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India’s Neo-colonialism in Africa

India joins 'neocolonial' rush for Africa's land and labour

India joins 'neocolonial' rush for Africa's land and labour
India, once the colonial jewel of Britain's empire, has been accused of 'neo-colonialism' in Africa where its business people have joined a race with China, Saudi Arabia and elsewhere to buy up agricultural estates and take advantage of cheap labour.

By Dean Nelson in New Delhi 1:46PM BST 28 Jun 2009
Indian farming companies have bought hundreds of thousands of hectares in Ethiopia, Kenya, Madagascar, Senegal and Mozambique, where they are growing rice, sugar cane, maize and lentils for their own domestic market back in India.

Its government has given soft loans as aid to support the overseas ventures in what has been described as a challenge to China and Saudi Arabia in the new scramble for Africa. China, South Korea, and a several Arab countries have led the way in creating new African mega-farms to outsource domestic food production and use cheaper labour.

Critics have described the development as modern "piracy" and "land grabbing" from countries that have in the past been blighted by famine and severe food shortages.
South Korea has bought just under 700,000 hectares in Sudan, while Saudi Arabia has signed a deal for 500,000 hectares in Tanzania.

India is now catching up fast with its government offering financial incentives for companies to produce food in Ethiopia and other African countries. Pulses, cooking oils and maize are in short supply in India.


More than 80 Indian companies have invested an estimated £1.5 billion in buying huge plantations in Ethiopia. The largest among them is Karuturi Global, one of the world's largest producers of cut roses. It has signed deals for just under 350,000 hectares to create what it claims is the world's largest agricultural land-bank. The Bangalore-based company, which has also bought farm land in Kenya, is growing sugar cane, palm oil, rice and vegetables.

Indian farming is dominated by small, family-run holdings, bullock cart transport, and legions of middlemen. The slow, cumbersome system is cited as the main reason why a large proportion of Indian produce rots before it ever reaches the market – the annual loss is valued at up to £6 billion.

So Indian companies see in Africa the possibility to build more efficient and far larger agricultural operations. This is an separate motivation from that of many Arab countries that buy African land to produce food that their homelands cannot.

Raju Poosapati, Vice President of India's Yes Bank, which advises investors in Africa, said a government ban on non-Basmati rice exports had driven Indian companies to grow it in Africa to sell overseas. Indians are now eating more meat and that has led many companies to grow maize animal feed in Africa as there are no government incentives for Indian farmers to grow it at home.

Sharad Pawar, India's agriculture minister, rejected claims that the government supported a new colonisation of African farmland. "Some companies are interested in buying agricultural land for sugar cane and then selling it on the international markets. It's business, nothing more," he told The Daily Telegraph.

Government documents meanwhile show the details of official support, and just of under £500 million in soft loans to encourage African countries to export food to India. New Delhi has also cut import duties for food produced in Ethiopia.

A report by the UN Food and Agriculture Organisation said more than 2.5 hectares of African land had been bought by foreign companies since 2004 and voiced concerns that poor villagers might be ousted to make way for investments. It also said it feared some of the deals may be open to corruption.

Devinder Sharma of India's Forum for Biotechnology and Food Security said the companies buying up land to export food from Africa were "food pirates" and compared them with the English companies that shipped food from Ireland during the 19th century potato famine.

"There are 80 Indian companies trying to get land in Ethiopia, and it's all to be imported back to India. The government of India has been encouraging them," he said, and warned of danger if famine returned to Africa.

"If food is being shipped out and poor people are dying, what will happen? There would be riots," he said.
 
India’s Neo-colonialism in Africa

Written by Sajjad Shaukat
Tuesday, 23 November 2010 18:59

Neo-colonialism is the most dangerous form of colonialism, which is prevalent in the present world. In the past, the most developed countries had direct control on the less developed countries, but most of the colonies got independence after the World War 11. As regards neo-colonialism, in theory a less developed or developing country is free, but in practice, its government and economy are controlled by a developed country indirectly.

