Tuesday, 02 January 2024 12:17 GMT

India Looks Beyond Aid To Build Production-Led Partnerships Across Africa: Report


Date:

(MENAFN- IANS) Accra, Nov 7 (IANS) External Affairs Minister (EAM) S Jaishankar's visit to Ghana, Cote d'Ivoire and Ethiopia last month should be assessed not merely by the number of agreements signed, but by how these partnerships build lasting capabilities across Africa, a report has stated.

This would mean establishing manufacturing facilities instead of distribution hubs, local processing rather than dependence on raw material exports, skill development alongside employment generation, and regional supply networks beyond conventional bilateral trade.

The broader objective of the tour was not merely to expand India's presence from Accra to Abidjan and Addis Ababa, but to explore whether New Delhi could move beyond development assistance and establish partnerships focused on production, according to a report in India Narrative.

“When Ghana's President John Mahama met External Affairs Minister S Jaishankar in Accra on 6 October, he sought for more than goodwill. He wanted Indian investment in pharmaceuticals and vaccine production to build Ghana's own manufacturing capacity. That request captures the purpose of Jaishankar's visit to Ghana, Cote d'Ivoire and Ethiopia from 6 to 10 October,” the report detailed.

“Each country plays a distinct role for India. Ghana is a potential production base in West Africa, Cote d'Ivoire an entry point into Francophone markets, and Ethiopia a gateway to the Horn of Africa and the African Union. The real significance lies in a shift in India's approach, from a general continental template to differentiated partnerships built around the needs of individual countries,” it added.

The report noted that India's engagement with Africa over the last 20 years has largely been through continental frameworks such as the India-Africa Forum Summits, concessional lines of credit and ITEC training. Prime Minister Narendra Modi's ten guiding principles, announced in 2018, underscored India's commitment to a partnership shaped by Africa's needs and choices.

Ghana provides an important starting point for channelling Indian investments into productive sectors across West Africa. Indian companies have established a presence in sectors ranging from pharmaceuticals and manufacturing to agriculture and construction, the report stated.

Meanwhile, Ghana's 24-Hour Economy programme seeks to boost domestic production and generate employment. Building on the progress made during Prime Minister Modi's visit last year, the discussions during EAM Jaishankar's visit focused on areas such as pharmaceuticals, healthcare, mining, defence, railways and digital technologies.

“The logic works for both sides. Local manufacturing would reduce Ghana's reliance on imported medicine and strengthen its health resilience, while Indian firms would gain a base from which to serve the wider region. The aim is not just to sell more to Ghana but to help it produce more,” India Narrative highlighted.

According to the report, Cote d'Ivoire serves as another strategic entry point, leveraging its position as the largest economy in the West African Economic and Monetary Union to provide Indian businesses access to Francophone markets.

“The visit also had a security dimension, with talks on defence and counter-terrorism cooperation, including training and capacity building. As jihadist violence spreads from the Sahel towards the coastal states, that agenda may matter as much as trade,” it mentioned.

Ethiopia represents the third gateway, with a stronger institutional dimension. As the host of the African Union headquarters, Addis Ababa holds particular significance in India's engagement with Africa, the report noted.

India had proposed permanent G20 membership for the AU in 2023. EAM Jaishankar's discussions with the Ethiopian Foreign Minister Gedion Timothewos focused on trade, investment, digitalisation and the India-AU partnership.

The External Affairs Minister also chaired a conference of India's regional heads of mission in Addis Ababa, highlighting Ethiopia's importance in New Delhi's regional diplomatic outreach.

“The three gateways only form a strategy if they connect. Pharmaceutical plants in Ghana could serve West Africa, processing in Cote d'Ivoire could reach Francophone markets, and manufacturing in Ethiopia could anchor India in the Horn,” India Narrative mentioned.

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IANS

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