This article has been written by Sanjiv Mathur pursuing a Personal Branding Program for Corporate Leaders from Skill Arbitrage.

This article has been edited and published by Shashwat Kaushik.

Introduction

In the early part of my career span of 30+ years, out of which, towards the later part, approx. 7–8 years were spent in Africa leading businesses for some known companies. Africa was always discussed as poor, light-low income, backward and underdeveloped. The picture that flashed through our minds was of half naked tribals struggling to find subsistence and fighting the grim battle of extreme poverty and deprivation. Nothing could be more misleading.

Though true in parts as far as poverty is concerned the picture was not complete because the story of Africa had attracted early entrants into business drawn by its large reserves of agri and mineral resources and a sizable population that had the potential to become a reasonably good consumption market.

Business, however, is never a one way street. Africa has enough of its own natural resources to supply the world market, as it has the human capacity to consume them with a large number of people living in it. 

The high density urban centres are becoming a sizeable number of metropolitan cities. Therefore, providing a ready market or demand for good quality finished goods that the people living in those cities would like to consume.

The key trends are identical and tend to follow those in the growing or developed markets. Despite the economic disparities between countries and sections of people within the country, there is a growing, upwardly mobile and educated population that has a higher income and therefore aspires the same lifestyle, brands, categories and motivations to lead a better and more fulfilling life.

But before we get into drawing the full picture and unfolding the opportunities this market provides, it may be worthwhile to look at the big picture and key macros of the continent that provide the foundation of the argument that Africa, despite all its challenges, remains an attractive market for all countries that have or are building manufacturing as a key pillar of their economic policy and intend to be an origin for most of the goods, like China. 

India, without an iota of doubt, has been walking this path. Initially to serve its own population and later to serve the larger world market by developing capabilities in different spheres. So India trying to lead the global south and integrate them with the global economic powers through the G -20 SUMMIT makes a whole lot of sense.

Well, we are now poised to get into some facts to understand the macro profile of the continent.

Africa-the rise of global south and India 

African countries and India, to me appear as natural Partners with striking similarities of a colonial past of exploitation, a large, young population (average age of 23 years), high rural -urban migration, underdeveloped but bustling cities almost cracking under the pressure of the young and mobile people, weak infrastructure, cultural diversity, abundance of natural resources and the promise of a huge demographic dividend if the following areas are adequately addressed by the ruling elite of the continent;

• Consolidation of democracy
• Liberalisation of its economies
• Investment in people
• Development of infrastructure
• Ensuring rule of law

Well, does this all sound like we are talking about India in the 1980’s? Barring the fact that  India has been a stable democracy, it has been addressing all the factors by taking some big steps in the recent past ahead of many countries, especially Africa. Therefore, it is in a position now to hand hold Africa or the global south into resolving these issues to integrate with the global process of development. Well, the G20 Summit-India’s initiative to onboard the global south and get them to centre stage was only the start.

It needs to act as a bridge between the developed economies and Africa, sharing its experiences on all fronts until economic and financial integration is complete.

Since the continent has been lagging behind on the pace of development and the rest of the world has moved forward, unlike many Asian economies, Africa is likely to leapfrog the development scale due to technology based solutions that are now possible with the proliferation of smart phones and internet penetration, making the African market and the consumer more accessible.

Current business environment

Macro-socio-economic landscape

Though global trade has been growing, Africa’s share is a meagre 3%. Exports have grown to USD 642 billion, but import dependence is equally big or higher, resulting in a trade balance deficit. In the last decade, Africa has witnessed a slowdown in GDP growth overall, as it fell from 5.1% in the preceding decade 2000-2010 to 3.2% on average, mainly due to stagnating income, demand growth and low productivity on the supply side.

Africa has high availability of arable land as the utilisation is low due to underdeveloped irrigation infrastructure and scarce capital, but it has the potential to become the breadbasket of the world to serve the global market. Mainly in the agriculture business-there is scope for an India like “green revolution.” India can share its own experience and successes where relevant.

Industrial growth has been low, but some countries are registering double-digit growth. Overall, employment generation has not met the required numbers.

The continent has a mixed picture of per capita income, as some countries have a high per capita income, but there are 33 countries in Sub Africa with a per capita income of less than $2 per person per day. Per capita income growth is either stagnant or has declined due to disruptions and closures during the pandemic years and poor corporate performance in the last 5 years. Geopolitical conflicts and Pandemic impacted the continent negatively and severely.

