By Enyichukwu Enemanna
A new report has indicated that Africa has become the second-largest recipient of credit from India as the country makes efforts to counter Chinese growing impact in the resource-rich continent, as per a new report.
In the last ten years, 42 African countries have received about $32 billion, representing 38% of all credit extended by India.
According to the managing director of India’s Export-Import Bank, Harsha Bangari, this percentage is a little lower than the total percentage of loans the country has dispensed.
Bangari further said that the bank is an instrument of India’s “economic diplomacy.”
She added that India has also opened up 195 project-based lines of credit worth about $12 billion across Africa, which is three times the number it has in its own region in the last decade.
“Africa has made good use of credit lines,” extended for projects that include health care, infrastructure, agriculture and irrigation and India is seeing a steady increase in demand, she said.
Citing data from Boston University’s Global Development Policy Center, Bloomberg reports that China’s loans to Africa have fallen since 2016, overall in the 10 years to 2020.
Beijing also promised $134.6 billion to African nations, which is almost 11 times more than what India has offered.
Indian Prime Minister, Narendra Modi’s government has pushed for more significant engagement with the world’s second-largest continent, Africa, encouraging both economic and diplomatic ties.
India is glimpsing at the opportunity to expand deeper into the continent as Africa is currently dealing with the economic fallout of the Covid pandemic and Russia’s war in Ukraine.
In the last nine years, 18 of the 25 new Indian embassies or consulates were in Africa.
In February, India hosted 48 African countries at the Voice of Global South summit.
