China’s Xi, India’s Modi visit Rwanda’s Kagame

Simon Maina | AFP | Getty Images

Indian Prime Minister Narendra Modi (C) and Rwandan President Paul Kagame (R) greet locals at the Rweru Model Village in Rwanda on July 24, 2018.

Kagame is currently chairperson of the African Union. “As such, Rwanda becomes shorthand for engagement with Africa generally,” Jared Jeffery, political analyst at South Africa-based research firm NKC African Economics, told CNBC via e-mail. He added that the deals inked with China and India were a significant sum for the small Rwandan economy.

“Modi’s visit is arguably more notable than Xi’s as India’s ascendancy in Africa is less meteoric than China’s,” Indigo Ellis, Africa analyst at consultancy Verisk Maplecroft, told CNBC via e-mail. She added that Kagame views cooperation between the world’s developing countries “as the future.”

The Rwandan president is spearheading the establishment of a single market across the African continent for goods and services which would encompass a combined gross domestic product of $2.5 trillion. The majority of the African Union’s 55 members have signed up, although Nigeria, the continent’s largest economy is yet to endorse the proposal.

The issue of trade may have another dimension for Kagame. “It seems that the visit (from Xi) was an opportunity to take a subtle dig at the U.S. – with which the country is having a small trade spat over second-hand clothing” Jeffery added.

“China relates to Africa as an equal,” Kagame said on Monday, a statement “implying that others did not,” Jeffery pointed out.

“Kagame is sending a strong message to the U.S. – that Rwanda does not need Washington’s ‘paternalistic’ version of aid when China and India are ready and willing to invest in his country,” said Ellis.

Xi and Modi are travelling in Africa ahead of a BRICS summit in Johannesburg, South Africa, which begins on Wednesday. Xi’s Africa itinerary began in Senegal over the weekend, and will also include a stop in Mauritius after the South Africa meeting. Meanwhile, Modi travelled to Uganda on Tuesday.