‘India’s digital leadership can help Africa leapfrog’: Prof Anil Sooklal
Prof Anil Sooklal, South African high commissioner to India, said Africa needs partners, especially from the Global South, because China, Brazil and In dia understand many of these developmental needs
BRICS is accelerating Africa's development by fostering deeper economic cooperation and creating independent supply chains, moving beyond traditional foreign aid. Key areas for India-Africa collaboration include digital infrastructure, mining, agriculture, renewable energy, and pharmaceuticals. The India-SACU trade agreement signals potential for expanded free trade, and Africa can learn from India's digital payment systems to reduce costs and boost local currency trade.
BRICS is accelerating Africa's development by fostering deeper economic cooperation and creating independent supply chains, moving beyond traditional foreign aid. Key areas for India-Africa collaboration include digital infrastructure, mining, agriculture, renewable energy, and pharmaceuticals. The India-SACU trade agreement signals potential for expanded free trade, and Africa can learn from India's digital payment systems to reduce costs and boost local currency trade.
BRICS is accelerating Africa's development by fostering deeper economic cooperation and creating independent supply chains, moving beyond traditional foreign aid. Key areas for India-Africa collaboration include digital infrastructure, mining, agriculture, renewable energy, and pharmaceuticals. The India-SACU trade agreement signals potential for expanded free trade, and Africa can learn from India's digital payment systems to reduce costs and boost local currency trade.
Interview/ Prof Anil Sooklal, South African high commissioner to India
Q/ What were the key takeaways for Africa from the BRICS summit?
We see BRICS as a platform of the Global South and a means to fast-track Africa’s development. All BRICS partners have ambitious programmes for Africa.
We are operating in an economic environment where undue unilateral measures are negatively affecting economies. We need to reassess trade and economic engagement. We need deeper partnerships to be less vulnerable and dependent, and create our own supply chains. That is already happening, and this summit will help accelerate those partnerships.
Q/ What are the challenges for Indian companies investing in South Africa?
We have a historical relationship, but both sides need to learn more about each other, including our business communities. According to India’s ministry of commerce, there are about 760 Indian companies in Africa. But relatively few African and South African companies are active in India. The only direction we can go is towards growing this partnership.
Critical sectors include infrastructure, particularly digital infrastructure. India’s digital leadership can help Africa leapfrog. Mining and critical minerals are another area.
Africa has 60 per cent of the world’s arable land, yet agriculture remains underdeveloped. India can help scale up production and food security.
Energy is another area. With escalating oil prices, we need new energy streams, including green energy, hydrogen, solar and wind.
Pharmaceuticals and health care are important. India is a global leader in pharmaceuticals, while Africa is building its health architecture. Covid exposed the fragility of our health systems, and there is scope for collaboration.
Q/ China has a substantial presence in African infrastructure, mining and logistics. Should India be competing with or learning from China?
It is not about competition. Africa is vast—54 sovereign states and about 1.5 billion people, with immense developmental needs. We need partners, especially from the Global South, because China, Brazil and India understand many of these developmental needs. India-Africa trade was about $3.5 billion in 2000 and is now more than $100 billion. The relationship has grown significantly. We don’t want lopsided post-colonial partnerships.
Q/ In August, India and the Southern African Customs Union (SACU) signed the framework for negotiations on a preferential trade agreement. What could this mean for India-Africa trade?
This could provide a template for future expanded free trade agreements between Africa, regional economic communities and India. It is positive for trade and investment.
Q/ What can Africa learn from India’s experience with digital payments?
When the African Continental Free Trade Area was launched, there was recognition of the need to trade in local currencies. We therefore created the Pan-African Payment and Settlement System, PAPSS.
Africa loses more than $5 billion annually through trading in foreign currencies. Using local currencies can save those funds for development.
India has done very well with its payment systems and platforms, and this trend is spreading through the developing world. We should not depend on one or two payment platforms.
Q/ Can we say foreign-aid models are slowly becoming defunct?
The centre of our engagement is deepening economic cooperation. Development is no longer about the traditional foreign aid model. Foreign aid has not had the desired impact in growing, diversifying and deepening economies. We want partnerships, investment, mutual benefit and technology transfer.