India, Africa have potential to further trade, investment

The Dollar Business Bureau

Commerce and Industry Minister Nirmala Sitharaman on Thursday said India and Africa should explore the potential sectors such as renewable energy, pharma and healthcare, to collaborate and thus further their trade and economic relations.

The trade between India and Africa has grown at a CAGR of over 9% to $56.69 billion in 2015-16 from $51.67 billion in 2010-11.

Although trade has witnessed decent growth, Sithraman said: “The newer sectors in which we can have greater interaction, engagement and productive relationship are renewable energy, pharmaceuticals and healthcare."

Noting that global trade has been on a constant decline, India can explore the emerging and less-developed markets of Africa to enhance business between India and Africa.

"We have to seize that opportunity and build on what we can achieve. India is relaxing its FDI norms and improving the business climate to attract investments,” she said.

Speaking at the India-Africa Project Partnership conclave, the minister said India has already been playing a pivotal role in the development of several African regions and that it would also take up a major role in ensuring food security of the African region.

Minister of State for External Affairs, V K Singh, who was also present at the event, cited India’s rapidly-growing economy and expanding markets as the key factors of consideration as he pressed African countries to enhance their investments in the country.

Uganda Prime Minister Ruhakana Rugunda also said that companies from both the regions can enhance their engagements in areas such as ICT, infrastructure, manufacturing and tourism.

Downplaying fears about security-related issues in Africa emanated by political stabilities in many African countries, Ruganda assured that Africa is essentially stable and very secure and the government would provide extended support to the Indian investors looking to do business in the region.

Seeking Indian investments, Swaziland King Mswati - III said Africa is betting big on India to explore investments opportunities in various sectors including renewable energy and infrastructure.