The Asia-Africa Growth Corridor (AAGC) was launched in 2017 with the goal of improving connectivity and development between Asia and Africa by India and Japan. It put four main emphasis on development initiatives, high-quality infrastructure, capacity building, people-to-people partnerships.
The AAGC fosters sustainable growth through cooperative, people-centric methods and adherence to international principles, in similar to China’s Belt and Road Initiative (BRI), which places a strong emphasis on large-scale loans and infrastructure projects. The goal of the AAGC is to balance off China’s influence in the region, notwithstanding its early development and lack of success.
The Role of India and China in AAGC
The AAGC began operations in 2017 and has been gradually advancing, albeit not as quickly as China’s Belt and Road Initiative. By concentrating on areas like infrastructure, digital connection, talent development, and healthcare in African nations, Japan and India have been attempting to establish the groundwork for a continued partnership.
India’s focus on Africa: India’s diplomatic efforts toward African nations have stepped up. Numerous industries, including healthcare, technology, and education, have seen investments from Indian private enterprises. Through a number of bilateral summits in 2023, India tightened its collaboration with African countries, bolstering relations in fields like technology, food security, and capacity building.
In addition, India’s role in the Pan Africa e-network advancement of Africa’s social sector has been crucial in establishing the robust connections that exist between the African continent and the Indian subcontinent. Indian banks and businesses are widely distributed throughout Africa. The EXIM bank is the leading organisation responsible for executing the development credit tasks. When it comes to accessible, suitable, and flexible technology, India stands out.
Japan’s Focus on Africa
Japan is still providing financial support and technical aid to African countries. A significant player in African infrastructure initiatives is the Japan International Cooperation Agency (JICA). Japan has made investments throughout the continent in health systems, ports, and railroads, for instance, with an emphasis on development that encourages local empowerment. Tokyo International Conference on African Development (TICAD), held in Japan, provides a forum to generate creative dialogue amongst stakeholders involved in African development initiatives. Through grants of aid and technical assistance, TICAD has been trying improve the social and economic conditions in Africa since its formation in 1993.
Future Prospects and Aims
Geopolitical and economic factors are critical for the future prospects of the AAGC. Africa is playing a bigger role in both India’s and Japan’s economic goals as a result of its emergence as a major player in international trade and abundance of undeveloped resources.
- The AAGC, like the BRI, is focused on developing ports, industrial zones, and other infrastructure to increase connectivity between Africa and Asia. But it places special emphasis on high-quality, sustainable infrastructure, that connects regional economies to global supply chains.
- AAGC focuses heavily on human resource development and capacity building in Africa. India’s IT sector and Japan’s technological expertise are key components of this aim, with projects to train professionals in digital technology, healthcare, and education.
- India and Japan aim to promote free, open, and inclusive trade routes that bypass the risks of monopolisation. The AAGC also emphasize on development projects that are compatible with the socio-economic realities of African nations.
- The corridor has a unique emphasis on healthcare infrastructure and agriculture, recognizing Africa’s need for improvements in these sectors. Through AAGC, there are ongoing projects in telemedicine, rural healthcare, and agriculture technology transfers to enhance food security.[i]
Comparison between BRI and AAGC
There are some similarities between China’s Belt and Road Initiative (BRI) and the Asia-Africa Growth Corridor (AAGC) in terms of its geographic breadth and emphasis on connectivity between Asia and Africa. But there are also important distinctions like:
Size and Scale: With over $1 trillion in projected investments spread across 70 nations, BRI is a far larger initiative. The AAGC has received little financing and has only made modest progress thus far.
Approach: BRI places a strong emphasis on massive infrastructure projects funded by loans from China. On the other hand, the AAGC upholds international debt practices and fosters sustainable growth via cooperative, people-centred methods.[ii]
The AAGC aims to develop industrial corridors, quality infrastructure, and human capabilities. It prioritises projects in health, agriculture, disaster management and skill enhancement.[iii]
Geopolitical Motives
BRI is perceived as an attempt by China to increase its worldwide influence both in terms of economy and geopolitics. India and Japan are trying to expand their footprint in Africa through the AAGC, which is seen as a counterbalance to the BRI. The announcement of the AAGC simultaneously with India’s nonattendance at the 2017 BRI forum hinted at the initiative’s potential replacement for BRI.[iv]
Strategic Approach
BRI: Large-scale projects funded directly by Chinese banks and state-owned enterprises (SOEs) make the BRI more state-driven. China wants to use the Belt and Road Initiative (BRI) to further its geopolitical influence globally, especially in strategically significant regions.
AAGC: AAGC promotes collaborations and private investments between African, Japanese, and Indian businesses. It is more collaborative and private sector-driven. The emphasis is on economic cooperation and capacity building rather than geopolitics.
India and Japan have emphasized the significance of upholding an international order based on norms and making sure projects are transparent and inclusive.
To conclude, the AAGC intends to counterbalance China’s increasing influence in the region, while sharing certain goals with BRI to improve connectivity between Asia and Africa. Its strategy is more collaborative and sustainable. On the other hand, in comparison to the scope and advancement of BRI, the AAGC is still merely a vision with few tangible accomplishments.
[i] “Asia-Africa Growth Corridor: A positive initiative”, Time of India, https://timesofindia.indiatimes.com/blogs/ChanakyaCode/asia-africa-growth-corridor-a-positive-initiative, (Date of Access: 22.09.2024).
[ii] “Should We Forget about Asia Africa Growth”, IFRI, https://www.ifri.org/en/publications/editoriaux-de-lifri/lettre-centre-asie/should-we-forget-about-asia-africa-growth, (Date of Access: 22.09.2024).
[iii] “Asia-Africa Growth Corridor (AAGC): An India-Japan Arch in the Making?”, ISDP, https://www.isdp.eu/publication/asia-africa-growth-corridor-aagc-india-japan/, (Date of Access: 22.09.2024).
[iv] “ABOUT AAGC”, AAGC, https://aagc.ris.org.in/en/about-aagc, (Date of Access: 22.09.2024).
