Daily Times

During the last two decades of the 20th century, Africa’s collective economy experienced minimal growth. However, by the late 1990s, the continent began to show signs of change. GDP growth accelerated significantly and continued to rise rapidly. Today, while Asia’s tiger economies maintain their swift expansion, the global economy is also witnessing the potential emergence of Africa as a major economic force. Africa’s economic activity has gained momentum, bringing a new level of commercial dynamism to the continent. Sectors such as telecommunications, banking, and retail are thriving, construction is booming, and foreign investment is on the rise.

Despite facing serious challenges like poverty, disease, and high infant mortality in many of its 50-plus nations, Africa is among the fastest-growing economic regions in the world as currently, six of the world’s ten fastest-growing nations are in Africa, which has a combined nominal GDP of $3.1 trillion. This rapid growth reflects both significant progress and future potential.

This oped series explore as how emerging African frontiers offer opportunities to the world to get engaged with them in financial and commercial terms. Starting with our neighbour, diplomatically, India has been active in strengthening ties with African countries, both bilaterally and through multilateral forums.

Africa is among the fastest-growing economic regions in the world.

High level visits are a regular feature of their diplomatic efforts in the region. India also contributes to peacekeeping operations in Africa. Leveraging this political capital and a significant Indian diaspora, India has positioned itself as key trading partner and investor in Africa. Indian companies, both state-owned and private, are active across various sectors, including telecommunications, pharmaceuticals, energy and mining. Additionally, India’s development cooperation has included training and capacity-building programs for African professionals, contributing to transfer of skills and knowledge.

India’s pharmaceutical sector has emerged as a key player in Africa, significantly contributing to the continent’s healthcare system by providing affordable and accessible medication. It has the ability to produce high-quality generic medicines at low costs.

In terms of investment, several Indian pharmaceutical companies have set up manufacturing plants and distribution centres in various African countries. These investments not only aid in localizing drug production, reducing costs, and improving supply chains but also contribute to technology transfer and capacity building in the local pharmaceutical sector. Key African countries where Indian pharma has a significant presence include Nigeria, South Africa, Kenya, Egypt, and Ethiopia, among others. These countries serve as hubs for both the distribution within their borders and as gateways for further distribution across the continent.

China’s presence in Africa is marked by large-scale infrastructure projects, significant investment in mining and natural resources, and a substantial footprint in manufacturing and construction. The Belt and Road Initiative (BRI) is a cornerstone of China’s engagement with the continent, aiming to enhance connectivity and economic integration. China’s approach is often state driven, involving large loans and infrastructure deals, which have raised concerns about debt sustainability and influence over local economies and politics just like in Pakistan.

The competition between India and China in Africa is not just economic but it also has diplomatic and strategic dimensions. Both countries are seeking to expand their influence and secure their positions as emerging global powers through enhanced diplomatic engagement, cultural exchanges, and, in China’s case, increasing military presence. Indian efforts are mostly confined to limiting Chinese dominance in Africa. From the viewpoint of India, Chinese investments are aimed more at cultivating the local leadership and creating a debt trap instead of bringing real development in Africa. Moreover, India propagates that since China has started facing resistance in many African countries with regards to its policies, thus Pakistan with its ‘Engage Africa’ policy is being nudged by China to play its proxy in Africa.

The European Union (EU) is also actively investing in Africa across various sectors and initiatives. The nature of these investments is diverse, encompassing areas like infrastructure, energy, digital technology, education, and healthcare. The investments are facilitated both through direct funding from the EU and its member states, as well as through financial instruments and private sector involvement. France is one of Africa’s largest investors, as it maintains strong economic ties with many African countries, particularly in Francophone Africa. Its investments span in sectors like energy, banking, and telecommunications. Germany’s investment focuses on areas like renewable energy, vocational training, and sustainable development. Similarly, Italy and Spain have investments in the energy sector, particularly in North Africa, along with interests in infrastructure and agriculture.

Türkiye has recently been increasing their economic presence and promoting trade in Africa, each with distinct strategies and focus areas. Türkiye’s African Initiative Policy, started in 1998 and evolving into Africa Partnership Policy in 2013, illustrates a strategic approach to international relations. President Erdogan’s extensive diplomatic visits, totalling 31 African countries, and the increase in Turkish embassies from 12 in 2002 to 44 by 2022 illustrate a commitment to fostering deep bilateral ties. This effort has been reciprocated, with the number of African embassies in Ankara rising from 10 to 38.

Economically, Türkiye’s trade with Africa surged from $5.4 billion in 2003 to $34.5 billion in 2021. Joint Business Councils with 45 African countries, expansive contracting projects, and extensive flight connectivity through Turkish Airlines further signify Türkiye’s integrated approach. Turkish companies are heavily involved in construction and infrastructure projects, including airport construction, road building and housing projects.

Türkiye is also involved in military cooperation and arms sales with certain African countries, complementing its economic and diplomatic engagement. Educational initiatives like scholarships for over 15,000 African students and the International Junior Diplomats Training Program underline the comprehensive nature of Türkiye’s engagement strategy. These statistics highlight the depth and breadth of Türkiye’s successful relationship-building with Africa.

This great power competition presents both opportunities and challenges for African countries. On one hand, it brings investment, infrastructure development, and potential leverage in international affairs. On the other hand, it poses risks of dependency, external influence over domestic affairs, and the potential for the escalation of conflicts where great power interests intersect. For now, African countries seem to have benefited from the investments and opportunities brought by both Chinese and Indian engagements. They are increasingly asserting agency in these relationships, seeking to leverage competition to their advantage while avoiding becoming overly dependent on any single partner. In the long run, how African nations navigate this complex landscape will determine their paths of development and their roles in the global arena.

(To be concluded)

Alizar Sajjad is law student at University of London. Saud Bin Ahsen works at public policy think tank.