Business leaders say the growing partnership is creating fresh opportunities across key sectors including infrastructure, healthcare, fintech and renewable energy….reports Asian Lite News Desk
India’s growing economic engagement with Africa has reached a new milestone, with cumulative investments on the continent exceeding $75 billion and bilateral trade rising to more than $98 billion, underscoring the expanding partnership between the two regions.
Figures compiled by the India Africa Entrepreneurship Forum (IAEF) show trade between India and Africa has increased more than fourteen-fold, from $7 billion in 2001 to over $98 billion in 2023. Indian investment has been concentrated in sectors including telecommunications, pharmaceuticals, infrastructure and agriculture.
Officials in South Africa have indicated that the momentum has continued. According to James Vos, Cape Town’s Mayoral Committee Member for Economic Growth, trade between Africa and India surpassed $100 billion during the 2024-25 financial year, up from $56 billion in 2019-20.
Speaking at the sixth India-Africa Entrepreneurship & Investment Summit in Cape Town, Vos described the growth as a foundation for even stronger economic ties between India and African nations.
The summit, held from July 13 to 15, brought together delegates from 26 countries to explore investment opportunities across the continent. Discussions focused on expanding cooperation in digital skills, pharmaceuticals, renewable energy, green industrialisation, climate-smart agriculture, manufacturing, logistics and fintech, while also examining opportunities created by the African Continental Free Trade Area (AfCFTA).
According to the IAEF, India and Africa together represent an economic potential of nearly $7 trillion, with both regions expected to play increasingly important roles in global growth through collaboration in healthcare, artificial intelligence, digital infrastructure and emerging technologies.
The summit also highlighted the role of the Indian diaspora in Africa, which the IAEF estimates at around three million people. Business leaders described the diaspora as a key bridge connecting Indian investment with African markets and driving entrepreneurship across the continent.
During the event, the IAEF released a list of the 100 most influential Indian-origin entrepreneurs operating in Africa. The ranking featured business leaders from Kenya, Ghana, the Democratic Republic of Congo, Botswana, Madagascar and Mauritius, recognising their contribution to economic development and cross-border investment.
The Cape Town gathering followed the fourth India-Africa Forum Summit held in New Delhi in May, where Indian officials estimated cumulative investment in Africa at around $80 billion between 1996 and 2025.
India has also extended more than 190 lines of credit worth over $10 billion to 41 African countries, supporting projects in drinking water, agriculture, transport, energy and digital connectivity.
While estimates of total investment vary between government figures and private-sector assessments, analysts say the overall trend points to deepening economic ties. The partnership increasingly combines private investment, development financing and commercial cooperation, reflecting Africa’s growing importance in India’s global economic strategy.
