WORKSHOP ON EXPORT WORKSHOP ON EXPORT MANAGEMENT, IICA DECEMBER 14MANAGEMENT, IICA DECEMBER 14--

15, 2015 15, 2015 ,,

Business Opportunities for IndianBusiness Opportunities for IndianBusiness Opportunities for Indian Business Opportunities for Indian Companies In AfricaCompanies In Africa

Presented by:Presented by:

Dr. J. S. Juneja Dr. J. S. Juneja Chairman, SME Committee and Past President AIMA

and ChairmanGlobal Projects & Services (P) Ltd.j ( )

707-708, Ansal Chamber II, Bhikaji Cama Place, New Delhi-110066,Tel: +91 1126170146, 26178443 Fax: ++91 11 26172457 Email:globalprojects95@gmail.com &

gpsjsj@gmail.com Web: www.globalprojects.co.ing p j

Date: 14 December, 2015 1

AfricanAfrican

ContinentContinent

2

“Some“Some ofof thethe fastestfastest growinggrowing economieseconomies inin thetheworldworld areare AfricanAfrican.. WhileWhile globalglobal growthgrowth declineddeclinedbb ll f if i b k db k d hh dd ddbyby 22..77%% lastlast year,year, AfricaAfrica buckedbucked thethe trendtrend andandgrewgrew atat 55%%.. Notably,Notably, allall subsub--regionsregions ofof AfricaAfricagrewgrew fasterfaster thanthan thethe globalglobal averageaverage withwith thethegrewgrew fasterfaster thanthan thethe globalglobal average,average, withwith thethehighesthighest raterate beingbeing 66..33%% andand thethe lowestlowest oneone33 55%% ThisThis performanceperformance waswas duedue toto severalseveral33..55%%.. ThisThis performanceperformance waswas duedue toto severalseveralfactorsfactors includingincluding improvedimproved macroeconomicmacroeconomicmanagement,management, increasedincreased exportsexports ofof naturalnaturala age e t,a age e t, c easedc eased e po tse po ts oo atu aatu aresourcesresources andand aa risingrising middlemiddle classclass.. LagosLagos nownowhashas aa largerlarger consumerconsumer marketmarket thanthan MumbaiMumbai andandspendingspending inin continentalcontinental householdshouseholds exceedingexceedingthosethose ofof IndiaIndia andand RussiaRussia..””

C l L E i S f ECAC l L E i S f ECACarlos Lopes, Executive Secretary of ECACarlos Lopes, Executive Secretary of ECA66THTH Annual Meeting of African Ministers of Finance, Planning and Economic Annual Meeting of African Ministers of Finance, Planning and Economic

Development, at Abidjan on 25Development, at Abidjan on 25thth March 2013March 20133

68.8 70.3 67.8

India-Export Trade and Trade Deficit (Billion US$), 2009-10 to 2013-14

44.141.1

India’s Export/Import from Africa (Billion US$), 2009-10 to 2013-14

39.1

51.7

25.6

32.036.6

19 7

24.7

29.131.2

12.2 12.3 19.412.0

5.4

13.419.7

2009-10 2010-11 2011-12 2012-13 2013-14Trade Trade Deficit

Source: Department of Commerce

2009-10 2010-11 2011-12 2012-13 2013-14Import Export

Source: Department of Commercep

Key Highlights

India Africa trade reached US$ 68 Billion in 2013-14 growing at CAGR of 14.83% over past four years

p

Exports to Africa grew at 24% CAGR, while imports increased at a CAGR of 9%

Africa offers a huge market for Indian manufacturing goods like textiles, pharmaceuticals and automobiles etc.

