India pledges 300 mln USD for Ethio-Djibouti Railway

Addis Ababa, May 24 (WIC) – Prime Minister Manmohan Singh of India announced that his government would support the development of a new Ethio-Djibouti Railway line to the tune of 300 million dollars.

At the inaugural ceremony of the Second Africa India Forum Summit, Prime Minister Singh said India would also offer 5 billion USD for the next three years under lines of credit to help achieve the development goals of Africa.

“Under the lines of credit that we offered at the first Summit, we had specifically looked at promoting regional integration through infrastructure development,” Singh said in his address to Heads of States and representatives of 15 African countries. “On the advice of the African Union, I am happy to announce that we would support the development of a new Ethio-Djibouti Railway line to the tune of 300 million USD for this important regional project”.

The Prime Minister also said that India will offer an additional 700 million USD to establish new institutions and training programmes in consultation with the African Union and its institutions.

“Africa possesses all the prerequisites to become a major growth pole of the world in the 21st century,” Singh said. “We will work with Africa to enable it to realize this potential”.

The Prime Minister proposed to establish an India-Africa Food Processing Cluster, Integrated Textiles Cluster, Centre for Medium Range Weather Forecasting Cluster and an India-Africa Institute of Agriculture and Rural Development.

He also proposed the establishment of an India-Africa Virtual University, which will provide 10,000 new scholarships for African students.

“This, we hope, will help to meet some of the demand in Africa for higher studies in Indian Institutions,” Singh said adding that the current 500 African scholarships per annum would be increased to 900, taking the total commitment for the next three years to more than 22,000.

In support of maintaining peace and security in Africa, Prime Minister Singh said that India would contribute two million USD for the African Union Mission in Somalia.

The Second Africa-India Forum Summit is expected to adopt a Joint Declaration of the Africa – India Partnership (Addis Ababa Declaration) to contain the political commitments of the two sides, as well as an Africa – India Framework for Cooperation when it culminates tomorrow.

Representatives of 15 African countries including Algeria, Burundi, Chad, Egypt, Ethiopia, Equatorial Guinea, Kenya, Libya, Malawi, Namibia, Mauritania, Nigeria, Senegal, South Africa and Swaziland are taking part in the summit.

On the Ethiopian side Prime Minister Meles Zenawi and his Deputy Hailemariam Desalegn, who is also Minister of Foreign Affairs, attended the Summit.

Singh, who co-chaired the Summit with Chairperson of the African Union and President of Equatorial Guinea, Obiang Nguema Mbasogo, is also expected to hold bilateral visits to Ethiopia and Tanzania.

source (http://www.waltainfo.com/index.php?option=com_content&task=view&id=26831&Itemid=134)


^^ I'm getting tired with this railway... Only promises, nothing has been done so far. Let's see how this goes

This rail will eventually be built by Chinese. India is good making promises.

Yeah come on guys, they took your land efficently for farming ;)
I hope this thing hurreys up, India has a good business culture so you better STFU!
And the games went fantastic when it began. One of the best so far. But they wont see Olympics for a while.

Seems India really need to fulfill this promise... to prove itself.

Wow, everyone is so harsh towards India.

Yeah, it's pretty kneejerk.

I honestly don't see what's the problem.

Its not being harsh. Its a fact . Do you gents know how many projects that have been pledged by India in a number of countries around the continent ? I can't even name one that saw even a stone.

Therefore; every time we see noises like this. Its already habit. Its just for a show.

Moreover. No way they will do a project like this ahead of the Chinese who are supreme investors in Ethiopia. Chinese are already helping build the Rail in Ethiopia for that matter.

It will be good to see India do it , really. But i wont even bother until i see then building it.

Ethiopia is one of the countries disapointed by Indian investors, BTW.

India has to prove itself by turning words into actions. Words alone don't build.

I don't know man. There have also been blunders made by the Chinese, Arab, and Western investors in the past and we can't just paint a brush before seeing what happens first. We should wait and see if this plan is conclusive before saying that they are first.

