Wednesday 20 July 2016

Exploring New Horizons with Africa


Amidst looming doubts as why Prime Minister Narendra Modi undermined Indo-African connect and embarked on a four-nation tour to Africa only after two years into power?  A quick rejig of memory can address this beguiling ambiguity- Modi regime accorded highest priority to traditional partners. His tryst with Africa began a year ago with a visit to two Indian Ocean islands-Mauritius and Seychelles in March 2015 and consistently endeavored to strengthen relations. These include- 3rd India-Africa Forum Summit (IAFS) hosted by India at New Delhi in October 2015, followed by high profile visits of President and Vice-President of India to the continent. IAFS was attended by leaders/representatives from 51 of the 54 African countries during which India pledged a concessional Line of Credit (LOC) worth $10 billion, a grant assistance of $600 million which included India-Africa development fund of $100 million and a health fund of $ 10 million, 50,000 scholarships for Africans in India over the next five years, Indian support for expansion of Pan-African-E-network Project etc. Earlier Vice President Hamid Ansari visited North African countries-Tunisia and Morocco from 30th May to June 3rd and this was followed by President Pranab Mukherjee’s maiden African tour to West African countries of Ghana, Ivory Coast and Namibia from June 12th to 17th

To sustain the diplomatic momentum generated through IAFS and to impart fresh impetus to economic & strategic relations with mainland African countries, Modi on his five day long, four nation sojourn visited Mozambique, South Africa, Kenya and Tanzania from July 7th to July 11th. In the last two years there has been unprecedented surge in diplomatic activity between the both sides. India’s African outreach was buttressed by high level visits. Reciprocally India hosted several African leaders including the heads of states of all the four countries Modi is now visiting. Besides, India made Africa a partner in two trilateral initiatives with US and Japan by pledging to train the troops of five African nations before their deployment in the UN peace keeping force and enhancing cooperation with African countries respectively.

Prolonged global slowdown, stagnant growth rates of European and Latin American economies have forced emerging nations to explore new avenues for economic investment. Africa with its fledging infrastructure, vibrant growth rates, stable governance, teeming natural resources, expanding middle class and burgeoning demographic dividend has emerged as land of opportunities. Though dramatic decline of commodity prices, economic slowdown of China have markedly affected its economy, Africa still remains a most favored destination for trade and investment. Modi’s African outreach focused on strengthening strategic partnership and intensifying counter-terror cooperation. Africa is grappling the twin scourges of terrorism and radicalism. With terror outfits like Boko Haram, Al-Shabaab and Al-Qaeda expanding its foot hold and audacious attacks have become a commonplace. Another vital aspect of engagement with these littoral African nations who are members of Indian Ocean Rim Association (IORA) is enhancing maritime cooperation. Maritime cooperation is corner stone for Modi’s ambitious concept of blue water economy. Indeed Modi rejuvenated the idyllic IORA and infused new energy to give wings to his SAGARMALA initiative. Lately, China is steadily increasing footprints in the Indian Ocean region (IOR) sealing official contracts for establishing naval bases. Setting up a naval base in Djibouti, located in the horn of Africa is an outcome of such move.

While India’s relations with Africa has been steady and consistent, high level visits were infrequent. Thus, Modi became the first Prime Minister to visit Mozambique after 34 years. The last Indian Prime Minister to visit was Indira Gandhi in 1982. Modi signed three key MoU’s including the most crucial long term agreement for import of Pulses to India. Prices of pulses have skyrocketed in the past 18 months because of two years of successive droughts. India will initially import 100,000 tons of Pulses and the amounts can be steadily increased up to 200,000 tons in the next four years. The other two MoUs are those on reduction of demands for drugs and prevention of illicit drug trafficking. In Maputo, Modi held diplomatic talks with Mozambican President Filipe Nyusi, visited the Centre for Innovation and Technological Development (CITD), interacted with students who studied under the Indian Technical and Economic Cooperation (ITEC) and met an Indian delegation before leaving for South Africa. India established firm diplomatic relations with Mozambique in 1975. Historical and commercial relations between both countries existed for past several centuries. In fact, Vasco da Gama met Indian traders on Mozambican shores when he landed in 1499. India is among the top five trading partners of Mozambique and eight largest investor. India has been extending credit, educational and technical cooperation to Mozambique. India extended cooperation in agriculture, skill development and health care.

