept uppermost and the socio-economic developmental requirements of our countries are guaranteed.

6. We recognize that climate change is a global challenge but one that will be particularly severe for developing countries given their vulnerabilities, inadequate means and limited capacities to adapt to its effects. We reaffirm that development is the best form of adaptation and that the foremost priority for developing countries is to ensure accelerated social and economic development. We note that sustainable development is essential to enable effective adaptation. We stress the importance for adaptation to be adequately financed through additional resources and not from funds meant for development.

7. We note with regret the lack of demonstrable progress by developed countries on Green House Gas (GHG) reduction commitments in the first commitment period under the Kyoto Protocol. We emphasize the need for equitable and fair burden sharing in mitigation which must take into account historical emissions. In this regard, we take note of the proposal of the Prime Minister of India on convergence of per - capita emissions of developing and developed countries.

8. We urge the international community to give real and immediate effect to commitments on climate change, especially in the areas of technology transfer, financing and capacity building. There is also need for a closer look at the Intellectual Property Rights (IPR) regime to ensure cost-effective transfer of appropriate and advanced clean technologies to developing countries.

9. We are determined to participate effectively in the negotiations under the Bali Action Plan towards comprehensively addressing climate change.

10. We take note of the state of play in the World Trade Organization ( WTO) -Doha round of trade negotiations. We reiterate the importance of the development dimension of the Round and welcome the strengthened engagement, solidarity and cooperation among developing countries in that process. Agriculture remains the key to the conclusion of this round. We are convinced that any acceptable agreement must adequately protect the livelihood, food security and rural development concerns of developing countries. There are equally important issues also to be addressed on Non-Agricultural Market Access (NAMA) services and rules. The promise of a development round must be fully realized.

11. We also reaffirm our commitment to providing meaningful market access to the Least Developed Countries (LDCs). We call upon the members of WTO to implement duty-free and quota-free market access for all products originating from the LDCs and to take additional measures to provide effective market access to them through simplified and transparent Rules of Origin.

12. We attach priority to providing trade related technical assistance and capacity building to LDCs to help mitigate the effect of their marginalization in the present globalised trade structure and enable them to maximize the benefits resulting from the multilateral trade liberalization process.

13. We agree on the urgent need to reform the international financial architecture, especially the International Financial Institutions (IFIs), to reflect the changing global situation. In this context, we emphasize the need for the effective voice and participation of developing countries, including in the quotas and voting rights in the IFIs. This would enhance the IFIs' accountability, legitimacy, credibility and effectiveness.

14. We are committed to multilateralism and to strengthening the democratic structure of the United Nations.

15. We reaffirm our commitment to further strengthen Africa-India cooperation at the United Nations, the G77 and in other multilateral fora with a view to addressing issues of common concern.

16. India notes the common African position and the aspirations of the African countries to get their rightful place in an expanded UN Security Council as new permanent members with full rights. Africa takes note of India's position and its aspirations to become a permanent member with full rights in an expanded UN Security Council.

17. We believe that the security of all nations would be enhanced by the global, non-discriminatory and verifiable elimination of nuclear weapons and other weapons of mass destruction.

18. We unequivocally condemn terrorism in all its forms and manifestations. We agree to make concerted efforts towards expeditious finalization of a Comprehensive Convention on International Terrorism at the UN.

19. We affirm that cooperation between Africa and India has been, from its inception, a useful example of South-South cooperation. It has been our endeavour at this Summit to devise ways and means of enhancing this South-South partnership, taking into account the new capabilities that have emerged in Africa and India. Bearing this in mind, we have drawn up and adopted a Framework for Cooperation that would provide the avenue for further and dynamic development of the Africa-India partnership. African Leaders deeply appreciate the initiatives that have been announced at this Summit by the Prime Minister of the Republic of India, Dr. Manmohan Singh, that would provide an input for the implementation of this Framework for Cooperation. We have agreed that Africa and India will strengthen not only their bilateral linkages, but that India will also progressively strengthen its partnership with the African Union and the Regional Economic Communities of Africa.

20. We have also agreed that in addition to high level political exchanges between us in the bilateral, regional and multilateral contexts, Africa and India should meet every three years. We have accordingly, agreed that the next Africa-India Summit will be held in 2011 in Africa.

21. Without prejudice to India's on-going and future programmmes at the bilateral, REC and other levels, we agree to develop jointly, within a period of one year, a joint plan of action at a continental level and an appropriate follow-up mechanism to implement our Framework for Cooperation.