India has enormous expertise in healthcare education IT and healthcare etc sectors to offerIndia has enormous expertise in healthcare, education, IT and healthcare etc. sectors to offer

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North

Central Africa, 3

%

India’s Export to Africa by Region (%), 2013-14

WestNorth

East Africa, 3

%Central

Africa, 0.50%

India’s Import from Africa by Region (%), 2013-14

East Africa, 32

%

Africa, 17%

West Africa, 47

%

o tAfrica, 14

%

50%

South

West Africa, 22

%South

Africa, 24%

Source: Department of Commerce

Africa, 36%

Source: Department of Commerce

Key Highlights

East and South African regions are India’s strongest export destinations

West and South Africa are the biggest import partners of IndiaWest and South Africa are the biggest import partners of India

Albuminoidal substances; and Modified starches are the major import commodities

Mineral fuels, mineral oils and products of their distillation; and Bituminous substances are the chief export diticommodities

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Ruff N Tumble, Nigeria

Starting from the boot of herStarting from the boot of hercar, Adenike Ogunlesifounded children’s clothingfounded children s clothingbusiness, Ruff ‘N’Tumble in Lagos in 1996Tumble, in Lagos in 1996.It has gone on to become agreat success story andgreat success story andexports along the WestAfrican coast

Adenike Ogunlesi

African coast.

g6

PatricePatrice MotsepeMotsepePatrice Patrice MotsepeMotsepeCEO of ARM gold, South AfricaCEO of ARM gold, South Africa

PatricePatrice MotsepeMotsepe isis oneone ofofPatricePatrice MotsepeMotsepe isis oneone ofofthethe mostmost successfulsuccessful ofof thethenewnew generationgeneration ofofnewnew generationgeneration ofofblackblack SouthSouth AfricaAfrica miningminingentrepreneursentrepreneurs..

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Economic Report on AFRICA 2013

THEME

“MAKING THE MOST OF AFRICA’S COMMODITIES:INDUSTRIALIZING FOR GROWTH JOBS &INDUSTRIALIZING FOR GROWTH, JOBS & ECONOMIC TRANSFORMATION”

ADVOCATES

“ACCELRATED INDUSTRAIL DEVELOPMENT OF AFRICA’S (AIDA) ACTION PLAN”OF AFRICA’S (AIDA) ACTION PLAN”

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BUSINESS OPPORTUNITIES IN AFRICA

SECTORSSECTORS

EXTRACTIVE:

OIL, NATURAL GASMININGFOREST RESOURCES

AND VALUE ADDITION TO ABOVE

OTHERS

AGRO PROCESSINGAUTOS & COMPONENTSCHEMICALSPHARMACEUTICALSICTICTELECTRONICSMETALSTEXTILESTEXTILESCONSUMER GOODSKNOWLEDGE SECTORS

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Exports from India to Africa:Exports from India to Africa:Exports from India to Africa:Exports from India to Africa:►►Drugs, Pharmaceuticals & fine chemicalsDrugs, Pharmaceuticals & fine chemicals►►Drugs, Pharmaceuticals & fine chemicals Drugs, Pharmaceuticals & fine chemicals ►►Finished Leather, Leather goods and Finished Leather, Leather goods and

FootwearFootwear►►Machinery and equipment (including Machinery and equipment (including

agricultural)agricultural)►►Petroleum productsPetroleum products►►Electronic goodsElectronic goods►►Food and beveragesFood and beverages►►Steel & steel products, cement Steel & steel products, cement

bil dbil d►►Automobiles and auto componentsAutomobiles and auto components►►Fabrics, man made yarn, & readymade Fabrics, man made yarn, & readymade

garmentsgarmentsgarmentsgarments10

Exports from India to Africa Cont ):Exports from India to Africa Cont ):Exports from India to Africa Cont.):Exports from India to Africa Cont.):► Chemicals, Plastics and Rubber goods► Chemicals, Plastics and Rubber goods► Marble and Granite, Low silica

limestone, Industrial mineralslimestone, Industrial minerals► Cut & polish

diamonds, gemstones, fashion jewellerydiamonds, gemstones, fashion jewellery► Processed Agri-products ► Meat & Meat products► Meat & Meat products► Poultry products► Timber and timber products► Timber and timber products ► Paper and Paper products► Pesticides and Fertilizers► Pesticides and Fertilizers► Cosmetics 11

Imports from Africa:Imports from Africa:Imports from Africa:Imports from Africa:► Cotton, Cashews, Palm products, Processed Agri

P d tProducts► Phosphates, Base metals, Gold, Tin

Ore, Bauxite, Aluminum, Manganese , , , gore, Diamond, Gemstones

► Coffee, Coca, Tea ► Groundnuts► Groundnuts► Hides► Petroleum (Crude Oil)► Petroleum (Crude Oil)► Timber and timber products► Horticultural products► Fish and Fish products► Copper, Aluminum, lead & Articles

