Why India needs an integrated approach to up its investment numbers in Africa and why it must match the political outreach with a robust economic model for the continent.
Africa had six of the world’s 10 fastest-growing economies in 2018, according to a World Bank report. Take a look at these numbers. The report pegs East African country Ethiopia’s growth at 8.2 percent, West African nation Ghana’s at continent leading 8.3 percent followed by Cote d’Ivoire’s 7.2 percent, Djiboti’s 7 percent, Senegal’s 6.9 percent, and Tanzania’s 6.8 percent. Another Central African country Rwanda, which overcame along political and ethnic crisis, grew at 8 percent during 2001-2015.
A report by the United Nations Conference on Trade and Development (Unctad) titled ‘World Investment Report for 2018’, Indian FDI in Africa in 2016-17 at $14 billion was even lower than it was in 2011-12 at $16 billion. In fact, with the exception of the 2015 figures, which jumped due to a single investment of $2.6 billion by ONGC Videsh (OVL) for a stake in the Rovuma gas field of Mozambique in 2014, Indian investment in Africa has been steadily decreasing year on year since 2014. In the larger scheme of things, where the global economy and investment footprints come into play, the decreasing investment figures are a cause of concern.
One of the issues has been that the current climate of investment in African countries itself — the country has seen FDI flows drop 21 percent in 2016-17 according to Unctad. Still, India is the only big investor in Africa to have reduced its investment. China, for example, increased investment from 2011-12, when its investment levels were identical to India’s at $16 billion, to a massive $40 billion in 2016-17.
This story is from the February 2, 2019 edition of Businessworld.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the February 2, 2019 edition of Businessworld.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Gauging Trumponomics For India
Despite some shortto mediumterm headwinds in trade and immigration, the broader Indo-US vision of counterbalancing China’s influence is expected to ensure continued cooperation under Trump 2.0
Reflections on Consciousness and Creation
Indian-American DEEPAK CHOPRA on the nature of the universe, the digital fabric of existence, and the power of a conscious mind
MORE TAKE TO DRIVING IN STYLE
High-end luxury vehicles are no longer part of a niche market, but a rapidly expanding segment of automobile sales, driven by changing consumer preferences, rising disposable incomes and better infrastructure
India's Growing Affinity for Swiss Watches: A Luxury on the Rise
NDIA'S ROBUST ECONOMIC growth, projected to exceed 6 per cent in 2024 and 2025, is fostering a rising demand for aspirational products. As disposable incomes increase, particularly among the expanding middle class, luxury goods such as Swiss-made watches are gaining popularity.
An ENRiching Outlook
KPMG's latest report shows energy CEOs being optimistic about the sector's outlook. ANISH DE, Global Head, ENRC, KPMG speaks to BW Businessworld's Arjun Yadav on what's driving this confidence
Paving the Path to a Sustainable Future
Salesforce's ESG journey has made an impact beyond the company. SUNYA NORMAN, SVP of ESG Strategy and Engagement at Salesforce, shares more on how the tech giant integrates sustainability into its core operations, supporting global goals while empowering employees
LEADERSHIP TRANSITION AT XIAOMI INDIA
Xiaomi India is experiencing a leadership evolution, beginning with Muralikrishnan B's departure as President by the end of 2024. This change underscores Xiaomi's shift towards nurturing local talent amidst dynamic global shifts. The story tracks key transitions from Manu Kumar Jain's leadership to Muralikrishnan B's impactful tenure, along with recent strategic hires, highlighting Xiaomi's alignment towards market adaptability and consumer focus
WEAVING SUSTAINABILITY
Once a modest home textile manufacturer, Jindal Worldwide has evolved into a vertically integrated textile powerhouse, spanning critical segments of the yarn and fabric value chain
FORCE FOR GOOD
FY24 saw capacity expansions for Century Enka in nylon and polyester segments, along with investments in modernisation, renewable energy, and safety initiatives
REIMAGINING TOMORROW
For V-Guard, tomorrow signifies progress, driven by today's actions, setting the foundation for future growth and value creation for all stakeholders