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Business News/ News / World/  India unable to match Chinese efforts in Africa: Zambia V-P
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India unable to match Chinese efforts in Africa: Zambia V-P

Delhi needs to study Beijing’s modus operandi a bit more thoroughly, says Guy Scott

Zambia vice-president Guy Scott was in Delhi to attend the recently concluded Confederation of Indian Industry (CII)-Exim Bank Conclave on India-Africa Project Partnership in New Delhi. Photo: Kamal Singh/PTI (Kamal Singh/PTI)Premium
Zambia vice-president Guy Scott was in Delhi to attend the recently concluded Confederation of Indian Industry (CII)-Exim Bank Conclave on India-Africa Project Partnership in New Delhi. Photo: Kamal Singh/PTI
(Kamal Singh/PTI)

New Delhi: India hasn’t been able to match Chinese efforts to tap the resource-rich African continent, according to Guy Scott, vice-president (V-P) of Zambia.

“If you fly over Africa, and find yourself looking down, you will see football stadium after football stadium. They are all Chinese-built; they are all Chinese-financed," Scott said on Tuesday. He was in Delhi to attend the recently concluded Confederation of Indian Industry (CII)-Exim Bank Conclave on India-Africa Project Partnership in New Delhi. “I mentioned it to the Indian Prime Minister yesterday that Chinese have got certain models of proffering financing."

India and China have extended lines of credit to build infrastructure in energy-rich African countries as they seek access to mineral resources to fuel their growing economies. At the India-Africa Forum summit held in India in 2008, the government had announced credit lines of around $5.4 billion by 2012 to African countries.

“The Chinese somehow, without getting into the nuts and bolts of it, manage to be quick on their feet or produce something tastier... Maybe the Chinese are doing it more effectively," Scott said.

The comment comes in the backdrop of a Zambian state-owned utility awarding a contract for the 120 megawatts (MW) Itezhi Tezhi hydropower project, partly funded by India, to China’s Sinohydro Corp.

“India needs to study the Chinese modus operandi a bit more thoroughly. We are doing a lot of business with the Chinese but we ought to be doing more with the Indians, not necessarily more than we are doing with the Chinese but more than we are doing with the Indians currently," Scott said.

India’s push for resources has pitted it against China in a race for global resources—a contest in which it has usually been bested.

India has been trying to counter the growing Chinese influence by shoring up its economic profile in the resource-rich continent and diversifying its import basket. Diversification of energy sources is critical for India, which imports more than 80% of its energy requirements.

Responding to a question on whether India has failed to match the Chinese in Africa, Scott said that it is an empirical surmise.

“If you look out of the window of the aircraft, you see Chinese monuments. You don’t see Indian monuments. Now that’s because some of the Indian monuments are underground—like Vedanta’s operations in Zambia. It’s a taste difference from the Chinese, like Chinese food and Indian food. I think India needs to get in there and say that why did we lose Itezhi Tezhi," he added.

Zambia Electricity Supply Corp. Ltd, which is developing a hydropower project through an equal joint venture with Tata Africa Holdings (SA) (Pty) Ltd, has awarded the engineering, procurement and construction tender for the plant to China’s Sinohydro Corp., Mint reported on 22 January 2010. India has provided a $50 million line of credit for the project.

India’s focus on Africa stems from the fact that the continent accounts for 9.5% (132 billion barrels) of the world’s proven oil reserves and 12% (478 million tonnes per annum) of the world’s production. India, the world’s fourth largest energy consuming nation, imports 80% of its crude oil and 25% of its natural gas requirements. The country trails behind the US, China and Russia, accounting for 4.4% of global energy consumption. India’s energy demand is expected to more than double by 2035, from less than 700 mt of oil equivalent (mtoe) today, to around 1,500 mtoe, according to oil ministry estimates.

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ABOUT THE AUTHOR
Utpal Bhaskar
"Utpal Bhaskar leads Mint's policy and economy coverage. He is part of Mint’s launch team, which he joined as a staff writer in 2006. Widely cited by authors and think-tanks, he has reported extensively on the intersection of India’s policy, polity and corporate space.
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Published: 20 Mar 2013, 11:20 PM IST
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