1. EXIM BANK: PARTNER IN AFRICA’S DEVELOPMENT
Organisation for Economic Cooperation & Development
Paris, March 16-17, 2006
EXIM BANK: PARTNER IN AFRICA’S DEVELOPMENT
S.R. Rao
Chief General Manager
Export-Import Bank of India

2. Structure of Presentation
India’s Foreign Trade & Indo-African Trade
Exim Bank of India : An Overview & Initiatives in Africa’s Development

3. India’s Foreign Trade Merchandise Trade (US$ bn)
Source: Ministry of Commerce & Industry (MOCI), Government of India (GOI)

4. India’s Services Exports
Source: Reserve Bank of India

5. One of the Fastest Growing Export Items
Trends in Software Exports
One of the Fastest Growing Export Items
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
Source: NASSCOM
P - projection

6. Software Exports – Role of Exim Bank
Exim Bank associated with development of Indian software industry 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. Indo-African Trade Relations

8. Indo-African Trade Relations
Source: Ministry of Commerce & Industry (MOCI), Govt. of India (GOI)
Note: Import data do not include oil imports

9. India’s Major Trade Partners in Africa, 2004-05
Exports (% share)
Imports (% share)
Source: MOCI, GOI

10. Major Items of Trade, 2004-05 Exports (% share) Imports (% share)
Source: MOCI, GOI

11. Exim Bank of India – An Overview & Initiatives in Africa’s Development

12. Exim Bank of 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 country’s international trade…”
“… shall act on business principles with due regard to public interest”
(Export-Import Bank of India Act, 1981)

13. Evolving Vision Export Capability Creation
Product Centric Approach
“To develop commercially viable relationships with a target set of externally oriented companies by offering them a comprehensive range of products and services, aimed at enhancing their internationalisation efforts”
Export
Credits
Export Capability Creation
The Bank’s vision has evolved from financing, facilitating and promoting trade and investment, to a conscious, systematic effort at creating export capabilities by arranging competitive finance at all stages of the business cycle.
The Bank now seeks to develop commercially viable business relationships with externally oriented companies by offering them a comprehensive range of lending and service programmes aimed at enhancing their globalisation efforts.
Comprehensive Range of
Products And Services
– All Stages of the Business Cycle –
Customer Centric Approach
Exim Bank TODAY
Leadership and Expertise in India’s Export Finance

14. Organisation: Network of Offices
OFFICES IN INDIA
OFFICES OVERSEAS

15. Range of Products & Services
Presence Across All Stages of Business Cycle
Value Based Services
INFORMATION
Advisory
Services
Knowledge
Building
SUPPLEMENTS FINANCING PROGRAMMES
Pre- Shipment
Export Marketing
Export Production
Export Product Development
Import Finance
Advisory Services
Investment Abroad
Post- Shipment
Developing countries lacking forex can buy Indian goods on credit
Entry mechanism for new markets / developments of new market
Financing of export contracts under one umbrella
Setting up new ventures overseas / acquisition of existing overseas companies
Over 100 ventures in 28 countries

16. THREE-PRONGED APPROACH
Business Strategy
THREE-PRONGED APPROACH

17. Major Programmes … encompass all sectors of the economy
… Agriculture, Industry and Services.

18. Support for Execution of Projects
Pioneering Role in Promoting Project Exports
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
Projects currently under execution with Exim Bank support
No. of Contracts : 190
Value of Contracts : US$ 6 bn
No. of Countries : 42

19. Exim Bank: Facilitator in Project Execution
Facilitating and Supporting Infrastructure Development
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

20. Lines of Credit (LOC): A catalyst for trade promotion
Support for Sourcing Equipment / Projects
Lines of Credit (LOC): A catalyst for trade promotion
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

21. Lines of Credit Extended to Africa
Facilitates import of project-related equipments and services
33 LOCs currently in operation in Africa amounting to US$ 1 billion
Countries covered include Angola, Burkina Faso, Burundi, Chad, Comoros, Congo, Cote d’Ivoire, 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.
Institutions include:
- 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)

