HISTORICAL TIES BETWEEN INDIA AND AFRICA: India and Africa share deep-rooted historical ties dating back to shared solidarity against colonial rule. They have historically worked through platforms like the Non-Aligned Movement (NAM) where both India and the broader African continent rejected the bloc politics of the USA and USSR and advanced the interests of recently decolonized countries.
Since the 1990s, India has prioritized its relationship with Africa. The Export-Import (EXIM) Bank launched the Focus Africa initiative in 2002-03 with the aim of enhancing trade between India and Africa and identifying potential areas of trade and investment.
India has emerged as the continent’s fourth-largest trading partner, reaching over $100 billion. India has invested about $75 billion in the continent to date and aims to double the investment to $150 billion by 2030. The Government of India has also provided 196 Line of Credits (LOCs) worth over $12 billion to 42 African countries. India has also advocated for Africa’s greater representation in forums such as BRICS, United Nations, and G20 and has also been instrumental in getting AU permanent membership at the G20 during its presidency.
CLIMATE DIPLOMACY BETWEEN AFRICA AND INDIA
In recent years, climate diplomacy has emerged as a top priority in the India-Africa relationship. Through the International Solar Alliance (ISA), which was co-founded by India, solarisation has been prioritized in Africa. About 600 million people in Africa lack access to electricity, therefore ISA has prioritized solar panel installations and through initiatives such as Sustainable Renewables Risk Management and SolarX. ISA aims to reduce investment risks and foster solar innovation and adoption in Africa.
Through ISA’s Global Solar Facility (GSF), India has promised $25 million and ISA $10 million to stimulate investments in solar power projects. Recently, ISA launched the $200 million Africa Solar Facility and has selected Africa50, a platform co-owned by 33 African governments, as its fund manager. India is not just investing in projects, it is also investing in advanced grid management technologies and smart grid management to maintain stability.
In December 2024, Africa Finance Corporation (AFC) secured a syndicated loan of $300 million from a consortium of Indian banks to fund renewable energy projects and wider infrastructure development.
India has also been prioritizing partnership in the critical mineral sector as a part of its climate diplomacy in the continent and to meet its green goals. Indian Prime Minister Narendra Modi recently visited Ghana and Namibia, two countries which share historical ties with India and possess critical minerals which are essential for the green technologies. The Ministry of Mines has entered into bilateral agreements with Zambia, Zimbabwe, Malawi, Mozambique, and Côte d’Ivoire to develop supply chains.
The African Union (AU), consisting of all 55 member states of the African continent, is planning to establish a coalition of critical mineral countries in order to advance regional cooperation in mineral production, value addition, and economic growth.
The coalition, dubbed as Africa’s Green Mineral Strategy, wants to address financing gaps and maximize Africa’s share of 30% critical minerals in climate-resilient development. The initiative comes at a crucial moment as demand for critical minerals is set to quadruple by 2040 as the world moves towards climate-resilient and green technologies. For India, this creates a crucial opportunity to meet many of its ambitious green goals—30% share of Electric Vehicles (EVs) in the overall transport segment by 2030, net-zero by 2070, and achieving 500 GW of non-fossil fuel capacity by 2030. India can therefore align with AU’s goals to help diversify supply chains that are mutually beneficial to India and Africa.
CHALLENGES AND WAY FORWARD
Many African countries suffer from poor governance, corruption, and poor institutional frameworks. Some are engaged in political uncertainty and internal conflicts with an entrenched political economy feeding off these factors.
Infrastructural gaps because of the challenges mentioned above in the continent and lack of skilled workforce are another significant problem India must contend with. India must also streamline projects in order to execute its climate diplomacy in the continent seamlessly. Finally, India must offer an alternate model that creates a mutually beneficial partnership between India and Africa to becoming a key player in Africa’s green transition.
India has a unique opportunity to leverage its historical ties and the goodwill it enjoys in the continent and help Africa in its green transition. However, both must overcome challenges to become partners to develop the green economy and create partnerships that are mutually beneficial to both. India also needs deft bureaucracy to tackle the unique challenges many of the African countries face to leverage the full potential of the partnership.
The author is Trishula Anand Sancheti, Research Fellow, India Foundation.
