Focus Africa in Full Swing - August - October 2010 - Indo-African Business
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EXIM BANK
R E D I S C O V E R I N G A V I B R A N T C O N T I N E N T
August - October 2010 ` 200/-
Focus Africa
in Full Swing
connecting global wealth creators
CASE STUDY
Issue
n This
COVER STORY
Founder Chairman
Late Shri R.K. Prasad
India Forges Ties Further Distributed by:
New Media Communication Pvt. Ltd.
Focus Africa in Full Swing
06 in association with Export-Import Bank of India
Managing Editor: Satya Swaroop
Directors: B.K. Sinha
COVER STORY
Cdr. P.S. Amar
Group Editor: Dev Varam
Editors: Uday Tarra Nayar & Nicholas
Consulting Editors: Prabhuu Sinha,
A Grand Show on Brand India Md. Sabir Nishat, Tripat Oberoi
09
Deputy Editor: Tripti Chakravorty
Assistant Editors: Prajwala Poojary & Subhajit Bhattacharya
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Special Projects: Manjeet Bhawsar
Executive Database: Madhavi Singh
India, Mozambique to Double Circulation: Jawaharlal, Santosh Gangurde &
Vijay Wangade
Two-way Trade to $1 bn by 2013 Art Director: Santosh Nawar
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PERSPECTIVE
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Section française 40-46 The news items and information published herein have been
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INDO-AFRICAN BUSINESS
04
August - October 2010
E DITORIAL
Dear Reader,
Greetings. It is heartening to note that India's engagement with Africa, one of
the country's Focus regions, is intensifying. India's bilateral trade with that
region is getting strengthened on several fronts. In recent months, India has
signed various agreements with countries such as South Africa, Ghana,
Gambia and Mozambique to take the trade cooperation with them to a
much higher level. The cover story of the current issue of Indo-African
Business details the discussions that India's Commerce and Industry Minister
Anand Sharma had with government and business leaders in South Africa
and Ghana. It also highlights a grand show on 'Brand India' held in
Johannesburg, showcasing the country's manufacturing capabilities. The
issue also covers the visit to India of Mozambique's President Armando
Guebuza, who is confident the two-way trade between the two countries
could be doubled to $1 billion in the next two to three years. Mali, another
African country is also keen on Indian small and medium enterprises (SMEs)
to invest in joint ventures in that country. We carry a report. In Perspective, we
have an article by economist Pochi Tamba Nsoh on the Cameroonian
Government's initiative to open up the country's economy to make its
companies globally competitive. In the Focus section, we have a number of
articles on the Export-Import Bank of India (Exim Bank), which has opened its
East Africa office in Addis Ababa, the Ethiopian capital, to serve that region.
There is a report on Exim Bank upgrading its London office into a regular
branch to cope with its expanding operations in the United Kingdom. The
issue also carries an Exim Bank study on COMESA, Africa's largest market for
Indian goods and services. There is also a report on the prospects of Indian
chemical exports to the ASEAN countries, prepared by Exim Bank. We have a
report on India's External Affairs Minister S.M. Krishna inaugurating the
second phase of the Pan-African e-Network project covering 12 countries,
taking the facility to 34 nations. Global Procurement Consultants' Ltd (GPCL)
has bagged a prestigious assignment from the World Bank to review the
performance of the projects funded by the global financial institution. The
issue carries as usual, a French section and other regular features.
Wish you happy reading
Satya Swaroop
Managing Editor
satya@newmediacomm.biz
INDO-AFRICAN BUSINESS
05
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India Forges
Ties Further
Focus Africa
in Full Swing
India has kept up its relentless pursuit of intensifying trade
with Africa. In recent months India has signed various
trade cooperation agreements with countries such as South
Africa, Ghana, Gambia and Mozambique.
In August, India's Minister of Commerce & Industry The Indian Commerce & Industry Ministry was
Anand Sharma met South Africa's Minister of Trade and optimistic that given the current trend of growth in
Industry Rob Davies in Johannesburg and both of them bilateral trade between India and South Africa, the
agreed that the India-South Africa two-way trade target target of $10 billion set for 2012 could be achieved in
of $10 billion set for the year 2012 could be achieved a 2011 itself. As India-South Africa trade expands, both
year ahead, in 2011 itself. They also discussed issues countries will benefit by generating employment and
relating to finalization of India-SACU Preferential Trade other opportunities for the people of the two countries.
Agreement (PTA). Minister Sharma along with Minister He expressed satisfaction that the strategic partnership
Davies inaugurated a conference on “Doing Business between India and South Africa has now matured in to
with India”. During his stay in Johannesburg, Minister a dynamic and multi-faceted relationship
Sharma also met South Africa's Foreign Minister Ms. encompassing virtually all areas of human endeavor.
Maite Nkoana-Mashabane, Minister of Public
Minister Sharma recalled that the two countries had
Enterprises; Ms. Barbara Hogan, Minister of Public
identified the priority areas of bilateral cooperation,
Enterprises and Deputy Minister of Foreign Affairs
namely infrastructure and manufacturing, mines and
Ebrahim.
minerals, energy, banking and financial services, agro-
On the issue of PTA, Ministers Sharma and Davies processing, pharmaceuticals, information technology,
agreed that a PTA would be of mutual benefit to both automobiles and auto-components.
sides in the long term. They agreed that there were
Reiterating its earlier stand explained in June, 2010
many areas where there was complimentarity of
bilateral between the Trade Ministers, Ministers Sharma
interests of both the countries and the PTA would further
expressed his keenness to have an agreement on
enhance the same. In this context, they both highlighted
Bilateral Investment Promotion and Protection
the historical, political and economic relations between
Agreement (BIPPA) at the earliest.
the two countries.
He said the state visit of President Zuma in June 2010
Minister Shamra traveled to Durban to attend “The
was a great success and a milestone in the bilateral
India Show” organized to mark the 150 years of the first
partnership between the two countries. The
arrival of Indians in South Africa. “The India Show”,
understanding reached during the South African leader
was inaugurated by South Africa's President Jacob
had elevated this partnership to a phase of increased
Zuma.
intensity and closeness. +
INDO-AFRICAN BUSINESS
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India Seeks to Tap Ghana's
Rich Oil, Gas Resources
Minister Sharma, who visited
Ghana in September 2010, held
wide-ranging discussions with
President John Evans Atta Mills,
underlining the need for enhancing
bilateral trade between India and
the African country. The discussions
covered a number of sectors of
trade and investment.
