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Indian Express
15-07-2025
- Business
- Indian Express
How India-Africa energy partnership offers model for South-South cooperation
— Samir Bhattacharya Energy security emerged as one of the central themes of engagement during Prime Minister Narendra Modi's recent visit to two strategically important African countries (Ghana and Namibia), which also underscores the significance of burgeoning India-Africa ties. As India seeks to ensure stable and diversified energy sources for its growing economy, Africa's abundant yet largely untapped energy resources present a valuable opportunity for India. In turn, Indian investments and technology can play a pivotal role in supporting Africa in leapfrogging the energy ladder. A strong partnership with India will also help Africa to achieve its much elusive energy security. The abundance of Africa's rich mineral resources is reflected in the fact that the continent accounts for 3.6 per cent of coal reserves, 7.5 per cent of natural gas reserves, and 7.6 per cent of oil reserves globally. The continent also possesses nearly two-thirds of the world's critical minerals, such as platinum, cobalt, copper, lithium, etc, underscoring its importance in the global energy transition. For example, South Africa produces 70 per cent of the world's platinum, a key component in hydrogen fuel cell manufacturing. Similarly, the Democratic Republic of the Congo produces two-thirds of the world's cobalt, a critical ingredient in battery production. Demand for these minerals is projected to rise significantly, putting Africa at the centre of the global energy transition map. Recognising the strategic significance of Africa's energy resources, India has, over the years, undertaken substantial investments in the continent's energy sector. Two Public sector entities, ONGC Videsh Ltd. and Oil India Ltd., have been instrumental in securing equity stakes in oil and natural gas assets across Africa. As a result of this growing engagement, bilateral trade between India and Africa reached USD 100 billion in 2022, with the energy sector constituting a substantial portion of this trade. Furthermore, India's cumulative investments in Africa amount to USD 75 billion, which is projected to double to USD 150 billion by 2030 and is again dominated by the energy industry. Although India's energy trade with major producers such as Angola and Nigeria has grown, the commensurate investments in upstream and downstream energy infrastructure remain limited. Exploring the prospects of larger equity investments, joint ventures and technology transfer partnerships across Africa will help address this gap. Furthermore, given India's demonstrated strengths in refining, consulting, training, and infrastructure development, India is well-positioned to help Africa in moving up the energy value chain. Beyond oil and gas, nuclear energy offers another critical avenue for enhanced cooperation between India and Africa. Given its limited uranium reserves, the share of nuclear energy in India's energy mix is negligible. India relies heavily on uranium imports to meet its nuclear energy demands. Several African countries, such as Namibia, South Africa, Niger, Nigeria, and Malawi, possess abundant but largely untapped uranium reserves. Notably, Niger (7 per cent), Namibia (6 per cent) and South Africa (5 per cent) together contribute 18 per cent to the world's uranium deposits. These reserves could be vital in expanding India's nuclear power capacity. As India has obtained a waiver from the Nuclear Suppliers Group (NSG), uranium trade is expected to be hassle-free. At the same time, the continent can benefit from India's technological know-how to develop its nascent civil nuclear energy programmes. While Africa is indispensable in India's energy security, India could also play a key role in facilitating Africa's energy development. Despite its vast natural resources, energy poverty remains a persistent challenge in Africa, stifling its socioeconomic progress. Currently, over 600 million Africans lack access to electricity. If existing trends don't improve, approximately 530 million Africans will be without access to power by 2030. Although Africa accounts for 16 per cent of the world's population, it consumes only 3.3 per cent of global energy, highlighting a stark disparity. However, Africa can reverse the trend and become the first continent to develop its economy, primarily through modern energy sources, if correct actions are taken. Nonetheless, achieving this vision will require fully harnessing the continent's vast solar, wind, hydropower, natural gas, and energy efficiency potential. While natural gas will remain significant in meeting Africa's industrial and electricity needs, it is high time to focus on clean energy solutions, especially in view of the continent's disproportionate vulnerability to climate change. India can play a significant role in this transformative journey, offering affordable solutions that are easy to scale and, most importantly, sustainable. As India is uniquely positioned to support Africa's energy transformation, the two sides have already begun deepening their collaboration in renewable energy, particularly in the solar sector. March 2018 marks a watershed moment in this cooperation when