Most economies have a high income disparity that distorts demand to keep it largely focused on basic goods due to the low disposable income of the middle class, which, in any case, is not sizable in number. You have the super rich and the very poor, with the majority being at the lower end of the spectrum.

One of the core issues that plagues African business and trade is the integration of Africa with the global financial system to increase capital flows and access to finance and other risk management tools available to the rest of the world, such as Forex covers and rollovers de- risk business or trade from currency & price inflation related risks. 

Businesses in Africa suffer from:

• High cost of funding-combination of country risk perception & currency related price/cost inflation. 
• Inefficient financial systems lead to exposure to financial risks, such as sharp volatility of currencies and scarcity of forex.
• Financial inclusion-limits banking and encourages cash trade, keeping the  larger population out of the mainstream financial & banking systems.

Post pandemic, however, the economies have started showing signs of quick recovery, as many countries registered double-digit growth. Trade activity has picked up and volumes have grown across the Africa- MEA-Asia economic corridors.

The trade balance with India has an almost even total value of approx. 100 billion and promises to grow further as trade and economic activity in the Africa-Asia corridor are likely to witness high levels of growth in the coming years (USD 14.4 trillion by 2035- SCB report for 2023).

The bilateral trade of India with Africa grew by 9.26% in FY 2022-23, reaching almost $100 billion. Total exports and imports were approximately balanced, with exports to Africa being US$ 51.2 billion and imports from Africa being US$ 46.65 billion in FY 2022-23.

African Union and potential of the continent

To highlight some of the other bright spots or indicators of the emerging potential of the continent:

• Africa’s Pop’n is tipped to cross India ‘s and China’s individual population by 2050 to touch 2.2 billion.
• Young people average age below 23 years; children below 15 years are almost 40% of the population.
• Youth Tech aware, upwardly mobile & aspiring to move to cities
• High rural-urban migration- opportunity for high density urban agglomerates, Many cities could crop up across the continent.
• The young mobile population-early adopters of technology leading to growing Internet usage-approx.46% used broadband internet. 3g/4g availability is 82% of the population.

Despite the challenges, the continent is on the move to unify its markets and actualize its full potential in the near future. All 54 countries are now signatories and committed to the African Union (AFCTA). Many countries have submitted a tariff reduction plan to zero over the next 10 years, and 12 countries have volunteered to run pilots to test the unified tariff regime.

AFCTA has three main objectives that should radically change the economic landscape;

• Unified tariff regimes
• Removal of Non tariff barriers to trade
• Free movement of people 

Africa as a single market shall provide an opportunity to existing players by opening up the continent, allowing access to new markets and also allowing companies to set up new manufacturing facilities closer to markets or raw material producing centres. Employment and mobility will increase in a significant manner.

Consolidation of regional markets into REC’s started in the last 20 years or so, Inter-Regional trade started to open up, providing export opportunities between members. Today there are 8 REC’s across the continent and there has been reasonable trade that happens regionally. But most of the interregional trade is cornered by the larger countries, such as South Africa, Egypt, Algeria, Nigeria and Morocco, creating regional imbalances.

REC’s have increased the momentum to push for localization, resulting in increased industrialisation, but it has also resulted in the tendency of local governments to provide duty/tariff protection to local industry in the interim, against the spirit of the regional trade agreements. For example, Nigeria is imposing an embargo on all finished goods imports to promote local industry. Ghana is increasing its duty on imports of almost all imported FMCG products.

Growth in telecom infrastructure and availability of 3G/4G to 86% of the population provides many opportunities since usage lags at 46% but imagine the potential once almost a billion people could access and use the internet and hand held mobility. With the increased digitization of money transfers, supply chain platforms connect the supplier- intermediaries and customers. It opens up enormous opportunities for e-commerce by creating scale and efficiency across the value chain.

Africa witnessed very disparate industrial growth concentrated in a few larger and relatively developed economies such as South Africa, Egypt, Nigeria, Morocco, Algeria. If one were to map the concentration, out of 345 large companies that generate revenues of $1 billion or more, 147 are located in South Africa, 33 in Egypt, 23 in Nigeria, 20 in Morocco and 12 in Algeria. These 5 countries account for 235 (68%) companies.  The next layer of countries that have large companies is Angola (9), Kenya (6), Ghana, Ethiopia, Tunisia, DRC (4 each), Senegal & Mauritius (3 each), Zambia, Mauritania, Ivory Coast, Libya and Cameroon-2 each). Out of 54 countries, barely seven can really claim some level of industrialisation. So there is potential to set up large manufacturing units once the AFCTA regime is fully adopted.

