| |
Exim
Bank's Strategy
for the Focus
Region
Africa Crucial
for Boosting
Two-way Trade
& Tie-ups
The countries
in the African
Continent have
always been a
focus region for
Export-Import
Bank of India
(Exim Bank of
India), and thus
a critical component
of the Bank's
strategy to promote
and support two-way
trade and investment.
As a partner institution
to promote economic
development in
Africa, the commitment
towards building
relationships
with the African
region is reflected
in the various
activities and
programmes which
Exim Bank of India
has set in place.
Exim Bank of India
has a representative
office in Johannesburg,
South Africa,
which plays a
key role in facilitating
economic cooperation
with the African
region, and is
closely associated
with several of
the Bank's initiatives.
The representative
office interfaces
with institutions
such as Industrial
Development Corporation
of South Africa
Ltd., African
Development Bank,
regional financial
institutions such
as Eastern and
Southern African
Trade and Development
Bank (PTA Bank),
Afri-exim Bank,
and West African
Development Bank
(BOAD) as well
as Indian missions
in the region.
Promoting
Infrastructure
Development &
Capacity Building
in Host Countries
Exim Bank of India
plays a pivotal
role in promoting
and financing
Indian companies
in execution of
projects. Such
projects, primarily
in the infrastructure
sector, contribute
to local and regional
development. Towards
this end, the
Bank extends funded
and non-funded
facilities for
overseas industrial
turnkey projects,
civil construction
contracts, supplies
as well as technical
and consultancy
service contracts.
In the Africa
region, Indian
companies have
implemented numerous
projects in Africa,
spanning various
sectors, with
such support from
Exim Bank of India.
These projects,
in turn, facilitate
and support infrastructure
development in
host countries,
thereby contributing
to the overall
development process
in the region.
Such projects
would include:
Turnkey contract
for Gas Based
Power Project
in Tanzania funded
by World Bank;
Transmission System
Rehabilitation
and Maintenance
Project in Zambia;
Turnkey contract
for Multi-Product
Pipeline Project
in Sudan; Consultancy
assignment in
Small Town water
supply project
in Nigeria; Supplies
for Urban Power
Rehabilitation
Project in Uganda;
Transmission Line
Projects in Algeria,
Tunisia; Construction
of Cyber Towers
in Mauritius.
To enhance bilateral
trade and investment
relations, Exim
Bank of India
has in place several
Lines of Credit
(LOCs) extended
to a number of
institutions/agencies
in Africa. These
LOCs supplement
the “Focus
Africa”
programme of the
Government of
India. Currently,
40 LOCs are in
operation amounting
to over US$ 1.5
bn covering more
than 30 countries
in the African
region. These
LOCs facilitate
import of project-related
equipments and
services from
India on deferred
credit terms.
At the same time,
many of these
LOCs are earmarked
for infrastructure
and related projects.
For instance,
Angola - Railway
Rehabilitation
Project and acquisition
of Tractors from
India; Burkina
Faso- Agricultural
projects including
acquisition of
tractors, harvesters,
agricultural processing
equipment; Chad
- Setting up of
cotton yarn plant,
Steel billet plant
and rolling mill,
plant for assembly
of agricultural
equipment; Cote
d”Ivoire
- Project for
renewal of urban
transport system
in Abidjan and
for agricultural
projects; Congo
DR - setting up
a cement factory,
acquisition of
buses, rehabilitation
of Manganese mine
and acquisition
of equipment;
Ethiopia - Energy
transmission and
distribution project;
Gambia - Setting
up of Tractor
assembly plant;
Ghana - Rural
electrification,
agriculture, communication
and transportation
projects; Lesotho
- Export of tractors,
pump sets, consultancy
services and irrigation
equipment; Mali
- Rural electrification
and setting up
of agro machinery
and tractor assembly
plant; Mozambique
- Gaza Electrification
Project; Niger-Acquisition
of transport equipments,
motor pumps and
flour mills; Senegal
- Development
of rural SMEs
and purchase of
agricultural machinery
and equipment
from India, Irrigation
project and Acquisition
of railway coaches
and locomotives
from India; Sudan
- Transmission
and Sub-Station
Project, and Project
for setting up
Power Plan.
Further, Exim
Bank of India
supports Indian
companies in their
endeavour to globalise
their operations,
through joint
ventures (JVs)
and wholly owned
subsidiaries (WOS).
Such support include
loans and guarantees,
equity finance
and in select
cases direct participation
in equity along
with Indian promoter
to set up such
ventures overseas.
In the African
region, the Bank
has supported
several such ventures
in such as South
Africa, Kenya,
Mauritius, Nigeria,
Zambia, Morocco,
Uganda and Tanzania.
These ventures
serves to promote
value addition,
as also contribute
to capacity building
and capacity creation
in host countries.