India, with the support of France, established the International Solar Alliance (ISA). Within seven years of its inception, the ISA has grown into a strong multilateral platform with 120 signatory members, including 46 African countries. During the third India-Africa Forum Summit in 2015, India committed $2 billion Line of Credit (LoC) to support solar projects across Africa. India also prioritised the training of solar engineers from Africa through the Indian Technical and Economic Cooperation (ITEC) programme. Another important dimension of India's energy cooperation with Africa lies in its emphasis on grassroots innovation. In this context, The Energy and Resources Institute (TERI) and Barefoot College have played a pivotal role. While TERI conducts ITEC-sponsored courses on issues like sustainable development, climate change and sustainability, renewable energy, and energy efficiency, Barefoot College provides training to rural African women to become solar engineers. Seen as one of the most inspiring examples of India's grassroots innovation for Africa, these women carry out solar installations in their villages and conduct routine maintenance and repairs. More such grassroots initiatives, using similar inclusive and sustainable approaches, would be a step in the right direction. To sum up, as global attention intensifies on decarbonisation and energy transition, there is an urgent need to strengthen India-Africa energy ties further. Both India and Africa have ambitious goals in their respective energy sectors. Moreover, India's technological know-how in solar, wind, and hydro, if combined with Africa's untapped potential, can present a unique opportunity, powering each other's progress, moving beyond the exchange of resources. As India and Africa are simultaneously pursuing inclusive economic development and climate resilience, their energy partnership holds the potential to serve as a robust model of South-South cooperation. Why is Africa important to India's energy security, and how can India support Africa's energy development in return? In what ways can India's experience with solar and other renewable technologies benefit Africa's energy transition? India is uniquely positioned to support Africa's energy transformation by offering affordable solutions that are easy to scale and, most importantly, sustainable. Comment. How might increased nuclear cooperation reshape the India-Africa energy partnership in the coming years? How can India-Africa energy cooperation serve as a model for South-South cooperation? (Samir Bhattacharya is an Associate Fellow at the Observer Research Foundation.) Read other articles from the series Conflicts in Africa Conflicts in Africa | The Sahel crisis and implications for India Conflicts in Africa | India's growing role in Africa's development Conflicts in Africa | Rising tensions in the Great Lakes Region Conflicts in Africa | Instability in Great Lakes region and implications for India Conflicts in Africa | Sahel's strategic drift towards Russia Share your thoughts and ideas on UPSC Special articles with Subscribe to our UPSC newsletter and stay updated with the news cues from the past week.
Daily News Egypt
30-06-2025
- Business
- Daily News Egypt
Egypt is vital strategic partner for India, their relationship will only grow stronger: ORF
New Delhi – In an increasingly interconnected world, India's strategic engagement with the African continent continues to evolve, forming a key pillar of its foreign policy. Against this backdrop, Dr. Samir Bhattacharya, Associate Fellow for Africa at the Observer Research Foundation (ORF) in New Delhi, shares insights into the multifaceted India-Egypt relationship, highlighting recent developments and future prospects. Also present was Mr. Gautam Chikermane, Vice President at ORF, who offered broader reflections on Indian-African relations. How does India view its relationship with Egypt, and what are the most significant recent developments and areas of cooperation between Cairo and New Delhi? Egypt is an extremely important country for India. This is reflected in the high-level diplomatic exchanges between our two nations. For instance, Egypt's President Abdel Fattah Al-Sisi was honoured as Chief Guest at India's Republic Day celebrations in 2023—a gesture India reserves for its closest partners. Prime Minister Narendra Modi has also visited Egypt several times, including a significant visit last year. These high-level engagements underscore the weight India places on its ties with Cairo. We see Egypt as a strategic partner at the confluence of the Arab world, Europe, and Africa. Our collaborations span both conventional and emerging sectors. Beyond longstanding cooperation, we are now exploring joint ventures in green hydrogen and defence manufacturing. While these initiatives are still at an early stage, they reflect a growing mutual interest in building capabilities together. India, in line with its 'Atmanirbhar Bharat' or self-reliance initiative, is looking to strengthen its defence manufacturing sector. Egypt is a natural partner in this pursuit. We're looking at co-producing equipment such as drones and technologies useful in counter-insurgency and anti-terrorism efforts—areas where Egypt also plays a critical regional role. Culturally, ties are vibrant. Egypt currently