India gives $5-billion aid to Africa

At the second India-Africa Forum Summit in the capital of Ethiopia Indian Prime Minister Manmohan Singh announced a multi-billion dollar aid package indicating closer ties between to the two continents.

The announcement was met with applause from leaders and representatives of the 15 African countries at the African Union headquarters in Addis Ababa. Prime Minister Singh announced the $5 billion to ‘help achieve the development goals of Africa’. Commenting on the changes happening on the African continent he said:

"There is a new economic growth story emerging from Africa. Africa possesses all the prerequisites to become a major growth pole of the world India will work with Africa to realise its vast potential. It is in this spirit that I wish to outline some initiatives for the consideration of our African partners."

The current aid package follows the $5.4 billion aid offered at the first summit held in Delhi in 2008 which focused on regional integration through infrastructure development.

The Indian Prime Minister also offered an additional $700 million to establish new institutions and training programmes in consultation with the African Union and its institutions. There was also further support for the development of a new Ethiopia-Djibouti Railway line estimated to cost $300 million. As part of the aid announcement several new institutions at the Pan African level will be created across several sectors including food, textile, weather forecasting, life and earth sciences and agriculture and rural development.

Also detailed was a renewed focus on education with a new India-Africa virtual university to meet the demands among Africans for higher education studies in Indian institutions. African students are a common sight in Indian cities of Bangalore, Mumbai and Delhi. Towards this end 10,000 new scholarships will be offered under the proposed university.

The PM also announced an increase of 900 training slots for the Africans under the Indian Technical and Economic Cooperation (ITEC). A total of 2500 training positions under ITEC will be offered for the next three years to  Africans and total scholarships offered during the same period will amount to 22,000.

It was also proposed to establish institutes for English language training, information technology, entrepreneurship development and vocational training across African countries. And as part of new initiatives in the social and economic sectors India will also establish rural technology parks, food testing laboratories, food processing business incubation centres and centres on geo-informatics applications and rural development.

In order to bring together business leaders from both sides and deepen trade ties, an India- Africa business council will be set up. Singh, increasing India’s foreign policy significantly, signaled a plan to contribute to the African Union mission in Somalia saying:

"I am happy to announce that India will contribute $2 million for the African Union Mission in Somalia."

Stability in the Horn of Africa, as Somalia is known, is considered key in addressing the issue of piracy which India has been a subjected to.

The new aid initiatives are also likely to underline India's aspirations for a permanent seat on the UN Security Council for which Africa’s support is considered crucial.

Highlighting the global concerns of both continents Prime Minister Singh said:

"The current international economic and political situation is far from favourable, particularly for developing countries. The world faces new challenges in assuring food and energy security. Global institutions of governance are outmoded and under stress."