President Mills said Ghana valued
its relationship with India and that it
would like to share India's
experience of successfully
implementing development The Union Minister for Commerce and Industry, Anand Sharma with the Foreign
Minister of Ghana, Alhaji Muhammad Mumuni, in Ghana
projects leading to all-round
economic progress achieved in the
last six decades. Ghana's Vice
interest of OVL in partnering for exploration in the petroleum sector.
President John Dramani Mahama
Responding to the request of Government of Ghana's interest for an early
also took part in the discussions.
closure of an enduring distributorship agreement between Ghana Heavy
Minister Sharma later had a
Equipment and BEML for supplying earth moving equipment by the end of
bilateral meeting with Ghana's
the year, he assured that the Government of India would take up the matter
Trade & Industry Minister Ms.
on priority.
Hannah Tetteh.
Minister Sharma also assured a favourable consideration of a request from
During the discussions with the
the Ghanaian side for concessional Lines of Credit for completing
Ghana's top leaders, Minister
infrastructure gaps in the Ghana Free Zones Area and for development of
Sharma referred to the recent oil
an integrated trade centre. He also offered training support through the
and gas finds in that country and
Indian institutions Petroleum Research Institute (PRI) and Centre for WTO
said that India would like to
Studies at IIFT. This was in response to a request made by Ms. Tetteh.
intensify its partnership in the
fertilizer, petroleum and gas Sharma led a CII-industry delegation to Ghana covering the areas of oil
sectors. He impressed upon the and gas, energy, pharmaceutical, fertilizer, electrical equipment, banking
need of an assured gas supply and consultancy.
commitment by 2014 for the $1
During the discussions, both sides specifically identified cooperation in
billion ammonia-urea fertilizer
pharmaceuticals, Information Technology and the energy sector as their
plant in Ghana for which a MoU
key priorities. Ghana's Finance Minister Kwabena Duffuor sought India's
was signed recently between the
support for transfer of technology and building local capacity especially in
two countries. Other related issues
the down-stream and up-stream oil economy, apart from the IT sector.
of availability of land, potable
water, infrastructure development During his meeting with Ghana's Finance Minister, the Indian Minister
for the project were also raised. stressed the need for an early conclusion of the Bilateral Investment
Promotion and Protection Agreement (BIPPA) which was agreed to be
Minister Sharma highlighted the
INDO-AFRICAN BUSINESS
07
August - October 2010
C OVER STORY
India as a model of development, to be
emulated by Ghana.
In all his bilateral meetings, Minister Sharma
emphasized the need for developing an
enduring partnership between India and
Ghana as well as strengthening of
investment ties. Ghana is one of the highest
recipients of Lines of Credit from the
Government of India and so far seven
projects are in the pipeline worth $ 193
million.
The Golden Jubilee House, the Presidential
Complex, constructed at total project cost of
over $ 100 million, and inaugurated recently
is a shining example of India-Ghana
The Union Minister for Commerce and Industry, Anand Sharma with partnership.
the Minister of Finance of Ghana, Dr. Kwabena Duffuor, in Ghana
Minister Sharma's visit assumes significance
as part of his “Focus Africa” policy in the
signed in 2002, but had not yet been ratified by Ghana so far. market diversification strategy to the African
continent. The recent oil and gas finds in
The occasion also provided an opportunity for productive Ghana have added a new dimension to the
exchanges between ONGC, OVL and GAIL with Ghana potential partnership between the two
National Petroleum Corporation (GNPC), and separately countries. Last September, Chairman of
between Rashtriya Chemicals & Fertilizers (RCF), GNPC and Ghana National Petroleum Corporation
Ministry of Agriculture of Ghana. (GNPC) Ato Ahwoi had visited India as a
Minister Sharma, who also had talks with Ghana's Foreign Special Envoy of the President and had called
Minister Alhaji Muhammad Mumuni, underscored the need of on Prime Minister Manmohan Singh, following
working together for elevating trade and economic which a Memorandum of Understanding was
engagement between the two countries a higher level. The signed between the two governments for an
Ghanaian Minister specifically emphasized the need for estimated investment of $ 1 billion for a
partnerships in energy, pharmaceuticals, IT sectors, citing fertilizer plant with production of 1.15 million
tones per year.
Ghana has ambitious plans of augmenting
its power generating capacity from 2,000
MW to nearly 5,000 MW in the next five
years and an estimated investment of $ 1.5
billion is required for the power transmission
and distribution sectors in strengthening the
field.
Minister Sharma also chaired a 'Business
Round Table' along with Ghana's Trade &
Industry Minister, Ms. Tetteh, with whom he
had held substantive discussions. Bilateral
trade between India and Ghana stands at $
535 million after reaching a high of nearly
$1 billion in 2007-08. The Indian Minister's
The Union Minister for Commerce and Industry, Anand Sharma with
the Foreign Minister of Ghana, Alhaji Muhammad Mumuni and visit aimed to restore the buoyancy in the
delegation members, in Ghana. bilateral trade between the two countries. +
INDO-AFRICAN BUSINESS
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C OVER STORY
A Grand Show on Brand India
The President of South Africa, Jacob Zuma inaugurating “The India Show”, at Johannesburg, South Africa.
The India-South Africa business partnership turned a Steel, Tata Chemicals, Tata Consulting Engineers,
new leaf with the unveiling of The India Show in Kirloskar Brothers, Tea Board and Coffee Board
Johannesburg by President Jacob Zuma on 1 (Ministry of Commerce & Industry, Govt of India), Coir
September 2010. Board (Ministry of MSME), Government of India, Dabur
India, Escorts, Ranbaxy Laboratories, Ion Exchange,
The Show, held at the sprawling MTN Expo Centre,
Beri Udyog, Amravati Group, Fedders Lloyd Group,
South Africa's largest exhibition complex, was graced
Jindal Rectifiers, VisionTek, Setco Automotive, Yuken
by the visiting Indian Minister of Commerce & Industry
India, PME Transformers (India), NIIT Antilles NV, Dr
Anand Sharma, senior ministers of that country and
Reddy's laboratories, Jain Irrigation, Hi Tech
business leaders from both nations.
