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SP E CIAL  REPOR T


                              INDIA + SOUTH AFRICA

                                 THE POWER OF TWO




                                                 BY CHIGOZIE N. UDENSI*


               he relationship between India and South Africa is both   the African continent by directly purchasing shares in the
               simple and distinctive, dating back many centuries   African capital market or setting up joint ventures.
         Tand rooted in shared values, feelings, interests, and
         legends, such as Mahatma Gandhi and Nelson Mandela. Their   AGRICULTURE
         bilateral relationship, however, remained tense for a long time   A variety of features are similar to the agricultural sector
         due to the apartheid regime in South Africa. India escalated   in Africa and in India, ranging from the diversity of agro-
         its dispute with multilateral institutions such as the United   climatic regions to parallels in farming processes, such as the
         Nations (UN), the Commonwealth, and the Non-Aligned   small scale of farms. These similarities provide many avenues
         Movement (NAM) after its independence; becoming the fi rst   for cooperation. Given that the agricultural sector in Africa
         country to severe trade ties in 1946, and to eventually enforce   is projected to grow from USD 280 billion in 2014 to USD
         political and economic sanctions.                   1 trillion by 2030, with growth mostly based on technology,
            In recent years, the relationship between India and Africa   there is considerable potential for the agricultural sector in
         has gained momentum. In boosting relations between Africa   Africa to leverage on India’s experience in the sector, as well
         and India, greater economic interaction has served as a prime   as partnership in addressing common issues.
         catalyst. In the near future, India’s trade is anticipated to   In the near future, Africa is expected to play an important

         increase significantly. For its energy needs, India depends   role in global food security. While Africa accounts for 25%
         heavily on Africa. Africa’s focus on India, in turn, will lead   of the world’s farmland, it produces only 10% of the world’s
         to the continent’s development in different sectors such as   agricultural goods. Moreover, Africa can be a key peas

         energy, agriculture and healthcare.                 sourcing destination for India; a major source of protein in the
                                                             diet of the Indian population, particularly as consumption of
         ENERGY                                              peas is projected to increase as the Indian economy develops.
            In the energy sector, India and Africa have a symbiotic
         relationship. Although, African countries are willing, with   HEALTHCARE
         their abundant capital, to meet India’s rising energy demands,   Some Indian healthcare organizations have created
         India is an ideal collaborator to help Africa maximize the use   footprints in Africa, with more organizations expecting
         of its natural resources, considering its experience and skills   to get involved in African hospitals. Particularly, Indian
         in working in a relatively diffi  cult environment. In order to   healthcare organizations are diligently trying to engage in

         expand on its trading ties and satisfy its energy demands, India   ways such as the expansion of Greenfield and brownfi elds,
         is diligently investing to tap into the unexplored capacity of   and telemedicine facilities that will encourage medical
                                                             tourists in the region.
                                                               While Africa holds strong growth opportunities in the
                                                             near future, understanding the demand and the needs of
                                                             consumers is crucial. As new laws continue to develop
                                                             in Africa, procurement and delivery processes create a
                                                             problem resulting in an extended lead time. Nevertheless,
                                                             the increasing burden of sicknesses coupled with stronger
                                                             spending potential may provide Indian pharmaceutical fi rms

                                                             with a profitable market opportunity for future development.
                                                             In such a situation, partnering with local producers will
                                                             promote better cooperation and a greater understanding of
                                                             the continent’s diverse legal systems.

                                                               *Author is a PhD student in Politics and International
                                                             Relations from the University of Johannesburg, South Africa.


                                                   Extraordinary and Plenipotentiary Diplomatist • Vol 8 • Issue 9 • November 2020, Noida • 33
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