Both India and China are aware of the strategic significance of east Africa as an emerging market. India though is wary of the inflow of easy Chinese loans in the region.

The BRICS summit in South Africa later this month is likely to see a revving up of India’s rivalry with China for influence in resource-rich Africa. Both PM Narendra Modi and Chinese leader Xi Jinping will visit east Africa ahead of the event.

The government is yet to announce this but official sources say Modi is going to visit Rwanda and neighbour Uganda on his way to South Africa for the BRICS summit from July 25. While Uganda has seen visits by Indian PMs, this is a first for Rwanda. Modi will land in Rwandan capital Kigali a day or two after President Xi. This will also be the first time that a Chinese president will visit Rwanda.

A top source said that Modi’s visit to Rwanda and Uganda was a sign that Africa remained the focus of India’s outreach to the developing world, and had nothing to do with any “cut-throat competition” with China as often reported in the media. “It’s also significant that both Rwanda and Uganda are members of the Commonwealth where India is an important player,” said an official, adding that the outreach enhances India’s south-south leadership credentials even as it engages with bigger powers.

Modi will hold talks with president Paul Kagame in Rwanda and president Yoweri Museveni in Uganda. Several agreements are expected to be signed with both countries.

It’s significant that both leaders have chosen to visit Rwanda, where China has emerged as an important partner in post-conflict reconstruction work. China’s annual trade volume with Africa and its FDI in the continent are more than double than that of India. However, India in the past has had an edge over China in east Africa mainly because of its cultural and historical links with the region. Geographical proximity has also meant that countries in the east along the Indian Ocean coast account for more than half of India’s exports to Africa.

Both India and China are aware of the strategic significance of east Africa as an emerging market. India though is wary of the inflow of easy Chinese loans in the region, which has embraced Beijing’s Belt and Road Initiative.

In Uganda, Reuters reported recently that China alone had loaned it nearly $3 billion and was in talks for $2.3 billion more as part of BRI.

China operates a naval base in Djibouti on the Horn of Africa, reflecting its growing clout in the region. Its uninhibited small arms sales to countries in Africa has made it an attractive partner.