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Business Opportunities in Select Business Opportunities in Select African CountriesAfrican Countries

BotswanaMiningMiningJewelleryJewelleryAutomotive ComponentsAutomotive ComponentsTextilesTextilesApparelApparelPharmaceuticalsPharmaceuticalsTourismTourismHealth CareHealth CareIT & IT Related ActivitiesIT & IT Related Activities

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EgyptEgyptEgyptEgypt

Const ction Ind stConst ction Ind stConstruction IndustryConstruction IndustryTractor and Agriculture Equipments Joint Tractor and Agriculture Equipments Joint IndustriesIndustriesIndustriesIndustriesPumps and Diesel Engines Joint VenturesPumps and Diesel Engines Joint VenturesPharmaceuticals Joint VenturesPharmaceuticals Joint VenturesPharmaceuticals Joint VenturesPharmaceuticals Joint VenturesAuto ComponentsAuto ComponentsTextilesTextilesTextilesTextilesTourismTourismInformation TechnologyInformation TechnologyInformation TechnologyInformation TechnologyEnergy (Non Conventional & Conventional)Energy (Non Conventional & Conventional)Software for IndustriesSoftware for IndustriesSoftware for IndustriesSoftware for IndustriesSmall and Medium IndustriesSmall and Medium Industries 14

EthiopiaEthiopiaEthiopiaEthiopiaTourismTourismMines & EnergyMines & EnergygygyHealthHealthAutomotive ComponentsAutomotive ComponentsTextiles & FabricsTextiles & FabricsTextiles & FabricsTextiles & FabricsLeatherLeatherDrug PharmaceuticalsDrug PharmaceuticalsHydro PowerHydro PowerHydro PowerHydro PowerSmall & Medium EnterpriseSmall & Medium EnterpriseAgriculture:Agriculture:

Tea FarmingTea FarmingMaize FarmingMaize FarmingOil Seeds FarmingOil Seeds FarmingHorticulture FarmingHorticulture FarmingCotton FarmingCotton FarmingggPulses FarmingPulses FarmingAnd Other Agriculture ProductsAnd Other Agriculture Products 15

KenyaKenyaKenyaKenya

A & F d P iA & F d P iAgro & Food ProcessingAgro & Food ProcessingConstruction and Real EstateConstruction and Real EstateSmall IndustrySmall IndustryTourism and HospitalityTourism and Hospitalityp yp yInternet and Computer ServicesInternet and Computer ServicesTradeTradeTradeTradeTransportTransportEnergyEnergyEnergyEnergyServices Services

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MauritiusMauritius

Export Oriented Industries:Export Oriented Industries:Fi i l S iFi i l S iFinancial ServicesFinancial ServicesTourismTourism

South AfricaSouth AfricaSouth AfricaSouth AfricaAgriprocessingAgriprocessingA t tiA t tiAutomotiveAutomotiveChemicalsChemicalsICT and ElectronicsICT and ElectronicsMetalsMetalsMetalsMetalsTextiles, Clothing and FootwearTextiles, Clothing and Footwear 17

INDIAINDIA--AFRICA TRADEAFRICA TRADE

CURRENT LEVEL US$CURRENT LEVEL US$ 9090CURRENT LEVEL US$ CURRENT LEVEL US$ 90 90 BILLION (2015)BILLION (2015)

PROJECTEDPROJECTED 20162016 US$ 100 BILLIONUS$ 100 BILLIONPROJECTED PROJECTED 2016 2016 US$ 100 BILLIONUS$ 100 BILLION

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Proposed Potential Projects For AfricaProposed Potential Projects For AfricaS ll I d t iS ll I d t iSmall IndustriesSmall Industries

P j t b t b t i i th i Af i t iP j t b t b t i i th i Af i t iProjects can be set up by enterprising youth in African countries Projects can be set up by enterprising youth in African countries depending of course their viability. Some of the projects in the depending of course their viability. Some of the projects in the manufacturing and knowledge based sectors are indicated hereunder: manufacturing and knowledge based sectors are indicated hereunder: Automobile: (Auto Components Air & Oil Filters Radiators Head & TailAutomobile: (Auto Components Air & Oil Filters Radiators Head & TailAutomobile: (Auto Components, Air & Oil Filters, Radiators, Head & Tail Automobile: (Auto Components, Air & Oil Filters, Radiators, Head & Tail Lights & Silencers, Break Lining, Repair Workshop)Lights & Silencers, Break Lining, Repair Workshop)

