Post date: May 24, 2011 4:37:58 PM
Aiming to deepen bilateral economic ties, Indian Prime Minister Manmohan Singh extends $5 billion credit line to African countries to facilitate development in the politically turbulent continent rich with minerals and commodities.
ADDIS ABABA, ETHIOPIA (MAY 24, 2011) ANI - India has proposed to extend an aid package worth $5 billion to African nations.
Indian Prime Minister Manmohan Singh declared this at the Africa-India Summit in Addis Ababa, the capital of Ethiopia on Tuesday (May 24).
He said this was with an aim to deepen bilateral economic ties by facilitating development in the
politically turbulent continent rich with minerals and assorted commodities.Singh, who is on a six-day trip to Africa that began on Monday (May 23), pledged development support in exchange for trade agreements to fuel growth in India's resource-intensive economy, and in order to boost the presence of Asia's third-largest economy in the world's poorest continent.
"We will offer $ 5 billion for the next three years under lines of credit to help Africa achieve its development goals. We will offer an additional 700 million US dollars to establish new institutions and training programmes in consultation with the African Union," said Manmohan Singh.
He also assured that India would boost support for infrastructure projects, regional integration, skills training and human resource development in Africa.
Interestingly, in January 2010, India said it would increase credit lines to Africa to $5.4 billion until 2012 from $2.15 billion.
India would also provide an additional $300 million for a new Ethiopia-Djibouti railway line, asserted the Prime Minister.
"On the advice of the African Union, I am happy to announce that we would support the establishment of Ethiopian-Djibouti Railway line to the tune of 300 million US dollars," added Manmohan Singh.
Highlighting lacunae in the transport links between India and Africa, the Indian Prime Minister called for better air connectivity between the two.
"One of the biggest gaps in our interaction is that of insufficient air connectivity. We should accord this high priority. To begin with, India would be happy to increase the access of African airlines to Indian cities in a significant manner over the news three years," assured Manmohan Singh.
Rival emerging economies, India and China, are scouring the globe to secure energy resources, minerals and food. Both are keen to stress to African nations that they are more than just trade partners and want to help the continent develop.
Both nations are also trying to extend their influence in Africa as they emerge as economic powers and appear keener to flex their diplomatic muscle.
India is also trying to increase its presence on the continent and get African support for its bid for a permanent place on the UN Security Council.
India is eager to work with various African countries in key sectors like finance, infrastructure, IT (information technology), health-care, research and development and security cooperation.