Will Covid-19 limit India’s ventures into Africa?
A woman walks past a poster at a Covid-19 coronavirus vaccination centre in Mumbai on May 24, 2021, as India passed more than 300,000 deaths from coronavirus pandemic.
What you need to know:
- India’s External Affairs minister, Dr Subrahmanyam Jaishankar, says his country is building on existing trade networks with Africa to establish supply chains that should withstand future pandemics.
Indian officials say trade links with Africa will be intact despite the Covid-19 crisis in the country, which has limited its role in the supply of crucial vaccines.
In engagements in Nairobi last week, India’s External Affairs minister, Dr Subrahmanyam Jaishankar, said his country is building on existing trade networks with Africa to establish supply chains that should withstand future pandemics.
Calling it “decentralised globalization”, Dr Jaishankar argued this should shield poor and developing countries from the bite of future pandemic and other disruptions.
“There is no doubt that the world is much more interlinked and interdependent. but it should not be that globalisation should apply only to resources and markets while production centres remain concentrated in the hands of a few.
“The direct lesson from the pandemic is the need today, a pressing need I would say, for decentralised globalisation,” he told an audience at the University of Nairobi during the launch of a renovated Library named after Indian Statesman Mahatma Gandhi.
Globalisation is a loose term referring to the interaction and integration of business processes and organisation operations, regardless of distance, often relying on technology and agreed rules.
India had been the chosen source of vaccines under the Covax facility, spearheaded by the World Health Organisation.
With the scourge of Covid-19 hitting its own backyard, India’s ability to supply the vaccines has been heavily limited, adding on local challenges to inoculate its population of nearly 1.3 billion, and slowing down its ‘Vaccine Friendship’ programme.
Avinash Thanvi, Vice-President of All-India Professionals Congress (AIPC), a political lobby for professionals, told the Nation the current wave has worsened initial problems the government has faced in vaccinating people.
“India is currently struggling to meet a vaccines [demand] here [and] this will affect its quest to penetrate the African market immensely,” he said, giving the example of local townships where vaccine doses have been insufficient.
India’s External Affairs minister Subrahmanyam Jaishankar with President Uhuru Kenyatta at State House, Nairobi, on June 14, 2021. Dr Jaishankar asked Africa to unite and together fight the Covid-19 pandemic and future pandemics.
Huge challenge
Just about 3.4 percent of the population has been fully vaccinated and the AIPC says the country may face a new wave before the end of the year, meaning India may “not keep up” with the demand, according to the official.
There are advantages for India, however, given its extensive pharmaceutical supply chains into Africa.
The Asian country has often been referred to as the pharmacy of the world, given its capacity to produce crucial generic drugs for Malaria, TB, HIV/Aids and other chronic ailments.
“The Indian government can give other kinds of medical help to African countries. As it seems, vaccine export will be a big challenge. If vaccines are not delivered, at least the treatment facilities should be intact. African countries should think in this direction. Planning and fast action are very much needed,” Thanvi said in a virtual interview.
Mr Mihr Thakar, a Kenyan analyst of geopolitical trends, argued that India’s capacity to manufacture vaccines means there may be a surplus, enabling it to play a role in Africa.
“India aims to vaccinate 950 million or so [of the] eligible population, with vaccine availability targeted to exceed 2.1 billion doses this year.
“An additional 200-250 million leftover doses could therefore provide it the capability to boost its diplomatic relations with Africa. The country's rapidly growing economy will be competing with China for Africa's raw material imports and machinery exports market and it is certainly capable of being forward-looking in this regard,” Mr Thakar said.
A van carries boxes of Covishield vaccine to different vaccination centres in Allahabad on January 15, 2021, a day before India started the first phase of vaccination across the country.
“African priorities”
The Indian minister made his first trip to Africa since the wave hit his country.
A dispatch from the Kenyan Foreign Affairs ministry indicated his tour was based on “African priorities”.
“Both sides reiterated their strong commitment to South-South Cooperation and expressed confidence that their bilateral partnership would be an exemplar in that regard,” the communique said, referring to a loose cooperation between developing countries often known as the South-South Cooperation.
“Accordingly, he [Dr Jaishankar] recognised the Big Four Agenda of Kenya on manufacturing, affordable housing, universal health coverage and food security, and underlined that India will further build upon its partnership taking these into account.”
For Kenya, this will involve exploring further opportunities both in the government and private sector in the areas of health, environment, ICT, tourism, higher education, automotive, defence and security, the ministry said.
India has more than 60 companies operating in Kenya, making it among the top five investors in Kenya. Across Africa, India has often banked on its historical ties, as well as being maritime neighbour.
Experts think that regardless of Covid-19, India’s future relations lie in how it buys into the Africa Continental Free Trade Area (AfCTA), a treaty reached in 2018 to gradually expand intra-Africa trade.
“India has remained politically aligned with the African countries and that gives an edge to New Delhi,” said Pradeep S Mehta, Secretary General, CUTS International, a trade and market lobby based in Geneva, New Delhi and Nairobi.
“India has increased its economic activities in Africa. Its investments have risen significantly in the last few years but now, New Delhi must work out a mechanism with AfCFTA to be able to expand bilateral trade further.”
The Indian minister referred to the danger of “limited geographies,” warning that lack of capacity for developing countries makes them more vulnerable in case of pandemics.
According to him, that danger will not be limited to healthcare supplies only. Security and food security too could be affected, he said.
His views in Nairobi were an indirect jab against the hoarding of key technology useful in the production of vaccines and other healthcare products.
India and African countries led by South Africa have been challenging global powers at the World Trade Organization [WTO] to allow poorer nations to use the technology developed to manufacture vaccines. Those requests have failed since November.