Chemical & Allied Industries: (Detergent Powder Toilet Soap HerbalChemical & Allied Industries: (Detergent Powder Toilet Soap HerbalChemical & Allied Industries: (Detergent Powder, Toilet Soap, Herbal Chemical & Allied Industries: (Detergent Powder, Toilet Soap, Herbal Cosmetics, Cassava Starch, Mini Cement Plant, Writing Ink, Paints & Cosmetics, Cassava Starch, Mini Cement Plant, Writing Ink, Paints & Varnishes, Shoe Polish, Tooth Paste, Wax Candles, Welding Electrodes)Varnishes, Shoe Polish, Tooth Paste, Wax Candles, Welding Electrodes)

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Electrical & Allied Industries: (Electrical Fittings, PVC Cables, Water Electrical & Allied Industries: (Electrical Fittings, PVC Cables, Water Heater, Electrical Household items, Bulbs for Automobile)Heater, Electrical Household items, Bulbs for Automobile)

Food Processing: (Bakery Unit, Dairy & Milk Products, Fruit & Food Processing: (Bakery Unit, Dairy & Milk Products, Fruit & Vegetable Processing, Mineral Water Plant, Cattle & Poultry Vegetable Processing, Mineral Water Plant, Cattle & Poultry Feed, Flour Mill, Oil Extraction)Feed, Flour Mill, Oil Extraction)

Leather & Allied Industries: (Leather Tannery, Leather Leather & Allied Industries: (Leather Tannery, Leather Belts, Leather Products, Leather Shoes & Leather Gloves, Leather Belts, Leather Products, Leather Shoes & Leather Gloves, Leather , , ,, , ,Travel Kits)Travel Kits)

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Mechanical Engineering: (Agricultural Hand Tools, Automatic Wire Mechanical Engineering: (Agricultural Hand Tools, Automatic Wire Nail Making Plant, Band Saw Blades, Barbed Wire, Bathroom Nail Making Plant, Band Saw Blades, Barbed Wire, Bathroom Fittings, Bolt & Nuts, Brake Lining, Stapler & Punches, Steel Fittings, Bolt & Nuts, Brake Lining, Stapler & Punches, Steel Furniture, Tin Containers and Wire Drawing Plant)Furniture, Tin Containers and Wire Drawing Plant)Furniture, Tin Containers and Wire Drawing Plant)Furniture, Tin Containers and Wire Drawing Plant)

Metallurgical & Allied Industries: (Builders Hardware Metallurgical & Allied Industries: (Builders Hardware Products, Brass Casted Padlocks, Steel Rerolling Mill & Cast Iron Products, Brass Casted Padlocks, Steel Rerolling Mill & Cast Iron Foundry)Foundry)

Paper Stationary & Allied Industries: (Carbon Papers, Chalk Paper Stationary & Allied Industries: (Carbon Papers, Chalk Crayons, Corrugated Board Boxes, Exercise Books, Handmade Paper Crayons, Corrugated Board Boxes, Exercise Books, Handmade Paper y g py g pPlant, Pencils, Envelops & Air Letters)Plant, Pencils, Envelops & Air Letters)

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Plastic & Allied Industries: (Plastic Injection & Blow Plastic & Allied Industries: (Plastic Injection & Blow ( j( jMouldingMoulding, Plastic Recycling, Spectacle Frames, Ball Point , Plastic Recycling, Spectacle Frames, Ball Point Pens, Crockery Melamine, Pens, Crockery Melamine, MouldedMoulded Buttons, Polythene Buttons, Polythene Bags, PVC Bags, PVC FootwearsFootwears))

Textiles: (Handlooms, Hosiery Knitwear, Power Textiles: (Handlooms, Hosiery Knitwear, Power L R d d G t S i l C tt S i lL R d d G t S i l C tt S i lLooms, Readymade Garments, Surgical Cotton, Surgical Looms, Readymade Garments, Surgical Cotton, Surgical Bandages, Woolen Blankets & Automatic Sock Knitting)Bandages, Woolen Blankets & Automatic Sock Knitting)

