'Huge potential for Indian MSMEs in Africa'

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Namrata Kath Hazarika | 25 Mar, 2009
Indian investment in Africa has increased significantly specially for Micro, Small and Medium Enterprises (MSMEs), Ashok Tomar, Joint Secretary, Ministry of External Affairs said recently.

On the sidelines of the 5th CII-Exim Bank Conclave on India Africa Project Partnership 2009 organized by CII on Tuesday he said, "Indian investments in Africa have increased tremendously especially in the MSME sector. Around $20-25 million investments are being made up by Indian companies in Africa."

He further added, "The MSME sector has higher growth rate. The major advantage of this sector is its employment potential at low capital cost."

During the conference, he said, "The MSME sector comprises about 42 million people working and 13 million enterprises. Labour-intensity in the MSME sector is estimated to be almost four times higher than larger enterprises."

He added, "The government from the beginning have given a major central role to this sector. There is a lot of initiatives taken by the government. The Micro Small and Medium Enterprises Act 2006 aims to promote and enhance the competitiveness of MSMEs."

He told SME Times that the India- Africa trade is expected to reach around $50 billion in the next couple of years from the present figure of $35 billion.

He added, "Our export traffic is 7 percent of the global exports. Also, the exports of Africa is 7 percent of their global exports."

Mentioning about the sectors that have opportunities for business in Africa, Tomar said, "There are exports possibility from India in finished products, engineering goods, textiles, consumers goods, technology products, small machinery, agriculture equipment, etc."

He also said, "Indian farms and tractors have been successful for the development of African agriculture. The mining sector has a lot of potential especially, the small scale mining sector."

"Imports from Africa in terms of agricultural products are good. For instance, there are minerals, raw materials like leather and increasing imports of coal are few where Africa has wide opportunities," he added.