 "External Affairs Minister Sushma Swaraj with FICCI President Jyotsna Suri, CII President Sumit Mazumdar (2nd R) and others at the inauguration of the India- Africa Business Forum in New Delhi")
Africa can be the answer to India’s rising energy demands, according to a study jointly done by KPMG and Confederation of Indian Industry (CII).
Besides infrastructure development and mineral resources, Africa holds immense potential as a credible nuclear energy supplier, the study titled “India and Africa — Collaboration for Growth” noted.
Africa is second only to West Asia as a net exporter of oil. The potential for export is high because of the low level of oil consumption in Africa, registering only four per cent of global consumption. Fourteen countries in north and west Africa have mature markets and are major contributors to oil and gas revenues in the world, the study said.
Eastern Africa, with its newly-discovered hydrocarbon reserves, has also emerged a destination for international oil companies. Hydrocarbons account for 57 per cent of export earnings in the continent, the study noted. It added that by 2035, India’s energy production could rise by 117 per cent and consumption by 128 per cent. As a result, India will need an investment of $250 billion over the next five years. The growing energy supply dependence on Africa is likely to be one of the key influencers in India-Africa trade and investment.
To achieve its nuclear energy objectives, India is eyeing Namibia for uranium supplies. India aims to have 25 per cent of total electricity through nuclear power by 2050.
“The growing energy supply dependence on Africa is likely to be one of the key influencers in India-Africa trade and investment,” the study said.
India is the fourth largest consumer of electricity, accounting for 4.4 per cent of global energy consumption, and is expected to take over Japan as the third-largest consumer.
According to the study, India and Africa can become viable partner in healthcare. In this area, India has already made a significant name for itself in the African region. A number of Indian healthcare organisations have established footprints in Africa, with many more planning to penetrate the healthcare sector there, the study noted.
The study underscored that there is a need for a stronger pharmaceutical sector in Africa.
In the light of India-Africa Forum Summit, the EXIM Bank has also released a report on India-Africa trade. According to this report, Africa is a continent on the rise. African Development Bank’s African Economic Outlook 2015 says the African economy grew at 3.9 per cent in 2014, compared to 3.5 per cent in the preceding year. In recent years, Africa’s global trade has witnessed significant upward trend. Between 2004 and 2014, Africa’s total trade rose jumped from $340 billion to $1,169 billion, the report by EXIM Bank added.
