India Keeps Faith With Africa

India will sustain its investment surge in Africa despite political instability in some parts of the region.

On the last day of the India-Africa summit in Addis Ababa, Prime Minister Dr Manmohan Singh said that his country believed Africa was making progress in its peace and security initiatives.

“An act of investment is an act of faith,” said Dr Singh at a news conference after the summit adopted rules to govern the growing economic and political relationship between the two regions.

 
Dr Singh said that India would continue supporting efforts at infrastructure development, regional integration and human resource training.

Towards this end, the India premier announced a US$5 billion loans package over the next three years in addition to US$700 million to establish new training centres in Africa.

India’s trade with Africa has risen sharply from US$3 billion in 2001 to US$46 billion last year. New Delhi aims to raise this to US$70 billion by 2015.

Some have seen this as a bid to keep up with China’s engagement with Africa, which is estimated at US$114 billion.

China has not baulked at doing business with Africa despite various hotspots. This could be giving India the confidence to continue with its investment drive.

Though China's bilateral relations with African states is determined by principles of non-interference in the domestic affairs of other countries, China is gradually using diplomatic means to push for the resolution of some conflicts, such as in Darfur.

Reports show that China is also becoming a major supplier of conventional arms to African states.

Critics argue that some of these weapons have been used in human rights violations and have ended up in the wrong hands.

In a sign of things to come, Dr Singh pledged $2 million for the AU’s mission in Somalia, in an effort to rein in piracy which has ravaged India’s merchant ships.