In his second leg of African sojourn Modi arrived in Pretoria on July 8th. South Africa being a member of BRICS, IBSA, BASIC and G-20 Summit, Modi met President Jacob Zuma along sidelines of BRICS Summit at Fortaleza, Brazil in 2014 and at Ufa, Russia in 2015, G-20 summit at Brisbane, November 2014 and at 3rd IFSA, Delhi 2015. Recently at the NSG (Nuclear Suppliers Group) plenary Seoul, South Africa was in news for expressing reservations about India’s membership. Ending all these speculations, President Zuma during Modi’s visit unequivocally supported India’s membership to NSG. Both countries have firmly supported each other’s bid for permanent membership of UNSC. Indo-South African relations are strongly stabilized by bilateral trade that stood at $5.3 billion with the trade balance highly tilted in favor of South Africa. India exports vehicles, transport equipment, drugs, pharmaceuticals, engineering goods, dyes, footwear rice, gems and jewelry and imports gold, steel, copper ore, phosphoric acid, coal, manganese, aluminum and other metals from South Africa.

In South Africa, Modi invoked India’s patriotic linkages with the land. He embarked on a train journey to Pietermaritzburg station, where young Mahatma Gandhi was thrown out of the train for refusing to leave the first class compartment reserved for the white in 1893. This instance made a deep impression on Gandhi who undertook first non-violent civil disobedience movement for civil rights of all residents of South Africa. Modi visited Constitution Hill-where Gandhi was incarcerated in 1906, Sarvodaya (Gandhi’s residence) and Phoenix settlement in Durban, a community established by Gandhi in 1904. Modi fondly remembered iconic leaders of both the countries- Mahatma Gandhi and Nelson Mandela.

Stepping up the pace of diplomatic engagement, Modi galvanized bilateral relations with South Africa and strengthened the levels of cooperation between countries in defence, agriculture, science and technology, manufacturing, education, health and human settlements. Agreements were reached on joint development of heavy-weaponry, custom cooperation, visa free travel for diplomatic passport holders. Modi addressed a business summit in Pretoria and invited South African business giants to invest in India. South Africa is home to 1.5 million Indians who arrived in 1860. Modi sporting a Madiba shirt, enthralled the 11,000 strong Indian diaspora and successfully sold the Indian dream by envisaging his passionate vision of India- HOPE (Harmony, Optimism, Potential and Energy). Indian diaspora constitutes 3% of South African population. Durban with a population of 1.3million of India origin is the largest Indian city outside India.

Modi was extended a warm welcome at Dar-es-Salaam. From 1960 to 1980 political relations were driven by shared ideologies of anti-colonialism, anti-racism and socialism and South-South Cooperation. Former Tanzanian President Julius Nyerere was conferred with Jawaharlal Nehru award for International Understanding in 1974 and International Gandhi Peace Prize in 1995. India and Tanzania has thriving business relationships with bilateral trade reaching $ 3.57 billion. Besides economic interactions, developmental partnership was sustained with India offering LOC, capacity building training opportunities and grants. India signed five agreements with Tanzania including one for providing $92 million credit line. Other MoU’s signed are in line with developmental needs of Tanzania and include- MoU on  water resource management and development, establishment of vocational training centres at Zanzibar, visa waiver for diplomatic passport holders, and an agreement between National Small Industries Corporation of India and the Small Industries Development Organisation, Tanzania. Modi had bilateral talks with President John Pombe Joseph Magufuli affirming to deepen defence and security partnership. Tanzania has been biggest beneficiary of ITEC training slots, ICCR scholarships. Modi enthralled Tanzanians with his drumming skills and met Solar Mamas, who are trained at the Barefoot College in Tilonia village of Rajasthan. Around 30 women from six African countries received training in solar electrification and other entrepreneurial skills under harnessing solar energy project supported by government of India. India has been major supplier of medicines and pharmaceuticals to Tanzania. Tanzania is a major investment destination of top Indian companies.