receives the highest number of Indian tourists in Africa, followed by South Africa. To promote such exchanges, we also host a monthly event called Diplomat's Diary, where ambassadors share their vision on cooperation. The Egyptian Ambassador is scheduled to join us next month to explore further opportunities in tourism. Taken together, these dimensions show the depth and promise of the India-Egypt relationship. While there's still untapped potential—particularly in security cooperation—the foundations are strong, and I'm confident the relationship will grow even stronger moving forward. Turning to India's broader engagement with Africa, the relationship is often described as 'long and deep.' How would you describe its evolution, particularly with developments such as the African Union's inclusion in the G20? India's ties with Africa stretch back decades. In the 1960s and 1970s, India contributed to building railroads and infrastructure across the continent. These were not mere economic transactions but part of a deeper South-South solidarity. Fast forward to the present, the African Union's inclusion in the G20 under India's G20 Presidency is a landmark development. It illustrates both the maturity of our ties and India's commitment to ensuring African voices are heard on global platforms. Under Prime Minister Modi's leadership, Africa has become a key foreign policy priority. India has launched several development-focused initiatives, covering areas such as infrastructure, digital transformation, and healthcare. Our approach is not solely commercial. We see ourselves as development partners, working alongside African nations to address critical challenges like food security and sustainable technologies. In recent years, the Indian Navy has increased its presence along Africa's coastline. How is this related to maritime competition—particularly with China? Is India looking to expand its influence in a region where China already has significant presence? There is no direct competition with China. India's maritime engagement is rooted in its own strategic and economic interests, especially regarding trade and maritime security. This is not a new development—it builds on a long history of maritime connections with Africa, predating colonial times. Indian traders have long sailed across the Indian Ocean in small boats, establishing communities that still thrive today. The large Indian diaspora across the continent is living proof of this enduring connection. Many members of these communities are contributing meaningfully to their host nations' development. India was also a founding member of the Non-Aligned Movement alongside Egypt and many African countries. Our engagement is therefore anchored in history, mutual respect, and solidarity. Since around 2010, India has stepped up its naval operations in the Indian Ocean, especially in response to piracy off Somalia. Our naval patrols serve both national and global interests by securing key trade routes. For instance, India was the first international responder to the cyclone that struck Mozambique in 2019—highlighting our commitment to regional security. We also support local capacity-building. In Mauritius, for example, we helped construct an airstrip on Agaléga Island that can be used for security and civilian purposes. Moreover, India engages in trilateral initiatives like the IBSA grouping (India, Brazil, South Africa), which conducts the IBSAMAR naval exercises to bolster Africa's maritime capabilities. In short, India's initiatives in Africa are independent and driven by a long-term vision—not a reaction to what others are doing. Both India and China are major economies. Many expected them to jointly champion an alternative global payment system. But progress has been slow. Is India hesitant, perhaps wary of the West—or of China? That's a critical question. The fundamental issue is whether it is in India's interest to help replace a Western-led global order with a China-led one. Given our history of border tensions and strategic rivalry with China, I don't believe that would serve India's interests—or anyone else's. That said, the need for an alternative payment system is very real. The way Russia was unilaterally cut off from SWIFT during the Ukraine crisis exposed vulnerabilities in the current system. There is a strong case for building parallel financial infrastructure. But building such a system requires massive resources, trust, and long-term cooperation among countries. It cannot be rushed. Importantly, we are not seeking to replace one dominant power with another. The aim is to create space for countries like India—and for others in Africa, South America, and Asia—to shape their own economic futures. Is there scope for a truly independent third alternative—one that is neither US-led nor China-led? Yes, there is. With today's technology, innovation ecosystems, and increasing South-South cooperation, the emergence of a third path is certainly possible. However, this is not something that will happen overnight. It demands significant investment in financial infrastructure, digital tools, and international consensus. But the potential is there. And in time, we may well see the rise of a genuinely multipolar financial order—one that reflects the interests and values of a broader set of global stakeholders.
