Indian prime minister Manmohan Singh on Tuesday announced a mammoth five-billion-dollar credit to Africa for various development projects, reflecting India's growing ties with the resource-rich continent.

Singh also declared an additional USD 700 million package to establish new institutions and training programmes across the continent, besides USD 300 million for a new Ethio-Djibouti railway line in Ethiopia.

"We will offer 5 billion US dollars for the next three years under lines of credit to help Africa achieve its development goals," Singh said addressing the second Africa-India Forum summit here.

Offering India's support to Africa to realise its vast potential, Singh said there was a new economic growth story emerging from Africa.

"Africa possesses all the prerequisites to become a major growth pole of the world. There is good news in the struggle against HIV and AIDS, as well as in improving literacy, reducing infant mortality and building institutions of representative government," he said.

Singh noted the success of the Pan-African E-Network project and announced plans to establish an India-Africa Virtual University which could meet the demand among African students for higher studies in Indian institutions.

"We further propose that 10,000 new scholarships under this proposed University will be available for African students after its establishment," he said. .

"The world faces new challenges in meeting the requirements of food and security. Global institutions of governance are outmoded and under stress," Singh said.

The prime minister said in the light of these challenges, there was need for a "new spirit of solidarity" among developing countries.

Describing the summit as a historic gathering of leaders, he said it was for the first time that India and Africa were meeting on such a scale on African soil.

He said the presence of the leaders showed that the two sides were on the right path in building an enduring partnership. "A partnership that is unique, special and between two equals".

Singh, whose speech was greeted with loud applause, went down memory lane saying India will never forget Africa's role in inspiring its own struggle for national liberation.

"It was here that Mahatma Gandhi developed his political philosphy and developed the concepts of non-violence and peaceful resistance," he recalled.

The prime minister said an architecture of cooperation and a culture of communication and dialogue have been put in place but much more needed to be done.

People are hungry for progress, he said.

Noting that Africa possessed all the prerequisites to become a major growth pole of the world in the 21st century, he said India will work with it to realise this potential.

"We believe that a new vision is required for Africa's development and participation in global affairs," he said.

Among other proposals announced by Singh were establishment of an India-Africa Virtual University to meet some of the demand in Africa for higher studies in Indian institutions.

He said 10,000 new scholarships will be available for African students once this university was established.

Acknowledging the constraints posed by insufficient air connectivity, he said India would be happy to increase the access of African airlines to Indian cities in a significant manner over the next three years.

Among the other initiatives, he announced the setting up of an India-Africa Food Processing Cluster to contribute to value addition and the creation of regional and export markets and a separate integrated textiles cluster to support the cotton industry and its processing and conversion into high value products.

An India-Africa Centre for Medium Range Weather Forecasting will also be set up to harness satellite technology for the agriculture and fisheries sectors as well as contribute towards disaster preparedness and management of natural resources. .

Singh said India will help set up a food processing cluster and an integrated textiles cluster to develop local markets.

Singh also announced setting up of an India-Africa Centre for Medium Range Weather Forecasting which will harness satellite technology for the agriculture and fisheries sectors as well as contribute towards disaster preparedness and management of natural resources.

"We have received a request to support the establishment of an India-Africa University for Life and Earth Sciences. We would be happy to support this important venture," he said.

"As part of our new initiatives in the social and economic sectors we will establish Rural Technology Parks, Food Testing Laboratories, Food Processing Business Incubation Centres and Centres on Geo-Informatics Applications and Rural Development," he said.

Favouring better air connectivity with the region, Singh said India would be happy to increase the access of African airlines to Indian cities in a significant manner over the next three years.

Singh said India will contribute USD two million for the African Union Mission in Somalia as a token of its commitment to support Africa's endeavours for seeking indigenous solutions to their problems.

He also asked the private sector to be fully involved in the efforts to integrate the economies of India and Africa.

"The private sectors should be fully involved in the efforts to integrate our economies. I propose that we establish an India-Africa Business Council which will bring together business leaders from both sides," he said.

"We do not have all the answers but we have some experience in national building which we are happy to place at the disposal of Africa," Singh said adding, "our belief in democracy, pluralism and tolerance is one such".

Among other proposals announced by Singh were establishment of an India-Africa Virtual University to meet some of the demand in Africa for higher studies in Indian institutions.

He said 10,000 new scholarships will be available for African students once this university was established.

Acknowledging the constraints posed by insufficient air connectivity, he said India would be happy to increase the access of African airlines to Indian cities in a significant manner over the next three years.

Among the other initiatives, he announced the setting up of an India-Africa Food Processing Cluster to contribute to value addition and the creation of regional and export markets and a separate integrated textiles cluster to support the cotton industry and its processing and conversion into high value products.

An India-Africa Centre for Medium Range Weather Forecasting will also be set up to harness satellite technology for the agriculture and fisheries sectors as well as contribute towards disaster preparedness and management of natural resources. .