The problem arises mainly coz

1) They start comparing everyone to China
2) follow only infrastructure developments

Indian telecom major Bharti Airtel has already invested $11 billion in Africa for its operations in 16 nations and has decided to invest $1billion more. Everyone knows abt Karutari. Indian pharma majors have a huge presence in Africa. India helps in healthcare thro' many initiatives. The thing is these things are not that visible when compared to a highway or a railroad etc

But, the best investment is in Africa's education. I already see a lot of African students in many cities in India studying thro' scholarships. The Pan-African e-Network project is a nice initiative which allows for affordable university courses offered over the Internet to students in Africa.

This article pretty much sums it up. http://www.africanbrains.net/2011/03/24/india-providing-africa-with-technology-education/

India cannot match China’s massive investments in Africa, but it is using its information technology capabilities to establish relations that are not based on buying raw material.

African states have hitherto sold off their natural resources for foreign cash or infrastructural development (roads, bridges, buildings, telecommunications and refineries). However, increasingly, many are asking for technology transfers rather than money.

Mwesiga Baregu, professor at St Augustine University in Tanzania, said that technology transfers mean jobs and better development opportunities. Some 2,000 Chinese companies are present in the continent to extract raw materials and flood local markets, stifling local nascent local industries. These enterprises bring their own technicians, managers and workers to do the job in exchange of raw materials.

“India cannot obviously compete with either China or the United States,” said Kumar Dubey of the Jawaharlal Nehru University’s Department for Africa Studies. However, it can develop a form of cooperation based on technology sharing.

Dubey points to the Pan-African e-Network project, which allows for affordable university courses offered over the Internet to students in Africa.

The Network was set up in February 2009 in Benin, Burkina Faso, Ethiopia, Gabon, Gambia, Ghana, Mauritius, Nigeria, Rwanda, Senegal and Seychelles. In a second phase, Botswana, Burundi, Ivory Coast, Djibouti, Egypt, Eritrea, Libya, Malawi, Mozambique, Somalia, Uganda and Zambia will join. It will be funded to the tune of US$ 125 million and run by state-owned Telecommunications Consultants India Ltd (TCIL).

Professors will come from prestigious institutions like the Indian Institute of Science, the University of Madras, Delhi University, the Indira Gandhi National Open University, Amity University, and the Indian Institute of Technology at Kanpur.

Video-conferencing will be conducted across 33 university nodes. African partner tele-education centres have been set up at the Kwame Nkrumah University of Science and Technology in Ghana, Makerere University in Uganda, and Cameroon’s Yaounde University.

More than 2,000 African students are already registered, but experts say that the number of “participants” is higher.

Davies Rwabu, a second year Master of International Business student at Makerere University, told the InterPress Service that the programme goes beyond courses. “You have online video conferencing once a week for about three hours, and then you can still catch up with the notes online because we have a portal from which we can pick up the notes,” Rwabu explained.

Students pay a subsidised fee of 200 dollars per semester at Makerere, which compares well with the regular 1,240 dollars for comparable courses.

Earnings from running the courses are not sent back to India, they are used to pay local technicians running the learning centres as well as the project’s coordinator.

Amity University courses available through the Makerere centre lead to a diploma in information technology, and master’s degrees in financial management and control and international business.

The project’s current objective is to assist Africa in building capacity by imparting quality education to 10,000 students across the continent over a five-year period.

In addition to the Pan-African e-Network, India has extended assistance to several African nations by way of training of experts and implementation of projects.

About 15,000 African students are currently enrolled in different academic programmes in India, many of them self-financed.

There are also plans in the works to establish a series of India-Africa institutes each specialising in specific areas—foreign trade, education, administration, diamonds, and human settlements—as part of future capacity building.

India announced a second summit with African states in Ethiopia later this year. The first one was held in New Delhi in 2008

I don't know man. There have also been blunders made by the Chinese, Arab, and Western investors in the past and we can't just paint a brush before seeing what happens first. We should wait and see if this plan is conclusive before saying that they are first.

I'm not saying Chinese, Westerner or Arabs are perfect. But at least they get done most their projects.

India pleaded to finance a Cement factory 4 years ago, 2 Hydro-drams 2 years ago, a Tractor factory 2 years ago, finance a Rail project 2 years ago, a Pharmaceutical factory 3 years ago. all within 1 country (DRC) and not even 1 of the project has seen a single stone. Really? and thats just 1 country. Now compare that to what Chinese have been doing around the continent.

I have nothing against India. but those are some of the facts.

it's not like they owe Africa.

