President Kenyatta calls for value addition

President Uhuru Kenyata (second right, front row) adjusts his ties as he stands among other African heads of state at the India-Africa Forum in New Delhi on October 29, 2015. President Kenyatta is pushing for a shift in Indo-Africa trade that will see Kenya and other African countries focus on value addition instead of exporting raw materials. PHOTO | ROBERTO SCHMIDT | AFP 

In Summary

• The meeting brings together more than 40 African heads of state and government, the largest number since its launch in 2008.
• In his opening remarks at the forum, Indian Prime Minister Narendra Modi announced a concessional credit of $10 billion to Africa over the next five years.

By PSCU
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President Uhuru Kenyatta is pushing for a shift in Indo-Africa trade that will see Kenya and other African countries focus on value addition instead of exporting raw materials.

For trade with India to deepen, Mr Kenyatta said, Africa must develop its manufacturing base.

“Although Indo-African trade has grown significantly in the last few years, it has the capacity to grow faster, deeper and broader. But for that to happen, we must shift from the tiring and traditional focus on the export of primary commodities and develop Africa’s manufacturing base and value addition,” he said. 

The President spoke on Thursday in New Delhi during the third India-Africa Forum whose theme is “Partners in Progress: Towards a Dynamic and Transformative Development Agenda”.

The meeting brings together more than 40 African heads of state and government, the largest number since its launch in 2008.

President Kenyatta observed that while India was the fifth largest source of foreign direct investment in Africa, there was still vast untapped potential that investors could take advantage of.

“I, therefore, encourage more Indian companies to establish base in Africa as they expand,” he said.

Mr Kenyatta expressed optimism that the forum would adopt a plan of action that has an evaluation mechanism to track progress on the implementation of the partnership agenda.

GRANTS

In his opening remarks at the forum, Indian Prime Minister Narendra Modi announced a concessional credit of $10 billion to Africa over the next five years.
India’s Prime Minister offered a further $600 million as grant assistance to Africa as he called for deeper ties in trade, counter-terrorism, climate change and UN reforms.

“This will include an India-Africa Development Fund of $100 million and an India-Africa Health Fund of $10 million. It will also include 50,000 scholarships in India over the next five years,” said the Prime Minister.