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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

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

Africa’s 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 President’s 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 Africa’s 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 Director’s 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: India’s Export to Africa by Region (%), 2013-14Figure 3-1: India’s Import from Africa by Region (%), 2013-14

Table 2-1: India’s Export to Africa: Top 5 CountriesTable 2-2: India’s Export to Africa: Top 5 CommoditiesTable 3-1: India’s Import from Africa: Top 5 CountriesTable 3-2: India’s Import from Africa: Top 5 CommoditiesTable 4-1: India - Africa Greenfield FDI Projects’ Value, (Millions US$), 2012–2013Table 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 tele-medicine and tele-education facilities to the African nations, is clearly devis-ing much stronger strategies in order to work with Africa as a permanent and reliable partner.

A lot many Indian companies/universities/hospitals are zealously supplying the required products like generic pharmaceuticals, and services including healthcare, education , and technological support, to the citizens of African nations. Moving on with the internet penetration, there exists a huge potential for mobile health. Textile and leather industry growth is also supported by various missions like C-tap. All the above stated factors have been able to woo attractive FDI investments in African nations in consumer-oriented segments such as IT, food, finance, tourism, manufacturing, agriculture, infrastructure, healthcare, and other consumer goods/services.

Executive Summary

66 Come Invest in Africa: The continent of the future

India has recognized Africa as a strategically important trade partner. With the escalating diversification of India’s interna-tional trade towards other developing nations, Africa has also emerged as a crucial trade and commerce partner for India. This sanguinity is fueled by the fact that Africa is a natural resources rich continent, having a middle class population larger than that of India, increasing per capita income and recent political changes. All these factors suggest that Af-rica 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 Af-rica offers a huge market for Indian manufacturing goods like textiles, pharmaceuticals, automobiles and food. On the other hand, India on its platter has enormous expertise in healthcare, education, IT and pharmaceuticals etc. sectors to offer. Moreover, Africa’s luxury in terms of natural re-sources has a lot to offer to India as far as the resource and energy sectors are concerned. Consumer spending in Africa is poised to reach US$ 1.8 Trillion by 20201. India considers Africa as a place where it can replicate the business models it has developed at home and imitate its success in creating an effervescent manufacturing and services sector. The to-tal trade between India and Africa reached US$67.84 Billion in 2013-14, increasing at a CAGR of 14.83% since 2009-10.

In 2013-14, the total Indian exports reached US$314.4 Billion mark growing at CAGR of over 15% during the last 4 years. Africa claimed a share of nearly 10% in the total exports of India in 2013-14 as compared to 7.5%, four years ago. In

2013-14, the Indian exports to Africa reached US$31.2 Billion mark growing at CAGR of over 23.5% during the last 4 years.

Total imports of India surpassed US$ 450 Billion mark in 2013-14, growing at a CAGR of 11.8% during the period cited hereunder. In 2013-14, Africa claimed over 8% share in the total Indian imports, depicting a nearly constant trend over the last four years. The imports from Africa reached US$ 36.62 Billion in 2013-14, increasing at a CAGR of 9% over the past four years, although, as compared to 2012-13 the imports from Africa marked a decline of almost 11%.

Figure 1-1: India - Export-Import with Africa (Billion US$), 2009-10 to 2013-14

Source: Department of Commerce

1CNBC Africa

13

2025

2931

26

32

4441

37

12 12

19

12

5

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

Exports Imports Trade Deficit

7

India-Africa Trade: Overview1.


Exports Statistics: Region & Commodities2.

Indian exports to all the African regions have grown over the past few years, with east African region maintaining its lead position. In 2013-14, the region claimed a share of 32% with major exports commod-ities including mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes; pharmaceutical products; and iron and steel.

Figure 2-1: India’s Export to Africa by Region (%), 2013-14


East Africa South Africa

West Africa

Central Africa

North Africa

32%

24%

22%

17%

3%


Africa A Land of Opportunities 99Come Invest in Africa: The continent of the future

Table 2-1: India’s Export to Africa: Top 5 Countries

2013-14 2009-10

Country% Share in Total Exports

to AfricaCountry

% Share in Total Exports to Africa

South Africa 16.3% South Africa 15.3%

Kenya 12.4% Kenya 10.8%

Tanzania Republic 10.9% Nigeria 10.5%

Nigeria 8.5% Egypt Arab Republic 10.5%

Egypt Arab Republic 8.2% Tanzania Republic 6.9%

Rest of the Countries 43.7% Rest of the Countries 46.0%


Table 2-2: India’s Export to Africa: Top 5 Commodities


2013-14 2009-10

Commodity Category

% Share in Total

Exports to Africa

Commodity Category

% Share in Total

Exports to Africa

Mineral Fuels, Mineral Oils and Products of their Dis�lla�on; Bituminous Substances; Mineral Waxes

28.2%Mineral Fuels, Mineral Oils and Products of their Dis�lla�on; Bituminous Substances; Mineral Waxes

21.0%

Vehicles Other Than Railway or Tramway Rolling Stock, and Parts and Accessories Thereof

10.3% Pharmaceu�cal Products 9.4%

Pharmaceu�cal Products 8.5%Vehicles Other than Railway or Tramway Rolling Stock, and Parts and Accessories Thereof

8.1%

Cereals 6.4%Nuclear Reactors, Boilers, Machinery and Mechanical Appliances; Parts Thereof

7.9%

Nuclear Reactors, Boilers, Machinery and Mechanical Appliances; Parts Thereof

5.4%

Electrical Machinery and Equipment and Parts Thereof; Sound Recorders and Reproducers, Television Image and Sound Recorders and Reproducers, and Parts

6.9%

Rest of the Commodi�es 41.2% Rest of the Commodi�es 46.7%

Imports Statistics: Region & Commodities3.

10

Imports from all the African regions have grown with Western Africa boasting of the top notch position till date. The very region accounted for 47% share in the total imports from Africa. The most imported com-modities include albuminoidal substances; modified starches; glues; enzymes; articles of apparel and cloth-ing accessories, knitted or crocheted; articles of apparel and clothing accessories, not knitted or crocheted; and beverages, spirits and vinegar.

