VIBRANT SOUTH: India-Africa Synergy Partnership

Introduction - The term Vibrant refers to the demography of India and Africa, representing 900 million young and dynamic people who synergise and scale the South-South Partnership. The population of the USA, Europe, and East Asian countries is declining, and the vibrant youth will shape the future trajectories of human resource development globally. Vision 2047 reflects the idea of a prosperous and great India and emphasises the importance of skilled youth through education. Similarly, Africa places its interest in the proper training of youth and appreciates the Skill India approach.

- By Prof. Suresh Kumar

To counter the emerging USA tariff dictation for the South, there is a strong and genuine concern in resetting their trade and commerce viability and adopting an approach towards local currency for glocalisation. De-dollarisation and the stability of the Indian Rupee (INR) are widely recognised in international trade and commerce today. African countries such as Botswana, Kenya, Mauritius, Seychelles, Tanzania, and Uganda, along with Germany, Israel, Russia, the United Kingdom, New Zealand, Oman, Fiji, Guyana, Malaysia, Myanmar, and Singapore, conduct trade in local currencies. In addition, nations such as Iran, the United Arab Emirates (UAE), Nepal, and Bhutan have agreed to trade in INR.

Vibrant South visualises trade and commerce in their local currencies, and the entry of the African Union into the G20 strengthens this idea of “local for global” economy and inclusive economic growth. The ten guiding principles of coherence and India’s affinity with the African Union’s inclusion in the G20 reaffirm their bonding today.

Vibrant South represents BRICS, and the inclusion of Egypt and Ethiopia from Africa, along with Indonesia, Iran, Saudi Arabia, and the UAE, further strengthens the idea of a New Development Bank currency. It will reduce dependence on the USD and Euro and translate into a more balanced and South-South multipolar world economy.

Vibrant Local Currency

Trading in local currencies will align the India-Africa strategic synergy partnership and offer a range of advantages for both exporting and importing nations. Trading in INR in Africa streamlines extensive imports and exports, reduces the need for frequent currency exchanges, mitigates exchange rate risks, and saves transaction fees and exchange rate differentials. The use of local currency will simplify trade processes, reshape the South-South economic landscape in profound ways, and shift the multipolar global economy in its favour.