Biosciences India and Elmex Controls. The UB Group
The four day mega-event, organized by the and several others displayed their latest technologies
Government of India in association with the Indian and innovations at the Expo.
High Commission in South Africa and the
The Expo covered automotive and auto components,
Confederation of Indian Industry (CII), is a major drive
biotechnology, tractor& farm implements, agro & food
to push trade and business ties in the African continent.
processing technology, pharmaceuticals & healthcare,
Minister Sharma and Tata Group Chairman Ratan Tata mining, power, water, IT& telecommunications, roads &
led the government-corporate mission to target $10 railways and retail tractors.
billion two-way trade by 2012.
On the sidelines, the corporate leaders from India and
The event showcased the best of 'Brand India' through a South Africa led by Ratan Tata and Patrice Motsepe Co-
high end technology exhibition and a series of high- Chairmen of the India-South Africa CEO Forum met for
profile business meets, food, fashion and cultural its first meeting since its launch by President Zuma
shows in Johannesburg from 29 August to 1 September during his recent visit to India. The business leaders
2010. discussed the opportunities and challenges that the
The exhibition, which was a major attraction in bilateral trade offered and the bottlenecks that were
Johannesburg, featured a large exposition by leading hampering India-South Africa business ties. A few
Indian technological and engineering firms in Nasrec. constructive suggestions on decongesting the ways of
Top-rung Indian companies such as Tata Motors, Tata better engagement were put forward by the CEOs for
INDO-AFRICAN BUSINESS
09
August - October 2010
C OVER STORY
consideration by the two governments. The session was addressed by prominent experts like
Hari Sankaran, Managing Director, IL&FS, Werner van
The two Chairmen also debated the agenda of pushing
Oudenhove, Head of Infrastructure Finance, Rand
India-South Africa business with the two trade Ministers
Merchant Bank, Reg Max, Associate Director -
Anand Sharma & Rob Davies in a televised CNBC
Corporate Finance, Price Waterhouse Coopers, Robert
panel debate.
Appelbaum, Director, Edward Nathan Sonnenbergs,
CEOs from India attending the Forum meeting and Sanjay Kirloskar, CMD, Kirloskar Brothers.
included B. Muthuraman, Vice President, CII & Vice
India's soft power was also on display at the grand
Chairman, Tata Steel, Sanjay Kirloskar, Chairman,
event. A potpourri of fashion, dance, and Indian cuisine
Kirloskar Brothers, Onkar Kanwar, Chairman, Apollo
gave South Africa a glimpse into Indian culture and
Tyres, Syamal Gupta, Advisor, Tata International, T.C.A.
traditions. 'The Fashion Show' held on 30 August 2010
Ranganathan, CMD, EXIM Bank, Harsh Mariwala,
showcased Indian designs to drive business between
CMD, Marico, Naresh Goyal, Chairman, Jet Airways,
the South African and Indian fashion and textile
Rana Som, CMD, NMDC, Vikramjit S. Sawhney, CEO,
industries. Two of India's most accomplished fashion
Sun Group and Hari Bhartia, President CII and Co-
designers, Manish Malhotra and Satya Paul, presented
chairman, Jubilant Organsys, amongst others..
their latest collections. The Fashion Show also saw the
'The India Show' was also complemented by 3rd annual presence of three reigning Miss Indias walk the ramp.
'Doing Business with India' conference which was held
The India Show' also featured a cultural programme by
on 31 August 2010. The conference, which was
Maitreyee Pahari & troupe, facilitated by ICCR, a
addressed by Ministers Sharma and Davies, brought to
presentation of “Indian Nouvelle Cuisine at 'The India
the fore India as an attractive investment destination.
Food Week' which was inaugurated on August 29 by
The thematic discussions at the conference covered
Minister Sharma and Minister Maite Mashabane and
infrastructure financing, South-South Cooperation,
organised in collaboration with Taj Mahal Hotel at
and regulatory issues, etc.
Hotel Sandton Sun, Johannesburg. +
India, Mozambique to Double
Two-way Trade
to $1 bn by 2013
India and Mozambique have agreed to more than
double their two-way trade to $1 billion by 2013 from
$427.13 billion in 2009-2010, in view of the business
potential existing between the two countries.
This agreement was reached by the two sides, during
Mozambique's President Armando Guebuza's visit to
India from 29 September to 4 October 2010 when he
held discussions on bilateral relations with President
Pratibha Patil, Vice President Hamid Ansari and Prime
Minister Manmohan Singh.
In a joint statement issued at the end of President
Armando Guebuza's India visit, both sides noted with
The Prime Minister, Manmohan Singh meeting the President of
satisfaction the growth in mutual trade. India is among Mozambique, Armando Emilio Guebuza, in New Delhi.
INDO-AFRICAN BUSINESS
10
August - October 2010C OVER STORY
the top five major trading partners of Mozambique. market access.
