focus africa final11

8/7/2019 FOCUS AFRICA FINAL11

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` RAPID ECONOMIC GROWTH

` IMF RAISED ITS GROWTH FORECASTS FOR

AFRICA

` POLITICAL STABILITY` RISING MIDDLE CLASS

` ABUNDANT NATURAL RESOURCES

` VAST BUSINESS OPPORTUNITIES


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GEOGRAPHY


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Total population: 0.819 billion

Population growth: 2.5%

Life expectancy at birth: 52 years

Infant mortality per 1,000 births: 89Female youth literacy: 67%

Number of people living with

HIV/AIDS

22.3 million

GDP per capita $624


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` In 2008-09, bilateral trade between the two countries:

South african exports $5.44 million

Indian exports -$1.97 billion .

` In 2010 the exports to Central Africa amounted to $ 278 milion,whereas it was $2.6 billion for the rest.

` Exports to Central Africa stood at a meager $278 million.

` While shipments to the South, East and West African regions werein the range of $2.6 billion during the April-January, 2010, period.


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2005-06 2006-07 2007-08 2008-09 2009-10

Apr Dec

Indias

total

trade

with

Africa

11,892.39 19,770.29 26,467.55 30,295.16 21,712.41

Total

exports

from

India to

Africa

7,013.56 8,407.53 11,539.57 11,354.82 7,606.26

Totalimports

of India

from

Africa

4,878.83 11,362.76 14,927.98 18,904.34 14,106.15.


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Growth in export volumes

Source: UNCTAD (2009), Trade and Development Report, 2009

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2003 2004 2005 2006 2007 2008

World Developed Develop ing Africa


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Growth in import volumes

Source: UNCTAD (2009), Trade and Development Report, 2009

0%

2%

4%

6%

8%

10%12%

14%

16%

18%

20%

2003 2004 2005 2006 2007 2008

World Developed Develop ing Africa


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Exports (value) Imports (value)

Source: DNA, ITC TradeMap Database, values are in US$ billions

-

100

200

300

400

500

600

700

2001 2002 2003 2004 2005 2006 2007 2008SSA North Africa

-

50

100

150

200

250

300

350

400

450

500

2001 2002 2003 2004 2005 2006 2007 2008SSA North Africa


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Inward FDI inflows, US$m

Source: UNCTAD (2009), FDI Database

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

2000 2001 2002 2003 2004 2005 2006 2007 2008

Developed (incl. Transition) Africa Latin America and Carribean Asia (incl. Oceania)


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Inward FDI inflows, US$m

Source: UNCTAD (2009), FDI Database

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2000 2001 2002 2003 2004 2005 2006 2007 2008

Eastern Africa Middle Africa Northern Africa Southern Africa Western Africa


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` AGRICULTURE

` PHARMACEUTICAL PRODUCTS

` EDUCATION & IT

` COMPUTER HARDWARE AND RELATED PRODUCTS

` CONSTRUCTION MACHINERY AND HEAVY EQUIPMENT

` DIAMONDS AND GEMS AND JEWELERY

` INFORMATION TECHNOLOGY

` ENGINEERING GOODS & COMMUNICATION


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` Drugs & Pharmaceuticals` Cotton yarn Fabrics

` Machinery and Instrument

` Inorganic / Organic Chemicals

` Plastic & Linoleum Products

` Primary & Semi finished iron and steel

` Transport Equipment's

` Glass / Glassware and Ceramic products


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` Food processing

` Textiles & Readymade garments

` Footwear

` Timber & wood products` Cement plant

` Exploration of mineral services

` Tourism


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` Machinery & instruments` Drugs and Pharmaceuticals

` Cotton yarn and fabrics

` Transport Equipment

`

Iron and Steel Bars/ Rods` Auto Components, spares and parts

` Inorganic and Organic chemicals

` Footwear

` Spices

` Glasswear

` Paints

` Cosmetics


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` Sugar

` Textiles

` Cement

` Chemicals` Light engineering industries

` Food & agro processing

` Tourism


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` Drugs & Pharmaceuticals

` Dairy products

` Cereals and Preparations

` Meat and meat products` Rice


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` Telecom

` Water treatment projects

` Irrigation

` Industrial air conditioning` Light engineering

` Civil construction


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` Machinery & instruments

` Transport Equipment

` Manufacturer of metals


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` RMG Cotton including accessories

