India extends $10 mn LoC to Africa

New Delhi, Oct 9: The Exim Bank of India has extended a fresh Line of Credit (LoC) of 10 million dollars to the PTA Bank in Africa, according to an agreement signed here today.

The agreement was signed during the Conclave on India-Africa Project Partnership and is in addition to the 37 LoCs amounting to 1.37 billion dollars already extended by the Exim Bank to various African countries, covering areas such as agriculture, transportation, steel and cement industry.

Earlier this year, the Exim Bank had signed a 250 million dollars LoC with the ECOWAS Bank for Investment and Development purposes, said Minister of State for External Affairs Anand Sharma.

These lines of credit will have a multiplier effect as the technical and professional capabilities of Indian business as also its global competitiveness will become familiar to Africa.

This financial support helps Indian firms develop a long-term understanding of the realities and development priorities of Africa which will in turn lead to increased commercial and business tie-ups between companies not reliant on financial support packages, Mr Sharma said.

The Minister said India has taken up the Pan-African e-network Project for establishing e-connectivity in all 53 countries of the African Union.

''The focus will be on tele-medicine and tele-education facilities from specialised institutes in India to remote learning and medical centers in each African nation,'' he said.

This is a common endeavour of India and Africa, he added.

Therefore, both the countries need to come together in facing the challenges relating to inequality amongst large sections of the world.

A stable political environment is a prerequisite for economic progress, said the minister. ''We work closely with our friends in Africa in the handling of major international political issues both through our bilateral dealings and multilateral forums.'' MEA Secretary Shashi U Tripathi said India aims at developing a greater political and economic understanding with countries on the African continent.

''We need to respond with more alacrity to the demands of the African countries,'' said the Secretary.

Ms Tripathi said the strategy for the further development of Africa is based on the building block approach with greater stress on the administrative practices and financial assistance.

Meanwhile, CII and the COMESA Business Council (CBC) also signed an MoU in order to promote technical cooperation in all fields of economic activity.

These areas of cooperation include agriculture and mineral products, infrastructure development, exchange of information, collaboration in strengthening the business community and development of small and medium enterprises.

Under the MoU, CII and CBC have agreed to establish and review working relationship, facilitate exchange of information and data on patterns of trade, investment and technology flows, promote contacts and cooperation, exchange information on policies and procedures relating to industrial, investment, trade and private sector partnership.

CII-CBC will also collaborate in identifying potential business and public institutions, provide forums for continuous consultations among business communities, match and facilitate twinning arrangements with various regional and international bodies, lastly increase of India-COMESA commerce and investment as per the agreement.

Such measures will help boost credibility of African countries among Indian business, said CII Chief Mentor Tarun Das. In turn, Indian companies will help develop African human and natural resources.

''We have a new energy growing between Africa and India. The process is at work and is moving steadily,'' said Mr Das.

UNI