Commerce ministry adds new Line of Credit for Africa

A new Exim Bank Line of Credit for Africa has been introduced to speed up infrastructure project development in the continent, Commerce Minister Anand Sharma said here Sunday.

"We've also introduced another Line of Credit, added to the Exim-Bank. The finance ministry has put it together under the Export Credit Guarantee Corporation (ECGC) and the National Exports Insurance Authority (NEIA), for which Buyer's Credit is available for infrastructure projects in Africa," Sharma said at the 10th CII-Exim Bank (Export-Import Bank of India) conclave on India Africa Project Partnership.

Describing the conclave as an initiative in addition to what India does bilaterally with African countries, the commerce minister said Lines of Credit had been in operation for years to build infrastructure like hydel projects, transmission lines and rural electrification schemes.

India had been providing credit for African projects at highly competitive rates, he said.

"For Africa the cost of credit is highly competitive because we have put in interest subvention. It is as competitive as credit can be available to Africa from anywhere for infrastructure projects," Sharma said.

This, he said, was rooted in India's is commitment to African development.

"This is because of our commitment to share India's development experience, its institutions and technology for the prosperity of our brothers and sisters in Africa," he added.

Earlier, Exim Bank chairman Yaduvendra Mathur said about $5 billion worth of projects have been planned under the Buyers Credit introduced by the commerce ministry. A total of 200 Line of Credit were in operation for Africa.

Sharma said the India-Africa partnership was "distinct and different", exemplifying the spirit of South-South Cooperation, while India has committed over $10 billion to Africa for infrastructural and development projects since the holding of the first and second India Africa Forum Summit meetings.