Round Table on “Stepping up Indian investments in a changing Africa”
The new dynamism of African economies has also contributed to the region emerging as one of the highly attractive global investment destinations. While Africa’s acute physical infrastructure financing deficit, estimated at about $170 billion, has created private investment opportunities in roads, highways, ports and airports, railroads, power generation, transmission & distribution, among other segments, the accelerated domestic economic growth has also increased demand for manufactured goods and services, such as, FMCG & consumer goods, automobiles, retail, telecom, financial services, etc. All these sectors have spawned attractive investment opportunities given the growth in local markets. Indian companies have down the decades invested in diverse sectors that include agriculture & agro-processing, oil & gas, mining & minerals, education & healthcare, drugs & pharmaceuticals, etc. As India’s outbound FDI flows increase YoY, Africa is one of the key investment destinations. Are Indian private investments still concentrated in few African markets, or is there a geographical diversification of outbound FDI flows? What steps are being taken by host African countries to attract and retain Indian investments? Are Indian investments contributing to host countries’ industrial self-sufficiency? Are Indian investments helping promote Africa’s manufacturing renaissance?