Africa urged on value addition to spur trade

India’s exports to Africa were estimated at $23 billion while Africa’s exports to India were estimated at $43 billion, meaning that India’s two-way trade with several African countries remains below potential.

India is Africa’s second major trading partner after the European Union, China and the United States of America.

Indian industry leaders have advised African countries to broaden their trade basket and promote greater value addition to grow their trade volumes.

Speaking at the 9th confederation of Indian Industry (CII) - Exim Bank conclave on India-Africa Project Partnership in New Delhi, India on Monday, CII president, Mr Adi Godrej, said it is the only way both trading partners will ensure sustainable growth in trade volumes over a longer period.

Currently, India – Africa trade is concentrated on agricultural products, crude oil products, gold, diamonds, platinum, copper and low –end manufacturing, which are prone to price volatilities.

India exports machinery and transport equipment, petroleum products, textiles, iron, steel, paper and wood products, plastic, rubber manufactured products, agro-products, chemicals and pharmaceuticals products, among others, to Africa.

According to Mr Godrej, broadening the trade basket to include value added products, services and human resource development will also enhance India’s trade and business engagements with Africa; hence, enhancing “south-south” co-operation.

The CII-Exim Bank conclave on India-Africa project partnership, an annual event, was started in 2005 to strengthen trade and investment relations between India and Africa and take bilateral engagement to a new level.

Since its inception eight years ago, the partnership has seen India’s bilateral trade with Africa soaring from $3 billion in 2000 to $60 billion in 2011/12, with a larger percentage going into infrastructure development.

Bilateral trade between the two trade partners is expected to rise to $90 billion by 2015.

India’s exports to Africa were estimated at $23 billion while Africa’s exports to India were estimated at $43 billion, meaning that India’s two-way trade with several African countries remains below potential.

Ugandan vice president, Mr Edward Kiwanuka Ssekandi, who led the Ugandan delegation to India urged Indian entrepreneurs to pursue joint ventures in East Africa’s manufacturing, ICT and tourism sectors to harness their huge yet untapped potential.

fkulabako@ug.nationmedia.com