Friday, March 21, 2025

A Diplomat’s Perspective on Development, Trade, and Impact Investing

Ambassador Gurjit Singh’s career has spanned continents and organizations, offering him a unique vantage point on the intricate web of global governance, international cooperation, and sustainable development. From his formative and rewarding tenure as Ambassador to Ethiopia to his accreditations with ASEAN and the African Union, Singh has witnessed firsthand the challenges and opportunities that shape the development trajectories of nations and regions.

Beyond his diplomatic service, Singh has immersed himself in the world of social impact investing, championing private-sector-led initiatives that aim to achieve public good. In this exclusive interview with Capital during his short visit to Addis Ababa, Gurjit Singh former Ambassador to Germany, Indonesia & ASEAN, Ethiopia & the African Union reflects on his experiences in Ethiopia, shares his insights on trilateral cooperation in Africa, explores the potential of the Asia Africa Growth Corridor, and discusses the crucial role of social impact investing in achieving the Sustainable Development Goals (SDGs).

With a career steeped in diplomatic engagement and a passion for driving positive change, Ambassador Singh offers a compelling vision for Africa’s future, one rooted in strategic partnerships, innovative financing, and a deep commitment to empowering communities across the continent. This interview provides a rare glimpse into the mind of a seasoned diplomat turned impact investor, whose insights are shaping the next chapter of Africa’s development story.

Capital: Ambassador Gurjit Singh, welcome back to Ethiopia. What brings you to Addis Ababa today?

Gurjit Singh: In recent weeks, I have had occasion to visit Germany and Indonesia, my two other ambassadorial positions after Ethiopia, so perhaps it was time to return to Ethiopia to complete my triangle of revisits to my ambassadorial assignment capitals. 

I also have an abiding faith and affection for Ethiopia. I came back to see how things are and to judge for myself how the country is progressing and adjusting to new realities, both internally and globally.

Ethiopia is an important country and has now joined the BRICS; there is abiding interest in investing in Ethiopia and having an economic partnership. I came to make an assessment of the economic and investment ambience so that as part of my private sector diplomacy, I could guide companies which looked to me for advice appropriately. 

So you can say it is a return to one of my favorite cities and a learning experience to keep up with the times since I left here in 2009.

Capital: Looking back at your tenure as Ambassador to Ethiopia, what would you consider the most significant achievements and challenges?

Gurjit Singh: I have lived in nine countries and served as the resident ambassador in three of them. I am often asked which assignment was the most rewarding, and without hesitation, I say that my tenure in Ethiopia from 2005 to 2009 was, professionally, the most eventful and satisfying period of my career. During that time, we significantly advanced India’s role as a development and economic cooperation partner with Ethiopia, securing major projects through foreign direct investment (FDI) and soft loans that transformed the India-Ethiopia relationship. The biggest challenge, however, has been maintaining that momentum and ensuring the successful completion of these projects.

Capital: You were also accredited to ASEAN and the African Union. What were the key differences in engaging with these regional bodies compared to individual countries? What commonalities did you observe?

Gurjit Singh: Yes, I had the unique privilege of being the only Indian ambassador accredited to two regional organizations: the African Union (AU) and ASEAN. The dynamics between these bodies differ significantly. The AU includes 54 countries, while ASEAN has 10 members. There is greater cohesion within ASEAN, but unlike the African Union, where the commission plays a dominant role, ASEAN’s secretariat mainly serves as a support body, with the country chair of the year having more influence on ASEAN’s direction. ASEAN is deeply concerned with its centrality and unity, seeking support from external partners, while the AU does not emphasize centrality in the same way, though it still engages with external partners on internal issues. ASEAN’s engagement with external partners is more structured, with 11 accredited dialogue partners, including India, and various other partnerships. In contrast, the AU’s engagement with its partners is often more ad hoc. Another significant difference is that ASEAN largely finances its own operations, which contrasts with the AU’s reliance on external funding. Furthermore, ASEAN, aside from Myanmar, has no major internal strife, making it a more potent economic force. As the AU becomes more effective, I expect it to follow a similar path.

Capital: Given your concurrent accreditation to Djibouti and IGAD from Ethiopia, what insights did you gain into the geopolitical dynamics of the Horn of Africa? How can these be applied to fostering stability and development in the region?

Gurjit Singh: Yes, I served as ambassador to Djibouti and IGAD while based in Ethiopia. Since then, India has opened a resident mission in Djibouti. My interest in the Horn of Africa was sparked by my visits to Djibouti and my interactions with IGAD and the AU. I now write frequently about this region, as it has many dynamics—both economic and strategic—that have international significance. IGAD has played a constructive role in South Sudan and other regional issues, though some of the current challenges may exceed its capacity. Any regional organization is only as effective as the cohesion of its members. When members’ interests align, the organization thrives; when they conflict, its effectiveness diminishes. IGAD has contributed to regional stability, and it has valuable lessons to draw from as it evolves.

Capital: How did your experiences in such diverse regions shape your perspective on global governance and international cooperation?

Gurjit Singh: I’ve been fortunate to serve across continents and regions. After retirement, I was often called upon to comment on regions where my experience had become relevant, such as Japan, ASEAN, the Indo-Pacific, Ethiopia, and the Horn of Africa, as well as Germany and Italy in Europe. In India, the focus tends to be on neighboring countries and major powers, so there are fewer people offering analysis on these regions. My diverse experiences have shaped my perspective on global governance and international cooperation, which I write about, including in my new books. The Harambee Factor was my last book on India and Africa. My next book is on India and ASEAN.

Capital: Could you elaborate on specific examples of successful trilateral cooperation initiatives in Africa involving India, and what made them work? What were the common pitfalls to avoid?

