This is the continuation part of the indo african summit where we have given the detailed study of the african nations and how indian MSMEs can work in co-ordination with the African countries to increase the international trade.

1. Indo Africa Summit-
Opportunity For Indian MSME
In Africa
Helping Small Businesses Grow…

2. What is the current status of
African Nations?
Helping Small Businesses Grow…

3. What is the current status of African nations?
Economic
1. Infrastructure spending in Africa is estimated
to reach $93 billion per year and tax revenues
and other domestic resources will not be enough
to fill the financing gap for infrastructure projects.
2. Portfolio investments in equity markets,
domestic bond markets, and Eurobond markets
are increasing
3. Financial Services still have low penetration
Political
1. Political Turmoil and Civil War in some
countries
2. Strict custom transactions, involves lots of
parties, lack of regional integration
Source: http://www.brookings.edu/

4. What is the current status of African nations?
Social
1. Number of people on the continent
reportedly living under $1.25 a day has
reached to 415 million in 2011
2. Different culture and religion share space
and are deeply intertwined in African cultures
Technology
1. The rise of Silicon Savannah has created a
huge IT potential.
2. Information and communications
technology (ICT) needs to remain on high
priority in spite of the rapid growth in mobile
phones and mobile banking.
http://www.brookings.edu/

5. What is the current status of African nations?
Strengths:
1. Rich in minerals and metals including
gold and diamond
2. Rich source of oil and gas reserves
3. Rising middle class that has huge
potential for consumer spending
presence of market friendly policies in
several countries such as Rwanda,
Nigeria, Egypt and Morocco
4. Highly sophisticated and sound
banking and financial services sector in
its major economies
5. Aggressive skills development
programmes such as research and
human resources
African Map For Energy Resource

6. What is the current status of African nations?
Weakness:
1. Banking, Telecom and retailing still have a
low penetration in many parts of the continent
2. Highly volatile security market
3. Political Turmoil and Civil War in some
countries such as Libya, Algeria, Egypt,
Morocco and Tunisia
4. Inadequate Infrastructure
5. Adverse Weather Conditions
6. Natural disasters
African Climatic Conditions

7. Value of Exports to Sub Saharan Africa
Source: IMF
The International Monetary Fund has determined that the value of India’s exports
(now largely high-end consumer goods) to Africa have increased by over 100 percent
from 2008 to 2013—meaning that India has now forged ahead of the United States in
African markets. However, although they benefited from Africa’s robust economic
growth, India’s gains do not quite compare to China’s astronomical increase in
exports to Africa

8. Value of Imports from Sub-Saharan Africa
Source: IMF
The value of India’s imports from Africa also grew dramatically from 2008-2013—
by over 80 percent—compared to the sharp decline in the value of imports from
sub-Saharan Africa to the United States The decrease in U.S. imports from
Africa was likely caused by the development of American hydraulic technology,
which lessened U.S. dependence on African oil and gas

9. African FDI Stock in Host Countries
Source: UNCTAD Bilateral FDI Statistics
Another noteworthy trend is Africa’s growing foreign direct investment in India. Since
2010, Africa’s FDI in India has proven consistently high compared to its FDI in
countries such as China and the United States. However, the primary reason for this
is that Mauritius is the biggest source of FDI into India.

10. Areas Where India and Africa
Can Work Together
Helping Small Businesses Grow…

11. Sectors where India can help African nations
Agriculture
Africa’s aspired “green revolution” could raise its agricultural
output from USD 280 billion in 2010, to around USD 880 billion
by 2030. Indian msme can offer its expertise in manufacturing,
and robust distribution networks in agrochemicals, fertilisers,
farm equipment, etc to help African agriculture.
Defence
Defence cooperation with Africa is an attractive option given
Africa spends heavily on military and India is the world’s largest
arm importer. In fact, India recently signed a deal of USD 80
million with South African companies for integrated self-
protection systems on its domestically designed Dhruv
Advanced Light Helicopters.
Textile and Fashion
There are huge takers for India fashion and apparels. Indian
msme can establish joint ventures with African retailers to have
a better reach in this segment.
Source: McKinsey and KPMG Reports

12. Sectors where India can help African nations
SERVICES
IT Sector:
Africa is expected to triple its IT spend to USD 80 to 95 billion by
2025. Indian MSME can offer technical expertise in verticals such
as mobile apps, banking platforms etc., the ability to develop local
talent, as well as the capabilities to set up low cost IT parks.
Infrastructure:
North Africa’s high electrification rate guides the compass of
opportunity there—by 2040, Sub-Saharan Africa’s electricity
consumption of around 1,600 TWh will represent a USD 800
billion opportunity.
Many Indian players such as Nava Bharat Ventures, Tata Power,
JSPL and Essar have entered the African power sector.
Healthcare
About 80% of medicines to poor African nations are provided by
India. India’s pharma products have saved millions of lives in
Africa. India also plans to train doctors and healthcare
personnels.
Source: McKinsey and KPMG Reports

13. Sectors where India can help African nations
KNOWLEDGE:
Research and Development
The Pan-African e-network is already in practise and
connects hospitals and universities in 48 African nations to
their Indian counterparts.
25,000 scholarships for students across Africa have also
been provided by New Delhi.
Medical Tourism
‘First World Treatment at Third world Prices’ is attracting
medical tourists to India from all over the world.
India provides quality treatment at affordable prices. indian
healthcare revenues are expected to reach $160 billion by
2017, as per a report by India’s Brand Equity Foundation.
Fortis, Escorts and Medanta are leading this change.
Source: McKinsey and KPMG Reports

14. Indian and African
Trade Organizations to contact
for support
Helping Small Businesses Grow…

15. African Organizations Where Traders Can
Communicate
Major trading arrangements in Africa include:
1. Common Market for Eastern and Southern Africa (COMESA)
2. Southern African Development Community (SADC)
3. Southern African Customs Union (SACU)
4. West African Economic and Monetary Union (UEMOA)
5. Economic and Monetary Community of central Africa (CEMAC)
6. Indian Ocean Commission

16. Support from the Indian
Government
Helping Small Businesses Grow…

17. List of Indian Trade Organizations To Contact For
Help
Project Exports Promotion Council of India
Place: NEW DELHI
Tel: 91-11-23722425, 23350367
E-mail: info@projectexports.com
Website:http://www.projectexports.com/
Export Promotion Council For Eous & SEZ Units
Place: New delhi
Tel: 26165805, 26167042,
EMAIL : epces@vsnl.net
Website: http://eouindia.com
For Industry specific trade organization follow the link:
http://focusafrica.gov.in/export_promotion_councils.html

18. Thanks
Helping Small Businesses Grow…