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Africa, India, China: The New Game

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

Africa, India, China: The New Game
Africa, India, China: The New Game
outlookindia.com
-0001-11-30T00:00:00+0553
The Wooing
  • China began wooing Africa in earnest in the late 1990s. It held a summit 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 private sector 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

Abdelaziz Bouteflika, President Algeria

 

 

Joseph Kabila Kabange, President Congo

 

 

Mwai Kibaki, President Kenya

 

 

John Kufuor, President Ghana

 

 

Thabo Mbeki, President South Africa

 

 

Yoweri Kaguta Museveni, President Uganda

 

Also Attending:

Maitre Abdoulaye Wade President Senegal

Meles Zenawi Prime Minister Ethiopia

Tertius Zongo Prime Minister Burkina Faso

Mrs Fayza Abou El Naga Minister of International Cooperation Egypt

Ali Abdul Salam Altreki Secretary African Union Affairs

Goodluck Jonathan Vice-President Nigeria

Jakaya Mrisho Kikwete President Tanzania

Ryupiah Banda Vice-President Zambia

Prof Alpha Oumar Konare Chairperson African Union Commission

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