Supporting
Private Sector
Development
The financing
programmes of
the Bank are supplemented
by the various
advisory services
for facilitating
participation
of Indian companies
in projects funded
by multilateral
agencies in Africa.
Exim Bank of India
has tie-ups with
institutions such
as the International
Finance Corporation
(IFC), the Africa
Project Development
Facility, the
PTA Bank, to provide
consultancy support
services in African
countries. To
date, over 50
assignments have
been supported
by Exim Bank under
the arrangements
with IFC and PTA
Bank spanning
various sectors
in countries including
Botswana, Lesotho,
Namibia, Mozambique,
Kenya, Tanzania,
Angola, Madagascar,
Zambia, Nigeria
and Ghana. These
assignments facilitate
development of
private sector
small and medium
enterprises in
host countries
in the African
region.
Partner
in Institutional
Building in Africa
As a partner institution
in promoting economic
development in
Africa, Exim Bank
of India shares
its experience
in the setting
up of institutional
infrastructure
for international
trade. In this
regard, the Bank
has taken active
participation
in the institutional
building process
in a number of
countries in Africa.
Besides being
associated in
the setting up
of the Afri-Exim
Bank, the Bank
has been involved
in the design
and implementation
of Export Finance
Programmes of
Industrial Development
Corporation, South
Africa; Consultancy
Assignment for
the Government
of Mauritius on
'Projecting Mauritius
as an investment
hub for Indian
Firms'; establishment
of Export Credit
Guarantee Company
in Zimbabwe; and
preparing a blue
print for setting
up of Export-Import
Bank of Zimbabwe.
Exim Bank of India
has taken the
initiative of
setting up of
Global Procurement
Consultants Ltd.
(GPCL), in partnership
with leading consultancy
firms in India,
for providing
procurement related
services to multilateral
agencies such
as World Bank,
African Development
Bank and Asian
Development Bank.
GPCL has undertaken
a number of assignments
in many countries
in Africa including
Tanzania, Swaziland,
Sudan, Nigeria,
Uganda, Malawi,
and Mozambique.
Institutional
Linkages
Exim Bank of India
has been consciously
forging a network
of alliances and
institutional
linkages to help
further economic
co-operation with
the Africa region.
Towards this end,
Exim Bank has
taken up equity
in Afrexim Bank,
West African Development
Bank (BOAD), and
Development Bank
of Zambia. These
endeavour's are
supplemented by
the various Memoranda
of Cooperation
(MOCs)/ Memoranda
of Understanding
(MOUs) the Bank
has in place with
key institutions
in the African
region including:
Afrexim Bank;
Banque Internationale
Arabe de Tunisie,
Tunisia; Board
of Investment
of Mauritius;
Industrial Development
Corporation of
South Africa Limited
(IDC); Foreign
Investment Promotion
Agency, Tunisia;
Eastern and Southern
African Trade
and Development
Bank (PTA Bank);
Societe Tunisienne
de Banque, Tunis.
Member of Association
of African Development
Finance Institutions
(AADFI)
Exim Bank of India
is a member of
the African Development
Finance Institutions
(AADFI), a forum
of institutions
/ banks with the
objective of creating
co-ordination
and economic solidarity
among the development
finance institutions
in the African
continent. The
membership of
AADFI helps provides
a platform for
building linkages
with other institutions
in Africa, which
are members of
AADFI.
Knowledge
Building and Technology
Transfer
In the area of
knowledge building
and technology
transfer, Exim
Bank of India's
research studies
have focused on
potential areas
for boosting India's
trade and investment
relations with
the Southern African
Customs Union
(SACU) member
countries, Southern
African Development
Community (SADC)
member countries,
as also members
of the Common
Market for Eastern
and Southern Africa
(COMESA). Further,
Exim Bank of India's
bilingual (English
and French) magazine
titled “Indo-African
Business”
focuses on bilateral
trade and investment
between India
and Africa, and
addresses the
business information
needs of companies
who are interested
in trade with
the African region.
Conclaves
on India-Africa
Project Partnership
Exim Bank of India
has been a key
partner in the
conclaves on India-Africa
Project Partnerships,
which seek to
create platforms
for decision makers
from African countries
and relevant multilateral,
regional and national
funding agencies
to meet, in one
place, the entire
range of Indian
companies involved
in engineering
consultancy, turnkey
projects, construction
and supply of
project goods
among others.
In Sum
In sum, Exim Bank
of India, with
its comprehensive
range of financing,
advisory and support
services, seeks
to create an enabling
environment for
enhancing two-way
flow of trade,
investment and
technology between
India and the
African region,
while also promoting
infrastructure
development, facilitating
private sector
development in
host countries,
also in contributing
towards institutional
building in the
Africa region.
|