On the final leg of African odyssey Modi landed in Nairobi as the Prime Minister of India after 35 years. India established Office of Commissioner at Nairobi in 1948. Bilateral relations between India and Kenya are powered by strong economic and business links. According to a trade agreement of 1981 both countries mutually accorded MFN (Most Favored Nation) status. Joint Trade committee was set up in 1983 and both countries signed double taxation avoidance agreement in 1989. Volume of bilateral trade touched $4.235 billion. India is the largest trading partner of Kenya and the second largest investor. Besides extending two concessional LOC of $44.95 (15+29.95) million to Kenya towards development of small and medium industries and textiles during the bilateral talks with President Uhuru Kenyatta, both sides agreed to expand cooperation in defence and security and signed seven agreements. These include-MoU of defence cooperation for sharing of expertise, training, exchange of personnel, cooperation in hydrography & equipment supply, revised Double Taxation Avoidance Treaty (DTAA), exemption of visa for holders of diplomatic passports, cooperation in fields of standardization. Kenya which is currently one of the major producer of tea got its first tea seedlings from Assam in 1903. In 19th and 20th century thousands of Indian workers helped in building railways in Kenya.  Kenya has a sizeable Indian diaspora with Gujarati roots, Modi reiterating crucial role of Indians diaspora in their adopted nation in his address to PIO’s assembled at the Nairobi’s Kasrani stadium accompanied by the President. He congratulated the leadership for working towards development and spoke in length about his vision for India and the new initiatives spearheaded by his government. In an apparent disapproval of venomous extremist ideologies, Modi took an indirect dig at Zakir Naik and Pakistan for propagating and patronizing terror elements in his address to students at University of Nairobi. Health care is very expensive in Kenya and every year hundreds of people travel to India for specialized treatments. Modi pledged to build a cancer hospital in Kenya offering affordable medical care and gifted 30 field ambulances.

During his visits to Maputo, Pretoria, Dar-es-Salaam and Nairobi Modi deliberated on various global issues like the climate change, UN Security Council reforms and sustainable growth. Besides, Modi laid enough thrust on rejuvenating the key energy security ties, enhancing trade and investment relations, food security, expanding economic engagement in areas of infrastructure development, technology, transport and agriculture. Following liberalization of economy in 1991, Indian economy has steadily expanded prompting global nations to accredit it as a key player in the region. With India shunning traditional diffidence under Modi, nations began to evince interest in strengthening ties with New Delhi.

For decades, European countries and US had an overwhelming presence in Africa. By late 1960’s China slowly penetrated African markets, aggressively invested in infrastructure projects, offered soft loans to ravaged economies, ambitiously explored natural resources and pledged to revamp connectivity network. It ambitiously explored the continent, consequently, by 2009 it toppled US to become largest trading partner of Africa with an annual bilateral trade of enviable $120 billion. Aptly dubbed as “neo-colonist” China’s staggering presence in Africa driven by economic pursuits is truly intimidating. Despite India’s historical trade linkages, shared colonial connect, huge diaspora base, India frittered away several opportunities. Now it can't surpass China in trade volumes. But India’s approach of multi-sectoral cooperation aimed at rehabilitation and rejuvenation of African economies is striking right cords. By shunning one size fits all kind of approach towards, India learnt right lessons. Modi’s portentous and timely outreach coupled with soft diplomacy has strengthened political, economic, strategic ties with the friendly African nations. By pledging developmental and technical assistance India emerged as a reliable regional power. Through unpretentious engagement with African leaders, Modi garnered support of the nations for crucial aspects like NSG membership, bid for permanent seat at UNSC, UN reforms and Climate Change.
 
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