Historical Background
The relationship between India and Angola is rooted in a shared history of colonialism, particularly through their ties to Portugal, as both the Indian state of Goa and Angola were once Portuguese colonies. This historical context played a significant role in shaping India's diplomatic stance. During the struggle for freedom, India actively supported Angola in its fight against Portuguese colonial rule, standing in solidarity as Angola sought independence, which was achieved in 1975. Following independence, India established a close relationship with the Popular Movement for the Liberation of Angola (MPLA), which has remained a key political entity in the country. Diplomatic relations between India and Angola were formally established in 1985, marking a significant step in fostering bilateral cooperation.
High-Level Visits
The diplomatic relationship has been further reinforced through several high-level visits that highlight the commitment of both nations to strengthen their ties. Notably, in May 1986, Rajiv Gandhi became the first Indian Prime Minister to visit Angola, marking a historical milestone in bilateral relations. This visit was reciprocated when José Eduardo dos Santos, the then-President of Angola, made a visit to India in April 1987. These visits were not only symbolic but also helped lay the groundwork for future cooperation in various sectors. Subsequent interactions included a visit from Angolan Foreign Minister João Bernardo de Miranda to India in May 2006, where a protocol on foreign office consultations was signed, demonstrating a commitment to ongoing dialogue. Additionally, notable meetings occurred at international forums, such as when Prime Minister Manmohan Singh and President Santos met during the G8 summit in 2009 and Prime Minister Narendra Modi's engagement with President João Lourenço at the BRICS summit in 2018.
Bilateral Agreements and Cooperation
The deepening of bilateral relations is evidenced by various agreements aimed at enhancing cooperation in multiple sectors. On January 30, 2017, both nations signed an agreement to establish a bilateral commission, which serves as a critical platform for dialogue and cooperation on various issues. The inaugural meeting of this India-Angola Joint Commission occurred virtually on September 7, 2020, co-chaired by the respective foreign ministers, S. Jaishankar and Tete António. The meeting yielded a comprehensive review of bilateral ties and resolved to diversify trade relations, particularly focusing on health, pharmaceuticals, defense, agriculture, food processing, digitization, and telecommunications. This was further solidified with three significant Memoranda of Understanding (MoUs) related to health, training, and visa facilitation. Such agreements underline the commitment of both nations to collaborate closely in tackling contemporary challenges and promoting mutual benefits.
Support for International Aspirations
In addition to bilateral issues, Angola has expressed support for India's position within the international arena, particularly in the United Nations. Angola has backed India's candidacy for a permanent seat on a reformed United Nations Security Council, demonstrating a commitment to enhancing India's role in global governance. Moreover, Angola also voted in favor of India's election to the UNSC's non-permanent seat for the 2021–22 term, signifying a strong mutual understanding on international matters. This cooperation reflects a broader alignment of interests and highlights the potential for further collaboration as both nations navigate the complexities of international politics.
Economic Relations
Economic relations between Angola and India have been flourishing across various sectors, showcasing the growing partnership between the two nations. Indian companies actively participate in sectors such as retail, hospitality, agriculture, plastics, scrap metal, steel, trading, garments, and real estate, significantly contributing to Angola's economic landscape. This involvement underscores the diversification of economic engagement, enhancing Angola's industrial capacity through foreign investment and expertise.
In recent years, significant initiatives have been undertaken to strengthen bilateral trade and investment. Delegations from the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce & Industry visited Angola in November 2013 and May 2014, respectively, to explore potential business opportunities and foster stronger ties. On September 3, 2020, a landmark event called "Business Opportunities between India and Angola" was organized collaboratively by the Angola-India Chamber of Commerce, CII, and the Agency for Private Investment, Promotion, and Exporters (AIPEX). This initiative aimed to bridge the gap between Indian investors and Angolan businesses, providing a platform for dialogue and collaboration.
Further cementing this bilateral relationship, the Embassy of India in Luanda, in partnership with the Gems and Jewellery Export Promotion Council of India (GJEPC) and the Angola-India Chamber of Commerce, organized a significant conference on December 3, 2020. This event brought together delegates from major Angolan state-owned diamond enterprises such as Endiama and Sodiam, along with private Indian companies, marking a concerted effort to enhance collaboration in the diamond sector, crucial to Angola's economy.
In terms of strategic energy cooperation, Angola and India made a significant step forward in October 2010 when they signed a Memorandum of Understanding (MoU) on cooperation in the oil and gas sector in New Delhi. This agreement was pivotal in laying the foundation for collaboration in a sector essential to Angola's economic prospects. Furthermore, Indian engineering firms, including Engineers India, played an instrumental role in the construction of the Lobito oil refinery, reinforcing India's commitment to supporting Angola’s energy sector development and infrastructure growth, thereby enhancing energy security and economic development in the region.
Trade Dynamics Between India and Angola
India occupies a significant position in Angola's economic landscape as the nation's third-largest trading partner, accounting for approximately 10% of Angola's overall exports. This strategic partnership is primarily anchored in the energy sector, with crude oil representing the majority of trade transactions between the two countries. Angola ranks as the second-largest exporter of crude oil to India within Africa, trailing only Nigeria. This relationship underscores Angola's critical role in supplying hydrocarbons to India's growing energy needs, as energy security becomes increasingly vital for India's expanding economy.
The bilateral trade relationship between India and Angola has historically been volatile, influenced significantly by fluctuations in global oil prices. In the fiscal year 2012–13, the value of trade reached an impressive peak of US$7.16 billion, reflecting robust economic ties bolstered by soaring oil prices at that time. However, as the international market underwent a downturn and oil prices declined, so too did the value of trade between the two nations, dropping to $3.93 billion in 2019–20. This decline highlights the inherent vulnerability of Angola's economy, which remains heavily reliant on oil exports for fiscal stability and economic growth.
