Modi announces $10b fund for African nations

In a major outreach to African countries, Indian Prime Minister Narendra Modi yesterday announced a concessional credit line of $10 billion for them, in a move many perceive as playing a catch-up with China's bigger presence in the countries of the continent.

Addressing the biggest-ever India-Africa Summit in India, he also offered a grant assistance of $600 million, which will include an India-Africa Development Fund of $100 million, an India-Africa Health Fund of $10 million, expansion of Pan Africa E-Network and institutions of skilling, training and learning.

“To add strength to our partnership, India will offer concessional credit of $10 billion over the next five years. This will be in addition to our ongoing credit programme,” Modi said.

He spoke in front of the heads of states and government of more than 40 African countries at the Indira Gandhi Indoor Sports Stadium, which is located near the bank of Jamuna river.

India had earlier provided $7.4 billion in soft loans and $1.2 billion in aid since the first India-Africa summit held in 2008.

Modi unleashed the charm offensive on African leaders not only by loosening the purse strings but also by articulating a "partnership of prosperity" and pitching a broad alliance for global reform with a continent gifted with vast natural resources and the world's fastest-growing population.

Modi travelled back and forth in time recalling the civilization links between India and Africa through trade and movement of people between the two continents, India's unflinching support for African countries' struggle against colonialism and laying out a roadmap for the future.

Modi said India and Africa must speak with one voice on global matters, including reform of the United Nations.

India aspires to a permanent seat in an expanded UN Security Council, contending that it is rooted in the post-war global order and fails to reflect the realities of today's power relations.

He also sought African support on trade, saying a World Trade Organisation ministerial meeting in December in Nairobi should ensure that free trade talks serve both regions' goals.

India is pressing for a permanent deal on food stockpiling; an issue that has complicated the long-running Doha Round, arguing that it must hoard food to ensure food for its 1.25 billion people.

Modi also appealed to the African countries to join an alliance of "solar-rich" countries at the forthcoming UN climate change summit beginning in Paris next month to promote clean and affordable energy.

"When the sun sets, tens of millions of homes in India and Africa become dark. We want to light up lives of the people and power their future," Modi said.

“We want to do it in a way that the snow on Kilimanjaro (hills) does not disappear, the glacier that feeds the River Ganga does not retreat and our islands are not doomed."

“When terror snuffs out life on the streets and beaches, and in malls and schools of Africa, we feel your pain as our own. And, we see the links that unite us against this threat. When nations are caught in conflict within, no one around remains untouched.”

“And, we know that our cyber networks bring opportunities but also carry huge risks. So, when it comes to security, distance no longer insulates us from each other,” he said.

“That is why we wish to deepen our cooperation in maritime security and hydrography and countering terrorism and extremism; and, why we must have a UN Comprehensive Convention on International Terrorism.”

India says it is not in any race with China to assert its dominance in Africa. China's annual trade with Africa stands at $200 billion as against India's $74.2 billion.

Instead, India has focussed on its soft power like information technology and capacity-building in Africa as against China's extraction of natural resources and deployment of its own personnel in Africa which has drawn a backlash from African countries.