Asia Africa Growth Corridor (AAGC)- News and Updates

[sorcerer]

Lets post all related discussion on AAGC project here.
We can track ,discuss and catalog all information in this thread regarding this initiative.
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Ignoring OBOR, India and Japan forge ahead with joint connectivity project

NEW DELHI:

China
may not have forgiven India for snubbing its mega trans-continent corridor initiative, but in what may rankle more is that New Delhi and Tokyo, Beijing's arch rival, are pushing ahead with a development corridor between Asia and Africa.

The announcement of the Asia Africa Growth Corridor (AAGC), made by Prime Minister Narendra Modi during the African Development Bank (AfDB) meet in Gandhinagar in May, came days after China hosted with great pomp the first One Belt One Road (OBOR) summit in Beijing. The venture is expected to get further impetus in September during the visit of Japanese Prime Minister Shinzo Abe.

India has been involved in Africa for many years, in trade as well as capacity-building activities. Japan, which has been working on infrastructure projects in Africa, can help with its advanced technology as well as funds for the AAGC. Japan is reportedly planning to commit $200 billion for the proposed growth corridor.

So, is the AAGC meant as a counter to OBOR?

"The two are completely separate. OBOR is different. Long before OBOR, India and Japan were individually working in Africa, and were talking to each other about Africa," Rajiv Bhatia, a former Indian ambassador, told IANS.

"India and Japan feel that by intensifying cooperation with Africa, they can help each other and Africa. We are working on the AAGC in our own way and at our own pace," said the former High Commissioner to South Africa and Kenya.


He said that China's engagement in Africa is extensive, while the India-Japan collaboration is beginning to take shape. The AAGC shows that India and Japan desire to take their cooperation beyond the bilateral sphere, he added.

China's OBOR, proposed by President Xi Jinping in 2013, is an estimated $5 trillion connectivity corridor spanning over 60 countries across Asia, the Middle East, Europe, and Africa. It is meant to be a revival of the ancient Silk Road trading route and is expected to comprise building of roads, bridges, gas pipelines, ports, railways and power plants, besides SEZs.

India and Japan had begun a dialogue on Africa in 2010, a continent in which both have much stake. The main objective of the AAGC is to enhance growth and connectivity between Asia and Africa. According to the vision document, the corridor will focus on four areas: Development Cooperation Projects, Quality Infrastructure and Institutional Connectivity, Enhancing Skills, and People-to-People Partnership.

Agriculture, health, technology, and disaster management are the main areas of development cooperation. It will focus on boosting skills and research and development capacities in Africa.

According to a report by McKinsey, China is Africa's largest economic partner, with goods trade worth $188 billion in 2015 -- compared to $59 billion with India. Since the turn of the millennium, Africa-China trade has been growing at approximately 20 per cent per year, the report says, adding that there are around 10,000 Chinese firms in Africa,

Three think-tanks -- India's Research and Information System for Developing Countries (RIS), Indonesia's Economic Research Institute for ASEAN and East Asia (ERIA), and Japan's Institute of Developing Economies (IDE-JETRO), prepared the vision document for AAGC. They have produced one report on the corridor and another report is due in a few months, said Bhatia.

He said that at the corporate level, companies of India, Japan and from Africa are looking at specified sectors of the growth corridor in order to execute projects. "There is seriousness and earnestness" behind the initiative, he added.

Bhatia, a former Director General of Indian Council of World Affairs (ICWA), also feels that giving too much importance to OBOR and China would help Beijing.

Speaking on the comparison between OBOR and the AAGC, Sachin Chaturvedi, Director General, RIS, told IANS: "The OBOR, it seems, is visualised on the idea of economic corridors and infrastructure development with connectivity as the central focus, while the AAGC is a concept based on the theory of growth poles where several growth triangles and quadrangles are envisaged with different regional production hubs."

The proposed AAGC seeks to encompass and integrate Africa, India and South Asia, Southeast Asia, East Asia and Oceania.

India's increased engagement with Africa comes in the backdrop of the third India-Africa Forum Summit held in New Delhi in October 2015 when all 54 African nations had sent their representatives. India has also made many high level visits to several African countries, as part of its outreach. India also held the AfDB annual meeting in Gandhinagar this May.

http://economictimes.indiatimes.com...connectivity-project/articleshow/59830218.cms

 

[sorcerer]

Reliance Jio unveils new Asia-Africa-Europe submarine cable system

Mukesh Ambani-owned Reliance Ji Infocomm today announced the launch of Asia-Africa-Europe (AAE-1) submarine cable system, bringing up to 40 Terabits of new capacity to the region.