However, it is the SMEs who are actually driving the pace of industrialisation across most of Africa, and their contribution is 70% of the GDP of Africa. Since there are many small countries in Africa, it is the small and medium enterprises that could service these markets and the regional markets more efficiently.  

Africa’s growing urban centres -37 cities with a 5 million+ population and another 65-70 in the next tier (<5 million), so approximately 100 metropolises—potentially by 2035 could actually provide scale and consumption growth for industrial activity to grow and thrive.

Micro-level challenges and opportunities

At the micro level, issues typically range from governance to the consistency of policies that impact businesses. What is needed is a clear economic agenda and rule of law for organised companies to have a level playing field for growing their businesses.

Some of the micro level issues that must be managed are;

• Contain price inflation and currency volatility.
• Hefty tariffs also hinder corporate and business performance.
• Availability of foreign currency and volatility -instruments to manage the same.
• Protectionist policies -Protects the local industry but drive up price inflation.
• Large corporations are on the losing side due to poor governance and issues arising out of inconsistent government policies.
• Africa has large, disparate geography that is difficult to handle logistically and has high cost to serve.

Due to poor liquidity, high currency volatility, and corresponding price risks, the company’s customer default rate is high. A high share of open market /petty trade is difficult to organise and distribute, resulting in high finance and distribution costs.

But as stated earlier, technology based digital platforms can help overcome some of these problems through digitised supply chain financing and tech platform based distribution to integrate the full supply chain.

The core issue is an unstable and unsupported financial and banking system that is fueling inflation to drive up interest and financing costs, limiting aggregate demand growth and consumption, and also impacting productivity.

India has the opportunity to support Africa in its quest to integrate both with global supply chains and the financial system to increase investments and capital flows to its shores.

Risk mitigation instruments such as forex covers and rollover instruments and quick and efficient payment settlements are critical to empowering companies to remain profitable by managing sharp currency volatility.

Use tech platform based solutions to digitise and lend financial support and liquidity to distribute and trade in African markets through online B2B and B2C portals, bringing suppliers and customers together on a single platform.

These are probably the key to many solutions and the most impactful change for accelerating the growth rates of all major economies in Africa.

The landscape in Africa post Pandemic seems to be rapidly changing and there seems to be a resurgence of the Africa story. The world seems to have readjusted to the geopolitical conflicts in Europe and the Middle East to find new trade routes, albeit at a higher cost.

International businesses are forging ahead through the high trade corridors in Asia- ME- Africa to create new milestones.

Indian businesses can also position themselves to use this opportunity to improve India’s rank as the 5th largest trade partner in Africa and grow the $100 billion trade by 3X by 2030.

Indian presence on the continent

Indian population has been present throughout the continent in varying numbers since last century and a half. They have been there long enough and navigated the same environment.

The Indian diaspora in Africa is a diverse and vibrant community with a rich history and culture. The presence of Indians in Africa dates back several centuries, with traders from Gujarat and Mumbai settling in East Africa as early as the 10th century. Over time, the Indian diaspora in Africa has grown and diversified, with people of Indian origin now present in countries throughout the continent.

There are several distinct groups within the Indian diaspora in Africa. One group consists of those who went to Africa 150 years ago and are now practically African OCI’s. These individuals and their families have deep roots in Africa and consider it their home. They have made significant contributions to the development of their adopted countries and have played a crucial role in shaping the cultural and economic landscape of Africa.

Another group within the Indian diaspora in Africa consists of traders from Gujarat and Mumbai who settled there to build businesses and own manufacturing units. These individuals have been instrumental in driving economic growth and development in Africa. They have established successful businesses in various sectors, including manufacturing, retail, and hospitality. Their entrepreneurial spirit and hard work have earned them great respect and admiration from their African counterparts.

In addition to traders, there is a large population of Indian expats working in Africa. These individuals are typically professionals, technicians, and employees who have come to Africa on a temporary basis. They are employed in various sectors, including oil and gas, mining, construction, and engineering. Indian expats bring with them valuable skills and expertise, which contribute to the development of Africa’s infrastructure and economy.

The presence of Indians in Africa varies regionally, with a high concentration in the eastern and southern regions of the continent. Countries such as South Africa, Kenya, Uganda, and Tanzania have significant Indian populations. In these countries, Indians have played a vital role in politics, business, and culture. They have held high-ranking positions in government, established successful businesses, and contributed to the development of local communities.

