Supporting Indian Trade and Investment for Africa (SITA), a project of the International Trade Centre covering five East African countries (Ethiopia, Kenya Rwanda, Uganda and the United Republic of Rwanda) and India, aims to catalyse at least $80 million worth investment from 16 deals by 2020.
According to Govind Venuprasad, coordindator of SITA, Office of Asia and the Pacific, the project had facilitated negotiation of more than $64 million worth investment, of which $23 million had been catalysed in the last two years. This includes investment in sunflower oil, leather, cotton, textiles and apparel, and spices. The size of investments range between ₹3.5 crore to ₹163 crore.
SITA not only facilitates direct trade and investment but also works on capacity building interventions so that East African small and medium-scale enterprises increase efficiency of production and quality. In the last two years, it has conducted over 50 trainings for businesses in east Africa to build capacity across sectors. In an effort to enable technology transfer, it has supported over 10 exposure missions of East African companies to see trechnologies in India, he said. It is also trying to link East African and Indian trade and investment support institutions.
Mr.Venuprasad said that studies show that Indian SMEs are increasingly interseted in exploring opportunities in African markets. However, they are not aware of the new geographies, political and socio-economic situations, investment climate, regulatory framework, etc. SITA helps bridge this gap through awareness building workshops and seminars. It also disseminates sector-focused information. “There is space for Indian SMEs to enter the African market, particularly in labour-intensive and light manufcturing sectors,” he said.
Exports from Africa have largely beenprimary commodities, nearly 85 % in 2014. SITA is currently in dicussions with a few large Indian enterprises on the scope to form a consortium for large-scale infrastructure investments in east Africa, such as irrigation or setting up of an agri business company. If this happens, the lines of credit, which all five East African countries have access to from the Indian government will come into play, he added.