Miscellaneo s Ind st ies (Assembl of Elect ic Fans AiMiscellaneo s Ind st ies (Assembl of Elect ic Fans AiMiscellaneous Industries: (Assembly of Electric Fans, Air Miscellaneous Industries: (Assembly of Electric Fans, Air Conditioners, Refrigerators, Offset Printing Press, Candle Conditioners, Refrigerators, Offset Printing Press, Candle Making & Tooth Paste) Steel Rerolling Mill & Cast Iron Foundry)Making & Tooth Paste) Steel Rerolling Mill & Cast Iron Foundry)Making & Tooth Paste) Steel Rerolling Mill & Cast Iron Foundry)Making & Tooth Paste) Steel Rerolling Mill & Cast Iron Foundry)

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KnowledgeKnowledge Based SectorsBased SectorsKnowledgeKnowledge--Based SectorsBased SectorsFashion TechnologFashion TechnologFashion TechnologyFashion Technology

Opportunities are available for enterprises Opportunities are available for enterprises pp ppp pto tap multibillion dollar business in the to tap multibillion dollar business in the areas pertaining to:areas pertaining to:

►► Glamour and LimelightGlamour and Limelight►► Creative and High value addition and Creative and High value addition and

extensive coverageextensive coveragegg►► Fashion AccessoriesFashion Accessories►► Design of dresses and garmentsDesign of dresses and garments►► JewelleryJewellery►► JewelleryJewellery►► SpasSpas►► Beauty ParlorsBeauty Parlors

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Information TechnologyInformation Technology

With the developed countries outsourcing their With the developed countries outsourcing their requirement for their large scale applications, opportunities requirement for their large scale applications, opportunities exist for knowledge workers in Africa for the following:exist for knowledge workers in Africa for the following:exist for knowledge workers in Africa for the following:exist for knowledge workers in Africa for the following:

►► Banking SectorsBanking Sectors►► Financial ServicesFinancial Services►► Financial ServicesFinancial Services►► InsuranceInsurance►► TelecomTelecom►► Utilities and Engineering ServicesUtilities and Engineering Services►► Utilities and Engineering ServicesUtilities and Engineering Services►► Media and EntertainmentMedia and Entertainment►► Content DescriptionContent Description

A i iA i i►► AnimationAnimation►► GamesGames►► Website DevelopmentWebsite Development►► Back office ServicesBack office Services

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Health TechnologyHealth Technology

Opportunities exist in the following areas in this Opportunities exist in the following areas in this sector.sector.sector.sector.

►► Personal Health carePersonal Health care►► Personal Health carePersonal Health care►► Preventive Health carePreventive Health care►► PhysiotherapyPhysiotherapy►► PhysiotherapyPhysiotherapy►►Research LaboratoriesResearch Laboratories►► Pathological LabsPathological Labs►► Pathological LabsPathological Labs►►A host of other areas such as Medical waste A host of other areas such as Medical waste

management, Hospital supplies and staffing management, Hospital supplies and staffing g p pp gg p pp gservices etcservices etc

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Design TechnologyDesign Technology

►► Opportunities exist in the following areas in this sector.Opportunities exist in the following areas in this sector.►► Interiors Interiors -- (Furniture & Furnishing (Furniture & Furnishing –– homes, work homes, work

places, community, hospitals, schools, shoppingplaces, community, hospitals, schools, shoppingplaces, community, hospitals, schools, shopping places, community, hospitals, schools, shopping places, recreation, sports)places, recreation, sports)

►► Exteriors Exteriors -- (Architectural)(Architectural)►► Industrial productsIndustrial products►► Industrial productsIndustrial products►► TextilesTextiles►► Electrical appliancesElectrical appliances►► White goodsWhite goods►► White goodsWhite goods►► Leather productsLeather products►► Engineering productsEngineering products►► MachineryMachinery►► MachineryMachinery►► Dies and toolsDies and tools►► WatchesWatches

J llJ ll►► JewelleryJewellery►► Hospital equipmentsHospital equipments►► Medical instrumentsMedical instruments►► Electronics and Communication Products and Equipments Electronics and Communication Products and Equipments

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Hospitality IndustryHospitality Industry

►Opportunities exist in the following areas in this pp gsector.