Overall, the Indian diaspora in Africa is a vibrant and diverse community that has made significant contributions to the development of the continent. Their presence has enriched the cultural landscape of Africa and fostered closer ties between India and African countries.

Indian companies have established a strong presence across various sectors in Africa, contributing significantly to the economic growth and development of the continent. Here are some notable examples of Indian businesses operating in Africa:

1. Telecom services:
   • Airtel: A leading telecommunications company with operations in 14 African countries, offering mobile voice and data services, as well as mobile money solutions.
2. Hair care and personal grooming:
   • Godrej: A multinational conglomerate with a significant presence in Africa, offering various hair care and personal grooming products under brands such as Darling, Tura, and Rapidol.
   • Marico: Another leading hair care and personal grooming company with a strong presence in Africa, offering products such as Parachute Coconut Oil, HairCode, and Livon.
3. Agri-processing:
   • TGIC (Tropical General Investments Corporation): A leading agri-processing company with operations in Tanzania, Kenya, and Uganda, involved in the production of edible oils, flour, and animal feeds.
   • Mount Meru Milling: A major flour milling company operating in Kenya, providing high-quality flour products to consumers and businesses.
4. Services logistics and Distribution:
   • Multiple Indian players are actively involved in the logistics and distribution sector in Africa, offering various services such as freight forwarding, warehousing, and transportation.

Additionally, many large African businesses are owned and operated by people of Indian origin, who have made significant contributions to the economic development of their respective countries. These businesses span a wide range of industries, including manufacturing, retail, and banking.

The presence of Indian businesses in Africa showcases the strong economic ties between India and the African continent. These businesses not only bring their expertise and resources to Africa but also contribute to job creation, technology transfer, and the overall development of the region.

The point is that Indians are adept and have the perseverance and skills to manage the topicalities and highs and lows of the African markets. Also, the presence of a large number of traders provides a ready market and channel to venture into these markets.

India, with its vast potential and diverse strengths, holds immense promise for reaching the next level of development and prosperity. Here are some key actions that India and its citizens can undertake to accelerate progress:

Foster inclusive economic growth:

• Invest in education, skill development, and entrepreneurship programmes to empower individuals and create a skilled workforce.
• Promote policies that encourage small and medium-sized enterprises (SMEs) and startups, driving job creation and economic diversification.
• Strengthen agricultural infrastructure and technology to enhance productivity, reduce post-harvest losses, and increase farmers’ incomes.

Enhance infrastructure development:

• Accelerate investments in transportation, energy, water, and sanitation infrastructure to improve connectivity, reduce logistics costs, and boost economic activity.
• Develop smart cities with sustainable urban planning, efficient public transportation, and digital infrastructure to enhance livability and innovation.

Embrace technological innovation:

• Promote research and development (R&D) in emerging technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT) to drive economic growth and address societal challenges.
• Encourage the adoption of technology in agriculture, healthcare, education, and other sectors to enhance efficiency and access to services.

Strengthen healthcare and education systems:

• Invest in healthcare infrastructure, medical research, and affordable healthcare services to improve the health and well-being of the population.
• Expand access to quality education at all levels, ensuring equal opportunities for all, and fostering a knowledge-based society.

Address social and environmental challenges:

• Implement policies and initiatives to reduce poverty, inequality, and social exclusion, promoting inclusive development.
• Prioritise environmental protection, sustainable resource management, and climate change mitigation and adaptation measures to ensure long-term ecological balance.

Enhance global partnerships:

• Strengthen strategic partnerships with other countries, particularly in the Global South, to foster trade, investment, and knowledge sharing.
• Engage in international organisations and forums to advocate for India’s interests and contribute to global governance.

Cultivate cultural identity and soft power:

• Promote India’s rich cultural heritage, arts, and traditions to boost tourism, foster cultural exchange, and enhance India’s global image.
• Encourage educational and cultural exchanges to build mutual understanding and respect among nations.

Empower women and youth:

• Implement policies that ensure gender equality, protect women’s rights, and provide equal opportunities for women in education, employment, and leadership positions.
• Engage youth in decision-making processes and provide platforms for their voices to be heard, harnessing their energy and creativity for nation-building.

By taking these steps, India can unlock its full potential, address critical challenges, and emerge as a global leader in sustainable development and progress.

