India’s EXIM Bank to back Africa more

India’s Export-Import Bank is planning to increase investments in African markets through a government-supported line of credit program, according to the bank’s managing director, Harsha Bangari. With China’s growing presence in Africa, Indian Prime Minister Narendra Modi has intensified efforts to strengthen ties with African nations by providing aid for infrastructure projects and encouraging private investments by Indian companies.

Bangari highlighted the potential of African markets as a rapidly growing consumer continent, presenting significant opportunities for Indian companies. Export-Import (EXIM) Bank of India, a state-owned institution that offers export financing and government-directed lending, is currently supporting over 300 small Indian companies seeking to expand their business in Africa.

The bank has committed approximately $12.8 billion in credit to 42 African countries thus far, with plans to raise $3-$3.5 billion in the current financial year, primarily in US dollars, to finance new projects.

India ranks among the top five investors in Africa, with Indian companies having invested nearly $75 billion in the continent. The bilateral trade between India and Africa reached nearly $100 billion in the fiscal year ending March 2023, and the Indian government aims to raise it to $200 billion by 2030.

EXIM Bank is actively engaged with various African governments as part of India’s economic diplomacy, including collaborations on projects such as a metro train initiative in Mauritius, bus exports from India to Senegal, and an electricity project in Gambia. The bank has also identified sustainable fuels, minerals for transport, renewable energy, and climate-smart agriculture as key areas for providing lending support to African countries.

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