From UPSC perspective, the following things are important :
Prelims level: China-Africa Cooperation (FOCAC);
Mains level: India-Africa relation;
Why in the News?
The 9th edition of the Forum on China-Africa Cooperation (FOCAC) is scheduled to be held in Beijing from 4th to 6th September, 2024.
About the China-Africa Cooperation (FOCAC)The Forum on China-Africa Cooperation (FOCAC) was established in 2000 to enhance the strategic partnership between China and African nations. It serves as a platform for collective dialogue and cooperation in various sectors, including trade, investment, and development. |
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.
African Priorities at FOCAC 2024
- Economic Goals: African nations are focusing on enhancing trade relations with China, with a modest goal of $300 billion in imports from Africa between 2022-2024. As of mid-2024, trade has reached $167 billion, primarily dominated by raw materials.
- Agricultural Development: There is a pressing need to develop a sustainable agricultural industry in Africa. This includes improving the processing of agricultural commodities and leveraging the expertise of countries like China and India to enhance crop resilience and productivity.
- Green Energy and Industrialization: African countries are advocating for the establishment of refining and processing hubs to increase the value added from their raw materials.
What are the learnings that India can have?
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Conclusion: India should deepen its strategic partnerships with African nations by expanding bilateral and multilateral engagements, focusing on key sectors like healthcare, digital infrastructure, and renewable energy. Leveraging India’s experience in these areas can help address African development needs while enhancing India’s influence on the continent.
Mains PYQ:
Q Increasing interest of India in Africa has its pros and cons. Critically Examine. (UPSC IAS/2015)
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