The African safari: understanding the Sino-Indian competition in Africa

China and India are now seriously competing with each other to engage resource-rich Africa, thus giving a new dimension to South-South relations. This essay illustrates that while India's trade with Africa dates back to the days of the Silk Road, China’s thrust into the area is rather recent, and is focused mostly in infrastructure.

In fact, even a decade ago, India had an edge over China in trade with Africa. However, in a well-planned and executed strategy, China has been making its presence felt in all spheres of economic activity in the continent.

Key points include:

• New Delhi is more interested in long-term economic partnerships that are mutually beneficial and do not replicate colonial systems of exploitation of African wealth
• as a result, Indian projects in Africa include more utilitarian and social development-oriented ones
• identically, China targets resource-rich countries with aid and easy loans in exchange for access to oil, copper and manganese
• furthermore, the Chinese companies have deep pockets and have the ability to undercut and win every contract

Still, the paper indicates that the strength of Indian companies lies in its diversified operations and its tradition of private sector creativity. In this sense, while the Chinese operate in enclaves, India has a deeper infiltration into the macro-economic fabric of the African continent.

The author concludes that Africans seem to prefer the Indian model of cooperation, which brings more appropriate technologies and managerial skills for African conditions. This makes India a shareholder rather than a stakeholder in Africa's development.

Yet, Indian efforts are far too little compared to its capabilities, and to reap the dividends that it could have, much more actions need to be taken. In this respect, there is an urgent need for the Indian government to act as a bridge between Indian businesses and the governments in Africa.