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Africa and India – A shared development agenda

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Africa and India – A shared development agenda

12th May 2017

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I ndia has a long tradition of South-South cooperation and is continuously expanding its partnership with Africa. India’s bilateral trade with the continent has risen five-fold in the last decade, from USD 11.9-billion in 2005-06 to USD 56.7-billion in 2015-16.

By 2018 it is expected to reach USD 100-billion. India’s private sector is largely responsible for this remarkable trend due to strong interest in the continent’s high-growth markets and mineral rich reserves. From 1996-2016, Africa accounted for
nearly one-fifth of Indian overseas direct investments, with Mauritius, Mozambique, Sudan, Egypt and South Africa as the lead investment destinations.

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India is the fifth largest country investing in the continent, with investments over the past 20 years amounting to USD 54-billion, 19.2% of all its total foreign direct investment.

Manufacturing accounts for more than half of the foreign direct investment ventured into Africa’s telecommunications, energy, computer services, power and automobile sectors, in particular. Infrastructure, a priority for the Africa region, is also a major area of India’s investment. Indian construction and telecommunication companies have financed roads, ports and telecommunication networks in several African countries.

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