The new cable comes at a time when the India's data needs are soaring and consumers in the world's second largest telecom market are just about getting used to streaming music, watching videos and TV on-the-go.

Jio - a 4G and mobile broadband digital services provider that has created a stir in the Indian telecom market with aggressive data and voice offerings - said the cable will serve increasing demand for video-centric data bandwidth.

It will support all types of communications, applications, and content within India and beyond.

The submarine cable system will stretch over 25,000 km from Marseille, France, to Hong Kong, with 21 cable landings across Asia and Europe.

"This large scale project is the combined work of leading telecom service providers from Europe, the Middle East, and Asia," Jio said in a release.


The cable consortium includes China Unicom, Etisalat, GT5L, Mobily, Omantel, Reliance Jio, Telecom Egypt, TeleYemen, and many others.

With Points of Presence (PoP) in Asia (Hong Kong and Singapore) and three onward connectivity options in Europe (via France, Italy and Greece), the submarine system is expected to provide the "requisite flexibility and diversity" for carriers and their customers, the release added.

It would link other cable systems and fiber networks to deliver direct access to all global markets.

Mathew Oommen, President-Jio, said that the new terabit capacity and 100Gbps direct connectivity to global content hubs would ensure that Jio continues to offer customers high speed internet and rich digital service experience.

"We are excited to participate in the launch and deliver the cable landing in Mumbai at the time when India's data traffic continues its accelerated consumption and growth," he added.

Jio provides the Network Operations and Management for AAE-1 Cable System. The AAE-1 NOC (network operations centre), managed by Jio, leverages a new-age facility in Navi Mumbai along with advanced tools and automation, the release added.

http://economictimes.indiatimes.com...bmarine-cable-system/articleshow/59372684.cms

 

[sorcerer]

Arun Jaitley: 21st century belongs to Asia, Africa: Arun Jaitley

GANDHINAGAR: The 21st century will not only belong to Asia but also to Africa, hence India and Africa should navigate the journey together to shape their common future Finance Minister Arun Jaitley said on Tuesday.

Addressing the 52nd annual meeting of the African Development Bank here, Jaitley said while India has been a bright spot amongst the major economies amid challenging times, Africa too, has done well over the past few years.

"I stand here with conviction that the 21st century would not be Asia's alone but would belong to both Asia and Africa," he said.

Jaitley added that the African continent was transforming rapidly and amidst tough global scenario, its economy grew by 2.2 per cent in 2016 and was expected to grow by 3.4 per cent in 2017.

"Africa is approaching an exciting time. India and Africa should navigate through this journey together and shape their common future," Jaitley said.

He added that India was committed to Africa's development and this commitment was reflected in "continued high-level political engagement" including the three India-Africa Summits.


"It is no coincidence that our Prime Minister, President and Vice President have together visited 16 African countries in the past.

"There isn't a single African country which has not been visited by one of my cabinet colleagues," the Finance Minister added

http://economictimes.indiatimes.com...-africa-arun-jaitley/articleshow/58802586.cms

 

[sorcerer]

Assam: Assam can emerge as India's corridor to South East Asia: Pranab Mukherjee

(Old article related to the initiative)

GUWAHATI: President Pranab Mukherjee today said Assam, which is emerging as economic hub of India, is perfectly positioned to become the corridor of the country to the ASEAN nations as the 'Act East' policy takes forefront.

Speaking at the inaugural ceremony of the 'Namami Brahmaputra' festival here, Mukherjee said India would soon celebrate 25 years of its link with the Association of Southeast Asian Nations (ASEAN).

He said the country's traditions, including the teachings of Assam's great scholar and social reformer Shankaradev, never allowed the practice of intolerance.

The President said South East Asia is an important destination for India's investment and trade.

Stating that Assam has "immense development potential", Mukherjee added the inland water transport system in the National Waterways can change its economic scenario.

"The development of this national waterway can give Assam access to international ports like Chittagong in Bangladesh. This will give Assam an exposure to international trade and commerce. With the Act East Policy taking forefront, Assam is perfectly positioned to become the corridor of the country to the ASEAN nations," he said.


Mukherjee hailed Assam's richness in natural resources and its hardworking people to underline that all it needed was "strong drive, right policies and effective implementation."