+1

Sorry for going overboard but this has become an habit out here!! The amazing thing is these deriders talk as if they are from US or Europe!! Afterall, they r still dependent on West, china, India , Korea etc for capacity building.. Recently, even Bangladesh is planning to buy up farm lands in Africa!! Sometimes I wonder whether its their frustration over the failure of their own govts that manifests like this!! Anyways, set ur house in order first before commenting abt others!!! Afterall, I would love to see some investment from Africa into India...

Back to topic now.
I didn't understand whether India would construct Ethio-Djibouti line itself or would just provide financial support.
Anyways, it is good to see increasing cooperation among India and Africa especially in the field of education. Education will be vital for rapid development of African nations.

It's unfortunate. I see no need for all the astringent remarks. Even if India failed to live up to their promises, it's not like they owe Africa.
+1

Besides, Indian investment in Ethiopia for example has reached $4.5 billion over the last two decades. So the rumor of Indians sitting idle with empty promises isn't entirely true.

Back to topic now.
I didn't understand whether India would construct Ethio-Djibouti line itself or would just provide financial support.
Anyways, it is good to see increasing cooperation among India and Africa especially in the field of education. Education will be vital for rapid development of African nations.

Last thing I heard is that the construction deal went to a Chinese firm, so I guess this is financial support.

Hey everyone, stick to the topic please. I didn't create this thread to end up into an India bashing thread.

Any further news from the rail project? The article mentions a new rail line, so the old one will be abandoned? Weren't the Chinese involved in this new line?

With all the different propositions (South Africa, China and now India) I lost track...

Any further news from the rail project? The article mentions a new rail line, so the old one will be abandoned? Weren't the Chinese involved in this new line?

With all the different propositions (South Africa, China and now India) I lost track...
Chinese Railway Corporation won a bid to undertake part of the railway construction (Addis Ababa - Me'eso). I have never heard of South African involvement.

Some reports also indicated that China has granted loans for the entire project, and that Spanish firm will rehabilitated parts of the existing line. It's all pretty confusing.

Moved and cleaned up the thread. The proposal is too good to end up being locked.

India-related threads are banned from the Oasis from now on.

plz ban india related threads in african forum

edit ---
oh !!!
thank u xusein

They can be posted here...it tends to be less vitrolic here. Like I said, this project is potentially important so it can't be ignored. Moderation will be more strict.

Anyway let's go back on topic.

Thread moved?:lol:

Butembo has tough time telling the difference between Indian government and corporations. Is he a commie? Companies don't promise anything.

I'm not saying Chinese, Westerner or Arabs are perfect. But at least they get done most their projects.

India pleaded to finance a Cement factory 4 years ago, 2 Hydro-drams 2 years ago, a Tractor factory 2 years ago, finance a Rail project 2 years ago, a Pharmaceutical factory 3 years ago. all within 1 country (DRC) and not even 1 of the project has seen a single stone. Really? and thats just 1 country. Now compare that to what Chinese have been doing around the continent.

I have nothing against India. but those are some of the facts.

All this by Indian government? If that is the case then I guess you have a point.

Indian govt?? no way... its 99% private players that invest abroad from India. Actually private players are signing huge resource deals(coal, oil etc) in many countries like Australia , Indonesia, Central asia etc..

Maybe its coz of DRC that they backed out... China can afford to take risks coz they r govt backed.. But, u can't expect private companies to take such risk..

why always we Africans get aids :bash:

Chinese Railway Corporation won a bid to undertake part of the railway construction (Addis Ababa - Me'eso). I have never heard of South African involvement.

Some reports also indicated that China has granted loans for the entire project, and that Spanish firm will rehabilitated parts of the existing line. It's all pretty confusing.

I can see its still not clear...confusing indeed

I thought the rail way was already under construction by the chineses? anyways, this is good news and I hope India will keep its words. :cheers:

Butembo has tough time telling the difference between Indian government and corporations. Is he a commie? Companies don't promise anything.

I'm talking about Indian government. Not private companies.

All this by Indian government? If that is the case then I guess you have a point.

Yes. All by the government.

Indian govt?? no way... its 99% private players that invest abroad from India. Actually private players are signing huge resource deals(coal, oil etc) in many countries like Australia , Indonesia, Central asia etc..

Maybe its coz of DRC that they backed out... China can afford to take risks coz they r govt backed.. But, u can't expect private companies to take such risk..