Figure 3-1: India’s Import from Africa by Region (%), 2013-14


West Africa South Africa

North Africa

Central Africa

East Africa

47%

36%

14%

3% 0.50%



Table 3-1: India’s Import from Africa: Top 5 Countries


2013-14 2009-10

Country% Share in Total Imports

from AfricaCountry

% Share in Total Imports from Africa

Nigeria 38.5% Nigeria 28.5%

South Africa 16.6% South Africa 22.2%

Angola 16.4% Angola 16.6%

Gabon 2.4% Egypt Arab Republic 6.6%

Tanzania Republic 2.0% Algeria 3.9%

Rest of the Countries 24.1% Rest of the Countries 22.2%

Table 3-2: India’s Import from Africa: Top 5 Commodities


2013-14 2009-10

Commodity Category

% Share in Total Imports to Africa

Commodity Category

% Share in Total Imports to Africa

Mineral Fuels, Mineral Oils and Products of their Dis�lla�on; Bituminous Substances; Mineral Waxes.

73.9%Mineral Fuels, Mineral Oils and Products of their Dis�lla�on; Bituminous Substances; Mineral Waxes

68.7%

Natural or Cultured Pearls, Precious or Semiprecious Stones, Pre. Metals, Clad with Pre. Metal and Ar�cles Thereof ;Imita�on Jewelry; Coin

10.4%

Natural or Cultured Pearls, Precious or Semiprecious Stones, Pre. Metals, Clad with Pre. Metal and Ar�cles Thereof ;Imita�on Jewelry; Coin

13.6%

Inorganic Chemicals; Organic or Inorganic Compounds of Precious Metals, of Rare-Earth Metals, or Radi. Elem. or of Isotopes

2.9%Inorganic Chemicals; Organic or Inorganic Compounds of Precious Metals, of Rare-Earth Metals, or Radi. Elem. or of Isotopes

4.7%

Edible Fruit and Nuts; Peel or Citrus Fruit or Melons 2.0%Edible Fruit and Nuts; Peel or Citrus Fruit or Melons

2.3%

Iron and Steel 1.6% Ores, Slag and Ash 2.1%

Rest of the Commodi�es 9.2% Rest of the Commodi�es 8.6%

FDI: Investment Avenues in Africa4.

12

The anticipation on the emerging middle class’ sustained growth front, wooed FDI investments in consumer-oriented segments such as IT, food, Fi-nance, Tourism, and Retail. Over the past decade, this group is estimated to have expanded 30%, thus reaching 120 million people. As per the estimates of African Development Bank, the continent’s middle class numbers will surpass 1 Billion mark by 2060. Epitomizing the very change, driven by the increas-ing trade and consumer markets, FDI in infrastructure highlighted strong increase in transport and informa-tion and communication technology (ICT) sub-seg-ments. Now, considering the outward FDI flows from Africa, they increased marginally to US$ 12 Billion. The main investor countries include South Africa, An-gola and Nigeria, with flows chiefly directed towards neighboring countries.

India can seek to quadruple its revenues from Africa to over US$ 160 Billion by 2025 by widening the ex-panse of its presence in the sectors wherein it has a strong foothold and unique value proposition. Afri-can nations need to scale up their IT services, manu-facturing, agriculture, infrastructure, healthcare, and other consumer goods/services. In order to be a true solutions partner and capture the goldmine of op-portunities existing in African industries, Indian play-ers need to maintain the continuum of engagement with African governments and businesses/conglom-erates; proactively assess the opportunities by con-ducting sector and country level studies; create an open think-tank or consortia of concerned compa-nies for facilitating trade; and offer low cost funding for large projects to the African nations.

Healthcare

Education and Skill development

Textile and Leather

Infrastructure and Power

Agribusiness and Food Processing

Table 4-1: India-Africa Greenfield FDI Projects’ Value, (Millions US$), 2012–2013

Source: World Investment Report, United Nations

68

149

2012 2013

Africa as Investor

The major investment avenues include:

77475628

2012 2013

Africa as Des�na�on


Sectoral Focus5.

5.1 HEALTHCARE

Healthcare Scenario in Africa

Sub-Saharan Africa claims 11% of the world’s population and accounts for 24% of the global disease burden. In Sub-Saharan Africa it is anticipated that the demand for health care is likely to reach a market value of US$ 35 Billion by 20162. This surge in demand and ensuing growth has result-ed in the creation of colossal opportunities for the healthcare industry players. With an estimated 500,000 - 650,000 hos-pital beds to be built in the next decade, and the resulting demand in hospital equipment, medical devices and phar-maceuticals the healthcare market in the Sub-Saharan Afri-can continent is poised for substantial growth.

There are many diseases which are prevalent in African na-tions and often prove fatal when they are not treated swiftly and efficiently. Some of these diseases include tuberculosis and HIV/AIDS. Other diseases such as African sleeping sick-ness, are specific to African continent. Particularly, Africa has been hardest hit by the HIV/AIDS, although in the re-cent times on account of meliorated access to anti-retro-viral treatment, the HIV/AIDS incidence rates have started plummeting. Nevertheless, the death toll of AIDS still claims nearly one million lives every year in sub-Saharan Africa. On the other hand, parasitic disease such as Malaria is also widespread and leads to death of one African child every 30 seconds. Malaria is the leading cause of death amongst children below 5 years of age in many African countries. Moreover, Polio, now eradicated from several parts of the world, is still endemic in Nigeria and outbreaks reportedly occur in other African nations as well.

Moreover, the recent endemic spread of Ebola virus has reached unprecedented levels as warned by healthcare experts. The present rate of infection stands at 1.7, which means for every 10 people that contract the virus, a further 17 will also be infected. The ultimate objective is to get the rate down to one, and finally below one, in the struggle to stop the spread of the deadly virus. Public health experts believe that they have a window of 90-days to arrest the spread of Ebola. The Ebola death toll has reportedly sur-passed 5100 by mid-November 2014.

Although the disease holds a notorious status in Africa since 1976, previous outbreaks have been controlled and contained at a relatively low economic cost for the global community, as compared to the current scenario. Ebola is a deadly virus with a exceptionally high mortality rate but, with apt interventions and well established healthcare de-livery systems, the spread of infection and death rate, could be controlled. The World Health Organization (WHO) said that by 2015, millions of doses of two experimental Ebola vaccines could be ready for use. The testing of 5 more ex-perimental vaccines will begin by March 20153.

