The African continent\\\'s need for investment for development is being targeted by leading export finance organisation, Exim Bank, which of late, has initiated a slew of programmes to promote project exports.
The African continent's need for investment for development is being targeted by leading export finance organisation, Exim Bank, which of late, has initiated a slew of programmes to promote project exports.
Project export contracts supported by the bank in 2013-14 amounted to Rs 34.131 crore which were secured by 40 companies in 35 countries. As on March 31, 319 project export contracts valued at Rs 1,40,326 crore supported by the bank were under execution in 74 countries across Asia, Africa and CIS by 99 Indian companies.
What is of special significance is that while its loan portfolio has grown 16 per cent during the period, its loan to the MSME sector has shown a growth of 40 per cent. It perhaps underlines the organisation's thrust to promote the fledging MSME sector.
The bank plans to set up a Project Development Company (PDC) in Africa which will essentially look to bring infrastructure projects in Africa to a bankable stage and facilitate exports from India to Africa.
Africa's total trade have risen five-fold from $225 billion to $1129 billion during 2001-2011. During that decade, the region has emerged as an important partner for India, both as an export market and as an import source. India's total trade with Africa has risen 12-fold, from $5.2 billion in 2001 to touch $63 billion in 2011. While India's total exports to Africa has risen 8-fold during the period, the country's total import from Africa has shown a 17-fold increase.
However, India has achieved a respectable share in only a few commodities out of the major import categories of African countries. The bank believes that India's current global capacity could be matched with Africa's import demand, leading to enhanced exports from India. Strategy to promote bilateral trade relations could also encompass the case of enhancing domestic production in India.
India's expertise in several manufactured products and technology, capability in high value added production and manufacturing, with an increasing import demand could prove to be a win-win situation for both India and Africa.
In March, Exim Bank signed a MoU with the International Trade Centre to promote trade and investment between India and East Africa through the support of SMEs in their access to finance.