Key areas to target and contribute to are:

• Education and training- EDUTECH to develop and train to build technical and managerial capabilities of the vast manpower.
• Tech driven innovation and modern techniques in farm and non-farm sectors to increase productivity- and replicate the Green Revolution experience.
• Build the service sector- Fintech, digitised supply chain solutions, IT-telecom & internet services expansion, e-commerce, tourism, entertainment or creative, and health care.
• Lend technical and financial resources to drive industrial growth through SMEs to localise manufacturing in the agriculture and mining sectors in the REC’s and target regional markets, not just the local market and exports.

Current business models in Africa

Broadly, there are 3 types of business models to serve African markets;

International trading into Africa through exports:

Has a large share of Africa’s trade, as imports into Africa are > 600 billion of various origins.

This is a supply led hands off model with limited engagement from the local market. Goods are sold through direct or indirect importers. It is a low risk model and also allows companies to be more competitive and provide good quality products, but it does not engage the customer or actual user directly. It has a long lead time and a low connection with the actual players in the market. It limits the ability to engage and drive scale.

A large number of Indian exports are being driven by this model.

Local manufacturing & trade-large and SMEs

With the increase in prices and disruption of supply chains due to the pandemic and the ongoing geopolitical conflicts, the need for localisation of manufacturing capability has become very emphatic.

Pros- Local manufacturing enjoys local government support with differential tariffs, proximity to the market, hence reduced time to market, deep and meaningful strategic customer engagement, lower cost to serve and scalability.

Cons- However it also entails all risks associated with localising, Capital or financial risk, RM availability, Infiltration and price instability, stuck capital, etc.

Inter-regional trade

Provides a larger market for local players. Allows to compete with importers and expand into the larger regional markets. High cost of operations and inconsistent policies may derail the  expansion into regional markets. Concerted efforts by regional governments are being made to provide a unified and barrier -free trading bloc.

What is the recommended model

Africa is a mosaic of markets with different dynamics and different levels of performance or growth. So one has to do a deep dive and segment markets based on the key parameters of GDP growth, consumption, productivity and income growth.

There are many ports in Africa, and all coastal countries are transitory or feeder markets to the countries situated in the hinterland. Most of the countries in the hinterland have consumption markets. However, with the localisation of production at the regional level and the availability of resources, the countries in the hinterland have also become producing hubs or nodal countries, exporting to both the regional consumption markets and the coastal markets.

Market segmentation can be done therefore into- 4 Categories – 

• High growth,
• Low growth
• Consistently performing
• Turn around markets

There is no one size fits all blueprint of success that will work in Africa.

The approach must be a combination of strategies to use the 3 models to customise solutions in alignment with the local market requirements.

Mackensy’s report:

According to Mckinsey Global Institute’s study/ report published in 2023, “Reimagining Economic growth in Africa. The one thing to note and understand about Africa is that there is no ‘one Africa”. Economic growth in Africa has been slow after a promising start between 2000-2010. 

But all the vitals reinforce the potential of this continent.

• Rural-urban migration is happening at a frantic pace, leading to slow but certain urbanisation.
• Productivity is lower than in most regions of the world, indicative of the underlying human potential.
• Large industrial and manufacturing base with more than 345 large companies with over $1 billion in revenue, but there is regional imbalance in industrial growth.
• There is no one Africa, as there are many countries that have had positive growth rates for over 20 years. So a targeted approach is necessary to select target markets.
• Growth can be reignited by increasing productivity and applying learnings and insights from other comparable but successful regions of the world.

Based on a grid of 4 compelling parameters Growth, consumption, per capita income growth and productivity, the study groups or segments the African countries or markets into four groups; 

1. Fast growing
2. Consistently growing
3. Recent accelerators
4. Slow growers

But there are riders in this segmentation. The high growth and consistently growing countries are typically smaller, more agile countries and, in absolute terms, may not offer the size and scalability, whereas the slow growers (e.g., South Africa, Egypt), who have largely been flat to marginal growth, offer size and scale so from a business standpoint, the priorities have to be matched with what the markets have to offer.

Companies foraying into Africa need to develop their strategy around segmentation or prioritisation to target potential markets. However, the grouping done in the study only provides a basic guideline, as the selection of markets depends on a more complex set of criteria; hence, a more comprehensive framework needs to be developed to make strategic choices for venturing Africa.