Recently World Bank has planned to invest US$ 100 Mil-lion in an effort to augment the number of foreign health workers en-route to West Africa to tackle Ebola outbreak. Healthcare/Treatment centres in Liberia, Sierra Leone and Guinea, are being built but the dire requirement is for doc-tors, nurses and other paramedics in order to prep up the medical facilities. According to the United Nations, nearly 5,000 international personnel are required, including at least 1,000 foreign health workers. For India, there exists opportunity to act promptly and supply best of the medi-cal facilities to the grief-stricken nation, build up capacity in Africa itself for Ebola treatment, develop and test cura-tive vaccines, and provide any additional support required by Western African nations. Now is the time to realize the strategic partnership potential between the 2 nations and capitalize on the same to the fullest.

2Africa Health Conference 20143World Health Organisation (WHO)

13Come Invest in Africa: The continent of the future


Healthcare Workers

The number of caregivers in 36 countries in Africa is inadequate to deliver even the basic immunization and maternal health services4. In the Sub-Saharan African nations, the average number of health workers for every 1,000 of people is 1.15. Moreo-ver, there’s a shortage of nurses and midwives, eliciting the fact that over 2/3rd two-thirds of women in Africa have no contact with health personnel post childbirth5. This is the core reason behind Africa accounting for over half of the world's maternal and child deaths.

African Healthcare: Opportunities

All the above stated facts in turn have presented India with plethora of opportunities as it is poised to portray a critical role in the development of Africa’s healthcare sector. With the extended partnerships with African governments, India can provide af-fordable solution to least developed African nations. The very fact stated above presents an opportunity for entrepreneurs and investors for devising innovative health solutions. One of the areas in focus could include modernization the existing structures. The administrative side of hospitals in Africa is by and large facilitated by paper and phone till date.

42014 Global Healthcare Outlook:Deloitte5SOS Children's Villages (Africa)

Table 5-1: Indian Companies for Healthcare in Africa

Source: Various Industry Sources

Company/Hospital Sector Country Projects

HCL Infosystems Ltd. ICTBotswana, Nigeria, Lagos andothers

Pan African e-Network Project

Na�onal Institute ofInforma�onTechnology (NIIT)

ICT

Nigeria, Ghana, Senegal, Libya, Sudan, Botswana, South Africa, Rwanda, Namibia, South Africa, Botswana, Mozambique andZimbabwe.

- Providing ICT training in many Africancountries;- In Senegal, NIIT is part of the Pan African e-network project.

Ranbaxy LaboratoriesLimited

Pharma

Nigeria, Kenya, Tanzania, Uganda, Ivory Coast, Cameroon, Senegal, Zimbabwe, Zambia and South Africa

- Set up manufacturing plant in Nigeria

Apollo Hospitals Hospital Tanzania and Zimbabwe

- Entered into a partnership with the Tanzania’s sovereign fund,Na�onal Social Security Fund for a 250-bed ter�ary care centre- IT is also planning to sign a similar MoU with the Zimbabwe government

Medanta (Medanta AfriCare) HospitalUganda, Rwanda, the Democra�c Republic of Congo and Tanzania.

Plans to expand its Africa footprint with hospital establishments

Manipal Hospitals Hospital South AfricaLooking forward to crea�ng a capacity of 1,000 hospital beds

Cipla (MedPro) Pharma South AfricaMedpro entered into a �e up with Teva to exclusively sell Teva products in South Africa.

Sun Pharma (Ranbaxy) Pharma South AfricaRanbaxy’s acquisi�on will help Sun expand in South Africa

SRL Diagnos�cs Diagnos�cs Congo, Kenya and NigeriaPlans to open labs and collec�on centres

Dr Lal Pathlabs Diagnos�csNigeria, Ghana, South Africa and Kenya

Plans to foray African na�ons by establishing labs


Generic Pharmaceuticals

The Indian Pharmaceutical Industry today is among the top notch segments of India’s science-based industries with expan-sive strengths and capacities in terms of developing complex drugs to devising novel tools and technologies for healthcare and life sciences domain. India boasts of its ingeniously devel-oped medicines ranging from simple pain curing pills to sensi-tive antibiotics. According to global exim data, India claimed 17.7% of African pharmaceutical imports in 2011. Considering the swiftly striding Indian pharmaceuticals industry and the healthcare regime in Africa, there exists far-reaching opportuni-ties for Indian healthcare/pharmaceuticals sector as India can supply the life saving drugs and essential medicines at economi-cal prices on a sustainable basis. Moreover, health insurance is another area wherein Indian hospitals and healthcare profes-sionals clubbed with the provision of Indian medicines can offer affordable treatment options PAN Africa. The pharmaceutical spending across the African continent is poised to reach US$ 30 Billion in 2016, up from about US$ 18 Billion in 2013, and by 2020, the market holds the right to represent a US$ 45 Billion opportunity for drug makers6 growing at 10.6% compound an-nual growth rate, propelled partly by vigorous economic growth and demographic evolution.

Indian pharmaceutical manufacturers have expanded their mar-ket share chiefly through competitive pricing and concurrently targeting different market spaces in the generics domain. In-dian manufacturers are quite adept at acclimatizing to the local conditions in terms of establishing manufacturing units in Af-rica itself. Indian pharmaceutical manufacturers sell medicines through NGOs and government tenders, primarily in regulated markets. For instance, leading Indian players, such as Cipla, Ranbaxy, the Serum Institute and Dr Reddy’s, have strong foot-hold in the African market, specifically in East Africa. In such predominantly Anglophone sectors, Indian pharma companies enjoy a reputation for quality medicines and integrating local talent into their operations. Whilst they are most renowned for providing affordable HIV drugs, they are rapidly boosting the medicine portfolio across other therapy areas too.

There are several African countries which are on the lookout for Indian investment in tertiary healthcare domain and supply of affordable medicines to their population. The health of citi-zens has a direct implication and discernible impact on a coun-try’s economic and social prospects. Strengthening the African healthcare system is the key to improving future growth and developmental aspects in Africa.