"We have to join hands to make the dream of Bharat Ratna Gopinath Bordoloi -- first Chief Minister of Assam becoming a front runner in the field of socio-economic progress-- a reality," he said.

The President said Assam has overcome a prolonged spell of insurgency and the central government is supportive in rebuilding the state.

However, he added that it was now time for Assam to emerge as a business hub and take centre stage in the socio-economic scenario of the country.

"It is time for this state to establish its enduring mark in the international economic domain as the link between the North Eastern part of the country and the ASEAN nations," he remarked.

The President said the Brahmaputra river, which is the lifeline of Assam and the region, is intertwined into the economy, culture and day-to-day life of the people of the areas through which it flows.

He also complimented the state government for having started 'Namami Brahmaputra' as an annual festival to showcase Assam's culture as well as potential.

"Starting of 'Namami Brahmaputra' as an annual festival will popularise the natural beauty and holy character of this river," he said.

http://economictimes.indiatimes.com...sia-pranab-mukherjee/articleshow/57945445.cms

 

[sorcerer]

In ‘Jai’ Ho mode, Modi and Abe plan Asia-Africa link to counter China


Highlights

• PM Modi and Japanese PM Abe looked to strategically align India’s ‘Act East’ policy with Japan’s ‘Open Pacific’ initiative and fashion an Asia-Africa “growth corridor”
• India and Japan dropped mention of South China Sea from the joint statement despite reaffirming commitment to freedom of navigation and overflight in the India-Pacific

The groundbreaking announcement of India's first bullet train project on Thursday signalled the fast-tracking of India-Japan ties as PM Narendra Modi and his counterpart, Shinzo Abe, looked to strategically align India's 'Act East' policy with Japan's "free and open Indo-Pacific" initiative and fashion an Asia-Africa "growth corridor".

Abe's evocative reference to how merging Japan's 'Ja' and India's 'I' will result in 'JaI' at the launch of the bullet train project heralded the warmth in ties. While the Japanese PM said he would do all he could for India, Modi responded by saying Japan was a true friend which offered loans at virtually no interest. "The difference a half percent can make in interest rates is evident, particularly to people in Ahmedabad... Here is a friend who says 'Pay back the loan over 50 years'," said Modi, acknowledging Abe's commitment to initiatives such as Make in India.

Modi's fourth annual summit with Abe saw a strong commitment to ensuring unhindered commerce and trade through the India-Pacific region with the convergence of India's interests with Japan's Free and Open Indo-Pacific strategy offering an alternative vision to China's OBOR (One Belt, One Road). India and Japan signed 15 agreements after the talks, one of which was to create an Act East Forum.

The forum will aim at enhancing connectivity and promoting developmental projects in India's northeast in an "efficient and effective manner". With many seeing OBOR as an instrument to further China's geopolitical objectives, the two PMs delivered a clear message to Beijing as they called on India and Japan to play a central role in safeguarding a rule-based order in the India-Pacific through maritime security cooperation, more defence exchanges and by improving connectivity.

Despite the focus on strengthening defence cooperation, the two countries couldn't finalise an agreement for purchase of US 2i surveillance aircraft by India from Japan. Foreign secretary S Jaishankar said discussions were still on. Also, India and Japan decided to drop a specific mention of South China Sea from the joint statement despite reaffirming their commitment to freedom of navigation and overflight in the India-Pacific. Jaishankar said the principle was being acknowledged in the reference to India-Pacific rather than "specific geographies". This is significant as India and China weeks ago successfully resolved the Doklam stand-off.

Jaishankar said the joint statement dealt with a full set of issues in the Indo-Pacific and under that all "sub-sets" were covered. However, the fact is that both 2016 and 2015 Modi-Abe joint statements had a specific reference to South China Sea while underlining the significance of freedom of navigation.

Asked if Doklam was discussed in the talks, Japanese officials said all issues of strategic interests came up in the dialogue. When asked the same question, Jaishankar said while it wasn't specifically discussed, there was a discussion on regional and global developments in a broader sense. He did make a pointed reference that the North Korea crisis highlighted the need to remember "backward linkages" to its missile and nuclear programme — a pointer to China as much as Pakistan.

In a not so subtle dig at China, Modi and Abe underlined the importance of all countries in ensuring the development and use of connectivity infrastructure "in an open, transparent and non-exclusive manner based on international standards and responsible debt financing practices, while ensuring respect for sovereignty and territorial integrity, rule of law, and the environment". India has accused China of undermining its sovereignty through the China-Pakistan Economic Corridor, a showpiece OBOR project.

