May 26, 2019
World Market


New Projects

Tata Chemicals Limited invests INR 1,300 in an upcoming urea venture in Africa.

India's leading fertilizer manufacturer Tata Chemicals Limited (TCL) is investing over INR 1,300 crore to buy a 5.10 percent stake in an upcoming urea plant in Africa. The plant which is being built by Oram International, a Singapore based agri-food processing company in collaboration with the Republic of Gabon is expected to have a manufacturing capacity of around 2,200 metric tonnes of ammonia and 3,850 metric tonnes of urea per day.

TCL is handling project management during construction and will also take care of operations and maintenance till the plant is ready in the next three years.

The unit is strategically located near Gabon's main seaport and is expected to carry out effective material handling to target markets in Africa, North America, Latin America and India. Infact, upto 25 percent of the production from this plant would be reserved for sales in India, subject to de-regulation in India as urea is a substantial part of Indian imports.

The plant is also expected to be one of the lower cost, urea manufacturing facilities globally. The government of Gabon has given a 10-year tax holiday after commencement of commercial production and a 10 percent concessional tax rate thereafter. TCL already has a significant presence in Kenya, South Africa and Morocco and this project is also in line with their focus to partner in the growth and development of Africa.

India's SAIL enters into an agreement with Afripalm Resources to set up steel plant worth USD 2.94 billion in South Africa

Indian steel manufacturer, Steel Authority of India Limited (SAIL signed a memorandum of understanding (MoU) with Africa's mining group, Afripalm Resources, for constructing a USD 2.94 billion steel plant in South Africa.

The teams are currently identifying a site for the mill that is expected to produce up to 5 million tonnes of steel per annum. SAIL has also reported plans to construct steel manufacturing facilities in Indonesia, Mongolia and Oman, with an approximate investment of USD 12 billion in each plant.

The Afriplam Resources venture is expected to generate 3,000 to 4,000 jobs in South Africa. The parties also agreed to establish a South African based distribution and trading facility to enable ease of access to the products manufactured by SAIL.

Mahindra & Mahindra's to set up assembly plants in African countries.

India's leading tractor manufacturer Mahindra & Mahindra plans to set up assembly plants in South Africa, Kenya, Ethiopia and Zambia, Tunisia, and Morocco. The auto giant already has satellite plants in Gambia, Tchad, Mali, Ghana & Nigeria for manufacturing farm equipment.

These facilities will now be used to assemble three-wheelers, light commercial vehicles and utility vehicles to drive volumes in a fast-growing economy in South Africa with rising disposable incomes.

M&M currently has a presence in 24 out of the 53 African countries and is amongst the few in the world to have set up tractor assembly facilities in Africa. M&M plans to increase penetration in Africa by also bringing in their three-wheelers, LCVs and Bolero in the market.

India's third largest tractor manufacturer, Sonalika Group plans two tractor assembly lines in South and East Africa.

North India-based, International Tractors Ltd., the third largest tractor manufacturer in India is gearing up to erect two assembly lines in South Africa. Sonalika Tractors is reportedly bullish on the high potential posed by the African market and is expected to set up five centres in the continent, which will cater to about 40 countries. South Africa features strongly on the list of locations that the company is finding lucrative along with Mozambique, Kenya, Tanzania, Zimbabwe and Namibia.

Entrepreneurship Development Institute of India setting up centres in Africa

Ahmedabad based Entrepreneurship Development Institute of India (EDI) will set up Entrepreneurship Development Centers (EDCs) in African countries. EDI has been asked by the Ministry of External Affairs to set up the EDCs in five selected African countries which will be identified in discussion with the Association of African Countries. The idea is to help create entrepreneurs in the continent where there is immense opportunity towards exporting basic technologies from India to African countries. For example, it's been noted that the farmers in Africa still use wooden ploughs thereby making it possible for export of agricultural machinery and tools from India.

Indira Gandhi National Open University plans an India-Africa Virtual University project

The Indira Gandhi National Open University (IGNOU) has received an approval from the Ministry of External Affairs (MEA) to set-up an Indo-Africa Virtual University (IAVU). Africa has rapidly growing youth population, of which about seven-ten million take up to be a part of the labour market year-on-year. This virtual university will ensure Africa-oriented educational programmes are developed effectively and will also provide around 10,000 scholarships to the African students. The key focus areas of the University will be health sciences, vocational education, food and nutritional security, and gender empowerment. IGNOU headquarters of the virtual university is proposed to be in Ethiopia or Kenya.

State Bank of India plans to build subsidiaries in South Africa and Ghana

SBI the largest bank in India with a market share of over 20% in deposits and loans is planning to set-up subsidiary offices in Ghana, Australia and South Africa. A fresh $5 billion line of credit to Africa has been announced by the Government of India. There have been no reports stating the reasons for of SBI's business in Ghana yet, but it is believed that Ghana is a new emerging economy like India.

India to establish India Africa Institute of Trade in Uganda

Indian Institute of Foreign Trade (IIFT) is setting up a foreign trade institute at Kampala, Uganda which will host a pan-Africa campus. Objective of this initiative is to enable a world-class trade policy and research facility in Africa. The campus would initially accommodate over 100 students and will be expanded to house over 1,200 over the next five years.

Indian Start-up firm to cultivate cotton and soya in Ethiopia

Coimbatore based start-up venture Sara Cotton Fibres Private Ltd plans to cultivate cotton and soya in 25,000 acres in Ethiopia. The start-up firm has leased 25,000 acres land for 25 years in Ethiopia. Sara Cotton has raised $6.4 million through debt and equity to fund its Ethiopian farm plans from various sources including $4.5 million from the Development Bank of Ethiopia. Chennai based Kalpathi Group is a strategic investor with 58 percent stake in Sara cotton. Demand for cotton is expected to grow to 20 million bales in the coming years. The Ethiopian government has recently announced cotton as a priority sector. Sara Cotton will also be setting up ginning facility in Ethiopia and bring the ginned cotton to India. The Ethiopian government has also offered tax holidays, duty free machinery imports and duty free import of spares to boost the investments.