India was Mozambique's fourth largest importer and
Both sides reiterated their desire to strengthen bilateral
third largest exporter in 2009. The trade between India
relations based on the traditionally close ties of
and Mozambique has more than doubled since 2005-
friendship and cooperation between the two countries,
06 from US $ 178.15 million to US $427.13 million
and work to raise the relationship to a strategic
2009-10.
partnership based on common interests and mutual
Both sides agreed that there is considerable scope for benefits.
further increase in bilateral trade between the two
The two sides have identified specific areas of common
countries as well to expand the trade basket. A target of
interest that will allow the establishment of an India-
US $ 1 billion by 2013 has been accepted by both
Mozambique partnership and agreed that high official
sides.
delegations should meet to discuss ways to build a
Both sides recognized that Mozambique is rich in sustainable and mutually beneficial partnership.
mineral resources and has large reserves of untapped
During the talks, Prime Minister Singh reiterated India's
minerals, ores and coal and will become a major
commitment to contribute to the economic
producer soon. Moreover, most of the cashew
development of Mozambique including human
produced in the country is exported to India. Both sides
resources, agriculture, infrastructure and science &
agreed to develop such complementarities to expand
technology. He announced a line of credit of $500
trade. It was agreed that greater efforts to diversify and
million for Mozambique. In this context, it is noted that
expand trade will be made. India welcomed
in May 2010, India announced a Line of Credit of $25
Mozambique's accession to the Duty Free Tariff
million for rural electrification, and in all, six LoCs
Preference (DFTP) scheme for Least Developed
amounting to $140 million are operational or have
Countries (LDCs) offered by India to provide greater
The President, Smt. Pratibha Devisingh Patil and the Prime Minister, Manmohan Singh at the ceremonial reception of President
of Mozambique, Armando Emilio Guebuza, at Rashtrapati Bhavan, in New Delhi on September 30, 2010.
INDO-AFRICAN BUSINESS
12
August - October 2010C OVER STORY
been completed. given the closeness and economic complementarity of
the two countries. This will also include support by India
Prime Minister Singh said that India would be happy to
for Mozambique's infrastructural and mineral
continue to support Mozambique's developmental
development and the development of an India-
goals. A grant of $ 4.5 million to provide equipment to
Mozambique Coal Partnership keeping in view the
build capacities of Mozambique's police force was also
potential for growth and optimal utilization of resources
announced.
in Mozambique for its development.
Noting that India is ranked as the fourth largest investor
India is also committed to support capacity building in
in Mozambique in 2009 with investments of US$64.17
the coal sector and has announced, during the visit to
million in the sectors of energy, mineral resources,
Mozambique of Minister of External Affairs S.M.
agro-industries, transport and communication, food
Krishna, that India will establish an apex institute for
processing, and coconut and cashew processing, it was
training in the coal sector and an apex planning
decided that greater investment promotion efforts will
institute for the coal industry in Mozambique, which will
be made to encourage Indian foreign direct investment
be open to the countries of the SADC region. This was
(FDI) in Mozambique.
welcomed by the Mozambique side.
During the discussions, India welcomed the decision of
Recalling that an MoU on defence cooperation was
Mozambique to be a partner country at the CII-EXIM
signed between the two countries in March 2006
Bank India-Africa Conclave in 2011 and considered
during the visit of the Mozambican Defence Minister to
that this would be a good event to highlight the
India and that the second Joint Working Group on
opportunities of increasing Indian FDI in Mozambique.
Defence between them met in New Delhi on 16 June,
Support to HRD & Coal Partnership 2010, the two sides have agreed to enhance defence
cooperation between the two countries in the areas of
India assured Mozambique of its continued support for training and capacity building.
both human resource development, and for imparting
a new impetus to increasing economic engagement, To support human resource development, under
The Prime Minister, Manmohan Singh and the President of Mozambique, Armando Emilio Guebuza, at the delegation level
talks, in New Delhi.
INDO-AFRICAN BUSINESS
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August - October 2010C OVER STORY
various schemes, Mozambique is now offered long- regional forums. It is seen as an important member in
term and short-term scholarships. This includes the Southern African Development Community (SADC)
scholarships for undergraduate, graduate and and African Union (AU). India is increasing its
research studies in India annually. Eight new engagement and cooperation with SADC and the AU
Scholarships are offered under the C V Raman and appreciates Mozambique's role in these
Fellowship, 30 training courses are offered to it under organizations.
Indian Technical & Economic Cooperation (ITEC)
India and Mozambique noted the progress and
programme, and it also has access to special
achievements made in the Indian Ocean Rim
scholarships in agricultural sciences offered as a part of
Association for Regional Cooperation (IOR ARC). They
the decisions of the India Africa Forum Summit.
welcomed the adoption of a revised charter of IOR ARC
Mozambican students are also eligible for scholarships
and agreed to continue working together along with
under the Pan-Africa e-network Project wherein a total
other Member States of IOR ARC, to revitalise the
of 10,000 scholarships are offered to Africa.
organisation and pursue cooperation in various areas
In addressing wider areas beyond the bilateral realm, for the common benefit of their peoples. They noted
and in recognition of the historical and civilisation links that the greater involvement of the business, scientific,
between the African continent and India, the leaders and academic communities was essential to revitalise
committed themselves to strengthening the India-Africa the objectives. Both countries have denounced and
Forum and to the advancement of the seven pillars of condemned firmly the acts of piracy that are occurring
the Action Plan of the Framework for Cooperation in parts of the Indian Ocean and reiterate the need for a
launched in Delhi in March 2010. The Action Plan will regional common position against this phenomena.
intensify India-Africa cooperation in various fields
Both India and Mozambique reaffirmed their desire to
including Commerce, Politics, Social Development and
continue their mutual support and cooperation at
Capacity Building; Science, Technology, Research and
international fora, including at the United Nations.
Development; Tourism; Infrastructure, Energy and
Mozambique reiterated its support of India's
Environment and Media and Communication. With this
candidature for the non-permanent seat in the United
in mind, the leaders undertook to work even more
Nations Security Council for the 2011-12 term.
closely to reinvigorate their cooperation for Africa's
development. The Indian Prime Minister emphasised Both sides, stressed their call for an urgent reform of the
that India looks forward to the next India Africa Forum UN and expansion of the Security Council in both
Summit (IAFS) to be held next year in Africa. The permanent and non-permanent categories. As a
Mozambique President welcomed the IAFS initiative prominent member of the African Union, Mozambique
and its next summit in Africa. has been playing an important role in defending the
African position for comprehensive reform of the UN as
Leaders on both sides noted with satisfaction the
expressed by the Ezulwini Consensus. Mozambique
strengthening of the growing partnership between the
reiterated its support for India for a permanent seat on
two countries with the signing of the following Bilateral
the UN Security Council. India reiterated its support to
Agreements / MoUs during the visit:
the African position.
a) MoU between India and Mozambique on
In view of the broad impact of climate change and the
Cooperation in the fields of Mineral Resources;
particular vulnerability of countries in the African
b) MoU on Cooperation in the field of Micro, Small and continent due to underdevelopment and unique
Medium Enterprises (MSME) between India and geographical disadvantages, the Indian side expressed
Mozambique its willingness to cooperate with the Mozambican side
in providing assistance for urgent adaptive actions to
c) Double Taxation Avoidance Agreement (DTAA)
protect against the impact climate change. Both sides
between India and Mozambique
also agreed to closely coordinate their positions in
It was agreed that the Ministerial Joint Commission will multilateral climate change negotiations to safeguard
meet in the next six months to take the proposals the legitimate interests of developing countries. +
forward.
