"For the first time in Africa's modern economic history, a large portion of the continent has registered not only high, but also uninterrupted growth," according to a 2010 International Trade Forum magazine report, noting growth among African nations in GDP and resilience during the global economic crisis that started 2008-09.
The traditional African exports to India has been gems and jewelry. South Africa and Nigeria, however, have led the way among African nations exporting to India with Nigeria providing 10 percent of India's petroleum needs. India polishes almost all of South Africa's diamonds and is a major importer of the Sub-Saharan African nation's gold. India exports fabric, yarn, auto-parts and machinery, especially agriculture equipment, to South Africa.
According to a WTO report, in 2011 India surpassed China with an export growth rate of 16.1 percent, placing it at the top of the list of all major global trading countries. China has now replaced India's as the second-fastest exporting nation among major economies at 9.3 percent. In 2010, China exports growth was 28.4 and India saw a 22 percent growth.
India is interested in creating equitable partnerships with African nations, states Sheppa Tapanti, Deputy Director of the Confederation of Indian Industry. "Indian industry should not be looked up as colonizers, or someone who is moving in to take away. They would rather be looked upon as people who would contribute."
In April 2012, the African Union (AU) selected 14 nations to be represented at an Africa-India summit to discuss increasing trade. This was the first ever India-Africa forum and addressed relaxing duties and quotas India places on some products from African nations.
China is in competition with India for natural resources abroad to meet the needs of its industrial economy. In November 2006, Beijing hosted nearly 50 African leaders. One of the outcomes of these negotiations was China nearly doubling aid to Africa. Credit lines and commercial deals also increased in the billions.
African nations interested in growing exports to the India and China emerging economies will be in a better position because of the competition. India and China, however, will have the advantage of bargaining from a centralized power base. For the 50 African nations seeking to increase export trades, organizing efforts through trade and economic unions like the AU, the East African Community and the Economic Community of West African States will offer the soundest vehicles for harnessing collective bargaining power.
Additionally, increased exports from African nations to India and China may find assistance in predicted climate changes. For example, Tanzania may benefit from increased demands for its corn due to climate change, according to a study by researchers at Stanford University, the World Bank and Purdue University. It is also encouraging news that the AU's current focus is on boosting intra-African trade, which has the potential to increase trading synergies among African nations.
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