` Inorganic &Organic Chemicals

` Paper, wood products

` Plastics and linoleum products

` Transport equipment


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` Drugs & Pharmaceuticals` Machinery & instruments` Transport Equipment`

Auto Components spares and parts` Leather footwear` Rice` Spices`

Plastics` Iron & Steel bars/rods` Food processing


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` Fine Chemicals

` Inorganic Organic chemicals

` Paper wood products` Manufacture of Metals

` Machinery and Instruments


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` Preferential Trade Agreement / Free Trade Agreement

` Enhanced Interaction

` Institutional Mechanisms

` Trade Missions

` Trade Promotion Measures

` Role of National Centre for Trade Information (NCTI) inproviding useful Trade Information


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` India African Forum.` Focus Africa initiative by the Commerce

Ministry

` India Development Initiative by The FinanceMinistry.` Funding mechanisms by the Ministry of External

Affairs

` A.Ps deal with Kenya and Uganda.` Strategic plan of Department of Commerce

reached a benchmark of $8.36 billion by 2010.


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` Feasibility and pre-feasibility reports

` Foreign Trade Policy for 2009-14, announcedmarket-linked incentives for exports to Africancountries.

` Indias Exim Bank has extended Lines of Credit(LOCs) for the COMESA Region to support exportof eligible.


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` 2006-07

x INDEE CAIRO together with MACTECH 2006, Cairo, Egyptx India Pavilion at SAITEX 2006, Johannesburgx Multi Product Trade Delegation to South Africa, Botswana,Mozambique &

Namibiax INDIA ENGINEERING MEET , New Delhi

` 2007-08

x India Engineering Exhibition (INDEE), Johannesburgx Multi Product Trade Delegation to Algeria & Moroccox Tanzania Intl. Trade Fair combined with BSM at Kenya & Ugandax Indo Africa BSM at Coimbatore

` 2008-09

x Multi Product Trade Delegation to SADC & West or North African Countriesx INDUSMACH at Dar-e- Salaam,Tanzaniax

Indo Africa BuyerSeller Meet at Kolkata and Mumbai` 2009-10

x Multi Product Trade Delegation to African Countriesx Inndia Pavilion at SISTEP 2009, Casablanca, Moroccox Indo Africa BuyerSeller Meet at Kolkata and Mumbai


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` Infosys Technologies, offered Finacle 10 and FinacleFinancial Inclusion solution for banking transformationand power innovation for banks in East Africa.

` TCS, to enterSouth Africa in 1995

` The Indian outsourcing company Tata ConsultancyServices has a business unit in South Africa

` Indian Company VNL to Launch Low-Cost, Solar BaseStation targeted at African operators RussellSouthwood


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Products Potential Market

Machine for textile apparel & Leather

Products

Tanzania, Kenya & Congo

Medical & Surgical equipments Ethiopia

Motor Vehicles Egypt, South Africa, Algeria

Structural Metal products & parts

thereof

Nigeria, South Africa, Sudan, Ethiopia,

Namibia

Ovens & Furnaces Nigeria, Tanzania, South Africa

Special Purpose Machinery & Parts

thereof

Nigeria, Kenya, South Africa, Egypt,

Algeria

Fabricated Metal Products Tanzania, Mozambique, Egypt, Tunisia.


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` Sub -saharan Africa accounted for only 6.3% of indias exports and9.0% of indias imports in 2006

` Commercial information about several sub saharan Africancountries is not readily available

` Lack of knowledge of specific projectssub saharan Africa

` Wrong perceptions exist in sub saharan Africa about the poor qualityofIndian products

` Advisable to have local partners, a mechanism for identifyingreliable partners in sub saharan African countries.

` Need for the buyers and the sellers to directly negotiate with eachother


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` Identify products on comparative cost advantage on account of resource

endowments and technological capabilities` Encourage counter trade

` Identify and draw more on each other experience, technology expertise andresource

` Undertake joint marketing and promotional strategies for common products

` Engage in joint harnessing of natural resource

` Identify specific projects and areas for setting up of joint ventures andcollaborations especially at the small and medium enter prose(SME) level

` Create joint research and development

` Encourage people-to-people and institution-to-institution

` Ensure manpower training and human resources development

` institutionalise mechanisms for exchange of commercial intelligence andinformation on business opportunities and available technologies


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