Mozambique has been very politically active in all the
INDO-AFRICAN BUSINESS
14
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India Assures Gambia
More Cooperation in HRD
Gambia's Minister of Foreign Affairs & International capacity building/training by way of human resource
Cooperation Mamadou Tangara visited India from 17 development in Gambia. She announced a grant of
to 21 August, 2010, along with a delegation. US$ 500,000 (US$. 0.5 million) to Gambia to be
utilized in the education and health sectors. She
The official level talks were held with the Gambian side
conveyed India's offer to set up one 'Hole-in-the-Wall
on 19 August 2010 with the Indian side led by Minister
(HiWel) work station in Gambia.
of State for External Affairs Preneet Kaur. Minister
Tangara thanked India for the assistance provided to A Protocol for Consultations between the Ministry of
the Gambia for its development, particularly in the field External Affairs of India and Ministry of Foreign Affairs
of human resources and for the concessional Lines of International Cooperation was signed by the two
Credits. He conveyed his Government's desire to further ministers on behalf of their countries.
enhance cooperation with India and sought increased
During his visit, Minister Tangara had a meeting with
cooperation in the field of human resource
India's Minister for Human Resource Development
development.
Kapil Sibal. He also had meeting at National Small
Minister Kaur assured the visiting Minister that India Industries Corporation (NSIC), National Research
would consider any proposal from the Gambian side Development Corporation (NRDC), EXIM Bank and
for increased bilateral cooperation especially for several other organizations of interest to the Gambia. +
The Foreign Minister of the Gambia, Dr. Mamadou Tangara meeting the Union Minister for Human Resource Development,
Kapil Sibal, in New Delhi on August 18, 2010.
INDO-AFRICAN BUSINESS
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Two-Way Trade with KENYA to Rise to $2.5 bn by 2013
'Namaskar Africa'
Says INDIA
India and Kenya have agreed to step up their bilateral strengthening of ties between India and the African
trade to $2.5 billion by 2012-13 from $1.5 in 2009-10 continent.
by enhancing the level of co-operation between the two
In recent years, Indian companies from the private and
countries in the spirit of strengthening South-South
public sector had shown a growing interest in Kenya.
understanding.
The level of Indian investment in Kenya had reached a
This was decided in a meeting between India's Minister figure of $ 1.5 billion. Sharma reiterated that India was
of Commerce and Industry Anand Sharma India and focusing on human capital development, and Kenya
Kenya's Prime Minister Raila Amolo Odinga held at the was a partner in this as a large number of students from
Kenyan capital Nairobi on 14 October, 2010. the country were studying in India.
During the meeting, Sharma recalled the historical The implementation of the Pan Africa e-network project
relationship between the two countries and the support was also discussed. Sharma pointed out that the project
provided by India to Kenya in its freedom struggle. It was already making a significant contribution in fields
was pointed out by Sharma that following the Delhi of tele-education and tele-medicine in many African
Declaration of 2008, which had set the roadmap of countries. As many as 47 African countries have signed
cooperation, there had been a deepening and the Agreement for implementing this project.
The Union Minister for Commerce and Industry, Anand Sharma with the Prime Minister of Kenya, Raila Amolo Odinga, at
Nairobi, Kenya.
INDO-AFRICAN BUSINESS
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August - October 2010C OVER STORY
It was acknowledged that this project had bridged the generic medicines.
digital divide. Kenya had signed the Agreement with
With respect to the global standards and benchmarks,
TCIL, India in July, 2010 and very soon the system will
Indian pharmaceutical companies are the best, he
be put into operation. Sharma, informed the Kenyan
said. The largest USA FDA approvals for non-US
Prime Minister that as part of its commitment to
companies are of Indian companies. He requested that
contribute to the economic growth of Kenya, India had
Kenya may keep this in view while implementing the
recently extended a Line of Credit (LoC) of $ 61.6
Kenya Anti-Counterfeit Act and the proposal to have a
million for executing a power transmission project.
similar legislation at the East African Community (EAC)
Prime Minister Odinga recalled the historical level.
contribution of Appa Pant, India's first High
Both leaders agreed that there was a great potential for
Commissioner to Kenya, in laying a strong foundation
increasing the scope of cooperation between the two
of India-Kenya relations. He further pointed out that his
countries in the areas of Information Technology;
father had visited India in the early 1950s to observe
agriculture including agro-processing; infrastructure
the functioning of democracy in the newly independent
development sectors like road, rail, and energy
nation.
including generation, transmission and distribution of
The Kenyan Prime Minister acknowledged the power; oil & gas; manufacturing; and healthcare.
significant role that India had played in enriching the Following the 6th India-Kenya Joint Trade Committee
Human Resource Development of Kenya. Odinga Meeting (JTC) held on 13 October, 2010, these sectors
informed Sharma that he planned to visit India shortly would get focused attention.
2010 to participate in the World Economic Forum's
Anand Sharma inaugurated on 14th October, 2010,
'India Economic Summit'.
the 'Namaskar Africa' event being organized by the
Sharma highlighted the contribution of the Indian Federation of Indian Chambers of Commerce and
pharmaceutical industry in making available life saving Industry (FICCI) in association with the Ministry of
medicines at affordable prices, especially through Commerce and Industry, Government of India during
The Union Minister for Commerce and Industry, Anand Sharma inaugurated the ‘Namaskar Africa’ event, organised by the
Federation of Indian Chambers of Commerce and Industry (FICCI) in association with the Ministry of Commerce and Industry,
at Nairobi, Kenya.
