Iprislusophone Countries Bulletin

SEPTEMBER 16 IPRIS Lusophone Countries Bulletin FEBRUARY 2011 den with intra-state politico-armed putting an end to the trade-distorting India’s interest conflict, to be resolved in 2002 with policies in agriculture maintained the signing of the Luena Memorandum by developed countries, which ad- in Angola of Understanding (MOU) between the versely affect developing countries MpLA Angolan government and its and their integration into the world bête noire the national Union for the trading system. SAndipAni Dash Total independence of Angola (UniTA). Bilateral trade between india and Assistant professor, department Close political relations between Angola, which was only a few million of political Science, Maharaja Agrasen the two countries were nurtured by dollars five years ago, surged to College, University of delhi the bilateral visits that were initially US$4.24 billion in 2009-2010, mainly infrequent, yet uninterrupted. indian on account of oil imports. india, along The resource rich African continent prime Minister Rajiv Gandhi visited with the United States and China, captures a vital space in the geo- Angola in 1986 and Angolan president remains one of the main destinations strategic calculus of india, a country José Eduardo dos Santos visited india in of exports from Angola. india’s exports that is currently emerging as a major the subsequent year. Angolan Minister to and investments in Angola have economic powerhouse trying to for External Relations João Bernardo shown a perceptible increase after the reposition itself in the changing world de Miranda visited india in 2006. indian cessation of civil war. The principal order. Angola is no exception where prime Minister Manmohan Singh and items of export are indian tractors the Asian power has carried out its Angolan president José Eduardo dos and transport vehicles, agricultural engagement in diverse fronts, as it Santos met in 2009 during the G8 machinery and implements, has done elsewhere in Africa. Summit in L’Aquila, italy. There were pharmaceuticals and cosmetics, tea, new delhi’s engagement with Luanda several other important visits ensuing rice (Basmati), food and meat products, as it is today did not unfold in a vacuum. from the two sides as well. spirits and beverages, finished leather, india was one of the first countries to india-Angola political visits are per- paper/wood products, and petroleum recognize the post-colonial govern- ceived to have become regular after products. ment formed by the popular Move- 2004, when oil and diamond diploma- The growing trade and investment ment for the Liberation of Angola cy took off as part of the global com- partnership is sustained by lines of (MpLA) in 1975, following its support modities boom. While resource part- credit extended by india, including of nationalist movements against nership concretizes the relationships US$40 million for rehabilitation of portuguese colonial rule in the south- between the two countries, what re- Angolan Railways by the Rail india west African territory. While india set mains is the overriding concern that Technical and Economic Consultancy up its resident mission in Luanda in for india to engage with Angola, like Services (RiTES), US$10 million for the 1986, Angola established its embas- any other African country, is a way purchase of tractors and US$5 million sy in new delhi in 1992. to garner support for its permanent for the agricultural sector on credit india also remained party to all three membership in the expanded United extended by the EXiM Bank of india. United nations (Un) Angola verifica- nation’s Security Council. On the energy front, crude oil is the tion Missions in Angola between 1989 Luanda, on the other hand, bandwag- main stay of the Angolan economy, and 1997, when that country was rid- ons with new delhi in the demand for accounting for over 90% of export IPRIS Lusophone Countries Bulletin | 2 revenues and over 80% of Gross While the engagement in the oil in the Mozambique Channel. A domestic product (Gdp). Angola sector witnesses the overwhelming third ship, the Vega 5, is thought to becomes the largest crude oil produc- Chinese influence, negotiation in have been hijacked on december ing country in Africa, with estimated the diamond industry seems to be 31st and is believed to be heading proven reserves varying between 12 a success story. On the whole, the towards Somalia. The december to 15 billion barrels. The natural gas contour of a partnership based on 2010 attacks targeting the vessels reserves are estimated at 2 trillion cu- the compatibility of interests retains a off the coast of Mozambique – one bic feet. A full-fledged member of the positive trajectory as reflected in the of them confirmed by Mozambican Organization of petroleum Exporting surging diaspora linkages. deputy defense Minister Agostinho Countries (OpEC) since 2007 having a Mondlane as carrying Somali pirates production limit of 1.9 million barrels – bear the fruit and feedback of the per day, Angola is among six Afri- yet to be successful international