Ministry of External Affairs Government of India

Official Spokesperson (Shri Vikas Swarup): Good evening friends and welcome to this briefing on Prime Minister’s forthcoming visit to the African continent. As you know, from the 7th to the 11th of July the Prime Minister will be visiting Mozambique, South Africa, Kenya and Tanzania.

To brief you on this very important visit, I have with me Secretary (Economic Relations) Shri Amar Sinha and Joint Secretary (Eastern & Southern Africa) Dr. Neena Malhotra. Secretary(ER) will give you a broad opening statement which will cover all the basics insofar as the major engagements of Prime Ministers are concerned, the outcomes likely to be expected from these visits, and thereafter the floor will be open to questions. With that, I invite Secretary (ER) to make his opening statement.

Secretary (Economic Relations) (Shri Amar Sinha): Good evening. He has already announced Prime Minister’s visit. In fact, it is a four-country visit starting on 7th in Mozambique. This, as you would have noticed, is actually the third segment of the high-level visits that are planned to Africa as a follow-up of IAFS. The first of course was the Vice President’s from the 30th of May to 5th of June to Morocco and Tunisia, followed by our own President going to Ghana, Ivory Coast and Namibia from 12th to 18th June. So, in the first half of this year this is the third segment which covers four countries in five days.

Just to give you an overview, because the question you would ask is why these countries, the important thing to note is that this is the first visit by our Prime Minister to the African mainland. All these visits are happening after a long long gap, in fact to Mozambique after 34 years - Mrs. Gandhi was the last to visit - Kenya after 35 years, even South Africa after 10 years. Tanzania was something that Prime Minister Manmohan Singh visited in 2011. So that is a five year gap.

All these four countries, if you look at the map, are our maritime neighbours across the Indian Ocean and they share the coast. All of them are gateways to the mainland, a number of landlocked countries which are also our important partners. So, basically the Indian exports and traders also rely on the ports in these countries whether it is Mombasa, Beira or further down in South Africa. Of course in varying degrees but we have sizeable diaspora in all these three countries. Kenya has 80,000, Tanzania has 50,000, Mozambique has 20,000 and of course South Africa as you know is more than a million.

I will just give you a broad picture. The focus of these visits would basically be on energy. I say energy because Mozambique actually will be the third largest exporter of natural gas after Qatar and Australia. Then there is food security because these countries are already exporting large amounts of food both ways. Our investors have invested in, for example, Kenya, growing flowers and tulips, they are catering to world markets. We are also importing large numbers of food items for India particularly pulses. They are major source of pulses, both arhar, tuar and moong daal which grow in these regions.

Diaspora I have already mentioned. Actually there will be two major engagements. Of course, he is meeting the diaspora in all the four countries but those are more interactions; but both in Johannesburg and then in Kenya he would be addressing them also in a large format because the response was so overwhelming that we had over 10,000 and 15,000 registrations in a day by people who wanted to come and listen to him. So we had to organize a much bigger event in an indoor stadium etc.

Then of course the maritime dimension as I said, and that dictates also the choice of these countries, which is very important. They are all members of IORA. So we are interested in blue economy in all its connotations, maritime security. Then of course these countries are also members of the International Solar Alliance which is our initiative. So we will be trying to see how we can synergize their support and what else we can do in actually assisting or working with these countries in developing solar energy for their use.

So we are looking at really consolidating the gains that we have made at the IAFS, and that is why these visits were planned this year. You would note that I said that this is the first half of the year. So, we do not yet have the full calendar for the second half. So you would not be surprised that some more visits would come up, both outgoing and several incoming visits also that are being looked at.

Let me give you a quick rundown of what he would do in each country. Mozambique, he reaches 7th morning. It is perhaps in a sense is the shortest period but he is there for 12 hours. Obviously it is a packed programme with arrival at 7, then of course official meetings which all start at 10, and then it is back-to-back official meetings, MOUs, press interaction, and then a couple of signing of MoUs, community event are basically more or less common in all the four countries. Then of course each country has a few specific events which are very unique to those countries which I will come to later.

