Shishir Priyadarshi
Director of the WTO Development Division




Trade is a powerful development tool
Many developing countries, particularly LDCs, lack the
capacity to compete effectively in expanding regional and
global markets
The Aid for Trade Initiative, launched in 2005 at the Hong
Kong WTO Ministerial Conference, aims to make aid help
trade
The Initiative has established a comprehensive framework for
tackling these trade-related bottlenecks
50000

45000
in US$ million
40000
35000
30000

25000
20000
15000
10000

5000
0
Total Aid for Trade Commitmments

Aid for trade flows have grown
from the baseline average of
2002-05
Partners mainstream and
prioritise trade in development
strategies
Donors respond through Aid for
Trade projects and programmes
This can be measured in four
main thrust areas: Trade policy &
regulation; Building productive
capacity; Economic infrastructure;
and Trade-related adjustment
Aid for Trade by category
Commitments, US$ billion (2010 constant)
30
25
20
15
10
5
0
2002-05 avg.
2006-2009 avg.
Trade Policy & Regulations
Economic Infrastructure
2010
2011
Building Productive Capacity
Trade-related Adjustment
Aid for Trade by Region
Commitments, USD billion (2010 constant)
20
18
16
14
12
10
8
6
4
2
0
Africa
America
2002-05 avg.
Asia
2006-09 avg.
Europe
2010
Oceania
2011



The WTO, along with partners, assess the effectiveness of Aid
for Trade through a monitoring framework that culminates into
the biennial Global Review on Aid for Trade
Since inception in 2007, the Global Review of Aid for Trade has
established itself as the preeminent multilateral forum
exploring trade and development issues.
Past Global Reviews have examined how developing, and in
particular LDCs, are seeking to integrate into the global
economy, how development partners are supporting this
process and the efficacy of this assistance





The 4th Global Review on Aid for Trade to be held at the WTO on 5-7
July this year takes its theme: “Connecting to Value Chains”
But why ‘Value Chains’?
Global trade is increasingly characterized by transactions within
complex value chains, or nodes of activities that adds value to a final
product or service, offering new opportunities for many developing
countries
Value chains are not only among north-south firms, but increasingly
characterised by complex regional and south-south trade
The aim of the 4th Global Review of Aid for Trade is to examine
strategies to connect developing country and LDC firms to value chains
In the context of South-South
partnerships, India-Africa trade and
investment ties have grown
phenomenally
This private sector-led development
has been encouraging for African
private sector to enter the international
value chains



Since the 1st India-Africa Conclave in 2005,
bilateral trade has been growing annually at 32.4%,
even faster than China-Africa trade that grew at
27%
India-Africa trade has reached US$ 63 billion in
2011, up from US$ 5.3 billion in 2001
If annualised exports growth rates of India and
Africa between 2001 and 2011 hold, bilateral trade
could reach US$ 176 billion by 2015
India-Africa trade: growth projections
in US$ billion
140
120
121.5
100
80
60
39.8
54.5
40
20
0
3
2.4
23
2001 2005 2008 2009 2010 2011 2012f 2013f 2014f 2015f
Indian Exports to Africa
African Exports to India



Growing Indian investments and economic cooperation with many African countries
Africa has emerged as a major commodity exporter
to India, particularly oil, in the last decade has
overshadowed the strides it has made in increasing
its value-added exports
Total technology exports from Africa to India
increased from US$ 1.8 billion to US$ 9.8 billion in
the past decade, growing annually 19%.
India-Africa Trade: Emerging trends
2001
Share in 2011
Share in
(US$
total
(US$
total
million) exports
million) exports
High Technology (pharmaceuticals,
16
0.7
65
0.2
electrical and optical equipment,
aircraft)
Medium
High
Technology
643
27.0
2,569
6.6
(chemicals,
machinery
and
equipments, automobiles)
Medium Low Technology (refined
1,037
43.5
6,845
17.6
petroleum, basic metals, mineral
products)
Low Technology (food products,
68
2.9
352
0.9
textiles and apparel)
Africa’s Exports of;
Total Technology exports (TTE)
1,764
74.0
9,831
25.3
Agriculture and related products
400
16.8
1,670
4.3
Mining and quarrying, incl. crude
oil and gas
Total Exports
219
9.2
27,428
70.5
2,384
100
38,929
100
Nigeria
Angola*
South Africa
Algeria
Morocco
Egypt
Cameroon
Libya
Ethiopia*
Ghana
Somalia*
Djibouti*
Mozambique*
Mauritius
Tanzania*
4,000
2,000
0
(2,000)
(4,000)
(6,000)
(8,000)
(10,000)
(12,000)
Kenya
in US$ million
India’s Trade Balance, 2011
Overall trade deficit, but India runs a
trade surplus with 40 out of the 54
African countries



