India woos Rwanda, Uganda to expand footprint in East Africa
India is seeking to cement its presence in East Africa through trade deals and partnerships in order to rival China and Turkey. TEA GRAPHIC
What you need to know:
In 2015, Indian Premier Narendra Modi announced $10 billion to African countries in new soft loans to support growth. The move was seen by observers as one aimed at China.
The visit of Indian Vice President Hamid Ansari to Rwanda and Uganda is seen as a strategy by the Asian giant to cement its presence in East Africa through trade deals and partnerships in order to rival China and Turkey.
Mr Ansari, accompanied by government officials and businessmen, arrived in Rwanda on February 19 for a three-day visit, during which he signed three agreements that will enhance bilateral ties between the two countries and announced that India would open a mission in Kigali.
The Indian VP, who later travelled to Uganda, is following through on recent engagements between India and East African countries. Mr Ansari said the engagements India has in Africa partly focus on supporting Indian communities, which his country considers vital for development partnerships.
“Our relationship should grow further. Our government is working to build ties and give them more content. The most important segment of that is this community. So, we want to build up and give you a little more support,” Mr Ansari told the Indian community in Rwanda. There are over 3,000 Indians in the country.
According to Mr Ansari, good bilateral ties between India and Africa not only benefit Indians in the diaspora but also help enhance trade and development partnerships between India and African countries.
“Rwanda offers a wonderful platform to Indian partners to enhance their presence and capabilities in other parts of Africa,” the Indian VP said after launching the India-Rwanda Innovation Growth Programme, which he said will expand ties in science and technology to stimulate socio-economic development. The programme will be replicated in other East African countries before it is extended to the whole continent.
Rwanda and India signed a pact to set up an entrepreneurship development centre in Kigali as well as aviation agreement that will see RwandAir begin flights to Mumbai.
The two countries also mutually agreed to exempt visa requirements for diplomatic and official passport holders while the Indian VP also promised that country will soon open a High Commission in Kigali. Currently Rwandans seeking to go to India for treatment, business or studies are getting their visas from the Indian High Commission in Kampala.
“We are great friends,” Mr Ansari said of the two countries, adding that “Rwanda has a good population of Indians... And, we have had a valid complaint of not having a resident mission in Kigali.
“I must tell you that the government has already taken up the matter and in coming weeks or months, we will have a physical presence of a resident mission here,” said Mr Ansari.
While there are no figures attached to the signed agreements, India committed to support entrepreneurship and technology innovation programmes on the continent.
In 2015, Indian Premier Narendra Modi announced $10 billion to African countries in new soft loans to support growth. The move was seen by observers as one aimed at China.
Mr Modi made the announcement during an Indo-Africa Summit which was attended by more than 40 African leaders, during which he announced that India would provide $10 billion in new credit, topping it up with $7.4 billion in soft loans as well as $1.2 billion.
India made the commitments during the first India-Africa summit in 2008 during which it said it would forge more partnerships with African countries.
The India-Africa Development Fund, with an initial investment of $100 million, was set up in 2015 and the India-Africa Health Fund was also established with an initial investment of $10 million. Currently, India has committed a $120 million credit line to Rwanda to support different agriculture value addition projects.
Observers see India’s charm offensive on the continent as a strategic move to tap into Africa’s natural resources in the wake of China’s increasing presence on the continent, and Turkey’s steady and fast-growing influence in Africa.
According to Claude Nikobisanzwe, the Permanent Secretary in Rwanda’s Ministry of Foreign Affairs, Mr Ansari’s visit to Rwanda sought to boost partnerships between the two countries.
Other key areas Rwanda is likely to benefit from are healthcare and education. Hundreds of Rwandans travel to India annually to study or seek specialised medical care.
“The new partnership will see Indian investors come here to invest in these facilities, which are much needed here,” he told the press after the meeting with President Paul Kagame.
In January this year, President Kagame and President Uhuru Kenyatta visited India and held talks with PM Modi and attended the 8th edition of the Vibrant Gujarat Global Summit, a biennial investors’ forum in Ahmedabad.
