China and India are two emerging Asian economies. And both of them have grown spectacularly since the 1990s. China has grown more than India partly due to the West’s support. But when it comes to mobilising soft power and reputation abroad, India stays miles ahead of China.
Take the case of Africa. China has a massive foothold in the resource-rich Continent, but a very bad reputation. Its infrastructure projects have turned out to be sheer debt traps and Beijing fails to impress upon regional leadership despite all its efforts. India, on the other hand, has focused on social infrastructure projects and healthy engagements which is helping it replace the paper Dragon.
China a venture capitalist; India a co-founder
At the end of the day, China is a venture capitalist in Africa. It is concerned only about its own investments and the returns thereon. It has no skin in the game and no real desire to help the African Continent achieve its growth potential. India, on the other hand, has its skin in the game. It is not an external investor and concerns itself deeply with growth and prosperity in Africa. So, India is becoming the preferred choice of African leaders, replacing China.
China as a venture capitalist
Writing in an op-ed published on Financial Express, (Mrs) Amb Narinder Chauhan, a former Indian ambassador and former Joint Secretary, Africa in the Ministry of External Affairs, stated that “in the African daily lives, the mobile phones used, the televisions watched, and the roads driven are built by the Chinese. African governments willingly accepted loans from China because no accountability was required in return. African leaders could win elections thanks to the roads, ports, and railways promised to the citizens.”
But the former Indian diplomat also mentioned, “However, criticism of China’s economic engagement with Africa has been growing from labour unions and civil society on the poor labour conditions, unsustainable environmental practices and job displacement caused by Chinese enterprises. China is also thought to be taking advantage of African government weaknesses, thereby encouraging corruption and wasteful decision making.”
Criticism against China is indeed growing in African countries Angola, Ghana, Gambia, and Kenya.
Read more: Major setback for China’s African Safari. Its Kenyan BRI project is all set to be shelved
Things have got far worse in the Democratic Republic of Congo (DRC). A recent Bloomberg report had exposed how the Chinese looted millions of dollars from the African country. High-ranking officials in Congo’s bureaucracy including former President Joseph Kabila and his relatives were also found at the centre of the China-related financial irregularities.
Read more: China’s Congo loot is out in the open and that’s bad news for Chinese people in Congo
India as a co-founder
Meanwhile, India may not have concentrated on economic infrastructure, but New Delhi has constantly promoted inclusive development and growth of social infrastructure in the resource-rich continent.
As per (Mrs) Amb Narinder Chauhan, “Unlike China which has concentrated on creating infrastructure and in extracting natural resources, India through its investments of over $11b, has focused on its core competencies of human resources development, information technology, maritime security, education and health care.”
This is where China and India follow contrasting approaches in Africa. China builds economic infrastructure in Africa that caters to its own geostrategic ambitions. Such projects that often form part of Xi Jinping’s flagship Belt and Road Initiative (BRI) rarely help the locals.
Beijing is accused of employing its own workers and deputing its own companies in such projects. This is true for all BRI projects and not just the ones in Africa. No jobs are generated for the locals and China also doesn’t focus much on the training and grooming of the African people.
By relying more on African talent and building capacities for the local population, India has made it clear that it does not look upon Africa as a mere investment due to its vast resources. This is why it uses soft loans, local training programmes and grants to drive African growth. India is really acting like a co-founder in Africa’s growth story.
African leaders dumping China; choosing India
China is being kicked out of Africa in a rather emphatic way. There have been reports of the Chinese being hounded, abducted and chased out of Congo by the disillusioned local communities. China itself has realised that it might have to pull out of countries like the DRC amidst growing anti-Beijing sentiment in the African Continent.
And who replaces China? India, of course. Apart from the billions of dollars that India has invested in empowering local African communities, the country has also managed to boost its trade ties with Africa. Indo-Africa trade has grown significantly from $51.7 billion in 2010-2011 to $66.7 billion in 2019-2020. During the same period, African exports to India too have grown by $5 billion.
Africa is dumping China and embracing India. In fact, about 8 percent of India’s imports come from Africa and 9 percent of Africa’s imports from outside the Continent come from India. Indian firms have a good presence in the Continent, making it the eighth-largest investor in the Continent.
India and Africa are getting closer, and it is China that is getting kicked out in the process.
