Invest in Africa for natural resources: Swaraj to India Inc

Indian companies must invest in African countries as they offer resources and growth opportunities that can be a win-win situation for both sides, External Affairs Minister Sushma Swaraj said on Wednesday. Sharing her experience after meeting visiting foreign ministers of African nations, Swaraj said countries in that continent offer immense business and investment opportunities for India. 

“Nowhere is the impact of economic growth and development as visible as in Africa... The day you combine your strength with their needs, that would be a win-win situation for both ...their needs would be fulfilled and you would make money,” she said while addressing the India-Africa Business Forum here. The Minister said that while trade between India and Africa has increased 10-fold in a decade to $72 billion in 2014-15, “its still way below its potential considering the size of India and Africa”.

Swaraj stressed that the 2.3 billion combined population of India and Africa offer a huge market for all sorts of goods and services. “Today India is fastest growing major economy in the world, and Africa, a fastest growing Continent. Our respective economic growths provide unparallelled economic opportunities for our businesses and investors,” she said, adding that as India’s economy has grown and matured, considerable amount of capital generated in India seeks new destination outside the country, including in Africa.

Indian companies have invested about $32.35 billion in Africa. “Indian investors are aware of the potential of Africa with large land mass, rich natural resources and demand... We hope various countries in Africa will take steps to attract such investments from India, particularly from manufacturing and processing activities,” the Minister said.

She also asked Indian and African businesses to take advantage of the ‘Make In India’ initiative to work towards mutually beneficial joint business ventures. Africa has suffered and lagged behind because it was victim of apartheid policy, despite being blessed with natural resources, hard working people and good leadership, she said. The minister called upon the industry chambers to hold meetings with Heads of Missions of African nations to explore opportunities. Swaraj said she held meetings with 7 foreign ministers on Tuesday and would be meeting 12 on Wednesday and the other visiting ministers day after. 

Meanwhile,  Power Minister Piyush Goyal has said that  India will continue to collaborate with African countries through sharing of technology and expertise to help them achieve their developmental goals. “India values its partnership with countries in Africa and that India would continue to collaborate with countries in Africa in achieving their developmental endeavours, through sharing of technology, expertise, skill sets and capacity building endeavours,” Goyal said at a seminar organised by EXIM bank on Tuesday. Goyal also touched upon the government’s recent endeavours to ensure access to affordable energy to all and its initiative of seamless connectivity through the Digital India Initiative, a release said.

On the occasion, Coal Secretary Anil Swarup said India is keen to partner with Africa to explore business opportunities in the coal sector by way of exploration, mining, development of coal sector projects and mines by Indian companies. Exim Bank CMD Yaduvendra Mathur said, “There is a growing interest among Indian entrepreneurs to invest in African countries in diverse sectors including mining, driven by the opportunities and potential for high growth in these markets.” 

He highlighted that there is substantial scope for further cooperation in various sectors. Zimbabwe Finance and Economic Development P A Chinamasa said, “While the country is endowed with abundant natural and mineral resources, the potential needs to be fully realised yet.” 

He noted that infrastructure development, value addition in mining and beneficiation, education and healthcare are priority sectors for economic development and invited Indian entrepreneurs to invest in areas of its strength- viz.healthcare, pharmaceuticals, SMEs, IT, power, renewable energy, coal, agricultural equipment, irrigation etc.