SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

India grants $5 billion aid to help African nations achieve development goals

25 May 2011 Evaluate

In its bid to catch up with the world’s second largest nation China, which began investing into the resource-rich African continent since a decade ago, India got its act together and took a diplomatic leap in Africa by vowing a line of credit (LOC) package worth $5 billion to help the nations in the continent to achieve their development goals. Underscoring Africa’s capability to become a major “growth pole” of the world, Indian Prime Minister Manmohan Singh opined “we will work with Africa to enable it to realize its potential” at the second Africa-India Forum summit in Addis Ababa.

India’s move to perk up relations with Africa and the offer of a $5 billion loan package for the next three years under lines of credit to help Africa achieve its development goals mark its second such commitment to the resource-rich continent. Asia's third-largest economy had previously offered $5.4 billion in concessionary credit lines over a five-year period focusing on Africa’s regional integration through infrastructure development at the India-Africa summit in New Delhi in 2008.

The Prime Minister speaking at the second India-Africa forum in Addis Ababa stated “I am happy to announce that India will continue to support efforts at infrastructure development, regional integration and capacity building and human resources development in Africa.” India which has investment in Africa mainly in the private sector, notably in telecommunications, pharmaceuticals and manufacturing, has on top of the loan grants also announced a railway line between Ethiopia and Djibouti at a cost of $300 million. Indian Prime Minister also offered an additional $700 million to establish new institutions and training programmes in consultation with the African Union and its institutions.

Dr Singh proposed the establishment of an India-Africa Food Processing Cluster, Integrated Textiles Cluster, Centre for Medium Range Weather Forecasting Cluster and an India-Africa Institute of Agriculture and Rural Development. He also proposed the creation of an India-Africa Virtual University, which will provide 10,000 new scholarships for African students after its establishment.

Compared to China, which has the biggest presence in Africa, India lags far behind but is catching up at a brisk pace which is evident as in the last three years since the first India-Africa summit, Indian trade and investment in Africa have risen notably. India has set a bilateral trade target of $70 billion by 2015 with Africa, significantly higher than just over $40 billion India-Africa trade in 2010. However, China’s bilateral trade with Africa in 2010 was $126.9 billion.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×