You would recall that Mozambique President Nyusi who will be the host was here in August of last year. He could not come back for the IAFS summit but his Prime Minister had attended. Prime Minister would also be meeting the President of the National Assembly there which is part of the drill for any State visit. So he will also be going to the Parliament.

Another important thing about Mozambique is - if you look at Mozambique – that though it is a small country we have been engaged with Mozambique right from its time of independence, with all these countries because of our colonial past. But Mozambique is also the destination for nearly a quarter of the Indian investments in Africa, nearly USD 8 billion, and this involves a range of our major PSUs. Some of these investments are made by ICVL, which is a special purpose vehicle which was created, has invested in coal mining which includes SAIL and NMDC etc. This happened in October 2014. But the others like Essar, Tata Power, ONGC have been present in Mozambique and they have big stakes there and we have been actually increasing our stakes.

We also hope to sign an MOU on Government to Government purchase of pulses from Mozambique for India which is more or less in the very final stages of decision making, and we are very hopeful that this will come through. Though Mozambique is a small country with a population of 27 million, if you look at our trade it really jumped and went up nearly five-fold in the last five years. Of course, last year it has taken a small hit basically because energy prices came down. But still it is hovering around USD 1.5 billion to 2 billion.

We are also hoping to sign agreements or MOUs on civil aviation cooperation that is Bilateral Air Services Agreement because that is one gap that we see that while we have very good relations with the African countries, none of the Indian airlines operate or have any direct connectivity with any of these countries in Africa. So, we are trying to see that and of course I think the Government would redress this situation slowly.

We have been strong a development partner for all these countries, and of course our lines of credit have been playing a very important role. Last October, we have really increased the level to USD 10 billion. So we are looking at new projects. To Mozambique for example, we have already provided assistance of over USD 640 million which includes solar assembly plants, rural electrification, drinking water supply and a technology development centre.

Mozambique particularly has been very supportive of India’s membership of the expanded UN Security Council. Of course it is an important member of ISA and IORA, as I have already mentioned, and it is a regular participant in our Indian Ocean naval symposiums.

Then the next stop would be South Africa. In South Arica the programme is slightly more complex because it involves three cities. Two of course are twin cities, the seat of the Government in Pretoria as well as Johannesburg which is all on 8th where we have of course the official meetings, MoUs and then a business meet. We have actually a five-year old CEOs Forum which will be meeting, which has the top 20 CEOs from India and their counterparts from Africa. They would be meeting, and the two leaders would be addressing an enlarged business meet.

South Africa, of course, has traditionally seen a huge presence of Indian companies. Over 150 companies are invested there, investments are around USD 3 or 4 billion. Similarly, a large number of South African companies have invested in India. Of course South Africa is also partner in all our multilateral organizations that you know of - IBSA, BRICS. They have been very supportive of India in the last NSG. Of course you may have read some reports to the contrary but let me tell you before you ask me the question that they have actually been quite supportive.

On the second day, of course the PM would go to Durban where Mahatma Gandhi both experimented with truth and mastered his Satyagraha etc. So we are doing two elements which are connected with Mahatma Gandhi. One is of course the historic train journey from Durban to Pietermaritzburg. But we are cutting it short; we are doing the last 15 kilometres up to Pietermaritzburg station. Then he will also be visiting the Phoenix Ashram there. Then most likely the Mayor or somebody wants to have a civic sort of reception where he will call the community and important ANC leaders who will meet him there, and he will address the community. We hope to leave Durban by evening of 9th.

On Sunday, we are reaching Tanzania. So, every hour there is a new programme. So you will have to carefully go through this. Of course we are very grateful that Tanzania actually accepted an official visit on a Sunday which is a great gesture because nobody accepts a state visit on a Sunday. Tanzania was not only happy but in fact they were the first off the mark in terms that they immediately said that they would definitely want it and they would not want Indian Prime Minister to just fly over them between Durban and Nairobi. So we have decided that we will stop there and the whole Sunday would be spent there. There are the same elements on the official part. I can tell you what else he is doing there besides the official engagements. He is meeting the Indian community.