There was no formal launch of an Asia-Africa growth corridor, but Modi and Abe welcomed efforts to explore development of industrial corridors and networks which, the joint statement said, will benefit various stakeholders in the India-Pacific region including Africa. As expected, Abe in his meeting with Modi called for "combining'' Asia, a continent that is rapidly growing, with Africa which has huge growth potential.

While differences remain over US2i aircraft, India appreciated Japan's readiness to provide its state-of-the-art amphibian aircraft as symbolising the high degree of trust between the two countries. Significantly, the two PMs welcomed the renewed momentum for trilateral cooperation with US and Australia as they stressed the strategic importance of these cooperative frameworks. This led to speculation if India could look at the idea of having a quadrilateral cooperation mechanism involving the four, as was suggested by Australia years ago, but Indian officials later ruled out having made any such proposal.

There was no formal launch of an Asia-Africa growth corridor, but Modi and Abe welcomed efforts to explore development of industrial corridors and networks which, the joint statement said, will benefit various stakeholders in the India-Pacific region including Africa.

Thats how you run a show without ruffling a feather

http://timesofindia.indiatimes.com/...ink-to-counter-china/articleshow/60520256.cms
http://timesofindia.indiatimes.com/...ink-to-counter-china/articleshow/60520256.cms

 

[sorcerer]

Africa prefers India’s non-interfering development model over China

India's non-prescriptive and non-interfering development partnership model is fast finding favour in resource-rich Africa, where China's push, ostensibly for capacity building, is receiving bad press for being hard and exploitative, according to experts on Indo-African partnership.

Recent media reports have carried allegations that Chinese business houses are treating African workers as slaves, and that the Asian giant is exploiting local resources, including agricultural, mineral and marine.

On the other hand, the experts cited earlier said India views Africa as a collaborator and an equal partner.

This is also evident from the Indo-Japan Asia-Africa Growth Corridor (AAGC) document launched by Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe last week.

Although the AAGC is being seen as providing an alternative to the One-Belt-One-Road (OBOR) initiative of China, its key priorities — rural development and agriculture, energy, education and skill development, regional connectivity and quality of life—contrast that of China, which subject experts and media reports say wants to harness resources from the continent.

That apart, China-funded projects are also seen pushing African countries towards a debt trap as the 6-8% interest charged on loans are neither soft nor long term.

Experts pointed out that India's support of development and capacity-building projects in Africa through line of credit has seen 20 major ventures completed in the last two years. The focus under this mechanism is now on key infrastructure projects and not just capacity building.

India's development partnership is based on the needs identified by the partner countries in Africa, like elsewhere in Asia and Latin America. At the last India-Africa summit in 2015, Modi had announced a credit line of $10 billion for the continent.

"The downslide in the country's image has not pleased Beijing, since these headlines have appeared within days after Djibouti, a naval base, was set up as a logistical support facility in the vicinity of the US's Camp Lemonnier, a special operations outpost in the sweltering east African country," according to a report titled 'Africa: China's Long Game and Bad Press', brought out by Hyderabad-based think-tank Centre for Asia Africa Policy Research (CAAPR). According local media reports, there are two elements of "Chinese imperialism" in Africa.

The first being the treatment of workers, both locals and Chinese, as slaves, and the other being exploitation of local resources. Experts said overfishing by Chinese companies is threatening western African economies.

Last month, Nigerian portal Naij.com carried an article saying "workers are treated like slaves, and they are cheated of their wages". The portal quoted a worker of a Chinese company as saying, "I and my fellow workers here at Wempco groups of company, especially at Magboro branch, want to speak out to the public and human rights... Slapping, breaking of backbones, firing and punishing our Nigerian fellow workers has become apride for our Chinese masters."

The slowdown in the Chinese economy is further contributing to Beijing's exploitative strategy and reduction in salaries paid to workers in Africa, pointed out an expert who has studied Chinese investments globally. But it is not just local media reports. Voice of America carried a report that was critical of Chinese labour practices in Africa. The victims mentioned in VOA's August 24 report included Chinese migrant labourers.

Chinese labourers in Africa are also not spared. China expectedly described the VOA report as western propaganda. However, the VOA report is based on a study undertaken by the Institute of African Studies of Zhejiang Normal University. The study observes that "55% of Chinese firms cannot meet the standard working hours in Africa".

