India spurs investment drive in Africa

Dominates the diamond cutting and polishing business in Botswana

India, identified as ‘ easily’ the fastest growing economy in the world by the International Monetary Fund ( IMF) has vowed to increase its investment in Africa.

Reports indicate that at 8.4 percent, India’s economy expanded at its fastest pace in six quarters, on strong private consumption and upbeat manufacturing and construction activity.

India’s economic footprint in Africa boasts an annual growth of 18 percent, reaching $ 103 billion in 2023. The figures make India Africa’s third largest trading partner after the European Union and China.

There is more to come from the Asian country to Africa, Botswana included. India’s High Commissioner to Botswana, Bharath Kumar Kuthati told Botswana Guardian recently that his country is doing more to try and improve its investments in Botswana and the continent at large. The High Commissioner praised Botswana’s conducive investment climate, saying it is much better than many countries. The tourism sector as well as the local manufacturing industry are sectors that still have prospects to invest in, Kuthati said. “It will be prudent for us ( High Commission) to attract Indian companies to look for opportunities here,” he said.

India is not doing badly in terms of doing business in Botswana. Out of 45 diamond cutting and polishing businesses, 26 of them are from India. These companies have generated employment opportunities and imparted training skills in diamond cutting and polishing to local Batswana. One important economic development in the relations between India and Botswana, which the High Commissioner talked highly of, is the Botswana Power Corporation ( BPC) and India’s Jindal Steel and Power Ltd. power purchase agreement for 30 years from the 300 MW greenfield coal- fired power plant project which is expected to be completed by 2028 by Jindal.

The agreement was made under the contract secured in November 2022 for Jindal to design, build, finance and maintain the plant. Botswana’s cabinet has approved to add another 300 MW to this greenfield project. The investment billed at more than USD2 million is expected to create at least 5000 jobs in Botswana.

Though there are close to 12 000 Indian nationals in Botswana who own several grocery stores, supermarket chains and have presence in hospitality, construction and hospital industry, the same cannot be said about Botswana businesses in India. “We have not seen much of interest from people here to invest in India,” said Kuthati, however the High Commissioner was quick to admit that not much campaign has been done to attract Botswana businesses to invest in India.

“India wants to attract Foreign Direct Investment, so we need to talk about it. More can be done, I am open to ideas and suggestions on how to improve trade relations between Botswana and India,” he said. India established diplomatic relations with Botswana immediately after the latter’s independence in 1966 and opened resident diplomatic mission in Gaborone in 1987. On the other hand, Botswana established its Mission in New Delhi in 2006.