New Delhi, Sep 29 (IANS): The economic relationship between India and Africa is entering a new reciprocal phase as investment and industrial partnerships deepen, a new report has said.
The report from Modern Ghana cited an example of a $450 million contract signed by Indian government-owned Engineers India Ltd with Africa’s richest businessman Aliko Dangote to oversee construction of a planned $16 billion refinery and petrochemical complex in Lamu, Kenya.
The greenfield project, expected to process 7 lakh barrels of crude oil per day, shows how African capital and entrepreneurial ambition can leverage India’s engineering, technology and industrial expertise.
India could bolster its supply chain as Africa has significant reserves of critical minerals, energy resources, and agricultural commodities. Africa can gain a long-term buyer as India has growing demand for many of these inputs.
For Indian companies, establishing factories and processing plants in Africa offers new markets and investment destinations. lower logistics costs, local value addition and access to an integrated market rather than a patchwork of national markets.
Expanding urban centres and rising demand for energy, healthcare, mobility and consumer goods will create substantial markets.
African economies eyeing industries in cement, fertiliser, petroleum refining, automobiles, pharmaceuticals, agricultural processing, renewable energy and logistics needs technology, capital, engineering and managerial expertise.
Indian companies with proven capabilities in these sectors can serve regional markets more efficiently while contributing to employment, skills development and local value addition.
“Greater African processing and value addition can create better economic returns for African economies while giving Indian industry more diversified and reliable sources of supply,” the report noted.
Africa can use India’s expertise in developing affordable infrastructure and technology in resource-constrained environments.
The continent needs roads, railways, ports, electricity and digital networks to link producers with consumers and regional markets.