The CAAPR report, cited earlier, quoted a Chinese worker in Angola as saying the Chinese energy major he worked for "treated them like slaves"

http://economictimes.indiatimes.com...ent-model-over-china/articleshow/60800978.cms

 

[sthf]

According to a report by McKinsey, China is Africa's largest economic partner, with goods trade worth $188 billion in 2015 -- compared to $59 billion with India.

I have said it earlier and I'll say it again. India-Africa trade in 2015 is where China-Africa trade was in 2006 but without the negative press coverage, something both India and Japan should use to their advantages.

As of today, AAGC is nothing but a pipe dream and will remain so till OBOR has pissed off sufficient number of countries.

 

[sorcerer]

I have said it earlier and I'll say it again. India-Africa trade in 2015 is where China-Africa trade was in 2006 but without the negative press coverage, something both India and Japan should use to their advantages.

As of today, AAGC is nothing but a pipe dream and will remain so till OBOR has pissed off sufficient number of countries.

AAGC is kept silent in the media, the usual Indian way.
Infrastructures are built in all nations associated with the project taking into consideration of all stake holders.
Even when Japan PM was in INdia we didnt hear much about AAGC. But surely and certainly the corridors for it and the infrastrucutres for it are built.

The difference is UNLIKE china which farts out loud and talks money money money with every sentence on their projects, other nations prefer to work on tactical projects silently.

 

[ezsasa]

Many years to go before this initiative will show any results....

Better to make a judgment atleast 5 years down the line.

 

[sorcerer]

Many years to go before this initiative will show any results....

Better to make a judgment atleast 5 years down the line.

Experts pointed out that India's support of development and capacity-building projects in Africa through line of credit has seen 20 major ventures completed in the last two years.

Good going!! the pace should be maintained!

 

[sorcerer]

Bilateral trade between India and Ghana may touch US$ 5 bn
Mumbai: The new envoy of Ghana has said bilateral trade between India and his country is expected to touch USD 5 billion in the next three years.


"Bilateral trade relations between India and Ghana are growing exponentially. We intend to expand our bilateral trade with India from USD 3 billion to USD 5 billion in the next three years," Ghana's new Ambassador to India Mike Aaron Oquaye Jnr told reporters here last night.

A high powered delegation from Ghana comprising the Speaker of Parliament of Ghana Aaron Mike Oquaye along with delegates from the One District One Factory, from the President's office, The Exim Bank of Ghana and Ghana Commercial Bank visited the city to seek business opportunities.

"We seek Indian investments into agri and food processing, palm oil, jute, cocoa processing, pharmaceutical and solar sectors. We will work towards expanding business, economic and bilateral trade between India and Ghana by promoting and stimulating the Mumbai business community to look towards Ghana," Oquaye said.

"We will work towards expanding business, economic and bilateral trade between India and Ghana by promoting and stimulating the Mumbai business community to look towards Ghana," the Ambassador added.

According to Oquaye, it is expected that by the end of 2017, about 51 districts across Ghana would rollout business enterprises under the One-District-One Factory initiative. PTI AP


http://www.ptinews.com/news/9224793__Bilateral-trade-between-India-and-Ghana-may-touch--5-bn$storyes

 

[sorcerer]

India-Africa trade likely to cross US$ 100 bn in 2 yrs: Naqvi


PTI: December 05, 2017


New Delhi: Union Minister Mukhtar Abbas Naqvi today said the bilateral trade between India and Africa will cross USD 100 billion mark in next two years, owing to improvement in business environment in India and better connectivity across the African continent.

The bilateral trade between India and the African nations was recorded around USD 57 billion in 2015-16.

"Africa offers lucrative business opportunities for Indian micro, small and medium enterprises (MSMEs) across diverse sectors such as FMCG (fast moving consumer goods), mining and minerals, telecommunications, construction and others," Naqvi said at a conference organised by Assocham.

He observed that India is attracting business leaders and investors from across the globe as the government has been able to build a conducive business environment aimed at inclusive growth, according to a press release issued by Assocham.

The minority affairs minister also said it is due to the various reforms ushered in by the Centre that even global rating agencies and noted economists have impressed upon India as a very 'safe and strong' investment destination.

In apparent reference the previous UPA government led by Congress, the Minority Affairs Minister said, "When we had come to power there was an atmosphere of policy paralysis and corrupt practices were prevalent but we have succeeded in reversing that through various reforms".

http://www.ptinews.com/news/9291749...kely-to-cross--100-bn-in-2-yrs--Naqvi$storyes