As you know, in part of our development partnership, we have this programme called Training of Solar Mamas. Solar Mamas are these grandmothers from villages who are brought by Barefoot College. He will also be meeting a group of 40 or so of Solar Mamas from different parts of Africa which Barefoot College has trained. We are also actually funding setting up of one of the Barefoot College centres in Tanzania. So, that we thought was a good opportunity for PM to actually see because this connects with our new Solar Alliance, that we already have a cadre of well trained people even at the village level, who are solar technicians, who have already been electrifying villages. So this will actually plug in with the overall initiative in Solar Alliance.

I am not announcing the exact MoUs and various LOCs what we will sign. But with all these countries we are signing MoUs, we are signing some Lines of Credit also, but I will leave that part of story as it evolves. Otherwise, you will not have very much to write on it if I tell you everything.

To Kenya, of course, this is a visit after 34-35 years. The last visit was by Mrs. Gandhi in 1981, one year before I joined service. That is when the last visit took place. So it is significant. There is a huge community there. Mainly these were old traders from Kutch. In fact, today I was reading a new book which has come out ‘Globalization Before Its Time’, history of Kutchis who travelled to all these eastern African countries. So there is a strong connection.

A very interesting fact about Mozambique is that Mozambique was ruled by the Portuguese from Goa for nearly 250 years before the headquarters for the governance moved to Lisbon. So from 1505 to 1752 or something, they were actually being governed from their presence in Goa across the ocean.

Kenya has not only the Indian presence in terms of the old diaspora but most of our major companies, and we are happy to know what the biggest insurance company for example is a consortium of all our PSUs which includes National Insurance, United India Insurance and GIC, so they have a huge presence there. Three of our banks have multiple branches in Kenya. Our trade of course right now is nearly USD 3.5 billion.

Kenya till last year was one of the unique countries with which India was the number one trading partner. In fact our exports to Kenya were larger than any other country. We have lost some share of it this year but still we are number two. So, we have very healthy trade relations, of course trouble free political relations with all these countries.

Prime Minister reaches and we have timed it that on 10th of July, he will reach Nairobi and the first event would be that evening and 10th of July is a Sunday. So we would be using the Sunday. Because Kenya is a big bustling city, we thought that we will do the community event in the evening of 10th July itself. Then on 11th would be all the official engagements.

As part of every state visit, there are two or three important elements that they also have which is first the visit to the UN headquarters. This is, as you know, it is unique that UNEP is headquartered there and it is the first entre outside in any developing country. So it is mandatory. He is going to address the students at the University of Nairobi. Interestingly, it was an institute which was set up by a group of Indians in a sense that the Indian society there had given the initial seed funding. That is why the original building is called Mahatma Gandhi Centre. There is a statue that they had set up. So PM would be paying respects there also. He would be planting a sapling at the Nairobi University.

On 21st of June, the Nairobi University saw a turnout of over 7,000 yoga enthusiasts. It is a huge number in Nairobi. Similarly, in Tanzania, there were 3,000 people. Of course all these countries have been supporting all our resolutions, whether it is UN Day or making October 2 as the International Day for Nonviolence etc. While all of them are bound by the Ezulwini Consensus, they all have shared the view in terms of democratizing and making the international organizations more representative.

We have of course a few LOCs to sign here also, some very good projects. In Tanzania, actually the major water supply to the city is ready for inauguration any time. We are not inaugurating it; PM will only mention because it is an LOC which is just getting completed. By the end of this month, it will be ready for formal inauguration. We are looking at expanding it substantially because this has been such a successful model that they want to replicate this water supply in 17 different cities and towns with abundant water resources.

In Kenya PM would be mentioning about our holding a major festival of India later this year. We are looking at Kenya for energizing our sports. There is a great interest there. Of course Kenyans are in ICC playing cricket but they would like to learn cricket and hockey. We told them that we would like to learn long distance running where they are absolutely world beaters.

Also, India is important for them because we are the third largest contributor of inbound tourism for Kenyans. So we are looking at how we could improve that with more direct air connectivity, visa facilitation. I think they have Visa on Arrival also for Indians. They are trying to look at this. We will be perhaps establishing an India Chair at the University of Nairobi and this will basically be a Professor of Economics. They wanted an Indian Professor of Economics which we would be announcing. These are the major broad outlines of the programme.

