EXIM%20BANK:%20PARTNER%20IN%20AFRICA

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EXIM BANK PARTNER IN AFRICAS DEVELOPMENT
Organisation for Economic Cooperation
Development Paris, March 16-17, 2006
S.R. Rao Chief General Manager Export-Import
Bank of India
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Structure of Presentation
Indias Foreign Trade Indo-African Trade
Exim Bank of India An Overview Initiatives in
Africas Development
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Indias Foreign Trade
(US bn)
Merchandise Trade
Source Ministry of Commerce Industry (MOCI),
Government of India (GOI)
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Indias Services Exports
Source Reserve Bank of India
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Trends in Software Exports
One of the Fastest Growing Export Items

• Software exports rose from US 0.7 bn
  in FY 1996 to US 17.2 bn in FY 2005
• Sharp rise in services exports due to
  software exports

Source NASSCOM
P - projection
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Software Exports Role of Exim Bank

• Exim Bank associated with development of Indian
  software industry since 1986
• Comprehensive financing / service package for
  software industry including
• - project / equipment finance working capital
  finance
• - overseas investment finance
• - obtaining product / process certification
• - export marketing export product development
• Establishment / expansion of software training
  institutes
• Facilitates setting up of software technology
  parks (STPs)

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Indo-African Trade Relations
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Indo-African Trade Relations
Source Ministry of Commerce Industry (MOCI),
Govt. of India (GOI) Note Import data do not
include oil imports
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Indias Major Trade Partners in Africa, 2004-05
Exports ( share)
Imports ( share)
Source MOCI, GOI
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Major Items of Trade, 2004-05
Exports ( share)
Imports ( share)
Source MOCI, GOI
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Exim Bank of India An Overview Initiatives
in Africas Development
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Exim Bank of India

• SET UP BY AN ACT OF PARLIAMENT IN SEPTEMBER 1981
• WHOLLY OWNED BY GOVERNMENT OF INDIA
• COMMENCED OPERATIONS IN MARCH 1982
• APEX FINANCIAL INSTITUTION
• OBJECTIVES
• for providing financial assistance to
  exporters and importers, and for functioning as
  the principal financial institution for
  coordinating the working of institutions engaged
  in financing export and import of goods and
  services with a view to promoting the countrys
  international trade
• shall act on business principles with due
  regard to public interest
• (Export-Import Bank of India Act, 1981)

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Evolving Vision
Product Centric Approach
To develop commercially viable relationships
with a target set of externally oriented
companies by offering them a comprehensive range
of products and services, aimed at enhancing
their internationalisation efforts
Export Credits
1982-85
Export Capability Creation
1986-94
Comprehensive Range of Products And Services
All Stages of the Business Cycle
Customer Centric Approach
Exim Bank TODAY
Leadership and Expertise in Indias Export Finance
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Organisation Network of Offices
OFFICES IN INDIA
OFFICES OVERSEAS
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Range of Products Services
Presence Across All Stages of Business Cycle
Value Based Services
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Business Strategy
THREE-PRONGED APPROACH
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Major Programmes
encompass all sectors of the economy
Agriculture, Industry and Services.
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Support for Execution of Projects
Pioneering Role in Promoting Project Exports

• Exim Bank plays a pivotal role in promoting and
  financing Indian companies in the execution of
  projects
• Over the past two decades, increasing number of
  projects have been executed by Indian companies
  in North Africa, Sub Saharan Africa, West Asia,
  South South East Asia, CIS and Latin America

Projects currently under execution with Exim Bank
support
No. of Contracts 190 Value of Contracts US
6 bn No. of Countries 42
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Exim Bank Facilitator in Project Execution
Facilitating and Supporting Infrastructure
Development

• Turnkey contract for Gas Based Power Project in
  Tanzania funded by World Bank.
• Transmission System Rehabilitation and
  Maintenance Project in Zambia.
• Turnkey contract for Multi-Product Pipeline
  Project in Sudan
• Consultancy assignment in Small Town water supply
  project in Nigeria.
• Supplies for Urban Power Rehabilitation Project
  in Uganda.
• Transmission Line Projects in Algeria, Tunisia
• Construction of Cyber Towers in Mauritius

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Support for Sourcing Equipment / Projects
Lines of Credit (LOC) A catalyst for trade
promotion

• Enables import of Indian equipment and technology
  on deferred credit terms
• Particularly relevant for small and medium
  sectors
• Lines of Credit are extended to Overseas
  Governments, Government agencies overseas,
  National or regional development banks abroad,
  Commercial banks abroad
• 60 Operative LOCs amounting to US 1.63 billion
  in more than 70 countries

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Lines of Credit Extended to Africa
Facilitates import of project-related equipments
and services

• 33 LOCs currently in operation in Africa
  amounting to US 1 billion
• Countries covered include Angola, Burkina Faso,
  Burundi, Chad, Comoros, Congo, Cote dIvoire,
  Djibouti, Equatorial Guinea, Egypt, Eritrea,
  Ethiopia, Gambia, Guinea Bissau, Kenya, Lesotho,
  Malawi, Mali, Mauritius, Morocco, Mozambique,
  Niger, Rwanda, Senegal, Seychelles, Somalia,
  South Africa, Sudan, Tanzania, Togo, Uganda,
  Zambia Zimbabwe.
• Institutions include
• - ABSA Bank, South Africa
• - Offshore Development Company, Namibia
• - Eastern and Southern African Trade
  Development Bank (PTA Bank)
• - West African Development Bank (BOAD)
• - Eastern African Development Bank (EADB)