PAN Africa e-Network for Tele-Medicine

African Union and India signed a proposal and an umbrella MOU through Ministry of External Affairs. Telecommunications Consultants India Limited (TCIL) was appointed by Govt. of

India as the turnkey implementing Agency of the project net-work through VSATs in 169 locations in Africa. Super specialty hospitals of India were selected for provision of Tele-Medicine such as All India Institute of Medical Sciences (A.I.I.M.S.) Del-hi; ESCORTS Heart Institute and Research Center, New Delhi; Moolchand Hospital, New Delhi; Fortis Hospital, Noida; Apollo Hospitals, Chennai; SRI RAMCHANDRA Medical College and Hospital, Chennai; NARAYANA Hrudayalaya, Bangalore; Health Care Global Enterprises, Bangalore; CARE Hospitals, Hyderabad; Amrita Institute of Medical Sciences (AIMS), Kochi; Dr. Balabhai NANAVATI Hospital, Mumbai; and Sanjay Gandhi PGI, Lucknow. The leading super specialty hospitals of Africa selected by the AU include Ibadan Hospital - Nigeria; Brazzaville Hospital - Re-public of Congo; Sir Seewosagur Ramgoolam National Hospital, Mauritius; and Alexandria University Hospital, Egypt.

The tele-medicine components provides online medical consul-tation for one hour everyday to each country for 5 years, offline advice for 5 patients per day to each country for 5 years, con-tinuing medical education for practicing Doctors and working Nurses/Physicians’ Assistants, to update their medical knowl-edge and upgrade their clinical skills. Out of total, the benefi-ciaries African Countries are 47 as of now. As a result, Pan-Africa e-network is connected with 17 Super Specialty Hospitals (India - 12, Africa - 5), integrating 100’s of specialist doctors of India and Africa, medical coordinators of African countries and ben-eficiary doctors, patients, nurses, paramedical staff, students, equipment operation staff in African countries, on this network.

Mobile Health (m-Health)

The mobile health market in Africa is poised to touch US$ 1.2 Billion mark by 20177. South Africa is poised to be the largest m-health market followed by Nigeria. Diagnostics and Monitor-ing services are anticipated to be the two biggest opportunities in the continent. There are over 100 m-health live projects and nearly 50 pilot projects running on the continent.

6IMS Health7PwC

• InfrastructureforHospitals/ClinicsandMedicalColleges

• Upscalingoftheexistinginfrastructure• Trainedmedicalprofessionals• Developmentofthegenericdrugsandvac-

cinesforendemicdiseases• Telemedicine• M-Healthapps• Researchprogrammesandtie-upswithIndian

Institutions

Healthcare Opportunities


Most of the current m-health deployments in Africa are in-clined towards supporting healthcare workers located in re-mote areas, collecting and transmitting disease and patients’ data. Indeed, nearly 75% of current mobile health deploy-ments in Africa focus on meliorating the efficiency of health-care systems and workforce. Countries like South Africa and Kenya are leading the mobile health deployments in Africa. Uganda, Mozambique, Malawi and Nigeria also marked a rise in the number of mobile health deployments over the past few years. Additionally, the factor which is supporting the m-health deployments is the fact that the mobile penetration in Africa is anticipated to surpass 80% by 2014 end. Mobile health deployments across Africa are poised to make a signifi-cant impact on bridging the healthcare access insufficiency. The continent is already witnessing a revolution in terms of expanding mobile health realm, and the very fact is antici-pates to propel the market to newer acmes.

Trained Medical Professionals

Hospitals and clinics in Africa often find it difficult to employ enough trained healthcare workers to deal with the ever in-creasing number of people needing healthcare services as not many doctors/nurses and paramedics are available. So there exists huge potential in terms of filling the gap of healthcare services seekers and healthcare services providers. More and more institutions/training centers should be opened up so that a higher number of healthcare professionals get degrees and come forward to serve their nation.

The reforms that African governments are likely to undertake over the next few years will pose critical to taking the health-care in Africa to newer realms. Novel healthcare delivery mod-els are under designing phase, as the concerned governments have now started to acknowledge the significance of preven-tive measures over curative actions.

8Indian Council of World Affairs (ICWA)

The reforms that African governments are likely to undertake over the next few years will pose critical to taking the healthcare in Africa to newer realms. Novel healthcare delivery models are under designing phase, as the concerned governments have now started to acknowledge the significance of preventive measures over curative actions.

5.2 EDUCATION AND SKILL DEVELOPMENT

Over half of Africa’s population is below 30 years of age. This vibrant resource, ‘the youth’, arms Africa with a contention edge in the 21st century, against its developed counterparts where there’s no lack of education, but lack of youth. This im-plies that the continent needs to cater to the demands of 77 million new students. Hence, if empowered with education, Africa’s treasure trove of resource in this century will be her youth.

Since 1964, India has been deploying and pursuing numer-ous training and skill development schemes under the Indian Technical and Economic Cooperation (ITEC) and Special Com-monwealth African Assistance Programme (SCAAP). This de-velopment cooperation has achieved greater salience under the process of economic globalization. In response to these new socio-economic imperatives, India Africa Forum Summit (IAFS)-I in 2008 marked a milestone in India’s development co-operation with Africa. Under the IAFS process, various policy initiatives, ranging from capacity building measures, including training, skill development, scholarships and institution build-ing, to line of credits (LOC) and grants, are announced to part-ner with Africa in its developmental endeavors8.

The India-Africa cooperation in the education sector has been burgeoning since the India–Africa summit was held in New Delhi in 2008. According to various industry estimates, there are approximately 50,000 African students in Indian universi-

ties, out of which nearly 15,000 are studying on Indian and Commonwealth scholarships. Expediting the same, India is in the process of establishing a cord of institutes and collabora-tions PAN Africa in order to facilitate the transfer of Indian ex-pertise and training standards to the continent. India is poised to back and smoothen the process of establishment of a dozen institutes, which comprise:


9Mr. Kumar Tuhin, (Former Joint Secretary, Development Partnership Administration-II, External Affairs Ministry)8Indian Council of World Affairs (ICWA)10Dr. Suresh Kumar (Former Head & Director, Department of African Studies, Faculty of Social Sciences, University of Delhi, INDIA)

• A diamond-training institute in Southern Africa;• An institute of administration, planning and education in

Burundi;• An institute of foreign trade in Uganda;• An institute for information technology in Ghana; and• A pan-African stock exchange institute in Egypt

Africa Education: Opportunity

Indian Technical and Economic Cooperation (ITEC)

Under capacity building programme via ITEC, the partner coun-tries send officials to India for training in fields of IT, entrepre-neurship and English language among others, or India sends its experts for advising on how to set up similar institutions. A crucial part of ITEC is the scholarships for courses in IT, English and entrepreneurship, offered to countries as part of capacity building, covering the airfare, course fee, accommodation, pro-ject allowance and living allowance. Around 900 slots were giv-en to African countries9. Considering the brimming popularity

of the ITEC programme in African countries, India’s Former PM Manmohan Singh allocated an additional 500 slots for African students at the maiden India-Africa Forum Summit held in New Delhi in April 2008. Over the years, India has spent around US$ 1 Billion over ITEC-related activities involving African countries10.

