At the behest of the Indian government, Exim Bank of India has given a line of credit of US$100 million (Rs 730 crore) to the Africa Finance Corporation (AFC) to support the development of the continent’s infrastructure as many nations within the region journey towards a much-needed economic recovery.
AFC provides infrastructure solutions to countries on the African continent. With the latest capital injection, AFC hopes to prioritize infrastructure projects that are considered critical to the economy as the continent gradually comes out of the shadows cast by the COVID-19 health crisis.
The lifetime of this soft loan is 10 years, allowing AFC ample time to focus on its core goal, which is to bridge Africa’s infrastructure gap, while also driving sustainable growth.
India’s sovereign export credit agency Exim Bank has consciously focused on finding ways to support and finance projects in Africa, especially through the provision of tenured loans.
“India Exim Bank continues to foster a network of alliances and institutional linkages with multilateral agencies like Africa Finance Corporation, who have a strong credit profile and are at the forefront of changing the development landscape in Africa,” said Harsha Bangari, Deputy MD of India Exim Bank.
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