Gurjit Singh: Trilateral cooperation is becoming increasingly popular because it allows for more effective collaborations between partners from the North and the South. A notable early success of trilateral cooperation in Africa was the Commodity Exchange project in Ethiopia, modeled on India’s MCX. This was funded by international agencies and implemented efficiently. India is now working with the UK, Germany, and Japan on various projects, combining international financing, India’s development experience, and African priorities. Agricultural projects are underway in Malawi and Uganda, and training programs covering areas like textiles, seed development, and handicrafts. Some of these initiatives stem from the India-Africa Forum Summits, while others are bilateral. One key lesson is that the priorities of the recipient country must always be considered—projects should not be imposed on them. India’s development cooperation success lies in responding to what developing countries want, rather than dictating what they need. As I discuss in my book, The Harambee Factor, this approach is what makes India an attractive partner for other countries, including those in the G7.

Capital: How do you see the Asia Africa Growth Corridor (AAGC) evolving, and what role can India, Japan, and African nations play in its further development?

Gurjit Singh: The Asia-Africa Growth Corridor was initially a concept to link Japan, India, and Africa, though it remained more of a think-tank idea than a fully realized project. In practice, Japan has implemented the concepts through its TICAD process, and India has focused on its cooperation with Africa. I chaired a CII Task Force on trilateral cooperation for five years, during which we found that working with Japan is often most effective through the private sector. As a result, Japanese and Indian companies are now collaborating on business ventures in Africa, including infrastructure projects and commodity trading. This collaboration helps reduce costs by sourcing products from India rather than directly from Japan. While there is potential for more work in this area, it is primarily driven by the private sector.

Capital: In your view, what are the most promising sectors for trilateral cooperation in Africa, and what policy changes are needed to facilitate such partnerships?

Gurjit Singh: The most promising sectors for trilateral cooperation in Africa are those that contribute to the achievement of the SDGs, including women’s empowerment, education, renewable energy, recycling, agro-processing, and agri-tech. Larger infrastructure projects typically require greater government involvement, while smaller initiatives can be undertaken through impact investing. These smaller projects are often easier to execute, but they require an environment conducive to investment, as small entrepreneurs may lack the resources or time for lengthy processes. In contrast, large infrastructure projects face challenges in aligning the procurement processes of developed countries, India, and African nations, requiring close coordination.

Capital: What role can technology and innovation play in fostering sustainable development through trilateral cooperation in Africa?

Gurjit Singh: Technology and innovation play a crucial role in achieving the SDGs and driving development in Africa. In India, the success of the India Stack, which includes the digital economy, UPI payments, internet penetration, and mobile telephony, has made a significant impact. Many impact investing projects also leverage technology to improve delivery and reduce costs, helping to achieve development goals more effectively. These initiatives can take place bilaterally, trilaterally, or plurilaterally, but it is crucial that they come from African countries themselves, reflecting their entrepreneurial vision.

Capital: You are associated with the social impact investment movement. What specific projects are you currently involved in within Africa, and what impact are they having?

Gurjit Singh: We are currently pursuing a wide range of projects, either directly through the ESG Fund for Africa, established by the Aavishkar Group, or in collaboration with international foundations and institutions. These projects cover areas like agri-tech, agro-processing, digitizing land records, and setting up innovation incubators. In partnership with the International Solar Alliance, we are also working on blended finance models to implement renewable energy projects across African countries. Given the debt stress many countries face, these models prioritize grants and investments over loans. In a sense, I am playing the role of a private sector diplomat, facilitating business-to-business (B2B) cooperation rather than government-to-government (G2G) collaboration.

Capital: How can social impact investment be scaled up to address the pressing development challenges in Africa? What role can governments, private sector, and philanthropic organizations play?

Gurjit Singh: Governments should create a supportive environment, while the private sector needs to make space for small entrepreneurs. Philanthropic organizations should recognize that their grants will be more sustainable if they are part of the impact investing process and support entrepreneurial efforts. Scaling up comes once projects succeed, but impact investing is particularly effective for smaller projects, while larger ones need a different scalability approach.

Capital: How do you assess the current landscape of social entrepreneurship in Africa, and what support mechanisms are needed to nurture and grow this sector?

Gurjit Singh: For the past 11 years, we have been hosting the Sankalp Africa Summit in Nairobi at the end of February. If you attend, you will see the enthusiasm of entrepreneurs and investors driving social entrepreneurship. New ideas and investors are emerging, and there is a growing realization that we are lagging in achieving the SDGs. The social entrepreneurship and impact investing movement offers the best path forward. The Aavishkar Group has publishes an impact investment report on companies it has invested in across India, and this evolving matrix will help evaluate the social impact of these projects in the coming years. The key question remains: should investors prioritize returns or social impact? The theory of impact investing suggests that impact should come first, with returns following. So far, this has proven true, but as projects scale up, investors often seek regular returns and become less patient, which could affect the movement’s sustainability. Impact investing must guard against this tendency.

Capital: Given your experience in both diplomacy and social impact investing, how can these two worlds better collaborate to achieve sustainable development goals?

Gurjit Singh: I have found great satisfaction in sharing my diplomatic experiences with young people across India and abroad. The impact investing movement has given me new insights into how public good can be achieved without relying solely on governments. Through private sector diplomacy, I use my diplomatic experience to open doors and find pathways where development cooperation, once reliant on government efforts, can now be driven by private sector engagement. This area remains a great interest to me, and I believe it holds the potential to make a real difference in the lives of people in the Global South. Thank you for the opportunity to share my thoughts with you.

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