The increased South-South partnership between Africa and India, led
by the private sector, has many success stories as well as lessons to
make the partnership stronger
Monitoring and evaluation of global trade is an important
component of the Global Review, and the 4th Global Review will
examine strategies on how to better integrate private sector within
the global South
With this in view, the CII, in collaboration with the WTO, sought to
identify the barriers to greater bilateral trade and investments
through a private sector survey
The aim of the survey exercise was threefold:
 Identify obstacles to expanding India-Africa trade and
investments;
 Survey how to overcome these barriers; and
 Examine on-going activities to tackle the barriers and their
effectiveness
Survey went to private sector in India and a pilot group of 7
African countries (Kenya, Nigeria, South Africa, Tanzania,
Uganda and Zambia).
Some preliminary findings are presented here
Response Response
Count
Share (%)
African Business or Business Association
29
46.0
Indian Business or Business Association
34
54.0
Total
63
100

Out of the African respondents, 9 were business
associations mostly at the apex level. The Indian
respondents were mostly from businesses with2
sector associations participating in the survey.
Firm/company's turnover in 2011
Do not wish to disclose
US$ 0 - less than US$ 0.5 million
US$ 0.5 - less than US$ 2 million
US$ 2 - less than US$ 10 million
US$ 50 - less than US$ 250 million
US$ 250 - less than US$ 500 million
US$ 500 million - less than 1 billion
More than US$ 1 billion
Total

Response
Count
Response
Share (%)
11
5
6
7
7
3
5
8
52
The business respondents from India and Africa were a
representative sample across different scales of
operations, starting from the small and medium
enterprises (SMEs) sector to multinational companies
(MNCs).
21.2
9.6
11.5
13.5
13.5
5.8
9.6
15.4
100
25
20
15
8
5
8
10
5
12
6
6
10
7
8
5
0
Access to
Access to trade
Business
Transport and
Informal controls
buyers/exporters
finance
environment
logistics costs
and corrupt
practices
Africa's difficulties exporting goods to India
India's difficulties importing goods from Africa
30
25
20
15
15
13
10
16
14
10
5
9
11
10
6
4
0
Transport and
Access to
Business
logistics costs
buyers/exporters
environment
Access to trade Informal controls
finance
and corrupt
practices
Africa's difficulties importing goods from India
India's difficulties exporting goods to Africa



Most pressing issues not market access or tariff
issues
infrastructure bottlenecks, underdeveloped capital
markets, trade facilitation issues and information
asymmetries are the major hurdles
Non-tariff barriers like informal controls and
corrupt practices, customs delays and paperwork
are some direct trade-related concerns that were
raised
60
50
40
30
26
20
10
22
0
A central role
6
3
1
9
6
5
Of increasing
A peripheral role to
A peripheral role to
importance as
commercial interests that of existing donors
assistance from
and other South-South
traditional donors
partners
declines
AFRICAN BUSINESS OR BUSINESS ASSOCIATION
INDIAN BUSINESS OR BUSINESS ASSOCIATION
Business views on India’s role in providing assistance to
Africa
45
40
35
30
23
25
20
20
15
12
10
Trade Finance
Education
Vocational skills
services
development
15
10
19
5
12
13
15
13
0
ICT
Building
infrastructure
projects
INDIAN BUSINESS OR BUSINESS ASSOCIATION
AFRICAN BUSINESS OR BUSINESS ASSOCIATION
Business views on India’s areas of comparative
advantage as an assistance provider



62% of the businesses in India and Africa view India’s
assistance to be central in Africa’s trade and development.
Another 20% felt that India will have an increasing role even
as assistance from traditional donors decline.
Businesses see India's development assistance to have a
comparative advantage in many services sectors, including,
ICT, education, vocational skills development, health and
financial services.
It asserts India's rise as a global services power that could
have development benefits for African South-South partners.



The survey that forms part of a CII-WTO Report on enhancing
India-Africa Trade and Investment will be presented at the 4th
Global Review on Aid for Trade. It will be showcased under
the theme: South-South private sector cooperation.
The report is work-in-progress and has benefitted
immensely from the deliberations here at the 9th India-India
Africa Conclave.
The survey available for greater participation from Indian and
African firms. This will strengthen the final findings that will
inform discussions and key recommendations to be
presented during the 4th Global Review.



CII and WTO are surveying Indian and African businesses to examine how
trading ties can be further deepened. Responses received will be used to draft
recommendations on how to expand the already vibrant India-Africa trade
partnership.
Recommendations will examine how to expand the coverage of India-Africa
trade and investment, in terms of the goods and services traded, and the
number of businesses engaged and investments made.
Results will be profiled by CII at the 4th Global Review of Aid for Trade, which
will focus on "Connecting to Value Chains“, on 8-10 July 2013.

Deadline for completion of online survey submissions is Friday 5 April 2013.

Complete the survey at:
https://www.research.net/s/INDIA_AFRICA_SURVEY