International | India and Africa

When trade winds smell sweet


Posted: Wednesday, Apr 16, 2008 at 2345 hrs IST
Updated: Wednesday, Apr 16, 2008 at 2345 hrs IST


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: With a munificence that accompanies 9% growth, India recently played host to some South African development experts, who were invited to inspect sanitation and low-cost housing. Alas, their experience—of a country where 700m people lack indoor lavatories and half the biggest city’s inhabitants live in slums—did not impress. According to one insider, the South Africans laughed all the way back to the rainbow nation.

But a more serious bid to woo African hearts and minds took place last week. Guests at an inaugural Indian-African summit, complete with an exuberant cultural programme, included many of the continent’s bigwigs, from South Africa’s president, Thabo Mbeki, to Ethiopia’s prime minister, Meles Zenawi. Even Uganda, whose expulsion of all Asians in 1972 was a low point for Indian-African ties, was volubly present—in the person of President Yoweri Museveni, who has welcomed Indians back.

Thanks to the trade winds that gust across their common ocean, to the delight of merchants and shark fishermen, Africa and India have enjoyed close relations since time immemorial. Islam intensified the link, as did the Portuguese, who colonised both Goa and Africa’s coasts. Starting in 1895, the British shipped thousands of Indians to east Africa to build a railway; they became station-masters, artisans, clerks and shopkeepers. India’s biggest diaspora, by some counts, is formed by the 1m or so citizens of South Africa who descend from labourers brought over in the 19th century.

But it is not the past which haunts Indian strategists. It is a future dominated, many fear, by competition with India’s vast, commodity-hungry and increasingly Afrophile neighbour, China. A decade ago India’s two-way trade with Africa was worth more than China’s. In recent years, partly thanks to investments in Nigerian oil, the Indian total has surged, to around $25 billion last year. But China’s, now topping $55 billion, has grown even faster.

China and India both want access to African natural resources, and both see Africa as an outlet for their manufactures. Of the Asian giants, China’s diplomatic profile in Africa is higher, after a series of tours by President Hu Jintao. But India wants to catch up. For example, it is keen to sell Africa its high-tech products, particularly in cheap telephony and mobile internet services. One of the success stories on show in Delhi was India’s donation to several African countries of tele-education and tele-medical care systems, as well as video-conferencing facilities.

Given that their needs overlap so clearly with...

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