In Durban, I think there is also proposal to start a digital exhibition on Mahatma Gandhi, a permanent interactive digital exhibition at the Constitution Hall which he will be visiting where he will also interact with all the associates and leaders of Mandela Foundation in Johannesburg. So, these are the broad elements of the programme. If you have questions, I will be very happy to take them.

Official Spokesperson: I think that has been a really very broad presentation. I think it has covered all the major points of Prime Minister’s visit. But if you still have any questions, you can ask.

Question: Our relations with Africa have been booming lately. To what extent would you give the credit to the substantial Indian diaspora in the continent? And, will Ezulwini Consensus figure in some form or the other in the Prime Minister’s talks with Heads of State in those respective countries? Is the Ezulwini Consensus an obstruction or a helpful thing for the UN Security Council expansion?

Secretary (ER): UN Security Council expansion will be discussed in all the four countries, and we do not see too much of a difference. Ezulwini Consensus only talks of two representatives from Africa which the African countries have to decide. The only difference is that they are insisting that there should be a veto for these members right from the beginning while the G4 had said that they can look at this. So, I would say that this support is more than just a mere abstraction. This is a concrete support. Ultimately, it is for the African Union and African nations to decide who their two representatives would be, we are not going to suggest to them. So, our objectives are same and, as I said, the only difference is on that veto. I guess once this negotiation is moved at the UN, it is not something that we cannot resolve, sitting with them and talking to them.

As regards the diaspora, the focus on Africa as I have said has multiple dimensions. Diaspora of course remains the most important. In every speech of PM or EM they say that we really value their contribution in keeping our relations warm and bringing the countries closer. But I do not think that the decision that we will go or IAFS was really driven by diaspora consideration alone.

Question: You say that the visits are after 34-35 years at the level of the Prime Minister. Do you think that we have neglected Africa for a very long time on high level visits? Three visits have already taken place. You have just mentioned about it. But it is being said that the Chinese have gone deep in Africa and India has lagged behind. What is your take on this?

Secretary (ER): I would not say ‘neglect’, that is too strong a word to use. But, yes, it would appear that obviously there were priorities. But the fact that we are going out does not mean that there have been no contacts with them. In fact from all these countries perhaps with the exception of Kenya, we have had regular visits. With South Africa, of course we meet practically twice a year at G20, at BRICS etc. So it is not that the leadership has not met. I have a very poetic way of describing it, I do not know whether you will agree with it. These are like the two banks of a river which are apart but they never separate, they always continue together. So we are trying to bridge that.

Question: …(Inaudible)…

Secretary (ER): As regards China, Africa is a huge continent, it has tremendous requirements for development assistance, infrastructure building. So we do not see a contradiction there. In fact the Western countries are also huge donors in all these countries. So I guess if everybody can chip in to assist them, it is good. But if you see in terms of competition, whether we are there in scramble for minerals or resources, I do not think we are in that race, and I do not think in the long term that sort of relationship pays also.

Question: Sir, aapne Mozambique ka zikr kiya. Abhi Food Ministry ka ek delegation bhi gaya tha Mozambique aur vahan se ek proposal hai ki bahut agar lagataar aap daalon ka aayaat kar rahe hain to vahan par aapko land mil sakta hai. Is baat ko dekhne ke liye vahan par ek Secretary level ka delegation bhi gaya hua tha. Aapko lagta hai ki Pradhan Mantri ki is yatra ke dauran is baat ko aur aage badhaya ja sakta hai?

Secretary (ER): Jo maine abhi samjhaya tha ki hum log vahan par MoU sign karenge, voh shaayad daal ke import par ho raha hai, land ke lease par nahin ho raha hai. Yeh land leasing ka jo mudda hai, yeh thoda sa controversial bhi ho jata hai. Abhi aapne shaayad Oxfam ka report bhi dekha hoga ki how people have been displacing traditional farmers etc. So we are trying to look at a win-win solution whether we can work through agents, a bit like our cooperatives or like Anand Dairy, whether we can create a network of farmers whom we assist with agricultural extension, better seeds, better farming practices and there are people who could collect their produce and we can get it through a government agency rather than long term lease of land because that is a political and emotive issue. So we will have to be careful. Ultimately, jaise kahte hain aapko toh aam khane se matlab hai, aam pe ped aapke hon ya nahin.

