Indian Exim Bank inks pact with Southern Africa’s leading bank to boost India-Africa trade

Indian Exim Bank inks pact with Southern Africa’s leading bank to boost India-Africa trade: The Export-Import Bank of India (India Exim Bank) has signed a Master Risk Participation Agreement with FirstRand Bank (FRB) Limited to support trade transactions. The agreement was signed on the sidelines of the India-Southern Africa Regional Conclave in Johannesburg. Under this program, India Exim Bank provides credit enhancement to trade instruments, thereby increasing the capacity of commercial banks and financial institutions to conduct cross-border trade transactions with markets where trade lines are constrained or potential has not been realized.

About India-Africa trade

• India’s bilateral trade with Africa reached $89.5 billion (€86.45 billion) in 2021-2022 compared with $56 billion the previous year.
• The primary exports of India to Africa are refined petroleum products and pharmaceuticals, whereas Africa’s primary exports are crude oil, gold, coal, and other minerals.
• In recent years, India has emerged as one of the top five African investors, with a total investment on the continent of around $74 billion.
• The top Indian investment destinations have been Mauritius, Mozambique, Sudan, Egypt, and South Africa.
• Indian firms are also becoming more active in resource-rich countries such as Ghana and Nigeria.
• A number of Indian multinational corporations already have substantial interests in the region, with strategic sectors such as agribusiness, pharmaceuticals, information, and communications technology (ICT), and energy.

About Exim Bank

• The Government of India established the Exim Bank under the Export-Import Bank of India Act, 1981 as a provider of export credit, mirroring global Export Credit Agencies.
• Exim Bank, through a diverse range of products and services, serves as a growth engine for industries and SMEs. This includes technology imports and export product development, export production, export marketing, pre- and post-shipment, and foreign investment.
• Founded: 1982
• Headquarters: Mumbai
• CEO: Ms. Harsha Bangari