•Over the last decade or so, China and India have established themselves as increasingly influential players across Africa, which may turn out to be one of the most significant developments for the region in recent years.

The 4 prime reasons……Indian companies choose Africa as a promising investment destinations are:• Market growth potential• Low  cost of operations by nearly 20%

compared to any other place in the world!!

• Skilled workforce availability• Natural resources endowment

SWOT Analysis from Indian point of View

STRENGTHS

• Presence in Africa for more than 40 yrs.• India was part of non aligned movement.• Bajaj Auto, Hero Honda and TVS

assembly plants in Africa are certainly a big step in regards to exports for the country's biggest two wheeler brands.

Presence of already established brands :-

WEAKNESS

• Indian Govt. does not support the Indian companies.• Also the investment made by Indian companies is much less than China.

OPPURUTUNITIES • Jindal Group is making a science and technology park with a investment of $ 25 million.• Indian companies like Tata power and coal India are importing coal from South Africa.• Also Tata steel has coal mines in Mozumbique.

OPPURUTUNITIES

• "India is our a strategic partner and we are keen to attract Indian investments," .• While hoping to raise two-way trade to over $15

billion by 2014 from around $11 billion now. Rob Davies

South African Trade and Industry Minister [8 Apr, 2012 BRICS (Brazil, Russia, India, China and South Africa) Summit.]

THREATS• Chinese Investment is very large.

Advantage for China• China has got the Govt support i.e. their Govt will

take care of companies shareholders.• Chinese cars are cheaper than the second hand

cars of Japan and Europe.• Chinese investment is much more than Indian

investment.

China & India as “Swing Importers” of Commodities Relevant to Africa

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Net imports by China & India of Selected Commodities

The benefits of China’s and India’s rising global demand (net imports) for Africa-relevant commodities are attenuated by the volatility of demand of the Asian giants, partly due to cyclical variations but also to arbitrage between home production and imports.