India-Africa partnership a catalyst for accelerated global rebalancing, strengthening of the Global South

The International Monetary Fund (IMF) last year highlighted that rising average debt ratios in sub-Saharan Africa had sparked concerns of a looming debt crisis in the region, noting that while China is a major credit provider to sub-Saharan Africa, it imposes harsh terms on debtors.

The Vice President said that a resurgent Africa and a rising India can provide great impetus to South-South cooperation, particularly in areas such as clean technology, climate-resilient agriculture, maritime security, connectivity, and the green economy. He noted that India’s diplomatic footprint in Africa is rising, with the opening of 16 new diplomatic missions, bringing the total number of Indian missions on the continent to 46.

“During COVID-19, India assisted Africa with medical supplies and vaccines. India and Africa share strong defence ties, with the Indian military providing training and being the third-largest contributor to peacekeeping forces. India has invested over $12.37 billion in 206 infrastructure projects across 43 African countries, impacting millions of lives. India also provides capacity-building training and educational opportunities, reflecting its commitment to the African Union’s priorities,” Dhankhar said.

Referring to Africa’s rich natural resources and its demographic advantage, Dhankhar stated that the region is emerging as a highly attractive destination for investments and partnerships. And India remains committed to partnering with Africa in its quest for value addition in its industrial sectors through innovative solutions, he said.

Meanwhile, Chinese lending to sub-Saharan Africa has drawn considerable attention and criticism for imposing relatively harsh terms on debtors and using natural resources as collateral, the IMF said, adding that other concerns include the lack of standardisation and transparency in public debt because Chinese lenders do not systematically document loans to individual overseas borrowers, leading to significant data gaps.

“China has forged deep economic ties with countries in sub-Saharan Africa over the past 20 years, making it the region’s largest single-country trading partner. China buys one-fifth of the region’s exports—metals, minerals, and fuel—and provides most of the manufactured goods and machinery imported by African countries,” the IMF said in its report last year.

The IMF reported that the average debt ratio in sub-Saharan Africa has almost doubled in just a decade—from 30 per cent of GDP at the end of 2013 to almost 60 per cent of GDP by the end of 2022, and repaying this debt has also become much costlier. As of 2022, more than half of the low-income countries in sub-Saharan Africa were assessed by the IMF to be at high risk of, or already in, debt distress.