Africa, India, China: The New Game

Why? Both India and China want Africa's resources to feed their growth

Updated on: 7 February 2024 6:02 pm

The Wooing

China began wooing Africa in earnest in the late 1990s. It held asummit with 35 heads of state in Beijing in 2006.
India began reorienting its Africa policy in 2004. It made a concerted effort to ease procedures for extending lines of credit, and spread its geographical footprint in western and central Africa.

Head-To-Head

China is already Africa's third largest trading partner at $50 billion with a goal to reach $100 billion by 2010
India's current trade with Africa stands at $25 billion
Chinese investment in Africa is worth $8 billion
India's official investment in Africa is around $2 billion and privatesector at $5 billion
But India has several advantages over China. India's technologies are better suited to African conditions. Africans want India's IT prowess and its flagship companies enjoy recognition.

The Strategy

China's strategy is aggressive. The Chinese government and state-owned companies work to capture resources in various African countries, offering sky-high prices.
India's policy is to make small but significant inroads
Indian government policies are not closely tied to its private sector

The Response

The huge Chinese presence in the shape of small ‘Chinatowns’ has sparked local resentment. Congo shut down three Chinese companies and expelled 600 Chinese. China is seen to be dumping cheap goods.
Indian presence is smaller. India wants to build basic infrastructure, not just grab and run.

African leaders for the Delhi summit