India Offers $5B to Support African Development

A railway that connects Ethiopia and Djibouti. India has offered $300 million for the construction of a new railway line linking the two countries. Photo by: Carsten ten Brink / CC BY-NC-ND

India has offered a $5 billion credit line to support African development projects over the next three years and an additional $700 million to be used for training programs and new institutions.

Indian Prime Minister Manmohan Singh announced the pledge on May 24 at the India-Africa summit in Ethiopia, where he also offered $300 million for the construction of a new railway line linking Ethiopia and Djibouti.

Singh said India’s assistance to Africa will focus on four priority sectors: infrastructure development, capacity building, human resource development and regional integration. In his remarks at the summit, the prime minister also emphasized India’s commitment to help Africa realize its potential.

Singh’s latest offer builds on the pledge by the Indian government in January 2010 to increase its credit line to Africa from $2.5 billion to $5.4 billion by 2012.

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  • Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.