No. its wasn't by private companies. They were projects to be financed by Government.

I have NO reasons to critize private investors. There are couple indian private companies in the country already doing a good job.

I should have specified "Government makes empty investment headline news".

I'm talking about Indian government. Not private companies.

The Indian Govt has no obligation to Africans.

The Indian Govt has no obligation to Africans.

Who is talking about obligations to Africa? :nuts:

Do you know what's being discussed?

Who is talking about obligations to Africa? :nuts:

Do you know what's being discussed?

Lol.

Whats the discussion about then,enlighten me please.

I should have specified "Government makes empty investment headline news".

^^http://www.indiaafricaconnect.in/img/PAN003.jpg

Inauguration of the Pan Africa E-Network, 16 August 2010.
Hon’ble External Affairs Minister of India, H.E. Mr. S.M. Krishna and Hon’ble Minister of Communications and Information Technology of Arab Republic of Egypt, H.E. Dr. Tarek Kamel jointly inaugurated the Pan African E-Network Project on Monday, the 16th August, 2010 by conducting a video-conference through a video link between New Delhi and Cairo via the E-Learning Centre in Alexandria.

An E-learning Centre has been operational since July 2009 at Alexandria University under the Pan African e-Network Project (a fibre-optic network to provide satellite connectivity, tele-medicine and tele-education to all 53 nations of the African Union). The Tele-medicine Centre under the Project has also become operational at Suzanne Mubarak Regional Centre for Women’s Health and Development.

plz use GOOGLE to find more Indian project in Africa ..

and this is absolutely ridiculous that a developing country India spends his taxpayer's(in which majority are not rich people) money and u few African project India as some kind of evil. SHAME SHAME

^^ Butembo is doing a bad job...power of google is in your hands Butembo....go and search and see how much of the promises have been kept and not kept by Indian Govt.

If chinese does these things I am sure you wont complaint..isn't it....African version of snapdragon

^^ Guys again this isn't about Indian promises that were kept or not...Again, plz stick to the topic otherwise go create threads to discuss that

^^ say this to people like BUTEMBO21

Yes. All by the government.

Can you give us some links? I have no clue about any of this so I am not sure where should I look.

And if it's all government, why do you post negative comment even when an Indian company is talking about investment? Many of the "Indian" companies are not even truly Indians. Unlike China, "India" doesn't mean anything. Indian companies don't get government backing. They will only invest if they find the project financially viable. And that's true for US, Germany or South Korea.

Yes.. He is a little biased... In Every Indian thread, be it Private or anything, he starts with
"India is a joke".. or something similar to that... I think he has this template stored!! :lol:

Apart from that, I think India has made some substantial investments in other African nations.. But, it has all been private! maybe, by govt, he means credit pledged by the govt's EXIM banks or something...

Anyways, I found this dated Apr 2010

Consta is anticipating the lifting of the ban on it and to resume construction of the Ethio-Djibouti Railway before the end of this month.



A decision has now been reached for Consta Joint Venture (JV), the Italian firm, to continue work on the railway after a meeting at the Ministry of Finance and Economic Development (MoFED) involving Ethiopian and Djibouti officials, officials of the EU, the project financier as well as officials of the Ethio-Djibouti Railway Enterprise. Consta had been ordered to suspend the construction on the railway because of the poor standard of the work reported by the project consultant.

Consta is expected to make a presentation on April 26, 2010, about the work that is to be done, the extra time and the budget needed for the project. It will go to work after the extra time and budget requests have been approved for it. A final decision is expected then.


The Ethio-Djibouti Railway is 781km long; it had sustained damages during the Ethio-Somalia war and by floods. Consta was recruited to renovate a 114km segment of the rail that has been most affected at a cost of 50 million Euro (902.5 million Br), which has been provided by the EU.

The work was initiated in 2007 and had to be delivered in June 2008. However, the company was able to maintain only a five kilometre segment near Metehara. Even this small segment did not meet the quality specifications and Consta was suspended.

The company has been instructed to improve the quality of the materials it uses in the maintenance, recruit professional workers, and resume purchase.

The railway has been functional only between Dire Dawa and Djibouti. That service has now been suspended because of flood damage on the tracks at the Melo area. It is currently under maintenance.

What happened to this??