INDO-AFRICAN BUSINESS
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August - October 2010C OVER STORY
14 to 15th October, 2010 at Nairobi. The event of healthcare and education with all the members of the
comprises of an 'India Exhibition' and the 'India-East African Union. As many as 47 countries in Africa have
Africa Business Forum' with participation of business already signed the Agreement with TCIL and 119
delegations from 12 East African countries. sites/centers have been commissioned / integrated with
the e-network.
The Forum had the largest ever business delegation
from India. The Forum will consider in its deliberations Sharma highlighted that India offered to collaborate in
issues pertaining to increasing agricultural productivity the Kenyan efforts for revival of its textiles sector, which
and local value additions through advance accounts for 30 percent of Kenya's industrial workforce,
technologies; multilateral funding mechanisms; India's by providing technical assistance in skill building for the
Duty Free Tariff Preference (DFTP) Scheme for Least entire value chain, transfer of technology in ginning
Developed countries (LDCs) and specific sectors of and processing, collaboration with Indian Textiles
power, health and ICT. 'Namaskar Africa' is an exclusive Research Association and exploratory visits for
networking forum of African and Indian enterprises businessmen and Buyer-Seller Meets.
offering trade, investments and joint venture
JTC took note of the offer of a Line of Credit (LoC) of
opportunities across the sectors of mutual interest to
$61.6 million made by India to Kenya for 'Power
both the sides.
Transmission Lines', which would help in augmenting
'India- East Africa Business Forum' has brought together Kenya's infrastructure.
the policy makers, businessmen, financial institutions,
During the JTC meeting, the Kenyan side appreciated
multilateral funding agencies, procurement agencies,
India's concerns on the Kenyan Anti-Counterfeit Act
investment bodies, regional bodies and sectoral nodal
and stated that the legitimate Indian trade concerns in
institutions from India and the 12 countries of East
this regard would be addressed.
Africa for a business dialogue, to share their experience
and learnings for mutual growth and discuss the project Sharma said that India and Kenya had agreed towards
specific opportunities in identified sectors for mutual greater engagement between the 'Kenya Investment
collaboration. Authority' and 'InvestIndia', which would help in trade
and investment flows between the two countries.
While inaugurating the 'Namaskar Africa' event,
Decision was taken to fast-track the finalization of a
Sharma stressed the fact that India's relationship with
Bilateral Investment Promotion and Protection
the African continent was a unique and distinct
Agreement (BIPPA) and a revised Double Taxation
partnership based on trust, friendship and respect for
Avoidance Agreement (DTAA) between the two
each other's cultures. He emphasized that we need to
countries.
find ways to further deepen and strengthen our
engagement with the African continent. Functioning of MoU in the Medium and Small Scale
Industries sector was reviewed. The two sides also
Earlier on 13 October, 2010, Sharma, co-chaired the
agreed to take steps towards early signing of
6th India-Kenya Joint Trade Committee Meeting (JTC)
Agreements/MoUs in the field of Tourism and Civil
with Chirau Ali Mwakwere, Kenya's Minister of Trade, in
Aviation and finalization of MoUs in the areas of
Nairobi, Kenya. The Indian and Kenyan delegations
Human Resource Development, Standards and
discussed a host of bilateral economic and trade issues
Scientific/Industrial Research.
and many important decisions were arrived at.
According to Sharma, the key sectors identified for
Sharma informed that during the 6th India-Kenya JTC
bilateral cooperation were agriculture including agro-
Meeting, the two sides had set a target of bilateral trade
processing; drugs and pharmaceuticals; infrastructure
of $ 2.5 billion in the next three years, i.e. by 2012-13,
development sectors like road, rail, and energy
and also identified the steps to be taken towards this
including generation, transmission and distribution of
objective. In 2009-2010, the bilateral trade is US $ 1.5
power, airport; Information and Communication
billion.
Technology (ICT); oil & gas; manufacturing; and
The JTC reviewed the implementation of the Pan Africa healthcare.
e-network in Kenya and Kenya has agreed to identify
Sharma hoped that the JTC and the 'Namskar Africa'
the site locations by the end of October, 2010. The
event at Nairobi, Kenya would provide further stimulus
network enables sharing of India's expertise in the field
to the growing relationship between India and Kenya. +
INDO-AFRICAN BUSINESS
18
August - October 2010CASE STUDY
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Haryana. Tel : 91-124-4517600, 4776100 Fax: 91-124-4380014. Email: info@a2zemail.comP ERSPECTIVE
Cameroon Revamps
Companies as Economy
Opens Up By Pochi Tamba Nsoh
The Cameroon government through its ministry of
Economy, Planning and Regional Development in
partnership with the European Union and the United
Nations Industrial Development agency, has recently
done more to upgrade and restructure its economy.
During a one-day workshop in the country's capital,
Yaounde, Ministers Louis Paul Motaze of Economy,
Planning and Regional Development, Messengue
Avom of Public Works,
represented partners
and participating
companies listened to
the results of a recently
carried out study. biggest economy and a lot of resources
to offer. The web based encyclopedia,
Chaib Cheriff, wikipedia describes Cameroon's
International economy in the following way.
Consultant in economy “Cameroon is part of the Bank of
and finance, chief Central African States (of which it is the
researcher and dominant economy… An estimated 70
resource person, percent of the population farms, and
revealed through facts agriculture comprised an estimated
and figures how urgent 19.8 percent of GDP in 2009…Soils
it is for Cameroonian and climate on the coast encourage
companies to get in extensive commercial cultivation of
tune with world standards of business. As many as bananas, cocoa, oil palms, rubber, and tea. Inland on
1,700 regularly registered companies have been the South Cameroon Plateau, cash crops include
visited by Cheriff's team and about 200 of them will be coffee, sugar, and tobacco. Coffee is a major cash crop
chosen for the sustainability stage of the project. The in the western highlands, and in the north, natural
experts will also see in what ways to create an office to conditions favour crops such as cotton, groundnuts,
help companies that need to upgrading/restructuring. and rice”. There is also the 2009 creation of the norms
and quality office ANOR and creations of Guichet
Context:
Uniques to reduction of the processes involved
Cameroon has been described by many experts as the economic initiatives.
most strategic country in Central Africa. Neither the
As Cameroon's economy opens up, the government
Gabonese per capita income known to be four times
has clearly understood that it restructures its
that of most sub-Saharan Africa, nor the recovering
manufacturing companies and in the same process
Equatorial Guinneans economy can underrate what
strengthens its economy, or accept to be swallowed up
Cameroon has as resources. Being the most populated
by stronger economies. That and the pressure to put in
of the six CEMAC member countries, it also has the
place the proper environment for the strategic
INDO-AFRICAN BUSINESS
20
August - October 2010P ERSPECTIVE
economic agreements it signs with partner to be enhanced, but these are things that I am sure will
countries/organizations like the European Union and be handled gradually”.
the United Nations is pushing the economy forward.
