Why in the News?

India has invested approximately $75 billion in Africa, focused on energy assets and mining.

This includes reaching out to resource-rich countries in Africa and Latin America to negotiate access to critical mineral resources.

Recent Initiatives by the Indian Government:

Critical Mineral Mission (Union Budget 2024-25): This mission aimed at securing the supply of critical minerals crucial for India’s economic growth and green transition.
- It focuses on expanding domestic production, recycling critical minerals, and incentivizing overseas acquisition.
Mines and Minerals (Development and Regulation) Amendment Bill, 2023: Removes six minerals from the atomic list, allowing private sector participation in their exploration.
- This also supports India’s drive for self-reliance in critical minerals, such as lithium, cobalt, and rare earth elements.
Khanij Bidesh India Limited (KABIL): It was established in 2019 to secure overseas critical mineral assets. It Signed its first lithium exploration deal in Argentina in 2024, marking a significant step towards India’s goal of securing critical mineral supplies.

Critical Mineral Reserves: Africa holds 30% of the world’s critical mineral reserves, making it a crucial partner for India’s supply chain needs.
Existing Partnerships: India has strong political, economic, and historical ties with Africa, including a three-million-strong diaspora and $98 billion in bilateral trade (2022-23), with a focus on mining and mineral sectors.
- India has already invested $75 billion in Africa, largely for energy asset acquisition.
African Green Mineral Strategy: African countries are moving towards minerals-based industrialization. Policies in Tanzania, Zimbabwe, and Namibia focus on value addition, offering India an opportunity to align its critical mineral strategy with Africa’s development goals

Sudan and Syria Issue:
- - Humanitarian Crisis: Sudan’s crisis is particularly acute due to its strategic location and resource wealth, leading to a massive displacement crisis, with over 10 million people displaced since April 2023
  - Parallel Conflicts: Both Sudan and Syria have experienced severe internal conflicts driven by authoritarian regimes, regional power plays, and foreign interventions, leading to widespread human suffering and instability.
India’s Strategic Considerations:

- - Economic Interests: India’s trade with Sudan reached $2,034 million in 2022-23, with a significant trade surplus. India has also invested heavily in Sudan’s oil sector, with cumulative investments worth $2.3 billion.
  - Historical Ties: India has maintained strong people-to-people ties with Sudan, including educational exchanges and medical tourism. President A.P.J. Abdul Kalam’s visit in 2003 reinforced these relations.
  - Humanitarian and Diplomatic Engagement: India evacuated its nationals early in the conflict, but the ongoing crisis may require continued diplomatic and humanitarian engagement to protect its broader interests in the region.
Challenges of China-Africa Debt:

- Chinese loans to African countries amounted to approximately $170 billion from 2000 to 2022. However, Chinese lenders represent only about 12% of Africa’s total public and private debt, indicating that China is not the primary creditor.
- A significant portion of Chinese loans is not disclosed in sovereign debt records, complicating the understanding of Africa’s overall debt levels. This lack of transparency raises concerns about the sustainability of these debts.
- Despite concerns over “debt trap diplomacy,” China is unlikely to forgive or cancel debts but may consider writing off smaller, interest-free loans.

China dominates the global critical mineral supply chain, particularly in cobalt mining in Africa (e.g., the Democratic Republic of Congo). China’s control poses significant risks for India, especially in terms of access and geopolitical influence.
Recently, China signed a $7 billion minerals-for-infrastructure deal, demonstrating its strategic approach to securing mineral resources in Africa.

Collaborating on Infrastructure and Technology: India can support Africa’s critical mineral sector by building mining-adjacent infrastructure (e.g., railways, power grids) and providing technological solutions through its tech start-ups to enhance mining exploration, extraction, and processing.
Strengthening Diplomatic and Economic Ties: Leveraging existing partnerships and India’s deep historical ties with Africa, the government can work with African nations on strategic projects and value addition initiatives, supporting both regions’ developmental goals.
Reducing Dependence on China: By engaging with African countries for critical minerals, India can diversify its supply chains, reducing the economic and geopolitical risks posed by China’s dominance in the global critical mineral market.