Saji Chacko
AS the global race for influence in Africa intensifies, India’s diplomatic and economic engagement with the continent is entering a crucial phase. Prime Minister Narendra Modi’s initiatives reflect a growing recognition of Africa’s strategic importance in global geopolitics and economics.
In the context of rising Chinese dominance in Africa, India’s approach emphasises sustainable development, capacity building, and mutually beneficial partnerships, in contrast to China’s debt-heavy investments. As China hosts the Forum on China-Africa Cooperation (FOCAC) this month, India’s evolving strategy in Africa – drawing on lessons from China’s deep engagement – takes centerstage.
Prime Minister Modi has made clear that India’s foreign policy vision rests on the principle of development, not expansionism or dependency. This commitment extends to Africa, where India’s partnerships aim to foster self-reliance, technology-driven growth, and value-added trade.
An essential partner
India’s diplomatic engagement with Africa, through the India-Africa Forum Summit (IAFS) and bilateral initiatives, has emphasised cooperation that enhances local capacities rather than creating economic dependencies. This contrasts with the debt-related concerns some African countries have faced after engaging with China’s Belt and Road Initiative (BRI).
As Modi continues to expand India’s global footprint, Africa is seen as an essential partner in India’s broader geopolitical and economic strategies. The continent’s natural resources, youthful population, and growing markets align well with India’s economic priorities, particularly in sectors like technology, agriculture, energy, and healthcare.
China’s influence in Africa has grown rapidly in recent decades, primarily through large-scale investments in infrastructure and natural resource extraction. The trade between China and Africa reached $167 billion by mid-2024, dwarfing India’s trade with the continent, which stood at approximately $89 billion. China’s Belt and Road Initiative (BRI) has seen Beijing pour billions into African countries, financing roads, ports, railways, and energy projects. In return, Africa has become a significant supplier of raw materials to fuel China’s manufacturing-driven economy.
African nations’ concern
However, this rapid expansion has not come without challenges. African nations have increasingly expressed concerns over their mounting debt to China. Beijing’s loans, which have accumulated to around $170 billion over the past two decades, are often seen as creating economic dependencies, prompting fears of a ‘debt trap’ diplomacy. Countries like Zambia and Kenya have faced challenges in repaying Chinese loans, raising concerns about the long-term sustainability of such partnerships.
India, watching these developments closely, has tailored its engagement with Africa to avoid similar pitfalls. Unlike China’s state-driven investments, India’s focus is on creating sustainable, mutually beneficial economic ties that empower local economies. This strategy aligns with India’s global development philosophy, which emphasises grassroots initiatives, capacity building, and the prioritisation of local needs.
Focus on technology
Whereas China has emphasized large-scale infrastructure development, India has carved out a niche by offering its technological expertise to solve local challenges. One of the standout examples of India’s soft power in Africa is the introduction of the Unified Payments Interface (UPI), a digital platform for financial transactions. Already being adopted in several African countries, UPI has proven that India’s tech-driven solutions can provide affordable, scalable benefits across sectors like banking, healthcare, and education.
Beyond technology, India’s expertise in climate-resilient agriculture has found resonance in Africa, where the agricultural sector is crucial to livelihoods but vulnerable to climate change. India’s low-cost, sustainable farming techniques and food processing technologies are attractive alternatives for African nations looking to improve food security and agricultural productivity without relying on heavy foreign investments.
Diversifying Investments
In the healthcare sector, India’s pharmaceutical industry has long been a lifeline for affordable generic drugs in Africa. As African countries seek to bolster their healthcare systems, India is wellpositioned to expand its role by offering innovative solutions, from telemedicine to low-cost pharmaceuticals. These partnerships highlight India’s approach of engaging with Africa through capacity building and technology transfer, which not only addresses local needs but also fosters long-term economic resilience.
India’s investment model in Africa focuses on sustainable growth and long-term collaboration, as opposed to the debt-driven approach that has characterized much of China’s involvement. Indian investments in Africa emphasise value addition, particularly in sectors like agriculture, where African nations can benefit from moving up the value chain rather than simply exporting raw materials.
Public-private partnerships (PPPs) are a cornerstone of India’s investment strategy in Africa, offering a more balanced and low-risk approach compared to China’s statefunded loans. In industries like manufacturing and energy, Indian companies have partnered with African governments and local businesses to create value-added products and services that benefit both sides. This includes the exploration of renewable energy projects, where India’s expertise in solar power could play a significant role in Africa’s transition to clean energy.
The emerging lessons
One area of emerging interest is critical minerals, which are increasingly important in the global supply chain for high-tech industries. Africa is rich in minerals like cobalt, lithium, and rare earth elements, and as India looks to reduce its dependence on China for these materials, it can offer African countries better terms and opportunities for value-added processing. This approach not only reduces India’s vulnerability in critical supply chains but also creates jobs and industrialization opportunities in Africa.
As China-Africa relations evolve, India’s policymakers are keenly studying the lessons emerging from China’s expansive but controversial engagement in Africa. While China’s massive investments have resulted in substantial economic growth for some African nations, the accompanying debt burdens have created significant economic stress for others. Countries such as Zambia and Sri Lanka, both heavily indebted to China, have faced difficulties in managing their repayment schedules, which has led to political and economic instability.
For India, the takeaway is clear: sustainable, mutually beneficial partnerships are more likely to endure than those based on debt-driven investments. India’s approach to financing in Africa includes rupeebased credit lines, blended finance models, and co-investments with African countries. These models offer lower risk and avoid the potential for debt dependence.
By focusing on sectors that provide direct benefits to local populations – such as agriculture, healthcare, and technology – India can create a more sustainable economic relationship with African nations. This strategy ensures that both India and Africa can grow together, without the economic vulnerabilities that have plagued China-Africa relations in recent years.
India’s diplomatic engagement with Africa has a long history, but in recent years, the India-Africa Forum Summit (IAFS) has been a key platform for advancing strategic partnerships. The last summit, held in 2015, laid the groundwork for increased cooperation in trade, technology, and security. However, there is now a growing need to reinvigorate this dialogue to ensure that India’s presence in Africa continues to grow. Given the strategic importance of Africa in global geopolitics, particularly in areas like energy security, trade routes, and global supply chains, India is keen to expand its influence across the continent.
Reaffirming its commitment to Africa through regular diplomatic engagements, including future summits, will help India solidify its role as a key partner for African development.
Inclusive development
As Prime Minister Modi seeks to deepen India’s ties with Africa, his vision is centered on development, mutual growth, and respect for sovereignty. With Africa emerging as a critical battleground for global influence, India is positioning itself as a reliable partner that offers long-term benefits without the burden of economic dependency. By leveraging its technological expertise, sustainable investment models, and a focus on capacity building, India can offer African nations a more balanced, inclusive path to development. As both regions look to the future, India’s renewed focus on Africa could mark the beginning of a new chapter in their shared journey toward prosperity and global relevance