Question: …(Inaudible)…

Secretary (ER): Actually, quantity kal tak pata chal jaayega. But I can tell you that it is a five-ten years phasing, it starts with 100,000 tonnes but it is phased because as we said, we want to create a network of farmers, and the more they join, this will go up. So, we have got a sliding scale of imports. Of course, that would also depend on what you need but there is a minimum guaranteed off-take that will be built into the MoU so that those farmers have the certainty that when they go into producing arhar or moong, they would be able to sell it. I think creatively the Food Ministry is also linking it to the Minimum Support Price here so that the African farmers do not feel that they are being sort of short-changed.

Question: Expanding strategic partnership with Africa was identified as one of the focus areas at the IAFS-3. Now in all these countries especially Eastern Africa, Kenya, there has been a proliferation of terror syndicates, terror groups, extremism is rising. Are we looking at concrete initiatives in the area of counter-terror cooperation and maritime cooperation?

Secretary (ER): My answer is ‘yes’ to both. Actually if you look at the terror map, it is basically Kenya, northern Kenya which has got most affected. Tanzania and Mozambique are relatively safer, South Africa is safe. But of course, as President told them even when he went to Namibia, no country is really safe. Only two months ago we had the first meeting of our joint working group on counter-terror with Tanzania. I went to Tanzania and Kenya in preparation two weeks ago. Both maritime cooperation, general defence cooperation in terms of capacity building, cooperating in intelligence sharing and counterterrorism and also equipping themselves and perhaps even using the Lines of Credit to acquire equipment from India - these were sort of issues that my interlocutors raised with me.

Question: Can you share with us details of the energy cooperation that you already have with these four countries and what could be on the anvil?

Secretary (ER): In their gas fields ONGC has invested nearly USD 5 billion in Mozambique. In Mozambique, we also have actually ICVL which was formed with SAIL and NMDC etc. We bought over the coalmines of Rio Tinto two years ago. I must say that the actual production has happened in small amounts basically because by the time we have got into acquiring these assets, the global commodity prices have fallen down. But we are staying the course, we will maintain these assets and we are hoping that as the recovery is there and the gas prices and oil prices rise, our imports will continue.

With South Africa, we do not have too much in oil and gas. But we are trying to engage all these countries in solar energy. Of course, solar energy is basically our initiative and I do not think we can really import that electricity but it is part of the commitment of the developing world who have always been accused that you guys are free riders. So we are trying to work with these countries to do whatever we can to mitigate the climate change effects.

Official Spokesperson: I think at one time we were interesting in the mining technology in the deep bed mining and things like that.

Secretary (ER): Of course, in South Africa we are deeply interested in a number of technologies they have. Two things where they have specialized are coal gasification and deep mining. So these are areas where we already have some cooperation and we would like to intensity this. Their defence industry is very well developed and there are a number of companies. We feel that the new opening in the FDI in defence where even on a case-by-case basis, the Government will allow 100 per cent. We are quite interested in inviting some of these companies to come and have a re-look in India. I know there will be one or two private MoUs signed in South Africa on joint production in defence.

Question: Recently, a Standing Committee has come up with a report that Prime Minister is going and he is announcing but the Budget is not adequate to fulfill those announcements. And African Ambassadors complained that in case of LOC, we are getting so much delay. Has there been any improvement on these two fronts?

Secretary (ER): Yes, we were there when the Standing Committee discussed our Budget. That is a problem but we have been assured. Budget allocation happens in two or three stages in our country, as we all know, in the financial year. There is an amount given right in the beginning, then there is a revised estimate, and then there are final estimates where they are made. So we do not think that the doors have closed. Since they have raised, we have raised. Prime Minister is aware, Finance Minister is aware. So I have reasons that depending on how much we can disburse or spend and how much our partner countries can absorb, these resources would be made available. Because these are Cabinet decisions and I do not think there will be any problem in that.