Despite the fluctuating trade values, the potential for further enhancement of bilateral economic relations remains robust. Both nations have explored various avenues to diversify their trade portfolio beyond oil, including sectors such as pharmaceuticals, agriculture, textiles, and service industries. Angola's rich natural resources, coupled with India's technological expertise and diverse manufacturing capabilities, present opportunities for collaboration that could lead to a more resilient and balanced economic relationship in the future.
Moreover, both countries have engaged in diplomatic efforts to strengthen their ties, which included enhanced cooperation in areas of mutual interest and investment opportunities. Investments in infrastructure, healthcare, and education are just a few domains where India has expressed a willingness to support Angola's development agenda. Such engagements not only foster economic growth but also enhance people-to-people connections, paving the way for stronger cultural and social integration between the two nations.
As both countries navigate the complexities of a globalized economy, the continuation of open dialogue and strategic investment is essential for ensuring a sustainable and mutually beneficial relationship. The partnership between India and Angola thus stands as a testament to the importance of collaboration in driving economic fortunes and exploring new horizons in international trade.
Development Assistance Initiatives
The relationship between India and Angola has been significantly marked by India's commitment to providing development assistance to Angola, aimed at fostering goodwill and supporting the nation’s infrastructure. One of the early gestures of this collaboration occurred in December 2005 when the Indian Foreign Ministry gifted ambulances, manufactured by the renowned Indian company Mahindra & Mahindra, to the Angolan government. This initiative was a symbol of friendship and showcased India's willingness to extend support to Angola during its post-conflict recovery phase.
In addition to humanitarian gestures, India took substantial steps to bolster Angola's infrastructure. In 2005, India extended a $40 million line of credit (LOC) specifically designated for the rehabilitation of the Moçâmedes Railway, crucial for enhancing transportation and trade within the region. Furthermore, the Export-Import Bank of India provided three lines of credit totaling $28.8 million, aimed at facilitating the importation of agricultural equipment and Indian-manufactured tractors, essential for rebuilding Angola’s agricultural sector. The establishment of a representative office by the State Bank of India in Luanda in April 2005 marked a significant milestone, as it enabled the provision of commercial lines of credit amounting to $15.8 million for the procurement of tractors and various capital equipment from India.
The cooperation continued into the later years, with India demonstrating its commitment to Angola's industrial development through strategic financial support. In 2008-09, the Indian government extended a $30 million LOC for the establishment of an industrial park, alongside an additional $15 million LOC dedicated to setting up a cotton ginning and spinning plant. These projects were essential in promoting local industries and generating employment opportunities within Angola. In June 2012, the Exim Bank further solidified this partnership by providing a $23 million LOC for the supply of agricultural tractors and related implements, thereby facilitating Angola's agricultural modernization efforts.
Most recently, in May 2021, India made a significant commitment by offering an extensive line of credit amounting to $100 million for Angola's naval capabilities. This funding is intended for the procurement of naval boats, interceptor crafts, and the construction of necessary maritime infrastructure, such as naval vessels and slipways, thereby enhancing Angola's defense and maritime security.
In addition to financial assistance, India's support extends to the educational sector as well. Citizens of Angola are eligible for scholarships under various programs, including the Indian Technical and Economic Cooperation Programme (ITEC) and opportunities offered by the Indian Council for Cultural Relations. This educational initiative aims to nurture human capital in Angola, enabling students to acquire skills and knowledge that are crucial for the country's development. Through these ongoing efforts, India and Angola continue to strengthen their bilateral ties, working together towards common developmental goals and mutual prosperity.
Indians in Angola represent a vibrant and important community, with approximately 3,500 individuals residing in the country as of July 2021. This community plays a significant role in various sectors, particularly in offshore oil fields, which are vital to Angola's economy. Moreover, many Indians engage in industries such as catering, running supermarkets, trading, and providing essential services. The diverse skill set of this community also extends to the plastics, metal, steel, and garment sectors, showcasing their adaptability and contribution to Angola's socio-economic landscape.
The economic interactions between India and Angola can be seen through the statistical data on trade between the two nations. In the fiscal year 2014-15, India imported goods worth approximately $4,617 million from Angola, a figure reflecting the strong trade ties between the two nations. While imports fluctuated over the years, they displayed a notable peak again in 2017-18, reaching about $4,324 million. Conversely, India's exports to Angola have historically been much lower, with values peaking at $552 million in 2014-15, but gradually decreasing over the following years. This discrepancy highlights the reliance on Angolan resources, particularly oil, in fuels trade and the need for India to diversify its export offerings to balance trade relations.
The total trade between India and Angola has shown considerable variation, with a total of approximately $5,169 million in 2014-15 that subsequently dropped to about $1,793 million in 2020-21. This decline can be attributed to various factors, including fluctuations in global oil prices, economic challenges posed by the COVID-19 pandemic, and shifts in both countries' trade policies. Nevertheless, the potential for growth remains strong, as both nations share interests in strengthening their economic ties through investments, technology transfer, and cooperation in sectors such as energy, agriculture, and infrastructure development.
Overall, the Indian community in Angola is not merely a demographic statistic; it is a dynamic part of a broader relationship characterized by economic interdependence and cultural exchange. As Angola continues to recover and grow economically, the presence of the Indian population as business professionals and service providers stands to reinforce this bilateral relationship, potentially opening new avenues for collaboration and mutual benefit in various sectors.