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East Africa: The Tiger And the Dragon in a Hot Race to Woo Africa New Delhi Offers $5 Billion

May 31, 2011

Via all africa
http://allafrica.com/stories/201105300663.html

East African nations have become the latest beneficiaries of the battle heating up between India and China for control of Africa’s economic landscape.

The region raked in a huge chunk of the $5 billion from New Delhi last week as a loans package to finance key infrastructure projects.

While India has lagged behind its Asian rival China in bagging deals and projects in Africa, the funding deal announced in Addis Ababa has awakened many observers to the fact that the former is harbouring a grand agenda for the continent.

Indian Prime Minister Manmohan Singh who announced the funding was on a six-day trip to Africa, attending the India-Africa summit in Addis Ababa Ethiopia as he sought to deepen economic ties with African nations.

With the support of their government, Indian firms are increasingly making more and strategic entries into East Africa and the Continent in general, targeting the expected windfall in telecoms, mineral extraction, engineering and consumer goods markets, a field Chinese firms have previously dominated.

“Its clear India like China has realised Africa is the next frontier for their growth. What we are seeing is a competition for new markets and resources between the two, ” said Kuria Muchiru, Senior Partner and Country Leader for Kenya at audit firm PricewaterhouseCoopers (PwC).

“There is a lot of investor interest in Africa by Indian firms, ” said Mr Muchiru.

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From → africa, Development, India

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