India Moves to Advance Trade with Africa and Rival China

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The African Union (AU) and India signed a Memorandum of Understanding (MoU) on

The African Union (AU) and India signed a Memorandum of Understanding (MoU) on Monday that allows India to set up 14 capacity building departments in different member countries of the AU. The MoU signing ceremony took place at the AU headquarters in the Ethiopian capital Addis Ababa on the sideline of the Meeting of India-Africa Foreign Ministers. The Indian delegation headed by Foreign Minister S.M. Krishna was joined by the foreign ministers of 15 African nations for the meeting.

Bilateral India-Africa trade has increased from about £620m in 2001 to £28.5bn in 2010. India hopes it will reach £43bn by 2012. As compared to India, China’s two-way trade with Africa stands at £75bn, and was just £620m in 1992.

Indian companies have mainly invested in telecommunications, energy, mining, and chemical companies. India imports 70% of its oil and gas from Nigeria, Sudan and Angola.