Modi woos Africa with $14b credit

(From left) Zimbabwean President Robert Mugabe, Indian Prime Minister Narendra Modi, African Union chairman Nkosazana Dlamini-Zuma and Morocco's King Mohammed VI at the biggest India-Africa summit yesterday in New Delhi, where India is playing host t
(From left) Zimbabwean President Robert Mugabe, Indian Prime Minister Narendra Modi, African Union chairman Nkosazana Dlamini-Zuma and Morocco's King Mohammed VI at the biggest India-Africa summit yesterday in New Delhi, where India is playing host to 54 countries.PHOTO: AGENCE FRANCE-PRESSE

Deal forms part of India's plan to partner continent and become global player

NEW DELHI • Indian Prime Minister Narendra Modi turned on the charm for African leaders yesterday, promising US$10 billion (S$14 billion) in credit to back a "partnership of prosperity" and pitching a broad alliance for global reform.

Hosting 54 countries for the biggest India-Africa summit, he laid on a lavish cultural programme with dancers, drummers and videos in a sports arena. "The dreams of a third of humanity have come together under one roof," he said in a speech.

Behind the aspirational rhetoric lies a fundamental shift in India's outlook under the 65-year-old leader, who wants Asia's third-largest economy to break out of a history of isolation and non-alignment to become a global player.

Yet India, soon to become the world's most populous country, has its work cut out to catch up with China, whose annual trade with Africa is three times larger than its own US$72 billion.

"We will raise the level of our support for your vision of a prosperous, integrated and united Africa that is a major partner for the world," Mr Modi told leaders, including presidents Jacob Zuma of South Africa, Muhammadu Buhari of Nigeria and Abdel Fattah al-Sisi of Egypt.

India and Africa are home to seven in 10 of the world's poor, but are among the fastest-growing economies, leading Mr Modi to talk of a "vibrant India" and a "resurgent Africa".

He promised US$10 billion in new credit, in addition to US$7.4 billion in soft loans and US$1.2 billion in aid provided since the first India-Africa summit in 2008.

In addition, India will offer grant aid of US$600 million. Of that, US$100 million would go towards a new India-Africa Development Fund and US$10 million to an India-Africa Health Fund.

Mr Modi urged India and Africa to speak with one voice on global affairs, including reform of the United Nations.

India aspires to get a permanent seat on an expanded UN Security Council, arguing that it is rooted in the post-war global order and fails to reflect today's power relations.

He appealed for African support on trade, saying a World Trade Organisation ministerial meeting in December in Nairobi should ensure that free trade talks serve both regions' goals.

India is pressing for a permanent deal on food stockpiling, an issue that has complicated the long-running Doha Round, arguing that it must hoard food to ensure that its 1.25 billion people do not go hungry.

Mr Modi also appealed to African nations to join an alliance of "solar-rich" countries at the forthcoming UN climate summit in Paris to promote clean and affordable energy.

"When the sun sets, tens of millions of homes in India and Africa become dark. We want to light up lives of our people and power their future," said Mr Modi. "But, we want to do it in a way that the snow on Kilimanjaro does not disappear, the glacier that feeds the River Ganges does not retreat, and our islands are not doomed."

REUTERS

A version of this article appeared in the print edition of The Straits Times on October 30, 2015, with the headline 'Modi woos Africa with $14b credit'. Print Edition | Subscribe