How India-Africa energy partnership offers a model for South-South cooperation, UPSC Daily Current Affairs 2025 – Exam Ki Tayari

As India seeks to ensure stable and diversified energy sources for its growing economy, Africa’s abundant yet largely untapped energy resources present a valuable opportunity for India. In turn, Indian investments and technology can play a pivotal role in supporting Africa in leapfrogging the energy ladder. A strong partnership with India will also help Africa to achieve its much elusive energy security.

Role of Africa in India’s energy security

The abundance of Africa’s rich mineral resources is reflected in the fact that the continent accounts for 3.6 per cent of coal reserves, 7.5 per cent of natural gas reserves, and 7.6 per cent of oil reserves globally. The continent also possesses nearly two-thirds of the world’s critical minerals, such as platinum, cobalt, copper, lithium, etc, underscoring its importance in the global energy transition. 

For example, South Africa produces 70 per cent of the world’s platinum, a key component in hydrogen fuel cell manufacturing. Similarly, the Democratic Republic of the Congo produces two-thirds of the world’s cobalt, a critical ingredient in battery production. Demand for these minerals is projected to rise significantly, putting Africa at the centre of the global energy transition map.

Recognising the strategic significance of Africa’s energy resources, India has, over the years, undertaken substantial investments in the continent’s energy sector. Two Public sector entities, ONGC Videsh Ltd. and Oil India Ltd., have been instrumental in securing equity stakes in oil and natural gas assets across Africa. 

As a result of this growing engagement, bilateral trade between India and Africa reached USD 100 billion in 2022, with the energy sector constituting a substantial portion of this trade. Furthermore, India’s cumulative investments in Africa amount to USD 75 billion, which is projected to double to USD 150 billion by 2030 and is again dominated by the energy industry. 

Although India’s energy trade with major producers such as Angola and Nigeria has grown, the commensurate investments in upstream and downstream energy infrastructure remain limited. Exploring the prospects of larger equity investments, joint ventures and technology transfer partnerships across Africa will help address this gap. Furthermore, given India’s demonstrated strengths in refining, consulting, training, and infrastructure development, India is well-positioned to help Africa in moving up the energy value chain. 

Nuclear energy for enhanced cooperation

Beyond oil and gas, nuclear energy offers another critical avenue for enhanced cooperation between India and Africa. Given its limited uranium reserves, the share of nuclear energy in India’s energy mix is negligible. India relies heavily on uranium imports to meet its nuclear energy demands.

Several African countries, such as Namibia, South Africa, Niger, Nigeria, and Malawi, possess abundant but largely untapped uranium reserves. Notably, Niger (7 per cent), Namibia (6 per cent) and South Africa (5 per cent) together contribute 18 per cent to the world’s uranium deposits. These reserves could be vital in expanding India’s nuclear power capacity. 

As India has obtained a waiver from the Nuclear Suppliers Group (NSG), uranium trade is expected to be hassle-free. At the same time, the continent can benefit from India’s technological know-how to develop its nascent civil nuclear energy programmes.  

Energy poverty stifles Africa’s progress

While Africa is indispensable in India’s energy security, India could also play a key role in facilitating Africa’s energy development. Despite its vast natural resources, energy poverty remains a persistent challenge in Africa, stifling its socioeconomic progress. 

Currently, over 600 million Africans lack access to electricity. If existing trends don’t improve, approximately 530 million Africans will be without access to power by 2030. Although Africa accounts for 16 per cent of the world’s population, it consumes only 3.3 per cent of global energy, highlighting a stark disparity.

However, Africa can reverse the trend and become the first continent to develop its economy, primarily through modern energy sources, if correct actions are taken. Nonetheless, achieving this vision will require fully harnessing the continent’s vast solar, wind, hydropower, natural gas, and energy efficiency potential. 

While natural gas will remain significant in meeting Africa’s industrial and electricity needs, it is high time to focus on clean energy solutions, especially in view of the continent’s disproportionate vulnerability to climate change. 

India can play a significant role in this transformative journey, offering affordable solutions that are easy to scale and, most importantly, sustainable. As India is uniquely positioned to support Africa’s energy transformation, the two sides have already begun deepening their collaboration in renewable energy, particularly in the solar sector.

India’s evolving partnership with Africa

March 2018 marks a watershed moment in this cooperation when India, with the support of France, established the International Solar Alliance (ISA). Within seven years of its inception, the ISA has grown into a strong multilateral platform with 120 signatory members, including 46 African countries. 

During the third India-Africa Forum Summit in 2015, India committed $2 billion Line of Credit (LoC) to support solar projects across Africa. India also prioritised the training of solar engineers from Africa through the Indian Technical and Economic Cooperation (ITEC) programme. 

Another important dimension of India’s energy cooperation with Africa lies in its emphasis on grassroots innovation. In this context, The Energy and Resources Institute (TERI) and Barefoot College have played a pivotal role.

While TERI conducts ITEC-sponsored courses on issues like sustainable development, climate change and sustainability, renewable energy, and energy efficiency, Barefoot College provides training to rural African women to become solar engineers. 

Seen as one of the most inspiring examples of India’s grassroots innovation for Africa, these women carry out solar installations in their villages and conduct routine maintenance and repairs. More such grassroots initiatives, using similar inclusive and sustainable approaches, would be a step in the right direction.

Powering each other’s progress

To sum up, as global attention intensifies on decarbonisation and energy transition, there is an urgent need to strengthen India-Africa energy ties further. Both India and Africa have ambitious goals in their respective energy sectors. 

Moreover, India’s technological know-how in solar, wind, and hydro, if combined with Africa’s untapped potential, can present a unique opportunity, powering each other’s progress, moving beyond the exchange of resources. 

As India and Africa are simultaneously pursuing inclusive economic development and climate resilience, their energy partnership holds the potential to serve as a robust model of South-South cooperation.

Post Read Questions

Why is Africa important to India’s energy security, and how can India support Africa’s energy development in return?

In what ways can India’s experience with solar and other renewable technologies benefit Africa’s energy transition?

India is uniquely positioned to support Africa’s energy transformation by offering affordable solutions that are easy to scale and, most importantly, sustainable. Comment.

How might increased nuclear cooperation reshape the India-Africa energy partnership in the coming years?

How can India-Africa energy cooperation serve as a model for South-South cooperation?

(Samir Bhattacharya is an Associate Fellow at the Observer Research Foundation.)

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