India offer $5 billion credit to Africa

Addis Ababa: Indian Prime Minister Manmohan Singh on Tuesday announce $5 billion loan to Africa to be spent in the next 3 years on various development projects in a way to improve the tiles with the continent.

PrimeMinister Manmohan Singh in Africa

Singh also declared an additional USD 700 million for establishing  new institutions and training programmes across the continent, along with $300 million for a new Ethio-Djibouti railway line in Ethiopia.

“We will offer 5 billion US dollars for the next three years under lines of credit to help Africa achieve its development goals,” Dr Singh said on Tuesday here.

This may also be seen as Indian steps to counter arch rival Chinese growing presence in the resource rich continent. India’s investment in Africa is mainly in the private sector, notably in telecommunications, pharmaceuticals and manufacturing and India-Africa by-lateral trade is just over $40 billion. As compare to $126.9 billion China-Africa trade.