So selection of markets requires evaluation of markets based on parameters such as;

• GDP Growth rates
• Consumption
• Income growth
• Population growth
• Ease of doing business
• Governance
• Security
• Economic and political stability, etc.
• Financial risks- currency availability & volatility

There are consulting companies based in Europe and Africa that provide the expertise to build comprehensive evaluation tools to prioritise markets for companies based on their portfolio and business objectives with the help of customised technology driven tools.

Opportunities

1. Rapidly growing population:
   Africa’s population is projected to reach 2.5 billion by 2050, making it a significant market for consumer goods and services. This growth offers a substantial opportunity for Indian businesses to tap into a large and expanding customer base. With a young and growing population, Africa presents a significant market potential for various sectors such as education, healthcare, and entertainment.
2. Economic growth and urbanisation:
   Many African countries are experiencing economic growth and urbanisation, creating a middle class with increasing disposable income. This growing middle class offers a potential market for a wide range of products and services, including consumer electronics, healthcare, and education. The urbanisation of African societies is creating new opportunities for businesses in areas such as real estate, construction, and transportation.
3. Natural resources:
   Africa possesses abundant natural resources, such as minerals, oil, and gas, which offer opportunities for Indian companies in the mining, energy, and infrastructure sectors. The exploration and development of these natural resources can contribute to economic growth and job creation in both India and Africa.
4. Trade and investment agreements:
   India has trade and investment agreements with several African countries, creating a favourable environment for Indian businesses operating in the region. These agreements provide a framework for trade and investment cooperation, reducing barriers and facilitating the movement of goods, services, and capital. They can also promote joint ventures and partnerships between Indian and African businesses, fostering economic growth and development.

Risks

Political instability: Some African countries face political instability due to factors such as weak governance, corruption, and ethnic tensions. This instability can lead to civil unrest, coups, and changes in government policies, which can disrupt business operations and investments. Companies operating in these countries may need to navigate complex regulatory environments, deal with security concerns, and adapt to sudden shifts in political leadership.

Infrastructure deficiencies: Africa’s infrastructure is often inadequate, posing significant challenges to businesses. Poor transportation networks, unreliable energy supply, and limited access to clean water and sanitation can increase operating costs, reduce efficiency, and make it difficult to transport goods and services. Companies may need to invest in their own infrastructure, such as generators and water treatment facilities, to ensure uninterrupted operations.

Currency fluctuations: African currencies can be subject to fluctuations due to factors such as changes in global commodity prices, political developments, and economic shocks. These fluctuations can impact the profitability of Indian businesses operating in the region. Companies may need to implement currency hedging strategies and monitor exchange rates closely to mitigate the risks associated with currency movements.

Lack of skilled Labour: The availability of skilled labour in some African countries can be a challenge, affecting the ability of Indian companies to establish and operate their businesses effectively. Factors such as limited education and training opportunities, brain drain, and cultural differences can contribute to this skills gap. Companies may need to invest in training and development programmes for local employees or bring in skilled workers from other countries to fill critical positions.

Trade barriers: Some African countries have trade barriers, such as tariffs and quotas, which can make it difficult for Indian businesses to export their products to the region.

Corruption: Corruption is a problem in some African countries, which can increase the cost of doing business and create uncertainties for Indian companies.

To mitigate these risks, Indian businesses should conduct thorough market research, understand the local business environment, and develop strategies to address potential challenges. They should also consider partnering with local companies or investors to gain a better understanding of the market and navigate the regulatory landscape.

Despite the risks, Africa offers significant opportunities for Indian businesses. By carefully assessing the opportunities and risks and implementing effective strategies, Indian companies can successfully expand their operations in the African market and contribute to economic growth and development in the region.

Conclusion

Symbolic handholding and providing a platform for visibility and projections of the issues faced by the global south is a fine gesture but countries, especially those that have seen success and development in the last 2-3 decades, must walk the talk and provide real support and assistance to African economies.

There is an opportunity for India to collaborate and share its own experience of the green revolution to help Africa increase its usage of arable land.

Support complete integration of the banking and financial systems to reduce the cost of capital and increase capital & forex flows. Financial and price risk management tools must be introduced in the banking sector across Africa to help businesses manage and prevent the erosion of investments & capital.

References

• https://archive.uneca.org/oria/pages/igad-intergovernmental-authority-development
• https://www.gsb.stanford.edu/insights/africas-econom-horizon-conversation-acha-leke-chairman-mckinsey-africa
• Reimagining-economic-growth-in-africa-v6-Mckenzie report.pdf 
• https://www.orfonline.org/research/the-african-continental-free-trade-area-opportunities-for-india