PAN Africa Network for Tele-Education

Different Indian Universities have been selected for providing Tele-Education services including Indira Gandhi National Open University (IGNOU), University of Madras, University of Delhi, Birla Institute of Technology & Science (BITS) Pilani, and AMITY University. The leading regional universities of Africa selected by the AU include Makerere University, Uganda; Kwame-Nkrumah University of Science & Technology- Ghana; University of Ya-ounde, Cameroon; and Alexandria University, Egypt. As a result, Pan-Africa e-network is connected with 12 Universities (India - 7, Africa - 5) and 100’s of educational experts/professors, na-tional coordinators, consignees, and university coordinators etc. of India & Africa.

Company Sector Projects

HCL Infosystems Ltd.

ICT/Educa�on

� Pan African e-Network Project for Tele-Educa�on

� Computeriza�on of schools; and

� Training labs for Nigerian Army College of Logis�cs (NACOL)

Na�onal Ins�tute of Informa�on Technology (NIIT)

ICT/Educa�on

� Providing ICT training in many African countries;

� In Senegal, NIIT is part of the Pan African e-network project.

� NIIT has trained nearly 150,000 students �ll date

� Is touching over 20,000 learners every year, through three dozen learning centres in 8 African countries such as Nigeria, Ghana, Senegal, Libya, Sudan, Botswana, South Africa and Zimbabwe.

NIIT/CII Educa�on� Confedera�on of Indian Industry (CII) and NIIT have entered into

an agreement to help create ICT infrastructure and foster Interna�onal So�ware Talent in the African con�nent

Coppice Technologies Pvt. Ltd

Educa�on

� Centre of Excellence in Dakar;

� Regional University Hubs in government run Universi�es;

� Teacher Training Ins�tutes; and

� Computer Labs in government run primary and secondary schools

Jindal Steel and Power Limited

Educa�on� The company awards scholarships to students from countries

across Africa where it operates

Amity University Educa�on

� Offering online IT degrees and diplomas to 100,000 students over the next five years

� The 100,000 IT students will be trained at 53 learning centers in the 53 African Union countries under the Pan-African E-network project

Bhar� Airtel Telecom� Bhar� Airtel has �ed up with African telecom operators Tigo and

Zantel for providing customers in Tanzania mobile money transfer service across network

Table 5-2: Indian Companies for Education in Africa

Source: Various Industry Sources

• Infrastructureforschools/vocationalinstitutesandColleges

• Upscalingoftheexistinginfrastructure

• Skilledteachersandhu-manresource

• MoreinitiativeslikeITECandSCAAP

• Tele-education• Onlineeducation• Researchprogrammesand

tie-upswithIndianInstitu-tions

Education and Skill Development Opportunities


Online Education

It is another area of ICT that could be of meticulous benefit to Africa. India is among the world leaders in this domain. In Africa, the escalating demand for further education and the swift pen-etration of Internet, further coupled with the shortage of skilled teachers and teaching infrastructure depict that the conditions are apt for sweeping growth of Internet-based study courses. In South Africa, the online education industry, to an extent, has already taken off, with the initiation of firms including EduNet and Thutong. There exists a significant potential for both India and Africa to collaborate on this front capitalize on the opportu-nity to tap into India’s expertise in the online education industry.

Setting up Education InfrastructureIn order to facilitate the education channel in African nations, the infrastructure for the same should be developed. More and more primary/secondary schools/education centers, colleges, vocational institutions should be opened with nominal fee struc-ture and easy admission procedure in order to encourage the youth to get educated and contribute in the growth of the na-tion.

Holistically, the African education sector is standing at the begin-ning of the new era, as it has stepped forward embracing the realities of social, economical, and political quandaries. The road to future success is not going to be smooth, but, as it is already underway, through PPP model, Africa's academic institutions are collaborating with the Indian institutions for gaining access to the Indian expertise in the fields of education, research, and services, thus tackling and sailing though the sea of challenges.

5.3 TEXTILE & LEATHER

Textile

In textile sector, India primarily exports fabrics and yarn to Af-rica. West African countries like Benin, Gambia, Ghana, Niger, Nigeria, and Togo; and East African countries including Kenya and Tanzania are the major buyers of Indian cotton fabrics. Also, Indian Cotton yarn is bought chiefly by Mauritius and South Af-rica, where exists a huge demand for the same on account of growing garments industry. On the continent of Africa, Tunisia and Morocco are known as clothing production countries, pri-marily for discount apparel. Ethiopia, Nigeria, and South Africa are the major textile trade partner countries of India.

For instance, South Africa is the top most consumer of clothing in the African continent and India is their 2nd largest clothing import partner. In 2011, South Africa imported apparels worth US$ 1.39 Billion from world11. India claimed a 5.2% share in the total import of ready-made garments (RMG) in South Africa, marking an increase of 21% as compared to 2010 in the apparel imports from India. Ethiopia's government is also starkly placing special emphasis on the textile industry as it anticipates achiev-ing an export of over a billion dollars worth of apparel by 2016. Ethiopia’s textile sector is amongst the key economic activities which spur the growth of the national economy. The Growth and Transformation Plan (GTP) has the core objective of maxi-mizing the utilization of existing production capacity, increase export earnings and promote investments in the sub-sector.

Moving in the same lines, Ethiopian Textile Industry Develop-ment Institute (TIDI) has signed an agreement with National In-stitute of Fashion Technology of India (NIFT) and South India Textile Research Association (SITRA) to collaborate in the area of capacity building.

