Mozambican Prime Minister Aires Ali has invited Indian businesses to invest in Africa, and particularly in Mozambique, in a "win-win" partnership that will bring benefits to both sides. He made the invitation during the 7th edition of the "Conclave on India-Africa Partnership", organised this week in New Delhi by the Indian Foreign Ministry, the Ministry of Industry and Trade and the Exim Bank.
Ali stressed that Africa is a continent of 53 countries with a total population of over a billion, and vast natural resources, including large tracts of arable land, oil, natural gas, hydropower and a wide range of minerals. He noted that "Africa has preferential access to global markets (US, via AGOA, EU, via EBAs, China, Japan, as well as the Middle East) through continental, regional or bilateral agreements, but due to its low productivity and reduced production capacity it is hardly benefiting from those instruments and trade mechanisms".
"This represents a tremendous business opportunity for Indian companies looking for new markets to invest in", he stressed. In addition to its easy access to foreign markets, Ali added, Africa has established various sub-regional organisations with their own free trade areas, which allow the free circulation of people and goods and which "offer tremendous business opportunities for domestic markets". Ali cited the case of the 14 member Southern African Development Community (SADC) as an example of regional integration. SADC, he said, had a combined GDP of about 500 billion US dollars and a population of 257 million.
"Mozambique plays an important role in this organisation due to its strategic location, providing an easy access to the sea for hinterland countries in Southern Africa", he said. African countries, Ali continued, have been undertaking "legal and institutional reforms to improve the business climate to attract more investments. The extent of reforms varies from country to country, but the prospects are very good".
"Africa and India have a combined market of over two billion people", said the Prime Minister. "The Africa-India Conclave, if successfully conducted, could be an important global trade and investment promotion gathering. We therefore need to use effectively this platform to promote more tangible results, fostering strong partnerships and delivering value to our countries through new joint projects and Foreign Direct Investment".
"Africa is strongly committed to promoting private business initiatives and South-South cooperation as key engines of economic growth, in order to eradicate poverty and promote development in our countries", said Ali. "India is a key partner in this process given its continuous support to Africa through several ways, including the organisation of Conclaves such as the one we are now attending".
The India-Africa Conclave was established in 2005, as a platform for bringing together the governments, and public and private sectors of African countries and of India. Up until the holding of the 6th Conclave, 1,084 projects were discussed, valued at over 56 billion dollars. The conclave is believed to have contributed to a 400 per cent increases in commercial relations between Africa and India over the past five years.
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