Johannesburg – With India emerging as an important economic player in world markets, Africa stands to benefit immensely from that country’s growth, Trade and Industry Director-General Lionel October said on Tuesday.
Bilateral trade between India and Africa is said to have grown at a much faster rate of 32.4%, compared to overall China-Africa trade that rose by 27% during 2008-2011.
“India is definitely growing. We want that same trend to spread throughout the continent,” October told SAnews on the sidelines of the 3rd Africa-India Trade Ministers’ Meeting underway in Johannesburg.
During the period, India emerged as the fastest growing export market for Africa, growing by 41.8%, while China grew by 28%, according to a report released jointly by the Confederation of Indian Industry (CII) and World Trade Organisation (WTO).
Indian companies have invested over $50 billion in the continent. India is also the fourth largest investor in South Africa.
October noted that India was becoming quite a big investor in South Africa, citing Indian influence in the pharmaceutical sector and lately the automobile industry.
South Africa agreed to host the meeting on behalf of the African Union Commission. Delegates spotted entering the Sandton Sun Hotel included ministers of trade from Nigeria, Benin, Libya, Senegal, Ethiopia as well as ministers from most SADC countries. Also attending the gathering is African Union Chairperson Dr Nkosazana Dlamini Zuma, who is expected to officially open the talks.
“What we have put firmly on the agenda is that currently the trade relationship is skewed… We have agreed with India and they have accepted that the emphasis must be on increased investment in manufacturing and agricultural processing, which means a growth in agro industries,” October said.
He said trade balance between India and Africa could only be achieved once the latter starts producing manufactured products.
“We are the only continent that is not industrialised, although we are becoming the fastest growing economy. It is necessary for us to transform our economy in South Africa and the continent towards a more diversified economy, with manufacturing being at the heart of that.
October said because both South Africa and India were members of the BRICS bloc (Brazil, Russia, India, China and South Africa), the meeting in Johannesburg presented enormous opportunities for Africa.
“We therefore use platforms like this trade ministers’ meeting to further elevate the interests of Africa in BRICS. In essence, South Africa carries the interests of Africa into the BRICS dynamics… as [there are] opportunities [for BRICS] in Africa. We have a massive population and Africa is becoming a big middle class continent, and India is interested in trading with us.” – SAnews.gov.za
