CHINA SPURS INDIA TO REVITALIZE TIES TO AFRICA

UNCLAS SECTION 01 OF 03 NEW DELHI 000984

SIPDIS

SENSITIVE
SIPDIS

DEPT PASS TO SOUTH AFRICAN DEVELOPMENT COMMUNITY

E.O. 12958: N/A
TAGS: PREL PGOV ECON EAID ECIN ETRD KECF IN
SUBJECT: CHINA SPURS INDIA TO REVITALIZE TIES TO AFRICA


1. (SBU) SUMMARY: India will host the India-Africa Summit April 8
to April 9 in New Delhi, having extended invitations to leaders of
fourteen AU nations and representatives of eight Africa-centric
multilateral fora. The GOI seeks to partner with African nations in
key areas including technology, infrastructure, pharmaceuticals, and
human resource development through expanded bilateral relations.
India's desire to cultivate stronger African relations is likely
driven by more realpolitik considerations, including competition
with China for regional influence, access to African natural
resources, and leveraging influence for the GOI's bid for a
permanent seat on the UN Security Council. END SUMMARY.

INVITATION BY DESIGN
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2. (SBU) At the 10th Africa Union summit on February 2, 2008, Indian
Minister of State for External Affairs (MEA) Anand Sharma invited
African leaders to attend the first Indo-Africa Summit in New Delhi,
April 8 to 9. Invitations were extended to Algeria, Burkina Faso,
Democratic Republic of Congo (DROC),Egypt, Ethiopia, Ghana, Kenya,
Libya, Nigeria, Senegal, South Africa, Tanzania, Uganda, and Zambia.
Invitations were also extended to representatives of African
regional groupings including Economic Community of West African
States (ECOWAS),South Africa Development community (SADC),Common
Market for Eastern and Southern Africa (COMESA),and the African
Union (AU). According to MEA, the summit's key role will be in
partnering India and African nations in technology, infrastructure
development, pharmaceuticals, and human resource development.

- In technology, India seeks to capitalize and expand the Indian
Technical and Economic Cooperation (ITEC) program begun in 1964.
Through ITEC, India has provided more than USDols 2 billion in
technical assistance to developing countries around the world.

- In infrastructure development, India desires to capture both the
information technology infrastructure market and traditional road
and industry infrastructure markets. Indian corporations,
especially India's dominant IT sector, are already poised to take
advantage of these markets as a by-product of the ITEC program.
TATA Communications of India is poised to make significant gains in
the telecommunications sector throughout Africa.

- In pharmaceuticals, India seeks to expand joint development and
distribution of Indian generic AIDS medications, and other drugs
(malaria, polio) to African nations. Indian pharma-firms Cipla and
Ranbaxy were among the first to sign contracts with Nigeria for
production of generic AIDS medications, with additional joint
ventures in South Africa and Kenya being completed.

- In human resource development, the ITEC program has trained 14,000
African workers in small scale plastics and textile manufacturing,
and medical services, among other areas. Increased training
programs, cultural and student exchanges, and business training,
will continue to baseline this effort.

All of these efforts are focused on increasing Indo-Africa trade,
which currently stands at USDols 25 billion according to 2006-2007
industry figures.


3. (SBU) The choice of invitees appears to be a combination of
history, economics and realpolitik. The nations invited each
possess large mineral or energy resources vital to continued Indian
economic growth, to include oil and natural gas (Libya, Nigeria,
DROC, Egypt, Algeria); uranium (S. Africa, Nigeria, Uganda, Zambia,
DROC, Burkina Faso); copper, cobalt, and cement (DROC, Zambia,
Ethiopia). With other nations, such as Senegal, India seeks to
solidify a strong existing relationship. India is Senegal's largest
trading partner, receiving 28 percent of Senegal's exports, to
include calcium phosphate, a component in agricultural fertilizers,
a product which has taken on sensitive domestic political overtones
in India.

