India announces USD 5 billion credit line for Africa

From V Mohan Narayan
Addis Ababa (Ethiopia), May 24 (PTI) India on Tuesday
announced a USD five billion line of credit to Africa and
unveiled a slew of measures to give a massive boost to
infrastructure development and capacity building to further
consolidate its "unique" and "enduring" partnership with the
resource-rich continent.
An additional USD 700 million to establish new
institutions and training programmes and another USD 300
million for the development of a new Ethio-Djibouti railway
line was also announced by Indian Prime Minister Manmohan
Singh in his address at the plenary session of the Second
Africa-India Forum Summit being attended by 15 African
countries.
Singh's move is seen as major initiative by India to
reach out to African countries where China and Japan have made
deep inroads particularly in the infrastructure sector.
The new line of credit follows the USD 5.4 billion
concessional credit announced in 2008 at the time of the first
such summit held in New Delhi.
Of this, nearly USD two billion have been committed
for projects in Africa.
19 least developed countries are already availing the
benefits of duty free tariff scheme which India had then
announced.
In his address during which there was a power cut for
a few minutes, Singh did some plain speaking noting that the
current international economic political situation is "far
from easy" for developing countries.
"Even as the global economy is recovering from the
economic crisis, fresh political upheavals are taking place,
most not far from this part of the world.
"The world faces new challenges in meeting the
requirements of food and security. Global institutions of
governance are outmoded and under stress," Singh said.
The Prime Minister said in the light of these
challenges, there was need for a "new spirit of solidarity"
among developing countries.
Describing the Summit as a historic gathering of
leaders, he said it was for the first time that India and
Africa were meeting on such a scale on African soil.
He said the presence of the leaders showed that the
two sides were on the right path in building an enduring
partnership. "A partnership that is unique, special and
between two equals".
Singh, whose speech was greeted with loud applause,
went down memory lane saying India will never forget Africa's
role in inspiring its own struggle for national liberation.
"It was here that Mahatma Gandhi developed his
political philosphy and developed the concepts of non-violence
and peaceful resistance," he recalled.
The Prime Minister said an architecture of cooperation
and a culture of communication and dialogue have been put in
place but much more needed to be done.
People are hungry for progress, he said.
Noting that Africa possessed all the prerequisites to
become a major growth pole of the world in the 21st century,
he said India will work with it to realise this potential.
"We believe that a new vision is required for Africa's
development and participation in global affairs," he said.
"We do not have all the answers but we have some
experience in national building which we are happy to place at
the disposal of Africa," Singh said adding, "our belief in
democracy, pluralism and tolerance is one such".
Among other proposals announced by Singh were
establishment of an India-Africa Virtual University to meet
some of the demand in Africa for higher studies in Indian
institutions.
He said 10,000 new scholarships will be available for
African students once this university was established.
Acknowledging the constraints posed by insufficient
air connectivity, he said India would be happy to increase the
access of African airlines to Indian cities in a significant
manner over the next three years.
Among the other initiatives, he announced the setting
up of an India-Africa Food Processing Cluster to contribute to
value addition and the creation of regional and export markets
and a separate integrated textiles cluster to support the
cotton industry and its processing and conversion into high
value products.
An India-Africa Centre for Medium Range Weather
Forecasting will also be set up to harness satellite
technology for the agriculture and fisheries sectors as well
as contribute towards disaster preparedness and management of
natural resources.
In his speech, Jean Ping, president of the African
Union Commission, underpinned the urgent need for collective
efforts to effectively combat and eliminate the "green-eyed
monster" of terrorism.
He also made a strong pitch for UN reforms including
expansion of the UN Security Council.
Both India and Africa have supported each other's case
for a permanent seat in the Security Council.
Describing India as a fast emerging major economic
power, he said with Africa having a vast reservoir of natural
resources, the potential for enhancing cooperation in a number
of areas was immense.
Co-chairing the meeting with Singh, president of
Guinea Equatorial, Obiang Nguema Mbasogo, said Africa
positively valued India's policy of cooperation.
He also called for concerted efforts to fight the
scourge of terrorism, piracy and mercenaries.