India Eximbank in Africa

8/12/2019 India Eximbank in Africa

1/32

EXIM BANK: PARTNER IN AFRICAS

DEVELOPMENTS.R. Rao

Chief General Manager

Export - Import Bank of India

Organisation for Economic Cooperation & Development

Paris, March 16-17, 2006


2/32

2

Exim India

Indias Foreign Trade & Indo-African Trade

Exim Bank of India : An Overview & Initiativesin Africas Development

Structure of Presentation


3/32

3

Exim India

Indias Foreign Trade

37

79

32

107

0

20

40

60

80

100

120

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

Exports Imports

(US$ bn)Merchandise Trade

Source: M ini stry of Commerce & I ndustry (MOCI), Government of I ndia (GOI)


4/32

4

Exim India

Indias Services Exports

51.3

16.3 17.1

20.825.0

36.7

18.4

14.6 13.817.1

5

15

25

35

45

55

2000-01 2001-02 2002-03 2003-04 2004-05

(US$b

n)

Exports Imports

Source: Reserve Bank of I ndia


5/32

5

Exim India

Trends in Software Exports

22.5

1.10.71.8 2.7

4.0

6.27.7

9.9

12.8

17.2

1995-96 1996-97 1997-98 1998-99 1999-

2000

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

P

One of the Fastest Growing Export Items

Source: NASSCOM

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

P - projection


6/32

6

Exim India

Software ExportsRole of Exim Bank

Exim Bank associated with development of Indian softwareindustry 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)


7/32

Indo-African Trade Relations


8/32

8

Exim India

Indo-African Trade Relations

23602897

3140

3869

5382

20632616

34473208

3758

4424

5513

6586

7078

9140

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

2000-01 2001-02 2002-03 2003-04 2004-05

(US$

mn)

Exports Imports Total Trade

Source: M ini stry of Commerce & I ndustry (MOCI), Govt. of I ndia (GOI )

Note: Import data do not include oil imports


9/32

9

Exim India

Indias Major Trade Partners in Africa, 2004-05

South

Africa

17.8%

Nigeria

11.4%

Egypt

7.9%

Kenya7.7%

Sudan

5.7%Togo

4.9%

Others

29.4%

Libya3.2%

Ghana

3.2%

Algeria

4.2%

Mauritius

4.6%

Exports (% share)

South

Africa

57.3%

Morocco

6.8%

Cote

d'Ivoire

4.2%

Others

12.5%

Guinea-

Bissau

1.9%

Ghana

1.3%

Tanzania

3.4%

Senegal

4.5%

Benin

2.1%

Tunisia2.3%

Egypt3.6%

Imports (% share)

Source: MOCI, GOI


10/32

10

Exim India

Major Items of Trade, 2004-05

Others

20%Raw Cotton

3%

Metaliferrous

ores

6%

Inorganic

chemicals

16.2%Cashew nuts

8.8%

Wood &

wood pdts

4%

Gold42.3%

Primary & semi-

fin. iron & steel

4.8%

Cotton yarn &

fabrics

7.4%

Plastic &linoleum pdts.

4.5%

Transport

equipment

7.8%

Machy. &

instruments

8.2%

Non-basmati

rice

8.1%

Pharmaceuticals

8 .4%

Mfgs. of metals

9.6%

Petroleum

prdts.

13.0%

Manmade yarn

& fabrics

3.8%

Others

24.5%

Exports (% share) Imports (% share)

Source: MOCI, GOI


11/32

Exim Bank of IndiaAn Overview & Initiatives in

Africas Development


12/32

12

Exim 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 countrysinternational trade

shall act on business principles with due regard to public interest

(Export-Import Bank of India Act, 1981)

Exim Bank of India


13/32

13

Exim India

Leadership and Expertise in Indias Export Finance

Comprehensive Range ofProducts And Services

All Stages of the Business Cycle

1982-85

1986-94

ExportCredits

Exim Bank TODAY

Export CapabilityCreation

Product CentricApproach

Customer CentricApproach

To develop commercially viable

relationships with a target set ofexternally oriented companies by

offering them a comprehensive range ofproducts and services, aimed at

enhancing their internationalisation

efforts

Evolving Vision


14/32

14

Exim India

Organisation: Network of Offices

HEAD MUMBAI

Domestic

Offices

9 Mumbai

Kolkata,

Bangalore

AhmedabadGuwahati

Delhi

Chennai

Hyderabad

Pune

OFFICES IN INDIA

OFFICES OVERSEAS

Overseas Rep.

Offices

5 Washington D.C.

Singapore

Johannesburg

London

Budapest


15/32

15

Exim India

Range of Products & Services

Pre-Shipment

ExportMarketing

ExportProduction

ExportProduct

Development

ImportFinance

AdvisoryServices

InvestmentAbroad

Post-Shipment

Presence Across All Stages of Business Cycle

INFORMATION

AdvisoryServices

KnowledgeBuilding

SUPPLEMENTS FINANCING PROGRAMMES

Value Based Services


16/32


17/32

17

Exim India

Major Programmes

Supplier's & Buyer's Credit

Pre-Shipment Credit

Guarantees & L/Cs

PROJECTS

Lines of Credit

Pre-Shipment Credit

Post-Shipment Credit

PRODUCTS

Supplier's Credit

Buyer's Credit

SERVICES

EXPORT CREDIT

TERM LOANS

WORKING CAPITAL

EXPORT MARKET/

EXPORT PRODUCT DEVELOPMENT

EXPORT

FACILITATION

OVERSEAS INVESTMENT

FINANCE

DIRECT EQUITY PARTICIPATION

IN INDIAN EXPORTING COs

DIRECT EQUITY PARTICIPATION

IN INDIAN OVERSEAS VENTURES

IMPORT FINANCE

CAPITAL GOODS, RAW MATERIALS

FINANCE FOR EXPORTING COS

EXPORT MARKETING

SERVICES

MULTILATERAL FUNDED

PROJECTS

JOINT VENTURE

FACILITATION

CONSULTANCY SUPPORT

WORKSHOPS & SEMINARS

INFORMATION SERVICES

VALUE-ADDED SERVICES

encompass all sectors

of the economy

Agriculture, Industry

and Services.


