India EXIM Bank endeavours to enhance trade ties in African countries
India’s Exim Bank inaugurated its East Africa representative office in Nairobi last week. The Bank opened its regional offices at the Oval Building in Westlands. The office will serve Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda among others. This follows the approval by the Kenyan Government in November last year.
Speaking during the opening ceremony, Prime Cabinet Secretary Mr. Musalia Mudavadi said the move will bolster bilateral ties and enhance economic cooperation.
“This move affirms India’s confidence in Kenya’s position as the leading regional financial and economic hub,” Mr. Mudavadi said, adding that “The entry of India Exim Bank to Kenya and the East African region will not only promote trade and investment between Kenya and India but also open the region to other lucrative opportunities.”
He further said there lies a great opportunity for the bank to support other priority sectors, including healthcare and technology and also pointed out that this move will benefit the small and medium enterprises, who are interested in the diversity, quality and range of financial products that the bank offers to meet their financial needs.
Merchandise trade between the two regions has witnessed considerable growth over the past decade, escalating from USD 9.7 billion in 2013 to USD 12.9 billion in 2022. India’s exports to East Africa, which stood at USD 8.6 billion in 2013, rose to USD 9.4 billion by 2022. Under its Overseas Investment Finance Program, India Exim Bank has thus far provided financing for 77 ventures established by over 50 companies across 14 African countries.
Since 2022, the bank has supported 76 transactions totalling nearly USD 800 million in 18 African nations, aiding 22 Indian exporters, including 10 micro, small, and medium enterprises (MSMEs), based in 14 cities across nine Indian states through its Trade Assistance Program (TAP) and other trade facilitation initiatives.
Furthermore, on behalf of the Indian government, India Exim Bank has extended over 200 Lines of Credit to 42 African nations, amounting to more than USD 12 billion.
