PM Modi offers Africa $10 billion aid in 5 years

In a major upscaling of Indian financial assistance for Africa aimed at forging closer ties and tackling China’s influence in that continent, Prime Minister Narendra Modi announced at the India-Africa Forum Summit Thursday that India would offer concessional credit of $10 billion in the next five years, that will be in addition to the ongoing credit facility, adding India would also offer $600 million in assistance. India has already committed $7.4 billion in concessional credit and $1.2 billion in grants since the first India-Africa Summit in 2008, and is creating 100 capacity institutions, and setting up infrastructure, public transport, clean energy, irrigation, agriculture and manufacturing capacity across Africa.

Mr Modi also invited the African bloc to join an alliance of solar-rich nations that he plans to “launch” in Paris on November 30 at the global climate change summit. The PM said India would develop Africa’s “infrastructure, power and irrigation” and “set up industrial and information technology parks”. India also offered to make available its “space assets and technology” for Africa’s development.

“To add strength to our partnership, India will offer concessional credit of $10 billion over the next five years. This will be in addition to our ongoing credit programme... India is honoured to be a development partner for Africa. It is a partnership beyond strategic concerns and economic benefits. It is formed from the emotional bonds we share and the solidarity we feel for each other,” Mr Modi said.

“We will raise the level of our support for your vision of a prosperous, integrated, and united Africa that is a major partner for the world. We will help connect Africa from Cairo to Cape Town, from Marrakesh to Mombasa; help develop your infrastructure, power and irrigation; help add value to your resources in Africa; and, set up industrial and information technology parks,” he told the African heads of state and government, including the Presidents of Egypt, Nigeria, South Africa and Sudan.

“We will also offer a grant assistance of $600 million. This will include an India-Africa Development Fund of $100 million and an India-Africa Health Fund of $10 million. It will also include 50,000 scholarships in India over the next five years. And it will support the expansion of the Pan-Africa E-Network and institutions of skilling, training and learning across Africa. In less than a decade, our trade has more than doubled to over $70 billion. India is now a major source of business investment in Africa. Today, 34 African countries enjoy duty-free access to the Indian market,” Mr Modi further said, adding: “African energy helps run the engine of the Indian economy; its resources are powering our industries; and African prosperity offers growing market for Indian products.”

“India has committed $7.4 billion in concessional credit and $1.2 billion in grants since the first India-Africa Summit in 2008. It is creating 100 capacity-building institutions, and developing infrastructure, public transport, clean energy, irrigation, agriculture and manufacturing capacity across Africa. In the last three years alone, nearly 25,000 young Africans have been trained and educated in India. They are the 25,000 new links between us,” the PM said.

But Mr Modi was also circumspect about India’s track record. “There are times when we have not done as well as you have wanted us to. There have been occasions when we have not been as attentive as we should be. There are commitments we have not fulfilled as quickly as we should have. But you have always embraced India with warmth, and without judgment,” he said.

“I also invite you to join an alliance of solar-rich countries that I have proposed to launch in Paris on November 30 at the time of COP-21 (climate change) meeting. Our goal is to make solar energy an integral part of our life and reach it to the most unconnected villages and communities,” Mr Modi said. “When the sun sets, tens of millions of homes in India and Africa become dark. We want to light up the lives of our people and power their future. But we want to do it in a way that the snow on Kilimanjaro does not disappear, the glacier that feeds the River Ganga does not retreat and our islands are not doomed,” he added.

He also said India would help develop Africa’s agriculture sector and offered expertise in healthcare and affordable medicines. “Africa has 60 per cent of the world’s arable land reserves, and just 10 per cent of the global output. Agriculture in Africa can drive the continent’s march to prosperity, and also support global food security. India’s expertise in healthcare and affordable medicines can offer new hope in the fight against many diseases; and give a newborn a better chance to survive... We will also make available our space assets and technology,” he added.