Objectives of the Programme
In a chat with reporters, Minister Louis Paul Motaze
summaries the context thus “We must draw a number of The team that Cheriff leads has as task to identify the
conclusions. The first is the low competitiveness of the sectors that the government needs to support and the
Cameroonian economy and its companies. The acceptable number of companies to be accompanied
second is the role these companies have to play not in the upgrading-restructuring programme. Cheriff is
only within Cameroon, but also in our strategy to attract emphatic on the fact that the restructuring is way
new markets. The third is the challenges in front of us beyond the scope of companies. It equally involves
and one is what we call economic agreement ministries and support structures in direct relationships
partnerships, (known by its French acronym APE). These with companies and business initiatives. In this context,
agreements require that custom barriers be reduced, the Ministry of Finance, that of Economy, Planning and
and all markets be opened to competition. This Regional Development, that of Employment and
perspective is inevitable, even if we negotiate for it to Professional Training and that of Small and Medium
happen gradually”. sized enterprises are directly involved. The programme
is expected to run for four years after which a pilot
Experts have underlined the irony in Cameroon's project takes over to test the results of the upgrading
economy. Though naturally very rich, diversified and programme.
clearly interested in attracting investors, figures show
that direct foreign investment is very low in Cameroon. One of the companies which have signed up to be
One reason advanced for this is the dominance of upgraded is KENS ATLANTIC. It is specialized in the
unregistered businesses as compared to the registered production of all forms of uniforms, from school ware to
ones. This encourages unfair competition and put the hospital wear. Its Director General painted this picture
weight of taxes on the shoulders of the few properly of the agreement she has signed with the Government
registered companies. Also, production - a determinant of Cameroon: “It's a convention that concerns the
of a vibrant economy- is mostly in the hands small upgrading-restructuring of my production unit-
companies with 80 to 83 percent of these companies precisely the social standards. It will help me to make
having less than 20 workers. Another factor of concern improvements on the welfare of the staff by enhancing
is the fact that 80 percent of companies are located in the lighting within the factory, making sure there is
the two key cities of Douala and Yaounde, causing enough ventilation, an infirmary, available clean water
demographic and town planning concerns to the rest of for any worker who wants to drink etc”. She also
the country. highlights the fact that she had lost some contracts in
the past because she had not signed this convention, so
In his words, Cheriff points out that Cameroon is a very she is convinced many more will now come and her
strategic country in Africa. “If you look at the economic business will soon see better days.
potentials of Cameroon, it is the most important
country in the sub region. Its mineral and agricultural The upgrading-restructuring programme comes at a
resources make it a country with a very important time when the results of business climate studies in 183
economic weight, not only in Central Africa, but also in contained in World Bank document “DOING
the African continent. We met many countries when we BUSINESS 2011” is also being presented to
were working on the research, and I found very dynamic stakeholders in Cameroon. According to the
company bosses in all the sectors of the economy. They document, Cameroon has earned five points in the list
have a very good vision of their market - within the of countries that have reformed business policies. It has
country and in the sub regional. There are, however, moved from the 173rd to the 168th. According to a
some constraints that they will wish to be lifted; such as representative of the Prime Minister's office at the
access to funding. It is a very essential problem, and presentation, this is without doubt the result of about 27
upgrading cannot be done without financial resources. reforms undertaken by the government in the area
The business environment as a whole, is already being between February 2010 and today. +
improved. The government has understood that It has
INDO-AFRICAN BUSINESS
21
August - October 2010F OCUS
Exim Bank Opens East Africa Office
R. Gopalan, Secretary (Financial Services), Ministry of Finance, Government of India, addressing
audience at the inauguration of Export Import Bank of India's East Africa Office in Addis Ababa., Ethiopia
on 21 September 2010. Seen on the dais (left to right) Prabhakar Dalal, Executive Director, Exim Bank, T.
C. A. Ranganathan, Chairman & Managing Director, Exim Bank and Ahmed Shide, State Minister for
Finance and Economic Development, Government of Ethiopia.
Export-Import Bank of India (EXIM Bank) opened its development of infrastructure in Africa.
East Africa representative office at Addis Ababa on 21
Highlighting the potential of the region, Gopalan said
September 2010. It was inaugurated by R. Gopalan,
that the setting up of EXIM Bank's office in Addis Ababa
Secretary (Financial Services), Government of India in
would serve to boost trade from the region and that the
the presence of Ahmed Shide, State Minister for
Bank could facilitate acquisition of equipment and
Finance and Economic Development, Government of
technologies which could be beneficial for the country
Ethiopia, Tekeda Alemu, State Minister for Foreign
and the East African region.
Affairs, Government of Ethiopia and Bhagwant Singh
Bishnoi, Ambassador of India to Ethiopia at a function Speaking on the occasion, Shide welcomed EXIM
which was attended by senior government Bank's decision to open an office in Addis Ababa, its
functionaries, diplomats from the East African region, seventh overseas regional office, and hoped that the
multi-lateral agencies, United Nations' agencies, Indian Bank's presence in the region would further
banks, representatives of a large number of corporate boost and facilitate trade between India and the East
companies and the Indian diaspora. African region. He urged the trade and industry bodies
in the region to benefit from the use of financing and
The office in Addis Ababa caters to the East African
support services offered by EXIM Bank.
region covering countries that include Burundi,
Djibouti, Ethiopia, Kenya, Rwanda, Somalia, Sudan, In his brief observations, Alemu, spoke about the
Tanzania and Uganda. bilateral relations between Ethiopia and India and the
latter's pivotal role in the economic development of the
Delivering the Inaugural Address, Gopalan observed
African region. He said the opening of the EXIM Bank's
that EXIM Bank plays an important role in the financing
representative office would boost the economic
of Indian exports and in assisting corporate companies
cooperation and development in the East African
in their globalisation efforts, as well as helping in the
region.