In the LOCs, I would not like to play a blame game as to why this delays happen. But the fact is that certain procedures have to be followed. There are certain norms by which these LOCs are disbursed. Then after the in principle decisions, there is a very detailed procedure for floating tenders, for getting the right contractors, mobilization from here and then implementing. Most of these projects which are developmental projects are not being developed in the capital cities. These are really out deep inside the country. So, there are problems of infrastructure, logistics etc. But I do not think these are held up because of bureaucratic delays on our part. Ultimately the success of any project is how well you go in terms of having the detailed project report done because that estimates the cost, that looks at all the difficulties, anticipates where you can go wrong. So, those are the things that we are streamlining.

After IAFS, as you know, we did have new guidelines. Guidelines did two things. First, it made the terms and conditions much more beneficial both in terms of repayment, moratorium as well as the interest rate because the IMF says that these LDCs in developing countries with low income need to, when they have assistance of this kind, there should be a minimum amount of grant element in it which is around over 30 per cent. So, we had to rework our own interest rates and we did create a new matrix. So that I think the host Governments have to understand, and I think we had detailed presentations and they have understood.

Then along with it came certain elements where we would like good, well-established, competent Indian companies to participate more. To this effect, we ourselves, MEA and EXIM Bank did a round of six national level seminars in different cities, trying to tell them that this is the new LOC, this is an opportunity for good Indian companies to participate and utilize. So these things are happening and of course the LOC we responded to requests. So, we get requests and we have got requests from Tanzania, from Kenya and we have all taken positive decisions on both.

Question: Is the MEA directly organizing the programmes with the Indian community in South Africa and Kenya because you mentioned that the number of people queuing up for registration was so many that you had to arrange for an indoor stadium, unlike in Europe or in the West where the local Indian organizations had done it? Related to it, could you just give us some details of the time, the venue, the dates of these programmes in Johannesburg and Nairobi?

Secretary (ER): In Johannesburg, it is on the 8th around 6 pm local time. In Kenya, it is 7 pm Nairobi time soon after PM’s arrival. PM arrives around 6 pm and he goes to hotel and there. On the question who is organizing these, yes it is the local communities and associations which are organizing these events. Of course the Mission is always there to coordinate but these are very large events, so it becomes difficult for the Mission to organize. So, they take help of the locals. At both these places, committees have been formed of community leaders who are actively participating with the Missions.

Question: Anything on diamond and gold? Are we looking at some kind of agreements there or procurements?

Secretary (ER): Not in this visit, there is nothing specific.

Question: Can you please give some details of Indian diaspora population in South Africa?

Secretary (ER): I think it is 1.2 million. It is of course a rough estimate. When we say this, this is the Indian origin population who are all citizens of South Africa. Then estimates are that 15,000 to 20,000 Indian nationals and professionals are there who are the new immigrants and who are mainly concentrated around Johannesburg area because that is where the big companies are.

Official Spokesperson: Durban is the largest Indian city outside India with 800,000 people of Indian origin there.

Question: There was a terror attack in Kenya, the Westgate Mall attack? Keeping that in mind, do you think the security cooperation that you are planning will also ensure security of the Indian diaspora members across Africa throughout these visits that you are organizing?

Secretary (ER): It is a tough question. You are basically saying will Government of India assure the security of Kenyans and Tanzanians living in their own country?

Question: I am saying the Westgate Mall had Indians who were affected in that terror strike.

Secretary (ER): You see it is the responsibility of the host Government to secure their own citizens like we would secure anybody here whether he is an Indian national or a foreigner. I guess it is for the Kenyan Government to secure their citizens, but the fact that we will be talking to them and our cooperation focuses on both sensitizing them, the need for greater cooperation, the need for exchange of information, yes this would enable them to secure their own citizens. I would say that. On the other part, I do not know what else India could do to secure Kenyans of Indian origin living in Kenya.

Official Spokesperson: This concludes the press conference. Thank you all.

(Concluded)