In these terms, by imitating the other western powers, India has been practising neo-colonialism in Africa.

Today, Africa is the hub of natural resources with leading world powers, having eye the continent. Only an average 3% of cultivatable land in Africa is being used now, which is not sufficient to feed the entire population of Africa.

The trade and investment in agriculture and agro-infrastructure are inter-linked and need foreign support. In this respect, India persuaded Africa to share Indian experience in this sector. Indian scientific and agricultural research institutions have assisted around 5,000 entrepreneurs for developing their business ideas in the African countries. Today, India’s foreign policy is being questioned as India is being accused of neo-imperialism in Africa, using its agriculture land to cater to the Indian population at home.

The academic circles in Africa worry about India’s role as a neo colonial power. Dean Nelson observed that Karuturi Global (KGL), an Indian company, one of the world’s largest producers of cut roses, has been accused of neo-colonialism in Ethiopia and Kenya.

It is observed that India focuses on bilateral, multilateral and regional economic cooperation acting as bridging power with all the major powers as a part of its foreign economic policy. But being seen as the bridging power, it misuses multinational corporations, using Africa for its self interests.

New Delhi knows that science and technology (S&T) can ensure a long term benefit that is adaptable for the local requirements—shows genuine concerns for local users and investors as through this way, India wants to strengthen its grip on the poor African countries. Indian experts are convincing the people of African countries that India’s transfer of knowledge and technology could help African people to deal with the problem of food crisis. For this purpose, Indian investors provide agricultural mechanisation such as seed-cum-fertilizer drills, and enhancement in cropping intensity and increase in gross income.

However, in this context, the focus of India’s neo-colonialism are Ethiopia, Nigeria, Mauritius, Kenya, Tanzania, Ghana etc., but South Africa has become special target of Indian neo-colonialism. Nevertheless, these African countries account for around 69 % of India’s total bilateral trade. New Partnership for Africa’s Development shares the developmental approach with New Delhi and Indian institutional partners. India’s economic engagement in Africa is working as per their local needs. Different turnkey contracts have been undertaken in Tanzania, Uganda and other African countries. It enables imports of Indian equipment and technology on deferred credit terms extended through various banks. Indian companies are engaged in Africa through Line of Credit LOC. Besides, India adopted multiple approaches in Africa to promote infrastructure and agro industry.

Unlike the other African states, Indian practice of neo-colonialism in South Africa is of special consideration.

By adopting various tactics of neo-imperialism, New Delhi has been gradually increasing its influence in South Africa. The high profile of the Indians in the African National Congress (ANC) hierarchy was very beneficial. When Nelson Mandela became the President of South Africa, he included six Indians in his cabinet of sixteen members. The Indians, making up three percent of the population, were over-represented at executive level. They also had a proportionally larger number of members of Parliament. Many South Africans objected in relation to the over-representation of the Indians.

The ANC Government systematically began to abolish all previous discriminatory legislation. All the previously disadvantaged groups benefited. The Indians prospered the most because of the advantages of greater wealth and influence. In particular, the Indian business community prospered in the post-apartheid South Africa. They were now able to enter many sectors of commerce and industry that were previously not open to them. Especially, wealthy Indians could now move into residential areas that were previously restricted to Whites.

Since South Africa’s transition from apartheid to democracy, Nelson Mandela has endeavoured to make the country’s minority communities feel more secure. Despite government assurances, the Indian community pretended that they were being marginalised. Mandela was surprised at the level of insecurity, expressed by the Indian youth. As a matter of fact, India wanted to increase its hold on South Africa overtly or covertly.

