India’s decision to reopen trade negotiations with the Southern African Customs Union (SACU) highlights how quickly Africa’s external economic relationships are broadening. African governments are seeking a wider pool of markets, investors and technology partners rather than relying on a small group of traditional economic powers. Central Africa has a stake in that shift as India expands its commercial presence across the continent.
On August 12, India and SACU signed Terms of Reference for negotiations on a Preferential Trade Agreement, reviving talks that stalled after five rounds between 2002 and 2010. South Africa, Botswana, Namibia, Lesotho and Eswatini make up the five-member bloc, representing a market of about 65 million people. Indian goods exports to SACU reached $7.5 billion in the 2025/26 financial year, while imports from the bloc stood at $9.2 billion.
Rather than focusing only on tariffs, the negotiations cover market access, customs procedures, rules of origin, sanitary and phytosanitary measures, technical barriers to trade and dispute settlement. India is seeking greater access for automobiles, pharmaceuticals, machinery and other manufactured goods, while SACU members would gain a more predictable framework for reaching the Indian market. Critical minerals are also part of the equation, with India interested in resources including platinum-group metals, manganese and copper.
India’s wider economic footprint gives the negotiations added significance. Bilateral trade with Africa reached $93.7 billion in 2025/26, including $45.5 billion in Indian exports and $48.3 billion in imports. New Delhi has increasingly emphasized manufacturing, integrated value chains and investment alongside its traditional trade in commodities.
CEMAC already has links with Indian companies in telecommunications, energy, transportation and oil exploration. Yet the relationship remains underdeveloped relative to its potential, while much of the trade and investment connection is still tied to commodities. Research from the Nkafu Policy Institute has pointed to opportunities for deeper India–CEMAC cooperation in industrialization, investment and technology transfer.
A stronger Indian role could therefore matter beyond the traditional oil-and-minerals relationship. Pharmaceuticals, automobiles, engineering goods, chemicals, food products and digital services are among the sectors in which Indian companies already have experience across African markets. For Central African economies trying to develop domestic processing and manufacturing, that creates a potential source of capital, technology and commercial partnerships.
Regional integration could also make the relationship more attractive. SACU is approaching India as a bloc rather than leaving each member to negotiate separately, creating a larger and more coherent market proposition. CEMAC could similarly use its regional framework to make market access, industrial projects and cross-border investment more attractive to companies seeking scale in Central Africa.
A broader rebalancing of Africa’s external partnerships is already underway. Brazil is expanding its energy interests, Gulf investors are moving into ports, logistics and natural resources, China remains a major infrastructure and industrial partner, and India is strengthening its position in trade, manufacturing and technology. The result is a more competitive external environment in which African governments have more choices over where to source capital, technology and market access.
Central Africa's challenge is to turn those choices into productive investment rather than simply add another foreign partner to an existing list. India’s expanding presence offers an opening, but its value will depend on whether CEMAC economies can attract investment into processing, manufacturing and services alongside the region’s established commodity exports.
