Exim Bank's $7.6 Bn Locs Help 44 African Countries

S. Prahalathan, CGM, Export-Import Bank of India, provides important milestones, trends and future prospects of India-AfDB collaboration:

India’s collaboration with the African Development Bank (AfDB) group spans over 30 years. Export-Import Bank of India (Exim Bank) has extended an additional line of credit (LOC) of $71.4 million, during AfDB meetings in Ahmedabad, to the government of the Cote d’Ivoire, for upgradation of 4 military hospitals in Abidjan, Korhogo, Bouake and Daloa. Exim Bank also extended an LOC of $500 million to the SBM (Mauritius) Infrastructure Company for financing infrastructure projects in Mauritius. Two credit confirmation statements of $87.46 million and $200 million were also exchanged under the bank’s ‘Buyers’ Credit- NEIA’ (BC-NEIA) program. The facilities have been provided by the bank for supply of vehicles to Côte d’Ivoire.

Africa-India trade rose 5-fold in the last decade and is forecast to double to $100 billion by 2018, according to African Development Bank president Akinwumi Adesina. In November 2016, India pledged ₹1.25 billion for African Development Fund (ADF-14). At the 3rd India-Africa Forum Summit 2015 held in New Delhi, India announced a concessional credit line of US $10 billion to Africa in the next 5 years, in addition to the ongoing credit program and grant assistance of $600 million. In May 2015, India and the AfDB signed a new Trust Fund for Rs600 million. India- AfDB collaboration is articulated around 3 main pillars: ADF replenishment, bilateral trust fund, and co-financing arrangements, in addition to the provision of resources for the implementation of the Multilateral Debt Relief Initiative (MDRI).

S. Prahalathan, CGM, Exim Bank of India, who was in Ahmedabad during these meetings, heads the Research and Analysis Group at the bank. He has represented the bank on various forums involving African countries and institutions.