come invest in africa the continent of the future

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  • Africa: A Land of Opportunities

    Knowledge Partner

    December 2014

    Come Invest in Africa: The continent of the future

    December 2014

  • Title : Come Invest in Africa: The continent of the future

    Year : December 2014

    Authors : International Affairs Division, PHD Chamber and RNCOS

    Copyright : No part of this publication may be reproduced in any form by photo, photo print, microfilm or any other means without the written permission of PHD Chamber of Commerce and Industry and RNCOS

    Disclaimer : This report is the publication of PHD Chamber of Commerce & Industry and RNCOS. PHD Chamber of Commerce and Industry and RNCOS have editorial control over the content, including opinion, advices, statements, services, offers, etc. that are represented in this report.

    It may be noted that this report is for information purpose only. PHD Chamber of Commerce & Industry and RNCOS will not be liable for any direct or indirect loss or damage caused by the readers reliance on information obtained through this report. This report may contain third party contents.

    PHD Chamber of Commerce & Industry and RNCOS take no responsibility for the third party content.

    Contacts : PHD Chamber of Commerce and Industry PHD House, 4/2, Siri Institutional Area, August Kranti Marg, New Delhi - 110016 Tel.: +91 11 26863801-04, 49545454 Fax: +91 11 26855450 Email: phdcci@phdcci.in | Website: www.phdcci.in

    RNCOS B - 129, Sector 6, Noida - 201301, INDIATel: +91 - 120 - 4224700/ 01/ 02/ 03Fax: +91 - 120 - 4224707 Email: marketing@rncos.comWebsite: www.rncos.com

  • Indias economic engagements with African countries have been vibrant, extending beyond trade and investment to technology transfers, knowledge sharing, and skill development.

    Africas richness in terms of natural resources; burgeoning middle class population; surging per capita income; and recent positive political changes suggest that Africa is all set for an extraordinary journey towards economic expansion.

    For India, this represents a significantly gigantic and less explored market to extend their trade trail as Africa offers a huge market for Indian manufacturing goods like textiles, pharmaceuti-cals, automobiles and food. On the other hand, India on its platter has enormous expertise in healthcare, education, IT and pharmaceutical sectors to offer.

    The total trade between India and Africa reached US$ 67.84 Billion in 2013-14, increasing at a CAGR of 14.83% since 2009-10. Africa claimed a share of nearly 10% in the total exports of India in 2013-14 as compared to 7.5%, four years ago. On the other hand, Africa claimed over 8% share in the total Indian imports in 2013-14, depicting a nearly constant trend over

    the last four years. Moreover, Indian investments in Africa have grown substantially across the continent and sectors.

    The robust economic growth of both India and Africa have provided new opportunities of forging a development partnership which is not just limited to trade but focuses on capacity building, human resource development and productive investments, through value addition.

    Both the regions have much more to explore while working together. India and Africa need to identify products which can be sourced from each other based on comparative cost advantage on account of resource endowments and technological capa-bilities and draw more on each others experiences, technology and expertise.

    PHD Chamber acts as a catalyst in the promotion of industry, trade and entrepreneurship, through its research-based policy advocacy role, and endeavours to positively impact the economic growth and development of the country. PHD Chamber is quite active in promoting international trade and co-operation. Through our International Affairs Division, we work in close cooperation with missions and trade development bodies around the world. We have been sponsoring overseas trade missions and play host to visiting delegations from abroad. The Chamber has over 60 MOUs with foreign chambers of commerce and organisations with the objective of creating an institutional framework for a two-way flow of information on business oppor-tunities for promoting trade as well as technical and economic co-operation.

    I am sure that the Conference would prove useful for the Indian businessmen, policy makers and researchers to know about the various business opportunities in Africa and the substantial potential for bilateral economic cooperation between India and Africa as well as to discuss about the practical aspects of doing business in Africa.

    From Presidents Desk

    SHARAD JAIPURIAPresident

  • This is the second edition of the Conference on Africa: A Land of Opportunities. The first edition of the Conference was organised last year in November, with the support of the Ministry of External Affairs, Government of India. We were encouraged by the overwhelming response received by the African Missions and the Indian business enterprises last year and hence we are organising a two-day Conference this year.