CHINESE ADVANCES PROD INDIA TO ACT
--------------


4. (SBU) Indo-African relations suffered from benign neglect
beginning in 1991, with India seeking stronger ties with the US and
EU and relying on its leadership of the Non-Aligned Movement (NAM)
and historic ties to maintain relations in Africa. However, Indian
foreign policy re-focused on Africa in 2005 after India lost several
trade contracts to China for resources in West Africa and Angola,

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and then witnessed China sign economic packages worth USDols 50
billion with 43 African nations at the China-Africa Summit in
November 2006.

THIRD TIME IS A CHARM
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5. (SBU) The India-Africa Summit is the third effort to strengthen
Indo-African relations after the "Focus Africa Program" of 2002 and
"Team 9" program of 2004. According to a professor at Jawaharlal
Nehru University Center for West Asia and African Studies, India's
"Focus Africa Program" and "Team 9" strategy achieved limited
success due to limited scope and commitment. The Focus Africa
Program, directed by the GOI Ministry of Commerce, included Nigeria,
South Africa, Mauritius, Kenya, Ethiopia, Tanzania and Ghana and was
specifically oriented towards increasing Indian exports to African
nations. The Team-9 strategy of 2004, coordinated by MEA, included
Burkina Faso, Chad, Cote d'Ivoire, Equatorial Guinea, Ghana, Guinea
Bissau, Mali, and Senegal. The Team-9 program was underlined with
USDols 500 million in Indian foreign aid assistance intended to
increase bilateral trade, development, and regional cooperation, but
resulted in more aid than assistance.


6. (SBU) By comparison, the Indo-African summit echoes the
Chinese-African summit and is more broadly organized to include
education, business and policy communities in a focused effort to
tie multiple stakeholders together. India held an initial business
summit sponsored by the Confederation of Indian Industry March 19 to
March 21, 2008 bringing together representatives of 33 African
nations to discuss potential Indo-African trade deals amounting to
USDols 10 billion. A scholars' forum co-sponsored by the Indian
Council of World Affairs (ICWA) and the African Studies Association
of India is scheduled for April 2 to April 3, 2008 concentrating on
increased academic, cultural, and student exchanges. Given the lack
of success and support for previous programs, Indian academic and
business communities share a common concern that the enthusiasm for
the Indo-African summit goals will quickly wane as each side tries
to translate words into actions.

INVESTED LEADERSHIP
--------------


7. (SBU) Perhaps to address concerns over the long term prospects of
the summit, the GOI has made a clear indication of intent by
appointing MEA Minister of State Anand Sharma, a political
appointee, as the director of this current initiative. Sharma has a
long history of involvement with Africa, beginning with his 1985
organization of the Non-Aligned Youth Conference to protest
apartheid in South Africa. Since 1985, Sharma has been involved in
numerous Indo-African events addressing mutual efforts to achieve
food security, combating HIV/AIDS, sustaining economic development,
and dealing with multi-racial tnsions. Sharma was also involved in
several Indo-African economic endeavors between 2002 and 2006, and
is familiar with the history, as well as the strategic nature, of
the Indo-Africa relationship. At least some African leadership
appears to be committed to success of the summit as well: the
Mozambique High Commissioner to India commented that India and
Africa should continue working together in economic and development
cooperation, and on UN reform, including expansion of the UN
Security Council.

INDIA'S AFRICAN RELATIONS LESS EXPLOITIVE
--------------


8. (SBU) COMMENT: India's growing economy and realpolitik outlook
make African resources a key ingredient for future Indian economic
growth, amidst growing competition from China and the developed
world. Retaining positive relations with African nations is an
acknowledged necessity that India can no longer afford to neglect.
India must balance its quest to secure resources for continued
economic growth and compete with a rival China, while simultaneously
maintaining the goodwill of Non-Aligned Movement nations to support
India's bid to secure a permanent seat on the UN Security Council.
However, as one former Ambassador expressed to Poloff, India will
not follow the "China Model" of engagement in Africa, which he
described as exchanging no-strings-attached development projects for
access to the resources of the African continent. While Post does
not expect this summit to alter India's current relations with
Africa, it is a signal that India intends to play a larger role on
the African continent vis-a-vis the attention of the Chinese.


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