India, 14 African nations to strengthen mutual trade

ADDIS ABABA: India and 14 key African nations today vowed to strengthen mutual trade, taking note of the potential provided by the combined population of 2.2 billion and a GDP of $3 trillion.

Expressing confidence that the India-Africa trade would reach $70 billion by 2015 from $46 billion, a joint statement of African Union Commission (AUC) and India said the economic ties can be improved by an agreement between New Delhi and African regional Economic Communities.

The statement was issued after a meeting of trade ministers and officials of India and AUC countries. As many as 14 African countries were represented at the meeting also attended by India's Commerce and Industry Minister Anand Sharma.

In the run-up to the India-Africa Forum Summit next week to be attended by Prime Minister Manmohan Singh, it said, "We are confident that the Summit would go a long way in strengthening economic ties between the two sides".

Besides, the increasing mutual trade, the India- Africa investment reached $90 billion in 2010.

Though Africa was late to catch up, the continent has been growing in the recent few years by a fast pace. Despite the global woes, Africa's economy expanded by 4.7 per cent in 2010 and is expected to grow by over 5 per cent in the coming years, giving opportunities to India.

Eyeing rich natural resources in the continent along with the growing economy, leading Indian business houses are exploring business possibilities in Africa.

CII has mounted a high-level delegation along with the minister comprising among others Sunil Bharti Mittal of the Bharti Group and Adi Godrej of the Godrej Group.

Mittal had few years ago completed a major telecom acquisition in the continent.

The AUC members include Ethiopia, Chad, Malawi, Namibia, South Africa and Senegal.