Trade relations between India and the sub-Saharan region have still a long way to go. Investment opportunities abound on both sides. For India, investment opportunities in the region lie in the areas of cement plants, exploration of minerals, light engineering industries such as auto components, bicycles and parts, software, telecom, and drugs and pharmaceutical products. In addition, there is immense scope for Indian FDI, especially in the services sector, not only in Africa but also in Latin America and Asia.
Project Monitor takes a look at six of the most promising investment destinations in sub-Saharan Africa.
Natural resources form the core industry in Nigeria. With oil reserves of 23 billion barrels and gas reserves of 160 trillion cubic metres, natural resources constitute 95 per cent of the country's revenues. Nigeria, a member of OPEC, exports crude oil to India. It is also richly endowed with a variety of solid minerals of various categories.
The Nigerian Investment Promotion Commission helps forign investors discover Nigeria's opportunities
The Government of Nigeria is seeking private foreign investment in its core sectors like oil related industries and mining. The petroleum sector has already attracted various multinationals into exploration and production operations, refining, and upstream and downstream industries.
Nigeria is India's largest trading partner in Africa. Significantly, India is also one of Nigeria's leading trade partners. Indian PSUs have a considerable presence in that country with IOC, Mecon, TCIL and Rites having done work there.
Major Industries: Crude oil, coal, tin, columbite, palm oil, peanuts, cotton, rubber, wood, hides and skins, textiles, cement and other construction materials, chemicals, fertiliser and steel.
Currency: 1.00 NGN (Nigeria Nairas) = 0.428433 Indian Rupees
The mining industry is the key sector of Ghana. The principal minerals produced here are gold and diamonds. Oil is also a key sub-sector in the Ghanaian economy. The Ghana Investment Promotion Centre, the nodal agency for attracting FDI, has listed various infrastructure and manufacturing based sectors and projects for investment opportunities. The centre plans to upgrade the passenger rail transport on chosen corridors like Accra-Tema and Accra-Nsawam; develop a bus transport system and the lake Volta transport system for inland waterway development; upgrade the existing trunk roads under BOT; construct bitumen plants; IPPs for hydro, thermal and solar power; establish cement and aluminium factories etc.
Major Industries: Mining, lumbering, light manufacturing, aluminum smelting and food processing.
Currency: 1.00 GHC (Ghana Cedis) = 0.00620251 Indian Rupees
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