On the other hand, India’s textile exports to Nigeria were worth US$ 138 Million in FY2012. Out of these, more than US$ 80 Million were constituted by man-made products12. The textile products imported by Nigeria include polyester/viscose yarns; polyester/viscose fabrics; polyester filament and spun fabrics; and made-ups such as shawls and scarves.

11Apparel India, Vol.1 Issue No.5, January 201312Indian Day Celebration at the 34th Kaduna International Trade Fair

• Infrastructurefortextilemills/cottonfactoriesandleatherprocessingunits

• Upscalingoftheexistinginfrastructure• Skilledmanpower• MoreinitiativeslikeC-TAPandMiniMissionIV• Researchprogrammesandtie-upswithIndian

Institutions

Textile & Leather Opportunities


Cotton

Africa exports nearly US$ 3 Billion worth of cotton to the world, although India is not among the large importers of African cot-ton. India in itself enjoys a strong foothold in the global cotton market backed by a strong textiles industry13. As per the Indian Cotton Federation, India imports about 2.5 lakh tonne of cot-ton from Africa annually through international merchants and traders primarily based in Europe. India’s Coimbatore region consumes over 10 million cotton bales (of 170 kg each) every year, and almost all of it is procured from Gujarat. For importing cotton from Africa, the time taken for delivery is more than 70 days. Moreover, issues such as variation in shade, contamination, irregular shipments, and lack of proper infrastructure need to be addressed.

Recently in 2014, a 16-member delegation from 6 African coun-tries had visited India, to explore the prospect of exporting cot-ton from their countries directly to the Indian textile mills, spe-cifically those based in Coimbatore and Tirupur. The delegation comprised Government officials as well as private players from the cotton and textile industry, from Benin, Burkina Faso, Chad, Nigeria, Uganda and Malawi.

Under the auspices of the 2nd India-Africa Forum Summit held in 2011, the Cotton Technical Assistance Programme (C-TAP) for Africa was initiated. The programme’s core objective is to strengthen the cotton value chain in Africa to reinforce the sec-

tor’s competitiveness via series of interventions including tech-nology transfer; post-harvest practices; downstream competence enhancement; and capacity building of diverse stakeholders. The C-TAP is being implemented in Benin, Burkina Faso, Chad and Mali (the Cotton-4), plus Malawi, Nigeria and Uganda. The col-laboration is expected to give rise to a pulsating and effervescent textiles industry in the cotton-producing African nations. India is also dedicated towards the establishment of an India-Africa Textiles cluster that would mobilize US$ 350 Million worth of Indian investments with an employment generation prospects of 25000 workers14.

Leather

Africa boasts of its expansive resource-base comprising livestock and production of raw material, however therein the productivity is marred with shadowy performance on low quality raw mate-rial production and shortage in terms of tangible initiatives in the value chain, except for a few countries like Ethiopia, Morocco, Algeria, and Egypt among others who are depicting sound per-formance.

Talking of Ethiopia, the manufacturing of leather and leather products is one of the areas which have been allotted priority in the GTP. Moreover, India imported US$ 9.66 Million worth of raw hides & skins and leather from Ethiopia in 201115. Currently, there are 28 tanneries and 18 mechanized operational medium and large footwear factories in the formal leather sector of Ethiopia. A significant opportunity exists in leather footwear, glove, bags, wallets, belts, saddlery, cases and containers, jewelry boxes, purses, leather garment, leather chemicals, accessory and com-ponents for leather products like molds, lasts, sole, shoe box, cutting dyes, insoles, shanks, leather upholstery like high quality sofa, chairs and vehicles seats among others.

In order to benefit from the country’s strong raw material base and the marketing opportunities, the Government of Ethio-pia has established the Leather Industry Development Institute (LIDI) with the main objective of producing trained professionals, conducting research and development activities, rendering con-sultancy services and providing technical support to the sector. Moreover, LIDI has signed an agreement with Footwear Design Development Institute (FDDI) of India and Ethiopians are being trained in various leather technologies in the India.

Despite Africa’s persistent effort to gear itself up to get a stake in the textile and leather industry, the continent still suffers from numerous unresolved problems, like logistics, corruption as well as civil security issues. The African textile and leather industry' hold enormous potential to curtail the escalating unemployment and poverty levels and fuel economic growth.

13World Trade Organisation (WTO)14World Trade Organisation (WTO)15Directorate General of Commercial Intelligence and Statistics (DGCI&S)


The FDI in Africa rose 4% to US$57 Billion in 201316 , driven pri-marily by infrastructure investments. The African countries’ gov-ernments have been taking various political and policy measures to propel the economic growth, thereby creating investment and business opportunities for Indian companies. India has commit-ted US$ 10 Billion to infrastructure and development projects in Africa since 200817 . India's key investment destinations in Africa include Ethiopia, Egypt, Ghana, Kenya, Mauritius, Mozambique, Nigeria, South Africa, Sudan and Tanzania. So far, the number of destinations of Indian overseas investment in Africa has increased with Uganda, Zambia, Zimbabwe, Liberia, Mali and Rwanda18.

Leading engineering and consulting companies of India have played a crucial role in developing African infrastructure. As a matter of fact, Indian construction companies have deployed significant investments in Africa to construct roads, rail lines and ports in various African nations. Particularly, public sector firms including RITES and WAPCOS have executed some of the most challenging infrastructure projects in Africa. Moreover, the Indian Commerce and Industry Ministry offers buyers credit facility for sustaining Indian companies’ participation in African infrastruc-ture projects. Indian lines of credit have already expedited the expansion of power sector and development of railway network in Ethiopia.

In order to facilitate the investment in infrastructure, the deci-sion to set up Project Development Company (PDC) has been taken. The company will be supported by leading financial in-stitutions of India led by EXIM bank, State Bank of India (SBI), ILFS and in the partnership with the African Development Bank (ADB). PDC will focus on sustaining large infrastructure projects in Africa as well exports from India. Moreover, BRICS emerging market nations established a US$ 100 Billion development bank and a currency reserve pool earlier this year. The bank, intended to facilitate funding infrastructure projects in developing nations, will be based in Shanghai, China, and India will preside over its operations for the first six years19.

Africa has witnessed fundamental changes over the past few years which in turn has propelled demand for infrastructure ser-vices such as energy, transportation, ICT, water supply, growing agriculture and urban infrastructure. African nations now need entirely new logistics networks linking roads, railways, airports, and warehouses; and new electricity grids to power them.

