Why India won't sign FTAs with African countries for now
What's the story
India has decided to focus on strengthening commercial ties with customs unions in Africa, instead of signing free trade agreements (FTAs) for now. The decision comes ahead of the upcoming India-Africa Forum Summit (IAFS-IV), which will see several African heads of state and government attending. The summit is set to take place from May 28-31 and will cover business, culture, security, and defense sectors.
Trade focus
India's investment in Africa reaches $80B
India is focusing on enhancing its engagement with customs unions such as the Southern African Customs Union (SACU). This union permits duty-free movement of goods among Botswana, Eswatini, Lesotho, Namibia, and South Africa. India's cumulative investment in Africa has touched $80 billion, making it one of the major investors in the continent. Agriculture, energy and critical minerals will be key areas of focus at IAFS-IV due to ongoing disruptions from conflicts in West Asia.
Summit agenda
Focus on defense and security cooperation
The IAFS-IV will also focus on strengthening security and defense ties between India and Africa. The presence of 5,000 peacekeepers in conflict zones like the Democratic Republic of Congo and South Sudan will be highlighted during the summit. Officials are hopeful that the summit will lead to "concrete outcomes" in terms of business initiatives, with a joint or vision statement expected to be released.
Diplomatic efforts
Indian officials ramp up engagements with African counterparts
In preparation for the summit, Indian officials have stepped up their engagements with their African counterparts. Sudhakar Dalela, Secretary (Economic Relations) of the Ministry of External Affairs, recently met Mahmoud Ali Youssouf, Chairperson of the African Union Commission. Commerce Secretary Rajesh Agrawal also visited Tanzania and Kenya from April 27 to May 1 to finalize plans for IAFS-IV.