INDO-AFRICAN BUSINESS
22
August - October 2010F OCUS
EXIM Bank's Chairman and Managing Director T.C.A. the COMESA region, which include: cooperation in
Ranganathan said that EXIM Bank, through its Lines of agricultural development, natural resource
Credit, would serve as a reliable source of finance for development, cooperation in hotel and tourism
project exports, buyers' credit/SBLCs, Indian investment industry, focus on ICT, human resource development,
abroad, knowledge building and consultancy services cooperation in infrastructure, banking and energy,
for companies in the region, supporting them in their besides broadening linkages with trade and investment
efforts to become internationally competitive. He promotion institutions in the region. Such endeavours
added that EXIM Bank supported Indian companies in could also be supplemented by measures such as:
their trade and investment activities. focus on increased participation in multilateral funded
projects, setting up business hub(s) in the region, and
Bishnoi stressed on the historical relations between
establishing preferential trade agreement between
India and Ethiopia and the trade potential that the latter
India and COMESA.
held. He complimented EXIM Bank on opening of the
East African Regional Office in Ethiopia. Mumbai-Based EXIM Bank has regional offices across
the country, which include Ahmedabad, Bangalore,
On this occasion, EXIM Bank's publication on
Chandigarh, Chennai, Guwahati, Hyderabad,
'COMESA (Common Market for Eastern and Southern
Kolkata, New Delhi and Pune. The overseas offices of
Africa): A Study of India's Trade and Investment
the Bank are located in Dakar, Dubai, Durban, London,
Potential" was released by Gopalan. The study has
Singapore and Washington DC. +
delineated broad strategies and recommendations to
enhance and foster India's commercial relations with
$42 mln EXIM Bank LoC for
Congo to Fund Hydel Project
Export-Import Bank of India (EXIM Bank) has extended the Minister of Planning and the Minister of Energy.
a Line of Credit (LoC) of US$ 42 million to the India's Ambassador to Congo D.N. Srivastava and
Government of Congo. An LoC Agreement to this effect Francois Balumeune, Congo's Ambassador in New
was signed in Kinshasa, 5 August 2010, by Nadeem Delhi were also present on the occasion.
Panjetan, General Manager, on behalf of Exim Bank
The LoC has been earmarked for financing the
and Matata Ponyo Mapon, Minister of Finance, on
Kakobola Hydroelectric Power Project in Congo. EXIM
behalf of the Government of Congo in the presence of
Bank will reimburse 100 percent of contract value to the
Congo's Prime Minister, the Minister of External Affairs,
Indian exporters, upfront upon the shipment of goods.
The LoC will be used for financing at least
85 percent of the total contract value
Nadeem Panjetan, General Manager, Export-
Import Bank of India and H.E. Matata Ponyo
Mapon, Minister of Finance of the Democratic
Republic of Congo in Kinshasa at the signing
ceremony of an Agreement for a Line of Credit of
US$ 42 million to the Government of Democratic
Republic of Congo for financing execution of
Kakobola Hydroelectric Power Project in
Democratic Republic of Congo.
INDO-AFRICAN BUSINESS
23
August - October 2010F OCUS
through sourcing of goods and services from India. and instruments, cotton yarn fabrics madeups,
manufactures of metals, transport equipments, plastic
EXIM Bank already has in place two Lines of Credit
and linoleum products, primary and semi-finished iron
aggregating $58.50 million extended to Congo. The
and steel and electronic goods.
first LoC of $33.50 million is being utilized for financing
setting up a cement plant, acquisition of buses and EXIM Bank has in place 143 Lines of Credit, covering
other equipments in Congo. The second LoC of $25 over 94 countries in Africa, Asia, Latin America, Europe
million is being used for procurement of hand pumps and the CIS, with credit commitments of $4.71 billion,
and submersible pumps. available for financing exports from India. EXIM Bank's
LOCs afford a risk-free, non-recourse export financing
Located in the Central Africa, with a small length of
option to Indian exporters. Besides promoting India's
Atlantic coastline, Congo is the third largest country in
exports, EXIM Bank's LoCs enable demonstration of
Africa. Main products exported from India to Congo
Indian expertise and project execution capabilities in
are: pharmaceuticals, meat preparations, machinery
emerging markets. +
EXIM Bank Extends $25 mln
LoC Africa's PTA Bank
Export Import Bank of India (EXIM Bank) has extended a and Managing Director, EXIM Bank and Dr. Michael M.
Line of Credit (LoC) of $25 million to Eastern and Gondwe, President of PTA Bank.
Southern African Trade and Development Bank (PTA
This is EXIM Bank's tenth LoC to PTA Bank, which will be
Bank). The LOC Agreement was signed in New Delhi,
utilized for financing India's export of capital goods,
on 27 July 2010 by T.C. A. Ranganathan, Chairman
equipment and services to 17 Eastern and Southern
African member countries of PTA
Bank. Under the LoC, EXIM Bank
will reimburse 90 percent of
contract value, upfront upon the
shipment of goods and
rendering of services. The total
value of LoCs extended by Exim
Bank to PTA Bank, over the past
few years, has amounted to
$105.51 million. The earlier
LoCs have been utilized to
finance export of a variety of
items like sugar plants, cement
plants, tissue paper plants,
T C A Ranganathan, Chairman and
Managing Director, Exim Bank and
Michael M. Gondwe, President of
PTA Bank, exchanging Agreement
for a Line of Credit of US$ 25 million
to Eastern and Southern African
Trade and Development Bank (PTA
Bank) signed in New Delhi on July
27, 2010
INDO-AFRICAN BUSINESS
24
August - October 2010You can also read
