The India-Africa cooperation is about to undergo a dramatic transformation as both sides strive for economic self-sufficiency in order to protect their own economies from external shocks. India's reform approach resonates with Africa's objectives to establish self-sufficiency through speeding infrastructure development, industry growth, agriculture sector modernization, services sector expansion, digital transformation, and dependable healthcare services.
Over the years, India's style of collaboration with Africa has been demand-driven, consultative, and participatory, using local resources, backed up by capacity-building programs, and based on Africa's own prioritisation of its needs. The Indian government and business support Africa's pursuit of "Africa-owned" and "Africa-led" development. As a result, our country's involvement with Africa is guided by the overriding objective of increasing the region's self-sufficiency.
Today, as the historic African Continental Free Commerce Agreement (AfCFTA) gets traction following its implementation on January 1, 2021, India is eager to play a partnership role by investing heavily in physical infrastructure development projects critical to growing intra-regional trade. The continental FTA is intended to increase intra-regional trade from roughly 17 percent of Africa's overall commerce to an estimated 52 percent in five years, with tariffs removed on 90 percent of the commodities. Indian industry would be encouraged to establish firms in Africa's 230 special economic zones (SEZs) and profit from the expanded market access promised by the AfCFTA, while also contributing to the establishment of regional value chains, which are critical to Africa's industrialization.
The Indian business emphasised the importance of developing methods to increase investments in African infrastructure projects outside the government's lines of credit at the 16th CII EXIM Bank Conclave on India-Africa Project Partnerships (LoCs). Public-private partnership (PPP) would be the preferable path for Indian corporations channelling investments in Africa's infrastructure sector, and African nations might offer bankable projects in this regard. In recent years, there has also been a perceived need for more creative finance arrangements to encourage Indian firms to start and expand their presence in Africa. Debt funds, pension funds, green and blue bonds, among other things, must be considered for environmentally sensitive projects. This might be supported by efforts to expand Africa's equities and debt markets.
The pandemic has also prompted Africa's call to Indian business to direct investments in the region's public healthcare infrastructure and systems, medication and pharmaceutical manufacturing capacities, and tertiary healthcare institutions, while also partnering to create vaccine production capacity.
Through the second phase of the pan-Africa e-Network project—e-VidyaBharati and e-ArogyaBharati Network Project—India is also assisting Africa in bridging the digital gap. These plans call for 4,000 students to get five years of free tele-education, 1,000 doctors/nurses/paramedics to receive free medical education, and 1,000 doctors/nurses/paramedics to receive free medical consultation.
The longstanding India-Africa cooperation has a bright future ahead of it as the globe prepares for the post-pandemic new normal. We may look forward to the Africa Century, which will run concurrently with the Asia Century.
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