18/32

18

Exim India

Support for Execution of Projects

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

Pioneering Role in Promoting Project Exports

No. of Contracts : 190

Value of Contracts : US$ 6 bn

No. of Countries : 42

Projects currently under execution with Exim Bank support


19/32

19

Exim India

Exim Bank: Facilitator in Project Execution

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

Facilitating and Supporting Infrastructure Development


20/32

20

Exim India

Support for Sourcing Equipment / Projects

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

Lines of Credit (LOC): A catalyst for trade promotion


21/32

21

Exim India

Lines of Credit Extended to Africa

33 LOCs currently in operation in Africa amounting to US$ 1 billion

Countriescovered includeAngola, 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.

Institutionsinclude:

- 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)

Facilitates import of project-related equipments and services


22/32

22

Exim India

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 promotersloans 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 supplierscredit or buyerscredit / LOC

Exim Bank also undertakes direct equity participation in Indian ventures

abroad to enhance credibility and acceptability of Indian ventures overseas.

Facilitates value addition, contributes to capacity building & capability

creation in host countries

Overseas Investment Finance

Exim Bank: Facilitating Indian


23/32

23

Exim India

Exim Bank: Facilitating IndianInvestment 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


24/32

24

Exim India

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 & Coun try Studies (Occasional Paper/Working Paper

series)

Expo rt Ad vantage (Quarter ly)

Ag ri-Expor t Ad vantage (Bim on thly in 10 region al languages)

Indo-Afr ica Bu siness (Quarter ly)

Multilateral Funded Projects tracks opportunities and offers value

added information, advisory & support services to Indian companies to

enable their participation

Exim Bank - A Partner Institution to


25/32

25

Exim India

Exim Bank - A Partner Institution toPromote Economic Development in Africa

Provides I nformation, Advisory &

Support Services to facil i tate

participation of I ndian companies in

Af r ica in projects, supply & services

contracts funded by mul ti lateral

agencies such as Afr ican Development

Bank, Af rexim Bank,PTA Bank, East

Af r ican Development Bank, World

Bank.

Examples of Funded Projects in Africa executed by Indian companies:

Supply of Pharmaceuticals; Ghana Sewerage Study; EthiopiaTransmission Lines; Kenya Telecom Project; Malawi

Supply of Earth Moving Equipment; Tunisia Sugar Plant; Nigeria

Railway Restructuring Project; Tanzania


26/32

26

Exim India

International Finance Corporation, Washington under

the following arrangements:

Consultancy Support Services: Tie ups in Africa

Af r ica Project Development Facil ity (APDF)

Afri ca Enterpri se Fund (AEF )

Technical Assistance & Trust Fund (TATF)

Eastern & Southern Af r ican Trade & Development

Bank (PTA Bank)

Af r ican Management Services Company (AMSCO)

Under Government of I ndia-Af r ican Development

Bank Cooperation Agreement

Tie-up with


27/32

27

Exim India

Indian Consultancy Assignments in Africa

Ghana Refrigeration

Cameroon Cement

Nigeria Poultry

Kenya Financial Training

Madagascar Software

Zambia Gems & Jewellery

Uganda Nutri -Product Factory

Tanzania Accounting

Namibia I nvestment

Promotion

Mauritius Software

Gambia Paper

Zimbabwe Printing Press

Indicates assignments completed by Indian Consultants in AfricaContributes towards private sector developmentinhost countries


28/32

28

Exim India

Design and implementation of Export Finance Programmes ofIndustrial Development Corporation, South Africa

Exim Bank: Partner in Institution Building

Consultancy assignment for the Government of Mauritius onMauritius as an Investment Hub for Indian Firms

Establishing the Afreximbank

Oth I iti ti i Af i


29/32

29

Exim India

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

Oth I iti ti i Af i


30/32

30

Exim India

Representative Officein Johannesburg, South Africa

Equity Stake in Afreximbank, West African Development Bank,

Development Bank of Zambia

In-house research studieson Africa:

Studies on Indias Trade and Investment Potential - Select COMESA

Countr ies; Southern Afr ican Customs Union (SACU); SADC Countr ies;

South Afr ica

Snap Market Survey for Indian Pharmaceut icals Products in South Afr ica

Strategy for Quantum J ump in Exports: Focu s on Afr ica, LAC and China

Other Initiatives in Africa

Key partner institution in India-Africa Conclavesheld in March &

November 2005 in New Delhi

E i B k P t i D l

t


31/32

31

Exim India

Exim Bank : Partner in Development

Technology

Capital

(Foreign Investment)

Raw Materials

Capital Goods

Final Products

Capital Goods

Capital

(Overseas Ventures)

Product

Development

Production

Marketing

Pre shipment

Post shipment


32/32

32

Exim India

THANK YOU

www.eximbankindia.com

www.eximbankagro.com

India Eximbank in Africa

Documents

Transcript of India Eximbank in Africa