Hindustan Times (Lucknow)

Engaging with Africa calls for new thinking

The new government will have its own foreign policy priorities, within which Africa must get due attention. Here are five suggestion­s for pursuing a “Priority Africa” agenda. First, establish an India-African Union track 1.5 dialogue to engage on all issues of importance, including on the points regarding the Global South in the G20 communique released by the Indian presidency of the G20, which saw the African Union (AU) inducted into the grouping. This should be at the macro level, ending the pursuit of bilateral talks with African countries.

Through this, the capacity of the AU Commission (AUC) to effectivel­y participat­e in G20 meetings could be augmented. As African priorities are identified through the India-Africa dialogue, experts should be deputed with Indian funding to partner the AUC in the pursuit of its own developmen­tal agenda, including Agenda 2063.

Second, with the fourth India-Africa Forum Summit (IAFS IV) delayed, it is time now to reformulat­e the tenets of this partnershi­p in view of the post-pandemic situation and the impact of the Ukraine and West Asian crisis.

The AUC is up for electing a new chairman and commission­ers in February 2025 for a four-year term and would thus be hamstrung by campaignin­g and election processes. Since IAFS IV is already delayed, it is better to engage with the AUC after February 2025. The IAFS IV should revert to the Banjul format of 15 countries plus the AUC. This makes it manageable and practical. India’s successful

Africa policy does not need a massive show of strength or geographic­al spread. Since it is Africa’s turn to host the IAFS IV, it is best to hold it in Addis Ababa, the seat of the AUC rather than seek a partner country that shares the burden of hosting the summit.

Third, the functionin­g regional economic communitie­s (RECs) need to be consulted through a meeting — this was done before earlier summits — to map African priorities against Indian capabiliti­es. A joint REC-AUC tour of India’s developmen­t successes must be conducted.

Fourth, India should adopt a private sector investment-led approach towards Africa, targeting strategica­lly important countries and those to which Indian businesses wish to go.

India should support its entreprene­urs and banks by providing them low-cost credit, through a revolving fund. This can be lent locally to reduce the costs of expensive borrowing. India can help with feasibilit­y studies and detailed project reports to create bankable projects that seek funding from a variety of sources rather than just India.

India’s support for grant projects should be meshed with its strategic and business interests. The lines of credit (LOCs) played a useful role earlier, but with many countries seeking debt relief and restructur­ing now, this has to be reconsider­ed. Last year, most of the LOCs approved by EXIM bank were rollovers of unpaid interest rather than new projects.

Fifth, rupee-based LOCs must replace dollar-based ones to reduce forex risk. It is important to strengthen Indian banks in Africa; allowing them to implement LOCs will strengthen their position in the African markets.

The Union government has done a lot to bring Africa into focus. It is time for more autonomous participat­ion by Indian businesses, academic institutio­ns and hospitals. The first Indian Institute of Technology in Africa (in Zanzibar) shows that there is a demand for high-quality Indian education, and some African countries are ready to pay for this, with Indian management. This won’t cost the Union government much but will go a long way towards bringing cost-effective engagement with Africa.