    The Report highlights the trends in the overall business scenario of India and Africa and the copious untapped opportunities that exist for increased bilateral cooperation between the two regions. It is my privilege to present this Report to our esteemed readers.

    Our analysis suggests that there lies a significant opportunity in the healthcare, education, and textile/leather including other manufacturing sectors. In the healthcare domain, short-age of facilities, lack of skilled workers, increasing disease burden, etc. have paved way for healthcare infrastructure development, telemedicine, and mobile health. Similarly, in the edu-cation sector, lack of adequate education infrastructure and trained manpower provides wide ranging opportunities. India is already present through Pan Africa e-network which provides

    tele-medicine and tele-education facilities to the African nations.

    Various emerging opportunities have contributed to the attractiveness of the African continent and have been able to woo attractive FDI investments in African nations in consumer-oriented segments such as IT, finance, tourism, manufacturing, agri-culture, infrastructure, healthcare, water & sanitation, and other consumer goods and services.

    India has always expressed optimism regarding the potential of the African continent and has seen itself as a significant partner in Africas development.

    I commend and appreciate the efforts of our Knowledge Partner RNCOS E Services Pvt. Ltd. in producing this study of analytical value and policy relevance. I hope that this study serves as a useful report and an informative guide highlighting the trade and investment scenario of India and Africa and the significant economic potential that exists between these two regions.

    From Executive Directors Desk

    SAURABH SANYALExecutive Director

  • 1 India-Africa Trade: Overview

    2 Exports Statistics: Region & Commodities

    3 Imports Statistics: Region & Commodities

    4 FDI: Investment Avenues in Africa

    5 Sectoral Focus

    5.1 Healthcare 5.2 Education 5.3 Textile & Leather 5.4 Infrastructure & Power 5.5 Agribusiness & Food Processing 6 Challenges 7 Capturing the Opportunities: The Road Ahead

    Contents

    Tables

    Figures

    Table of

    List of

    List of

    5 Africa A Land of OpportunitiesCome Invest in Africa: The continent of the future 5

    Figure 1-1: India - Export-Import with Africa (Billion US$), 2009-10 to 2013-14Figure 2-1: Indias Export to Africa by Region (%), 2013-14Figure 3-1: Indias Import from Africa by Region (%), 2013-14

    Table 2-1: Indias Export to Africa: Top 5 CountriesTable 2-2: Indias Export to Africa: Top 5 CommoditiesTable 3-1: Indias Import from Africa: Top 5 CountriesTable 3-2: Indias Import from Africa: Top 5 CommoditiesTable 4-1: India - Africa Greenfield FDI Projects Value, (Millions US$), 20122013Table 5-1: Indian Companies for Healthcare in AfricaTable 5-2: Indian Companies for Education in Africa

  • For India and Africa, there's significant bilateral trade potential as there exist abundant untapped opportunities. Africa with its immense natural resources provides enormous opportunities for growth. The ever growing middle class population and re-cent positive political changes due to 'Arab Spring', indicate a positive step towards a prosperous future. It is creating a great business opportunity for the Indian manufacturing sector such as pharmaceuticals, textiles, automobiles etc., to explore a less penetrated market. The engraved capabilities of India in the field of healthcare, education and IT could further strengthen the relations.

    In the year 2013-14 the bilateral trade between India and Africa grew at a CAGR of around 15% and touched US$ 68 Billion. Africa held a key share of 10% in the total exports of India during the year cited, growing from 7.5% four years ago. On the import front, Africa consistently accounted for around 8% in the total Indian imports..

    The report clearly suggests some of the sectors that hold enormous opportunity potential which include, but not limited to, healthcare, education, and infrastructure. Due to low awareness in the healthcare sector for example shortage of health work-ers, disease burden and lack of facilities, have paved way for healthcare infrastructure development, telemedicine, and mobile health. Similarly, the education sector remains under penetrated due to poor infrastructure and untrained manpower. These factors are fueling the developmental in the continent. India which is already expanding its presence in the continent through Pan Africa e-network being used for providing tel