sea can countries (others being Libya, monitoring operations in the Gulf nigeria, Algeria, Sudan and Egypt) of Aden. For all their tremendous identified by india for cooperation in naval apparatus, the world’s most the energy sector. In the loop: powerful, better-equipped navies india has tried to get oil acreage in are having difficulty eradicating Angola, as part of its strategy to expand old age piracy in piracy in the region. proof of this lies access to the African hydrocarbon in the expansion of piracy activities field. nevertheless, india’s energy the Mozambique to the south. engagement with Angola is subject When attacks and hijacks of to the expanding presence of China Channel international trade ships began, the in its oil industry. For instance, indian international community sent fully state owned Oil and natural Gas VASCO MARTinS equipped warships to disrupt the Corporation (OnGC) was outbid by its Researcher, ipRiS menace. it soon became clear that Chinese competitor for an Angolan oil pirates were able to operate very far block in 2004. The punishment for piracy was death from the coast, which laid the grounds india’s diamond diplomacy seems by public hanging. This was the fate of for assuming the Mozambique more successful in Angola, the 4th the famous William Kidd, whose body Channel, with all its attractive largest diamond producer in the hung for three years at Tilbury point security ‘soft spots’, could indeed world. The Angolan state diamond facing the Thames, warning others be next. however, the international company, Endiama, has agreed to of their fate. during the 18th and community’s plan was shortsighted, do business directly with the large 19th centuries, piracy was the most focusing only on the areas around indian diamond industry by setting diffuse form of organized crime in the the Gulf of Aden, thus not properly up an office in Mumbai, while india world, often state sponsored. Only supporting and developing the young is looking to open an institute for the innovations brought by the steam Mozambican navy. now, as pirates jewelry manufacturing in Luanda. age in the 19th century, combined reach further south, both Mozambique Endiama has also invited indian with many of the world’s navies and South Africa are threatened by mining companies to explore and and the necessary political will, the disruption of seaborne trade. develop diamond mines in Angola. were sufficient to destroy the global piracy is the most serious threat The size of the indian community networks of piracy and privateering southern African countries face. present in Angola has reached in operating widely in the same century. Approximately 96% of South Africa’s recent years nearly 5.000 persons, Today, long after the industrial exports are conveyed by sea and involved in trade as well as the revolution, piracy is returning to the most Mozambican exports are also manufacture of oil, steel and plastics. seas, this time equipped not with sails made by sea, 57.7% of which flow Moreover, there is a large number and compasses, but GpS devices, directly to the European Union. of people of indian origin who hold RpG’s and small but fast vessels, The greater part of Mozambique’s passports of different nationalities making short teams organized and imports – roughly 60% – also enter including of African nations like extremely adaptable. the country through the sea, making Mozambique and the democratic Recently, piracy has been reported these trade routes indispensable both Republic of Congo engaged in trading off the coast of Mozambique. to Mozambican and South African and construction businesses. during Christmas 2010, Liberian economies. Furthermore, landlocked india carries a significant stake in registered tanker nS Africa and the Botswana, Zimbabwe, Malawi and its strategic partnership with Angola Majestic, a cargo vessel registered Zambia will also be affected by against the backdrop of solid political in panama, where forced to fight off piracy expansion if the matter is not solidarity between the two countries. and outmaneuver pirates operating addressed in a timely manner. due IPRIS Lusophone Countries Bulletin | 3 to their geographic nature, these African seas to operate freely will have countries depend on South Africa harsher financial consequences than and Mozambique’s – and to a certain the costs of setting up an operation of extent Tanzania’s – ports to be able such magnitude. to import and export, in other words, in the 19th century, the combined to create wealth. if southern African forces of many of the world’s navies trade routes become affected or are overcame piracy. invariably, the so- avoided due to this nautical terrorism, lution to today’s piracy resides on social and economic consequences a multilateral, coordinated inter- will be very grave. hence, piracy in vention, especially from the United the channel cannot be ignored nor States, China, Russia, india and can it fall into oblivion in the hope that some European Union states, name- the issue resolves itself.

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