To engage with Indian SMEs and support Indian investments in East Africa, Exim Bank plans to set up a Project Development Company (PDC) in Africa which will focus on bringing infrastructure projects in Africa to a bankable stage and facilitate exports from India to Africa, according to a news report posted on the website of the Federation of Indian Small, Micro and Medium Enterprises (FISME).
In March, Exim Bank signed a MoU with the International Trade Centre (ITC) to promote trade and investment between India and East Africa by supporting SMEs in their access to finance.
The developmental financial organisation was set up to promote exports. Its loan portfolio grew by 16 per cent to Rs 75,873 crore in 2013-14, and its loan to the MSME sector has shown a growth of 40 per cent. Its line of credit, extended to support exports of projects, goods and services from India, stands at $1,771.75 million for the period.
Project export contracts supported by the bank in 2013-14 amounted to Rs 34.131 crore, secured by 40 companies in 35 countries. As on March 31, 319 project export contracts valued at Rs 140,326 crore supported by the bank were under execution in 74 countries.
According to the bank's chairman and managing director, Yaduvendra Mathur, there is a huge appetite in leveraging the global value chain for the commodities and services sector for the export market, the report added.
