Professional Documents
Culture Documents
Chinese construction workers carry reinforcing rods on a building site in Algiers. Source: Pascal Parrot/Getty
Images
China-Africa
India-Africa
Africa today is a continent of growth and opportunities. With a young, fastest growing youth population in
the world and considerable natural resources and human capital at its disposal, Africa is poised to be a
significant growth factor in the global economy. Positive winds of change are sweeping across the continent,
which is now home to half of the top ten fastest growing economies of the world. Africa is an opportunity,
one that is being shaped by and for the African people.
As Asia’s two largest economy, India and China have been able to tap into this emerging African
opportunity. Both are shaping new narratives of engagement with Africa. But while much has been written
and deliberated on when it comes to Indian and Chinese involvement in Africa, it is important to highlight
differences in its methods of implementation and the impact it has generated on the lives of common
Africans.
1/4
2/26/2020
While certainly it is important to engage in nuanced debates on African debts that is not driven by
‘Chinaphobia’, one cannot deny the opaque nature of most Chinese contracts which are mostly not visible to
or available for public scrutiny.
Over the past few years, China has funneled more and more money into Sub-Saharan Africa. As per
estimates from China Africa Research Institute (CARI) at John Hopkins University, loans from Chinese
government, banks, and contractors to African governments and state-owned businesses totaled US$ 143
billion between 2000 to 2017. Countries like Djibouti, Zambia, Democratic Republic of Congo and Angola
have been identified as being at highest risk for debt distress. Low income countries are in danger of
becoming locked into debt due to cheap and unsustainable Chinese loans.
Even more alarmingly, the opacity of the costs and terms of Chinese loans makes it difficult for countries to
conduct risk assessment of the projects. While Chinese projects seems to serve the quest of African nations
to build a sound infrastructure, a closer examination reveals that they serve Beijing’s ambitions to write the
rules of the next stage of globalisation. According to Ted Bauman, senior research analyst at Banyan Hill
Publishing, “it is clear that China’s primary goal with foreign investment is geopolitical and not economic.”
But the main trouble is that these investments helps to bind countries to China politically, and through debt
obligations, creates a form of leverage. China is using its hefty economic prowess to build political ‘soft
power’ through its ‘Go Out’ policy, wherein China sends its employees of its state-run companies to Africa,
as well as investment money.
Moreover, there has been multiple concerns over Chinese labour practices, often viewed as unfair, with
various cases reported of poor and harsh working conditions. The types of precarious labour conditions
typically includes cases of low salary below the minimum wage standards, language barriers, unfair
termination of contracts, lack of holidays, medical care, insurance, and other benefits.
Although India and Africa’s economic relations are modest compared to China, India has numerous
advantages, including proximity, a common language, popularity of Indian culture, and the appeal of
democracy.
Our most prominent example of sustainable development partnership is reflected through International Solar
Alliance (ISA). Africa has taken a leadership role in solar expansion with 25 member-states out of total 48
countries to ratify the agreement coming the African continent. Under the initiative, India has pledged to
more than US$ 1 billion for implementing off-grid solar energy projects in Africa, especially in West African
countries.
2/4
2/26/2020
Also, with the enunciation of the Ten Guiding Principles for India Africa Engagement back in July 2018, the
Indian Government has addressed the primary concern of not having a coherent Africa policy. For the
longest time, India has been criticised for not having a clear vision or strategy for Africa, even after seventy
years of robust engagement with the continent. Although many aspects of the Ten Guiding Principles are not
new, they serve two purpose – the Guiding Principles represents a continuity in policy that has historically
defined India Africa partnership, and at the same time reflect a change in the nuances and priorities in our
engagement. Most importantly, these principles have been clearly articulated, and can thus be seen as a
vision document for India Africa partnership.
In such an instance, India’s main challenge is to bridge the gap between rhetoric and practice, and this is
where India has made positive strides. Various commentators, analysts, practitioners have time and again
questioned if India could live up to its lofty promises. The answer to that is ‘yes’.
-Firstly, the status of implementation from Indian side was welcomed by African Union representatives. Out
of the total US$ 10bn Lines of Credit promised by India under IAFS-III, more than US$ 6.4bn LOC have
been committed or ongoing.
-Second, out of the US$ 600mn target of grant assistance under IAFS-III, an amount of more than US$
700mn has already been committed or ongoing.
-Third, India has completed more than 40,000 slots for training, scholarship and capacity building, out of the
total commitment of 50,000 slots under IAFS-III.
In recent years, India has stepped up its game and completed various big-ticket projects in due time. These
include: construction of Presidential Office in Ghana, National Assembly building in Gambia, Kosti Power
plant in Sudan, Rift Valley Textiles factory in Kenya, water treatment projects in Tanzania, sugar factories in
Ethiopia, and IT Parks in Mozambique and E-Swatini (Swaziland).
6 IT Centers (South Africa, Egypt, Morocco, Lesotho, Ghana, Namibia and Tanzania);
CGARD Technology Center in Madagascar;
7 Vocational Training Centers;
Technology Center in Harare, Zimbabwe;
various Food Processing Business Incubation Centers; and
Entrepreneurship Centers.
New initiatives like the e-ITEC and e-Vidhyabharti and e-Arogyabharti (e-VBAB) have been
appreciated by Africans.
3/4
2/26/2020
These projects are examples of how Indian assistance is making a difference to the economy and lives of
people in African countries. Now that India’s project delivery speed has improved, the foremost task at hand
is to maintain the momentum, find new areas of cooperation, and regularly review progress through
established joint monitoring mechanisms.
While China’s economic muscle and heft in Africa is unmatchable, India does not see itself in a competition
with China. At the same time, there is growing realisation in Africa that Beijing’s terms of engagement are
less than desirable. This has given India a window of opportunity to take on more projects in Africa. Unlike
China, India’s partnership with Africa is based on a model of cooperation that is responsive, demand-driven,
free of conditions and one that liberates Africa’s potential, rather than constraining its future.
[i] Thefigure of US$ 69bn for India Africa trade in 2019 was stated by Dr. Neena Malhotra JS (E & SA)
Division, Ministry of External Affairs, during an event discussion on “The Ten Guiding Principles for India-
Africa Engagement” on July 19, 2019 at Observer Research Foundation, New Delhi.
Africa
China
China Foreign Policy
Great Power Dynamics
India
Indian Foreign Policy
International Affairs
Strategic Studies
Leave a Reply
Your email address will not be published. Required fields are marked *
Comment
Name *
Email *
Website
Captcha *
44 − = 34
Post Comment
4/4