India’s trade with Africa has grown significantly in recent years, making India one of the continent’s most important economic partners. In 2023, bilateral trade reached USD $103 billion, positioning India as Africa’s third-largest trading partner after the European Union (EU) and China. This represents a significant jump from just USD $7.2 billion in 2001.
India exports petroleum products, pharmaceuticals and automobiles to Africa, while Africa supplies oil, precious stones and agricultural products. The historical ties, diplomatic relations and shared development goals between the regions have fostered deeper connections, further strengthened by the African Continental Free Trade Area Agreement (AfCFTA).
At the Africa Day celebrations in June this year, India’s External Affairs Minister, S. Jaishankar, highlighted India’s growing trade presence in Africa, stating that the AfCFTA will create even deeper economic ties.
“India is the fourth-largest trading partner for Africa, with a bilateral trade of about USD $100 billion and cumulative investments of more than USD $75 billion. The AfCFTA opens prospects for deeper economic integration,” Jaishankar stated.
He also emphasised India’s unique position as the first developing country to provide duty-free market access to Africa’s least developed countries (LDCs) under its Duty-Free Tariff Preference (DFTP) scheme, which covers over 98% of India’s tariff lines and benefits 33 African nations.
EXIM Banks: Driving Growth
Financial cooperation between India and Africa is key to this growing trade relationship. India’s Export-Import (EXIM) Bank facilitates trade through concessional loans and financial products.
Harsha Bangari, the Managing Director of EXIM Bank of India, highlighted Africa’s potential as a major consumption hub, creating significant opportunities for Indian companies. “Africa is becoming a big consuming continent, and Indian companies have significant potential to find a market,” Bangari remarked during an interview at the 18th CII-Exim Bank Conclave on India-Africa Growth Partnership.
Bangari pointed to the increasing trend in trade finance and credit lines extended to African nations, with the bank committing USD $12.8 billion to 42 African countries. These funds support infrastructure, energy, and industrial projects, which contribute to Africa’s economic growth.
EXIM Bank plans to raise an additional USD $3-3.5 billion to finance new projects, strengthening its role in this growing trade relationship.
World Trade Centre Businesses: Connecting Businesses, Globally
World Trade Centre (WTC) businesses play a crucial role in promoting India-Africa trade by connecting businesses, organising trade fairs and providing networking opportunities. As members of the global World Trade Centres Association (WTCA), these WTC businesses have access to a global network of over 300 WTC businesses across nearly 100 countries (with 41 WTC businesses in India and 15 WTC businesses in Africa) representing over one million affiliated companies, offering African businesses a unique gateway to forge meaningful partnerships, gain invaluable market insights and navigate the complexities of the international trade environment.
Vineet Verma, Managing Director of WTC Bengaluru, WTC Chennai & WTC Kochi; and WTCA Board Member, discussed the power of the global WTCA network, and emphasised how strategic events and collaborations help businesses from both regions explore new markets. “WTCA plays a key role in connecting India and Africa. The association, through its members in these regions, provides a platform that helps businesses grow, enter new markets and share important trade information. Being part of WTCA offers several benefits, such as more networking opportunities, access to trade resources and support for trade and investment projects. This global network makes it easier for businesses to find partners, explore new opportunities and thereby provide a boost in trade. WTC Bengaluru plays a vital role in fostering trade between India and Africa due to its strategic location, robust infrastructure and strong ties with industry networks and government bodies. The growth of India-Africa trade relations is driven by a diversified Indian economy, strategic partnerships and historical ties,” Verma noted.
WTC Bengaluru has hosted events, like the recent 2024 WTCA Global Business Forum (GBF), which facilitated collaborations and memorandums of understanding (MOUs) between Indian and African companies. Additionally, Verma highlighted the impact of the AfCFTA, which has simplified trade procedures and encouraged joint ventures, offering businesses more opportunities to expand their reach.
Similarly, Vijay Kalantri, Chairman, WTC Mumbai; and WTCA Board Member, echoed the importance of organizations like WTCA in fostering business connections between the two regions. “WTCA promotes commercial diplomacy by connecting local business community with potential trade and investment partners in other countries through the exchange of trade queries, market information, trade delegation and by sharing best practices in trade promotion. WTCA can leverage its global network to facilitate fruitful international business opportunities for local industries in Africa and India. WTC Mumbai offers unique advantages for enhancing trade between India and Africa, as it is in India’s commercial capital with world-class infrastructure for trade shows, exhibitions and business meetings,” Kalantri said.”