►Budget Hotelsg►Multicasting Restaurants►Car Rental Service►Car Rental Service►Tour Operators►Medical Tourism►Medical Tourism►Ayurvedic Spa►Heritage Tourism►Heritage Tourism►Multilingual Translation Capacity Building► Event Management

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Opportunities in Opportunities in Specialized Specialized SectorsSectorspppp pp►► EducationEducation►► TextileTextile►► LeatherLeather►► InfrastructureInfrastructure►► Food ProcessingFood Processing

A ib iA ib i►► AgribusinessAgribusiness►► Real Estate & Construction, Material HandlingReal Estate & Construction, Material Handling►► Automobile and Auto Ancillaries Automobile and Auto Ancillaries ►► D gs & Pha mace ticalsD gs & Pha mace ticals►► Drugs & Pharmaceuticals Drugs & Pharmaceuticals ►► Development of Industrial Parks and SEZsDevelopment of Industrial Parks and SEZs►► Agricultural MachineryAgricultural Machinery►► Telecom / Mobile TelephonyTelecom / Mobile Telephony►► Telecom / Mobile Telephony Telecom / Mobile Telephony ►► Medical & Diagnostics Medical & Diagnostics ►► Engineering Products(Hydro Electric Power, Dams)Engineering Products(Hydro Electric Power, Dams)►► Ship breakingShip breaking►► Ship breakingShip breaking►► Sea Food products Sea Food products ►► Development of timber resourcesDevelopment of timber resources►► ServicesServices►► Services Services

sectors(Banking, Tourism, logistics, consultancy, educational and sectors(Banking, Tourism, logistics, consultancy, educational and vocational training)vocational training) 28

Facilities and Incentives to SupportFacilities and Incentives to SupportFacilities and Incentives to Support Facilities and Incentives to Support Indian Business Initiatives Indian Business Initiatives

►Marketing Development Assistance (MDA)► Market Access Initiative (MAI)► Duty Drawback on Goods Exported► Export Financing► EXIM Bank Finance► Overseas Investment in JVs / Wholly Owned

Subsidies abroad- In terms of Foreign Exchange Management Regulations 2000Management Regulations, 2000

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►Technology Trade Promotion- DSIR operates a schemes for Technology ExportsEXIM P li► EXIM Policy

► Focus Africa Programme- To boost India’s trade with Sub-Saharan Africatrade with Sub-Saharan Africa

► Encouraging export of agro-products (including processed food(including processed food products), minerals, gemstones, pharmaceuticals, engineering goods through facilities/incenti es of the commodit boa dsfacilities/incentives of the commodity boards (APEDA, MPEDA) and Export Promotion CouncilsCouncils

30

► Indian Technical and Economic Cooperation► Indian Technical and Economic Cooperation Programme (ITEC) and Special Commonwealth African Assistance Programme (SCAAP) : Training g ( ) gin India for nominees from 161 ITEC partner countries, Deputation of Indian experts, Study tourstours

► Trade Promotion Programmes towards Africa including Trade Missions and inviting Africa Buyerincluding Trade Missions and inviting Africa Buyer Delegations, Buyer-Seller Meets

► Enhanced Framework for Cooperation under pIndia-Africa Forum Summit-II (IFAS) for development of clusters for food processing and textile institutional framework for vocational &textile, institutional framework for vocational & entrepreneurship development training in Africa

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“Current projections show that Africa will be thelargest and youngest continent in fifty yearslargest and youngest continent in fifty yearsand will have become more urbanized. In thenot so distant future, we will have as manyAfricans in cities as we have Africans now TheAfricans in cities as we have Africans now. Thenumber of cities with over one million peoplehas increased from one in 1960 to 33 today.yCities such as Lagos, Dar esSalaam, Kampala, Kinshasa and Luanda aresome of the fastest growing urban areas in thesome of the fastest growing urban areas in theworld.”

EconomicEconomic ReportReport ofof AfricaAfrica 20132013,, ECAECA

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Long Live India-Africa Partnership & Friendship

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