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As we move into 2025, it’s important to reflect on India’s relationship with Africa. Looking back at events like Prime Minister Narendra Modi’s recent visit to Nigeria and the inauguration of a naval base in Mauritius, it’s clear that 2024 was a crucial year for these ties. India has made strides in defense and economic cooperation with Africa. One area of potential is India’s ability to help implement the African Continental Free Trade Area (AfCFTA).
The AfCFTA, launched in January 2021, formed the world’s largest free trade area, covering about 1.2 billion people with a GDP of around $3.4 trillion. It aims to increase trade among African nations by breaking down barriers and streamlining the movement of goods. Currently, intra-African trade is low, accounting for just 13.2%. However, this is expected to skyrocket to over 52% by 2050, potentially adding about $29 trillion to the continent’s economy and creating millions of jobs.
Achieving these goals hinges on effectively implementing the AfCFTA and enhancing agricultural productivity, as agriculture employs about half of Africa’s population and is vital to its economy. With smallholder farmers producing 80% of the continent’s food, India’s investment in agri-tech could be transformative. Initiatives such as introducing modern technologies, drones, and AI for crop monitoring could empower these farmers.
Moreover, India’s experience in digital infrastructure can be a significant asset. A system like the DigiLocker could provide African nations with a centralized platform for essential trade documents, reducing bureaucracy and streamlining trade processes. Additionally, India could share its National Agriculture Market (e-NAM) scheme to help create a unified agricultural market across Africa.
Despite the hurdles facing Africa—such as debt, political instability, and climate change—there’s optimism for a united and prosperous future. The AfCFTA plays a pivotal role in this vision, and India’s participation is crucial. By collaborating with African countries, India can support their aspirations outlined in “The Agenda 2063: The Africa We Want,” a plan for a more prosperous continent.
In conclusion, as India shapes its Africa policy for the future, focusing on the successful implementation of AfCFTA could be a game-changer, benefiting both India and Africa economically.
Samir Bhattacharya is an Associate Fellow at the Observer Research Foundation.
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