Indian Express
27-06-2025
- Business
- Indian Express
India-Africa partnership for agricultural development and food security
— Samir Bhattacharya Amid rising challenges such as food insecurity, climate change, and the urgent need for agricultural transformation, the India-Africa partnership in agriculture and food security has become increasingly vital. The two countries have a long history of collaboration in this sector. Although agriculture is a backbone for industrialisation and poverty alleviation in Africa, it remains highly vulnerable to climate risks, weak infrastructure and limited access to finance and technology. Over the past decades, extreme weather events, including droughts, erratic rainfall, heat waves, and storms, have severely affected African agriculture. Between 1970 and 2020, droughts and heavy rain were the most frequent climatic threats, especially as much of Africa's agriculture depends on rainfall rather than irrigation. These unpredictable weather patterns cause sharp declines in productivity. Compounding this, farmers often lack access to modern infrastructure, reliable market data, financial services, and agricultural extension support. The consequences of climate change extend beyond farmers to the entire agricultural value chain, including processors, distributors, and consumers. Addressing these challenges requires an integrated, value chain–based approach that supports climate adaptation and mitigation to ensure competitiveness and sustainability. Africa faces a paradox. While agriculture employs nearly 65 per cent of the workforce, its contribution to the continent's GDP remains low, about 15 per cent. Additionally, Africa heavily depends on food imports. Since 2000, food imports in Sub-Saharan Africa have surged relative to domestic production. Until last year, the continent imported around $50 billion worth of food each year, and with conflicts across the world, this figure is poised to reach $90-$110 billion by the end of this year. Africa's dependence on food imports renders the continent particularly susceptible to external shocks. For example, the COVID-19 pandemic and the Russia-Ukraine conflict severely disrupted Africa's food supply chains. The Russia-Ukraine war, which interrupted global exports of wheat and fertilisers, led to a substantial increase in food prices across African markets. According to the International Monetary Fund (IMF), between 2020 and 2022, food prices in sub-Saharan Africa surged by nearly 24 per cent. Consequently, addressing post-harvest losses that frequently exceed 30 per cent and advancing climate-smart agricultural practices are essential to revitalise the sector and create sustainable employment opportunities for Africa's expanding youth population. Recognising the importance of agriculture, the African Union (AU) and the African Development Bank (AfDB) have prioritised agricultural development through flagship initiatives. One of AU's 'High-5' agenda, the 'Feed Africa' initiative aims to transform agriculture into a business by adding value to commodities. The initiative also seeks to lift 320 million people out of hunger while unlocking Africa's agribusiness potential, estimated to exceed $100 billion by the end of this year. Similarly, the Comprehensive Africa Agriculture Development Programme (CAADP), under Agenda 2063, targets hunger elimination and poverty reduction by promoting sustainable land and water management, improving market access, increasing food availability, and advancing agricultural research and technology transfer. India has become a strategic partner for Africa in its agricultural transformation. Although the partnership evolved gradually, significant growth has been witnessed in cooperation in recent years in areas such as agricultural development, food processing, training, technology transfer, and private investment. This collaboration functions primarily through bilateral government cooperation and engagement with the private sector. On the government-to-government front, India has extended soft loans, training programmes, and technology assistance to many African countries. These efforts aim to improve farming practices, irrigation systems, soil quality, and mechanisation. For example, Angola received a $23 million Line of Credit (LoC) from India's EXIM Bank to purchase tractors and farm machinery, alongside plans to establish a Food Processing Business Incubation Centre. Zimbabwe has benefited from support in establishing a Rural Technology Park, a Food Testing Laboratory, and a Vocational Training Centre. Similarly, Lesotho secured a $5 million LoC for agricultural equipment, while Malawi received $1 million to develop a Business Incubation Centre offering short-term training in crop processing, composting, and briquette production. India's private sector has also been pivotal in strengthening India-Africa agricultural cooperation. Several Indian companies have invested in food processing infrastructure across Africa. For instance, Surface