India's rising Africa bet: FDI outflows at $14 billion, shows data

Total trade between African nations and India was almost $100 billion in 2022-23

India is entwined with Africa in terms of trade and investments, having become one of the largest sources of investment in the continent, accounting for $14 billion in foreign direct investment (FDI) outflows as of 2021, according to the latest United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2023.

The African Union -- a continental union of 55 African countries -- was formally inducted into the G20 last week.

Additional data from the department of economic affairs reveals a skew in investments. The data is cumulative since 2000, and thus show different numbers from UNCTAD statistics, but can be considered broadly indicative of the trend.

Mauritius, which has been a key centre for India investments on account of tax considerations, accounted for the bulk of overseas direct investment into Africa. The figure since 2000 is over $40 billion. The major countries, outside of Mauritius which have received investments, include Mozambique ($3.8 billion), Sudan ($3 billion), and South Africa ($1 billion). Other key destinations include Egypt, Kenya and Libya (see chart 2).

Economic inter-connectivity between the African nations and India has been on the rise in the last decade. Total trade between the African nations and India was almost $100 billion in 2022-23, the highest in a decade. India now has a trade surplus with these nations, as exports have increased in recent years. Goods worth $51 billion were exported from India in the financial year 2022-23 (FY23) compared to under $30 billion in FY19 (see chart 3).