Persistent power problems have been impeding the growth and productivity of over 30 African countries. Scarce power genera-tion capacity, inadequate electrification, unreliable services, and heavy electricity prices act as major bottlenecks in the respective sector. In order to iron out these predicaments, African nations will have to spend over US$ 40 Billion annually over the next decade. African nations need to take crucial steps for improv-ing the power utilities’ efficiency. A profoundly healthy regional system for trading power is the solution to harbouring Africa’s hydropower potential and intensifying the use of other efficient power generating technologies.

5.4 INFRASTRUCTURE & POWER

• Developmentofcommercial/residentialcom-plexes,road/rail/portnetwork,andware-houses

• Developmentofelectricitygrids/powersta-tions/dams/hydel,thermalpowerstations

• Upscalingoftheexistinginfrastructure• Skilledengineers/technicalgraduates

Infrastructure and Power Opportunities

16UNCTAD's World Investment Report 201417Mr. Anand Sharma, Former Indian Commerce and Industry Minister18PHD Chamber196th BRICS Summit th BRICS Summit


Africa has both water and land in abundance hence providing a supportive framework to the agribusiness. In Africa, agribusi-ness and agro-industries account for more than 30% of national incomes as well as the bulk of export revenues and employment. Africa is looking forward to strengthen its ties with various coun-tries, including India, in the agribusiness and food-processing sector. An emerging, productive and modern agricultural sector may also act to engage youth in the agricultural sector. African agribusiness sector was reportedly worth US$ 313 Billion in 2013 and by 2030 the sector may provide for over 70% of the jobs on the continent, and its value could triple to US$ 1 Trillion20 with a potential to lift millions out of poverty. Moving in sync with the trade promotion and investment facili-tation strategy, particularly in agribusiness and food processing several initiatives have been taken by the government of African nations and India. For instance, South Africa recently showcased its interest in the Indian food processing and agriculture sectors. In the first ever 'South Africa Week', the country showcased the technologies related to food processing and agriculture sector. Moreover, Mr. Daniel Kablan Duncan, Prime Minister of the Re-public of Cote d'Ivoire (Ivory Coast), pitched for investments from Indian companies particularly in agriculture and food processing, apart from several other sectors. On the other hand, India has undertaken measures to help Africa set up agri-business centres, seed incubators, modern laboratories and joint projects as part of an enhanced partnership in agriculture to achieve food and nutrition security, promote entrepreneurship and create a trillion-dollar food market by 203021.

In terms of expansion, Maharashtra’s Rajarambapu Patil Sahakari Sakhar Karkhana Ltd, a sugar cooperative, planned expansion in Africa as it signed an agreement with the Republic of Mozam-bique to lease land for setting up a cooperative sugar factory. Furthermore, Allanasons Ltd., an Indian food company, has plans to invest US$ 20 Million in Ethopia in a meat-processing plant. The company seeks to capitalize on the large population of cattle and sheep.

So, in order to promote further investments in African nations, specifically in the agri business and food processing domain, an enabling business climate must be developed through govern-ment and international partnerships and PPPs. Structural reforms are required to encourage investment in the sectors and a proper infrastructure plan in order to curtail wastage between the farm and the market place.

5.5 AGRIBUSINESS & FOOD PROCESSING

20World Bank21Asia-Africa Agribusiness Forum Meeting

• InfrastructureforFoodprocessingunitsandagriculturerelatedresearch

• Upscalingoftheexistinginfrastructure• AgricultureandFoodtechnology• Skilledfarmers/technicians• Researchprogrammesandtie-upswithIndian

Institutions

Agribusiness and Food Processing Opportunities

Challenges6.

22

Unstable Business Environment: The continent has been witnessing the catapulting turn of events wide-ly known as the ‘Arab Spring’ in countries like Libya and Tunisia. The countries witnessed months of unrest that meddled with the normal civilian life and also diminished the trade prospects. Moreover, the recent activities of ‘Boko Haram Terrorist Group’ in Nigeria have further cre-ated a ripple of fear in the country and fueled the risk of running a business or investing in African continent. Ebola scare has further escalated the predicaments sur-rounding the business prospects in Africa.

Bottlenecks in Trade/Investment: There is a huge gap in terms of access to consumers and markets due to infra-structure disparities. Moreover, poor availability of basic things like electricity, coupled with unclear policies and regulations, lack of skilled human capital, soaring level of bureaucracy, etc. have further fueled the problem. Moreover, lack of adequate banking/financial facilities, low reliability of local partners, low hearted recognition of brand India, non-acceptance of In-dian degrees are among the foremost barriers and predicaments which the traders and investors are facing today.

Tough Entry in Pharmaceutical Sector: There exists stringent competition in the Africa’s pharmaceutical sector. Several generic players are operating therein. The biggest hurdle although is the laggard working of the regulatory bodies. There huge requirements in place with which new entrants have to comply for registrations, licensing, distribution, authori-zation, and product testing etc. Such factors act as deterrent to trade prospects.

Poor Logistics and Infrastructure: Some of the major business/trade related issues include high transport and logis-tics costs. Deep rooted systemic issues such as infrastructure bottlenecks, trade facilitation issues, underdeveloped capital markets, and asymmetry of information have further restrained the growth of bilateral trade ties between India and Africa. Additionally, non-tariff barriers including informal controls, customs delays and red tape issues are direct trade-related concerns that have been raised by Indian/African traders.

Lack of Bilateral Investment Treaties: Currently, India has only 5 bilateral investment treaties (BITs) with African countries which include Egypt, Ghana, Mauritius, Morocco and Mozambique. This number does not look very impressive when such high level trade talks are going on or when the investment and trade ties or two developing economic giants are at stake22.

Low Education Level: There lie other challenges like lack of education and low awareness. This is primarily because the penetration of education is quite low which has lead to shortage of skilled professionals. This in turn has given rise to poor paying capabilities and limiting the options of integrating the local talent pool in the operations of Indian companies establishing business in African continent.