WTC Mumbai has hosted delegations and virtual exhibitions that promote India-Africa trade in sectors like agriculture, healthcare and technology. Kalantri also mentioned that expanding the number of WTC businesses in Africa could further strengthen trade ties by creating more platforms for collaboration and joint initiatives.
WTC Mumbai helps local businesses connect with international trade and investment partners by sharing trade information, organising delegations, and promoting best practices. In recent years, WTC Mumbai hosted online programmes to promote the India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA), which became effective in 2021.
WTC Mumbai also held the India-Zambia virtual exhibition on its new age digital platform ‘Wetrade.org’ from July 15 to October 15, 2021, which generated strong interest and business leads across sectors. Additionally, WTC Mumbai signed an agreement with the Kenya National Chamber of Commerce in 2024 to promote trade, investment, tourism, education, and technology exchange. WTC Mumbai organised the African Ambassadors’ Round Table at World Trade Expo 2024 which received participation from more than 7 African Ambassadors and other senior diplomatic officials of African countries in India. World Trade Expo, the flagship event of WTC Mumbai, received overwhelming participation from trade missions of several African countries who exhibit their trade, investment, tourism, education potential at the event.
WTCA helps local businesses connect with international trade and investment partners by sharing trade information, organising delegations, and promoting best practices. In recent years, WTCA hosted online programmes to promote the India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA), which began in 2021. WTC Mumbai also held the India-Zambia virtual exhibition on Wetrade.org from July 15 to October 15, 2021, which generated strong interest and business leads across sectors. Additionally, WTC Mumbai signed an agreement with the Kenya National Chamber of Commerce in 2021 to promote trade, investment, tourism, education, and technology exchange.
Key Sectors and Investment Prospects
India’s investments in Africa span a range of sectors, including infrastructure, telecommunications, pharmaceuticals, information technology and agriculture and automotive (vehicle and 2-wheelers. These investments, totalling nearly USD $75 billion, have contributed significantly to Africa’s development, creating jobs and boosting local economies. For example, Indian companies have played key roles in building infrastructure projects such as roads, power plants and digital infrastructure. Mahindra Auto, Bajaj Auto and other Indian firms have established manufacturing plants in Africa, further supporting industrialisation efforts.
African countries have also invested in India, with Mauritius emerging as a key investor. African investments in India are concentrated in the opposite direction, India mainly imports oil (52% of imports from the continent), precious stones, African fruits, oil, healthcare and financial services, reflecting a reciprocal trade relationship where both regions benefit from each other’s economic strengths.
Ahmed Tibaoui, CEO of WTC Algiers; WTCA Board Member; and WTCA Middle East and Africa Regional Advisory Council Chair, highlighted the growing collaborations between India and Africa in key sectors. “India and Africa have deepened trade ties over the years, benefiting from strong political and economic initiatives. India is strengthening relations with key African partners like South Africa, Nigeria and Egypt, and is working to compete with China and Turkey in the African market,” Tibaoui commented.
WTC Algiers has actively supported international partnerships, hosting events like a cybersecurity conference with WTC Bengaluru and helping Indian companies, such as Dr. Reddy’s Laboratories, expand into Algeria. By guiding Dr. Reddy’s Laboratories through local regulations, connecting them with local partners and officials, and advising on factory locations, WTC Algiers helped the company establish operations smoothly. This local production has allowed Dr. Reddy’s Laboratories to reduce costs and deliver medicines faster within Algeria. As a result, Dr. Reddy’s Laboratories has grown its customer base, strengthened its reputation by offering affordable medicines quickly, and opened new growth opportunities across North Africa.
The Future of India-Africa Relations
India and Africa are poised to further expand their trade relations, driven by the opportunities created by the AfCFTA and the increasing demand for collaboration in sectors like technology, energy, and agriculture. Both regions share a commitment to industrialisation, job creation and sustainable development, which will continue to shape their economic ties.
India’s aim to increase bilateral trade with Africa to USD $150 billion in the coming years underscores the potential for further growth. Platforms like the India-Africa Project Partnership conclave, hosted by the Confederation of Indian Industry (CII) and EXIM Bank, will remain crucial in fostering trust and expanding economic cooperation.
With the support of organisations like EXIM Banks, WTCA and its global network of WTC businesses, and government initiatives, India and Africa’s partnership will become a model for cooperation, providing mutual benefits for both regions in the global economy. As trade and investment opportunities continue to grow, both regions will gain from this evolving relationship, which promises a prosperous future for all involved.