FROM EIR DAILY ALERT
Why India Is Keen To Invest in Africa with China: An Overview
July 26, 2018 (EIRNS)—Ahead of the 10th BRICS Summit, China’s President Xi Jinping and India’s Prime Minister Narendra Modi had embarked on tours through some African countries. Xi, arriving in South Africa on a state visit on July 24, pledged $14.7 billion of investment in the country. During a short visit to Uganda on July 24, Modi pledged $205 million to that country. The sum is intended to help the East African country to develop its dominant agricultural sector and electricity distribution infrastructure. Both Xi and Modi were in Rwanda earlier this week, where a total of over $300 million was announced in loans. The money will develop the tiny, landlocked East African nation’s agriculture, roads and special economic zones, CNBC reported.
In recent years, both China and India, which the West has widely labeled as rivals, have brought to African nations their focus on all-round development, investing to improve African infrastructure, agriculture, education, and technological skills, among other areas.
The reasons why they chose to cooperate and collaborate in Africa’s development are many. For instance, the African nations are most receptive to all actual developmental efforts, large or small. Because of the needs of the African nations, which had all along been looked at only as sources for natural resources consumed by developed nations, every bit of investment made in these nations has a positive effect and is welcomed. Both China and India consider that providing Africa the ability to develop will bring about a sea-change in the direction and magnitude of global trade.
India is keen to expand its economic relations mostly with Southeast Asia and Africa. For China and India, Africa does not pose any geopolitical threat. Moreover, the better understanding developed between Xi and Modi since their April 27-28 Wuhan meeting enables both of them to work in tandem to improve the living conditions in Africa.