'How is India’s relationship with Africa different?', asks Sanusha Naidu. She demonstrates that the latest conclave on the India-Africa Project Partnership – during which India emphasised its focus in Africa to be on capacity building, training and private sector development – revealed that African delegates felt that India is more a stakeholder than a shareholder on the continent. But Naidu suggests that Africa needs to critically examine India’s involvement. She concludes that: ‘For there to be an effective partnership, developing a dialogue between civil society, government and business would be a valuable platform to make this engagement different from the others.’

In this week’s Emerging Powers news roundup, Sanusha Naidu looks at India and Russia’s investment forays in Nigeria, Namibia and Angola, respectively. China continues to establish itself across the continent, from Cape Verde to Cameroon and Ethiopia. China has also received mention for policies that will benefit domestic and global economic recovery. Elsewhere, Brazil, India and South Africa have held an inter-ministerial meeting to strengthen ties. There is also emerging evident that there is growing competition between India and China in the investment stakes

In light of the rapid growth of China’s investment in Africa and bi-lateral trade worth US$100 billion in just two years, Sanusha Naidu, debates whether the country is promoting development across the continent, or is driven largely by mercantilist imperatives. The questions to ask, says Naidu, are which Africans are benefiting from Chinese money, and whether China will continue its large-scale investments in Africa as the financial crisis bites. Naidu cautions that Beijing may ‘become more strategic and perhaps more prudent around which of its investment projects it wants to initiate based on overall benefits and viability’, making it unwise to bank on China’s massive foreign reserves. If Chinese investment is to promote development, Naidu argues, it must take ‘a bottom-up approach that recognises the daily social justice struggles of ordinary Africans for socio-economic survival rather than intensifying them’.

Underlining the importance of South–South cooperation and a new 'look east' policy for the new South African premier, Sanusha Naidu considers the prospects for the country's foreign policy under Jacob Zuma's presidency. With China likely looking to diversify its risk portfolio through providing loans to companies like the Industrial Development Corporation (IDC), Naidu highlights South African banks' probable desire to serve as intermediaries between the African continent and India's burgeoning private sector.