India’s Growing Influence in Africa: Challenging China’s Dominance

financialexpress.com:

In recent years, India has made significant strides in expanding its influence in Africa, emerging as the second-largest provider of credit to the continent. With a focus on infrastructure development, healthcare, and other key sectors, India’s efforts aim to catch up with China, which has long been a dominant player in Africa.

India’s Credit to Africa:

In an exclusive conversation with Financial Express Online, Harsha Bangari, the managing director of India’s Export Import Bank said the bank plays an important role in the country’s “economic diplomacy.”

According to Ms Bangari India has opened 195 project-based lines of credit in Africa worth around US$12.8 billion, triple the number in its own region, reflecting the country’s commitment to fostering stronger ties with the resource-rich continent.

Over the last decade, India has extended approximately US$32 billion in credit to 42 African nations, accounting for 38 percent of its total credit distribution. These funds, channeled through India’s Export Import Bank, support a wide range of projects, including healthcare, infrastructure, agriculture, and irrigation.

Project Selection Process:

India’s decision to support a particular African government is determined by the Indian government itself. The process involves close collaboration with the Exim Bank, which assesses the needs of the borrower government and identifies suitable projects. To a question on the selection process, she says that Indian missions in African countries play a vital role in facilitating these partnerships by maintaining relationships with local governments and identifying areas where India’s expertise can be deployed effectively.

Diverse Project Portfolio:

India’s credit lines of $12.8