A major dimension of the post-apartheid South Africa is that although Blacks are in majority and have their own government, yet Whites have dominant influence in the politics and economics of the country as they have hold on the resources—and are wealthier than Blacks. Besides, they have still sympathies of the American and European people who support them through business transactions. As we can particularly note in case of the United States that the Jews are in minority, but have a greater influence in the politics of that country because they dominate the economics of the US. India and Israel fulfill their interests with the help of strong Hindu-Jewish lobbies, working in America. Same is true in case of South Africa. Apparently, Indians favour the Black, but covertly they support the White with whom they are doing business. Besides, Indian lobbies have been influencing the government in order to get more political and economic benefits. In this context, India is also availing the opportunity by manipulating the phenomenon of South Africa clandestinely as prejudice is still found between Blacks and Whites.

It is notable that the high rate of unemployment among Blacks and the low economic growth has contributed to the high crime rate prevailing in South Africa. This high crime rate has prevented many overseas companies from making meaningful investments in South Africa. This vacuum is being fulfilled by New Delhi. In this connection, India–South Africa business relations have witnessed tremendous growth since the resumption of trade and diplomatic ties between the two countries in 1993. The end of apartheid in South Africa and India’s growing integration with the world economy after it embraced globalisation have played a crucial rule in strengthening the economic relations between the two countries.

In recent years, several Indian companies have forayed into South Africa. The Tata Steel, Tata Motors and TCS have made considerable investments in the country. Similarly, Mahindra & Mahindra, Cipla, Ranbaxy, Ashok Leyland, Apollo Tyres are some of the other Indian business houses to have established a presence in South Africa. In addition, banks like the SBI and ICICI are busy in establishing their branches in the country, partly with a view to taping into the million-strong People of Indian Origin (PIOs) there. VSNL is in the process of investing US$ 200 million in the telecom sector in South Africa. In all, some 35 Indian corporations have established their presence in the country, and more are likely to join the race soon. Over the ongoing year, investment from India Inc. is expected to reach the US $ 500 millions in South African economy.

A number of bilateral agreements have been concluded between India and South Africa in diverse areas ranging from economic and commercial cooperation, defence, culture, heath, human settlements, public administration science and technology and education.

The real tragedy of the post-apartheid South Africa is that its people are not aware of Indian sinister designs against Blacks. In this context, India is not only playing double game with the South African people by exploiting their division, but is also trying to get grip on the resources of the country. Everyone knows that South Africa is replete with the precious minerals such as gold, diamond and uranium. Therefore, India is increasing its influence in South Africa with a view to making it target of Indian neo-imperialism.

Nonetheless, a major challenge, facing the African countries is the perceived disloyalty of New Delhi towards the African communities. On the economic front, many Indian businessmen are taking on Black partners to improve their image with Black consumers and the government but in fact, under this cover, India is practising neo-colonialism in Africa.

India?s Neo-colonialism in Africa

This seems a biased article.

China does that too, wherever they find raw materials & petroleum. They are leading investors in african continent, Plus they don't employ local population. They bring in their own people for employment. So the chinese are super neo-colonist, we are catching up with them.oh wait you do not call your friend neo-colonist? do you?:rofl:
 
In the world of private enterprise indian industry is simply exploiting and developing its future trade markets. Betters than the bombs and massacre which Americans and Europeans would bring under for the sake of freedom and democracy. My question is, there are plenty of Muslim countries in Africa and but the contribution of all Muslim countries combined is still fraction that of india..why are we sleeping and pointing fingers rather than competing?
 
what I discover is, if you do any thing you will be criticized and if you dont do anything then also you will be critisized....

and this is what we can say for the above article :cheers:
 
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In the world of private enterprise indian industry is simply exploiting and developing its future trade markets. Betters than the bombs and massacre which Americans and Europeans would bring under for the sake of freedom and democracy. My question is, there are plenty of Muslim countries in Africa and but the contribution of all Muslim countries combined is still fraction that of india..why are we sleeping and pointing fingers rather than competing?
The problem with u guys is that u bring religion everywhere.

@ topic : its a good move and will benefit both sides
 

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