Wilmar, a joint venture between Zimbabwe's Industrial Development Corporation and India's Midex Global Pvt. Ltd., invested about $1.5 million to build an edible oil production facility near Harare, which has become the largest cooking oil manufacturer in Southern Africa. Other notable Indian firms active in Africa's agricultural sector include ETG (Export Trading Group), one of the largest integrated agricultural conglomerates operating in countries such as Tanzania, Kenya, Malawi, Mozambique, Nigeria, and South Africa. The African Development Bank recently approved a $1.4 million grant to support ETG's Women Entrepreneurship and Employability project, empowering 600 women-led businesses across Mozambique, Tanzania, and Zambia. ZimGold invested $40 million in Zimbabwe's edible oil and margarine production, employing over 500 people. Varun Beverages committed $250 million towards bottling plants and puree processing facilities in Zimbabwe. Raha Cooking Oil opened a processing plant in Norton, Zimbabwe. Indian firms like the Asian Tea Company, Pure Diets, Rajarambapu Group, and HK Jalan Group are exploring further investments in commercial agriculture in the region. Further, India's agricultural engagement in Africa increasingly involves trilateral cooperation with international agencies such as USAID, the UK's Department for International Development (DFID), and the Supporting India's Trade Preferences for Africa (SITA) programme. For example, through a tripartite agreement with the Food and Agriculture Organization (FAO), India sent agricultural experts to Lesotho to support improvements in food security and irrigation planning. Beyond economic cooperation, India contributes humanitarian assistance and capacity building. During the drought in Zimbabwe, India sent food aid, including rice donations of 50,000 tonnes in 2003 and 500 tonnes in 2015. Similarly, Malawi was supported with agricultural equipment worth $1 million and 1,000 metric tonnes of rice during a crop failure crisis in 2020. The Democratic Republic of the Congo also benefited from India's donation of tractors and accessories. Non-governmental organisations (NGOs) such as India's Self-Employed Women's Association (SEWA) have further deepened India-Africa engagement through grassroots knowledge exchange. SEWA's women-to-women empowerment initiatives adapt successful rural Indian models to promote resilience and self-reliance among African women, strengthening community-based agricultural development. Both India and Africa face similar challenges in managing climate change impacts, demographic growth, and geopolitical instability. Africa's food market is expected to grow to $1 trillion by 2030, with food demand projected to double by 2050, presenting enormous opportunities for sustainable investment in farm mechanisation, irrigation, food processing, nutrient management, and agricultural research and development. India's experience in integrating smallholder farmers into modern value chains, reducing post-harvest losses, and raising farm incomes offers a valuable model for Africa. India's '3A' framework – promoting affordable, appropriate, and adaptable technologies – provides scalable, cost-effective solutions tailored to African realities. Nonetheless, strengthening India-Africa agriculture ties will require deepened bilateral and trilateral partnerships, expanded private sector involvement, and robust knowledge-sharing platforms. Such collaboration can ensure food security, foster inclusive growth and build resilient, sustainable agri-food systems across the continent. By combining India's agricultural expertise with Africa's vast natural and human resources, this partnership can become a cornerstone for feeding the future, reducing hunger, and advancing economic prosperity in both continents. Why has the India-Africa partnership in agriculture and food security gained greater significance in recent years? How do shared challenges like climate change and food insecurity shape the strategic importance of India-Africa cooperation? How have Indian Lines of Credit (LoCs) been used to build agricultural infrastructure and capacity in Africa? What is the significance of India's private sector investment in food processing and agri-business in Africa? How has grassroots collaboration, such as SEWA's women-to-women empowerment programs, contributed to rural development in Africa? Read other articles from the series Conflicts in Africa Conflicts in Africa | The Sahel crisis and implications for India Conflicts in Africa | India's growing role in Africa's development Conflicts in Africa | Rising tensions in the Great Lakes Region Conflicts in Africa | Instability in Great Lakes region and implications for India Conflicts in Africa | Sahel's strategic drift towards Russia (Samir Bhattacharya is an Associate Fellow at the Observer Research Foundation.) Share your thoughts and ideas on UPSC Special articles with Subscribe to our UPSC newsletter and stay updated with the news cues from the past week.