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Overseas Investment Finance
Facilitates value addition, contributes to
capacity building capability creation in host
countries

• Supported 127 overseas ventures by 104 Indian
  companies in 44 countries. Aggregate loans
  extended amount to approx. US 470 mn.
• Term loan towards equity of Indian company
  (promoter funding)
• Term loan towards Indian promoters loans to
  overseas Joint Ventures (JVs) Term loan or
  working capital directly to JVs
• Term loan to overseas JVs for import of plant and
  machinery and services from India Can be
  structured as suppliers credit or buyers credit
  / LOC
• Exim Bank also undertakes direct equity
  participation in Indian ventures abroad to
  enhance credibility and acceptability of Indian
  ventures overseas.

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Exim Bank Facilitating Indian Investment in
Africa

• Indicates presence of Indian companies in some
  of the countries in Africa in the form of joint
  ventures, supported by Exim Bank.

Mauritius Infotainment Sector Kenya
Precured Tread Rubber Morocco
Fertilisers Chemicals
Uganda Pharmaceuticals South
Africa Computers Zambia
Precious stones
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Support Activities

• Cooperation arrangements with International
  Finance Corporation (World Bank Group) to
  facilitate utilisation of Indian consultancy
  services Africa Project Development Facilities
• Publications of export related research papers
  and newsletters
• Sector Studies Country Studies (Occasional
  Paper/Working Paper series)
• Export Advantage (Quarterly)
• Agri-Export Advantage (Bimonthly in 10 regional
  languages)
• Indo-Africa Business (Quarterly)
• Multilateral Funded Projects tracks
  opportunities and offers value added information,
  advisory support services to Indian companies
  to enable their participation

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Exim Bank - A Partner Institution to Promote
Economic Development in Africa

Provides Information, Advisory Support Services
to facilitate participation of Indian companies
in Africa in projects, supply services
contracts funded by multilateral agencies such as
African Development Bank, Afrexim Bank,PTA Bank,
East African Development Bank, World Bank.
Examples of Funded Projects in Africa executed by
Indian companies

• ? Supply of Pharmaceuticals Ghana
  ? Sewerage Study Ethiopia
• Transmission Lines Kenya ?Telecom
  Project Malawi
• Supply of Earth Moving Equipment Tunisia ?
  Sugar Plant Nigeria
• Railway Restructuring Project Tanzania

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Consultancy Support Services Tie ups in Africa

International Finance Corporation, Washington
under the following arrangements
Tie-up with
Africa Project Development Facility (APDF)
Africa Enterprise Fund (AEF) Technical
Assistance Trust Fund (TATF)
Eastern Southern African Trade Development
Bank (PTA Bank)
African Management Services Company (AMSCO)
Under Government of India-African Development
Bank Cooperation Agreement
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Indian Consultancy Assignments in Africa
Uganda Nutri-Product Factory
Ghana Refrigeration
Tanzania Accounting
Cameroon Cement
Namibia Investment Promotion

Nigeria Poultry

Kenya Financial Training
Mauritius Software

Madagascar Software
Gambia Paper

Zambia Gems Jewellery
Zimbabwe Printing Press

• Indicates assignments completed by Indian
  Consultants in Africa
• Contributes towards private sector development
  in host countries

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Exim Bank Partner in Institution Building
Design and implementation of Export Finance
Programmes of Industrial Development Corporation,
South Africa
Establishing the Afreximbank
Consultancy assignment for the Government of
Mauritius on Mauritius as an Investment Hub for
Indian Firms
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Other Initiatives in Africa

• Strong Relationship with African Development Bank
  (AfDB)
• Co-financing Agreement with AfDB
• Seminars organised with AfDB in major cities in
  India
• CEO level delegations led by Exim Bank to AfDB
• Institutional Linkages in Africa
• Industrial Development Corporation of South
  Africa Limited (IDC)
• Foreign Investment Promotion Agency, Tunisia
• Banque Internationale Arabe de Tunisie
• Board of Investment of Mauritius
• Member of Association of African Development
  Finance Institutions

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Other Initiatives in Africa

• Representative Office in Johannesburg, South
  Africa
• Equity Stake in Afreximbank, West African
  Development Bank, Development Bank of Zambia
• In-house research studies on Africa
• Studies on Indias Trade and Investment
  Potential - Select COMESA Countries Southern
  African Customs Union (SACU) SADC Countries
  South Africa
• Snap Market Survey for Indian Pharmaceuticals
  Products in South Africa
• Strategy for Quantum Jump in Exports Focus on
  Africa, LAC and China

• Key partner institution in India-Africa Conclaves
  held in March November 2005 in New Delhi

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Exim Bank Partner in Development

• Final Products
• Capital Goods
• Capital(Overseas Ventures)

• Technology
• Capital
• (Foreign Investment)
• Raw Materials
• Capital Goods

EXPORT

• Product Development
• Production
• Marketing
• Pre shipment
• Post shipment

ADDITION
VALUE
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