Africa wants Indian cos to process minerals locally

African countries, rich in mineral resources, are asking Indian companies to set up processing plants in Africa if they are interested in exploiting the continent's natural resources.

"We want the Indian companies to set up factories where the raw material can be processed to manufacture the end product. We are keen to stop huge exports of raw materials from Africa," said Felix Mutati, Zambia's minister of commerce, trade and industry. Over 80 per cent of raw materials mined in Africa is exported to other countries.

Africa, which experts are billing as the next global investment destination, is also keen that companies bidding for licences to mine for minerals also set up infrastructure projects such as transport and electricity in Africa.

"We want as much investment as possible from India. And we are looking for major projects, not corner store investments," Mutati said.

ONGC Mittal, a joint venture between oil company Oil and Natural Gas Corporation (ONGC) and steel baron LN Mittal, has already committed to investing close to $5 billion in road, rail and pipeline infrastructure in Nigeria, where it has won oil and gas blocks for exploration.

"The whole of Africa is looking for similar packages," Mutati said. He added that Africa was looking to set up new industries and strengthen infrastructure, two major bottlenecks in the economic growth of the African countries.

Chinese companies have been aggressively pursuing mining projects in Africa, promising infrastructure projects with it.

"Africa is rich in natural resources and it is looking for partnerships to tap these resources. Africa wants to generate employment and reduce poverty," said Bwabwa Wa Kayembe, director general, National Agency for the Promotion of Investments in Congo.

Mutati added that Africa was now a stronger because it has more choices on whom to offer its mineral resources to.

"Africa is a new destination. It is the new choice for everyone," he said, adding that Chinese companies had already pumped in huge amounts of investments in Africa.

"We are keen to get India to Africa in a big way because we see Indian technology and quality as being superior," Mutati said.