22United Nations Conference on Trade and Development (UNCTAD)

• Unstablebusinessenvironment• Bottlenecksintrade/investmentroutes• Stringententrynormsforpharmaceutical

sector• Poorlogisticsandinfrastructure• LackofBITs/tradepacts• Loweducationandawarenesslevel

Challenges


Implementation of ICT for Healthcare and Education: As the tele-medicine and tele-education network is al-ready in place, and the implementation is occurring at a swift pace, both sides must try to facilitate its expansion by estab-lishing more healthcare nodal points and education centers across the continent.

EducationSharing best practices of the Indian education system chiefly in primary and secondary education would be highly helpful. Indian schools may also be opened in Africa. Other key universities of India including IITs and IIMs could be empanelled on Tele-education network. Setting up an India-Africa University in Africa would be an excellent platform for boosting capacity building initiatives and would also act as a catalyst for changing mindsets. Moreover, assistance to African countries to set up vocational institutes for creating a pool of skilled human resource should also prove constructive.

HealthBoth India and African nations must develop tailored health programmes for African citizens, keeping in mind the cultural sensitivities. More number of medical colleges and hospitals must be established. On tele-medicine network, other major hospitals of India must be empanelled and more remote/mobile healthcare centers must be established. Moreover, generic pharmaceuticals and vaccines for the endemic diseases like malaria, ebola, polio etc. must be developed and provided to the Least Developed Countries on the African continent. Additionally, as discussed earlier, there exists a huge opportunity in terms of m-health as the number of internet users is increasing on the continent. The requirement for content develop-ment, mobile/tab apps, real time telemedicine devices, and network setup is substantial as it can prove to be a time leap for the African nations.

Signing MoUs/BITs and Preferential Trade Agree-ments: More and more Indian firms/hospitals/education institutions etc. should sign MoUs with African counter-parts so as to facilitate the delivery of healthcare, education, technology and other much required services and products. Furthermore, government of both sides should sign addi-tional treaties as it cushions the reliability, trust, financials, and other trade related aspects for traders across the coun-tries in concern. So BITs can certainly afford and provide the protection needed by Indian companies looking to invest in other African countries. Apart from BITs and MoUs, prefer-ential trade agreement is another way of facilitating trade between the continent of Africa and India. Moving in the same line, both Indian and Africa agreed for early finaliza-tion of the India and SACU preferential trade agreement in order to secure the economic progress of both the develop-ing regions against fluctuations in the Western countries. Such agreements are likely to expedite the cooperation in areas including infrastructure and human resource develop-ment, thereby enhancing economic ties.

Opening of Bank/Trade Facilitation Center Branches in Africa: In order to promote trade and iron

out the trade related aspects, the major industry bodies/trade promotion councils/banks/financial institutions etc. should establish branches/offices in African countries. For instance, Exim Bank has opened a branch in South Africa to promote bilateral trade. Additionally, an India-Africa Business Council (IABC) was also set up in 2012 with the objective to have an institutional platform for unrelenting exchange of business communities between India and Africa. Such moves not only offer credibility to the trade ties and intent of promoting investment, but they also act as centers wherein local and Indian traders can enquire and ask about any assistance which they require, thereby negating the issues and challenges faced while cross-border communication.

Capturing the Opportunities: The Road Ahead7.

23

• Capacitybuildingandupscalingoftheexistinginfrastructureforeducation,health-care,textile/cotton,andleathersectors

• ImplementICTforfacilitatingeducation/healthcaredeliverytotheremotestcornerofthecontinent

• Signmoretradeagreements/treatiesforen-suringsmoothtradeandinvestmentflow

• MoreAfricafocusedprojects/initiativesshouldbeimplemented

• Ironoutbottlenecksintrade/investmentroutes

• SupportivePolicyframeworkfortradepro-motionshouldbeestablished

• Tradefacilitationcenters/branchesmustbeestablishedintheAfricannations

• Establishsmoothlogisticsinfrastructure• Promoteeducationandawareness

The Road Ahead



Africa Focused Projects: There exists remarkable value in engaging Indian SMEs and supporting Indian investments in East Africa. In order to leverage the same, India must pursue various projects and exhibitions. Moving in the same direction, International Trade Center (ITC) and Exim Bank have signed an agreement to co-operate on the project of Supporting India’s Trade Preferences for Africa (SITA), which will run from 2014 to 2020. The six-year project is aimed at promoting exports from five East African countries viz. Ethiopia, Kenya, Rwanda, the United Republic of Tanzania and Uganda - to India through in-vestment and skills transfer from the Indian side. SITA, funded by the UKs Department for International Development (DFID), will be driven by the Indian private sector and supported by the public sector. Moreover, India has approved expansion of the Technical Assistance Program on cotton for Africa to cover Mini-Mission III (development of Market yards) and Mini Mission IV (development of cotton ginning and pressing factories) to be implemented by Ministry of Textiles . In this way focused projects like NEPAD (New Partnership for Africa's Development) could be devised and implemented for trade augmentation.

Trade/Commerce Body(s) Initiatives: Not just the government and private sectors’ efforts are required, but the trade bodies’ active involvement is also necessary for capturing the opportunities existing in the African continent. The various com-merce chambers of India can pitch for India-Africa trade facilitation by sending their delegations to the Africn nations and sign MoUs or trade pacts or pave for extracting funds from the government in order to promote trade related activities.

Trade Promoting Policy Framework: The Department of Industrial Policy and Promotion (DIPP), India, has identified Africa as one of the crucial geographies where Indian companies are encouraged to make investments. For capturing oppor-tunities in sectors like IT, telecommunications, automobiles and energy, the policy framework should be supportive for Indian firms. Indians firms are prepping up the investment in other regions of Africa too, partly facilitated by the up gradation of Indian Government’s policy framework with regards to international investment as it eliminated per annum upper limit of US$ 100 Million for automatic approval in March 2003 and enabled Indian entities to invest to the extent of 100% of their net worth. The limit of outward FDI has been increased to 400% since then.

Furthermore, in order to develop trade with Africa, India recently amended its Duty Free Tariff Preference (DFTP) scheme to cover around 98% of the tariff lines. Under the respective scheme, import of most products from least developed nations to India will attract lower duties. The government is also considering the expansion of the Lines of Credit to Africa. Just like this, other measures including easing the foreign trade policies; tax regulations and concessions; and ironing out the infrastructure and investment bottlenecks among others, should also be implemented in order to broaden the horizons of India's bilateral arrangements with African nations.


NOTES


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