22. Overseas Investment Finance
Facilitates value addition, contributes to capacity building & capability creation in host countries
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 promoter’s loans 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 supplier’s credit or buyer’s credit / LOC
Exim Bank also undertakes direct equity participation in Indian ventures abroad to enhance credibility and acceptability of Indian ventures overseas.
We provide a wide range of financing programmes to fund overseas acquisitions, namely:
Term loan towards equity of Indian company (promoter funding) in rupees (INR)
Term loan towards Indian promoter’s loans to overseas WOS / JV in foreign currency on rupees (FC / INR)
Term loan or working capital directly to WOS / JV in FC
In select cases, we also take direct minority equity participation upto $10mn in overseas WOS / JV in FC
FC term loan to overseas WOS / JV for import of plant and machinery and services from India which can be structured as supplier’s credit or buyer’s credit/lines of credit.
Exim Bank also undertakes direct equity participation in Indian ventures abroad to enhance credibility and acceptability of Indian ventures overseas

23. Exim Bank: Facilitating Indian Investment 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. Support Activities Indo-Africa Business (Quarterly)
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 & Country Studies (Occasional Paper/Working Paper series)
Export Advantage (Quarterly)
Agri-Export Advantage (Bimonthly in 10 regional languages)
Indo-Africa Business (Quarterly)
Multilateral Funded Projects – tracks opportunities and offers value added information, advisory & support services to Indian companies to enable their participation

25. Exim Bank - A Partner Institution to Promote Economic Development in Africa
Provides Information, Advisory & Support Services to facilitate participation of Indian companies in Africa in projects, supply & services contracts funded by multilateral agencies such as African Development Bank, Afrexim Bank,PTA Bank, East African Development Bank, World Bank.
Examples of Funded Projects in Africa executed by Indian companies:
 Supply of Pharmaceuticals; Ghana  Sewerage Study; Ethiopia
Transmission Lines; Kenya Telecom Project; Malawi
Supply of Earth Moving Equipment; Tunisia  Sugar Plant; Nigeria
Railway Restructuring Project; Tanzania

26. Consultancy Support Services: Tie ups in Africa
Tie-up with
International Finance Corporation, Washington under the following arrangements:
Africa Project Development Facility (APDF)
Africa Enterprise Fund (AEF)
Technical Assistance & Trust Fund (TATF)
Eastern & Southern African Trade & Development
Bank (PTA Bank)
African Management Services Company (AMSCO)
Under Government of India-African Development
Bank Cooperation Agreement

27. Indian Consultancy Assignments in Africa
Ghana Refrigeration
Uganda Nutri-Product Factory
Tanzania Accounting
Cameroon Cement
Namibia Investment
Promotion
Nigeria Poultry
Kenya Financial Training
Mauritius Software
Madagascar Software
Gambia Paper
Zambia Gems & Jewellery
Zimbabwe Printing Press
Indicates assignments completed by Indian Consultants in Africa
Contributes towards private sector development in host countries

28. Exim Bank: Partner in Institution Building
Design and implementation of Export Finance Programmes of Industrial Development Corporation, South Africa
Establishing the Afreximbank
Consultancy assignment for the Government of Mauritius on “Mauritius as an Investment Hub for Indian Firms”

29. 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

30. Other Initiatives in Africa
Representative Office in Johannesburg, South Africa
Equity Stake in Afreximbank, West African Development Bank, Development Bank of Zambia
In-house research studies on Africa:
Studies on India’s Trade and Investment Potential - Select COMESA Countries; Southern African Customs Union (SACU); SADC Countries; South Africa
Snap Market Survey for Indian Pharmaceuticals Products in South Africa
Strategy for Quantum Jump in Exports: Focus on Africa, LAC and China
Key partner institution in India-Africa Conclaves held in March & November 2005 in New Delhi

31. Exim Bank : Partner in Development
Technology
Capital
(Foreign Investment)
Raw Materials
Capital Goods
Final Products
Capital Goods
Capital (Overseas Ventures)
EXPORT M I T R O P
Product Development
Production
Marketing
Pre shipment
Post shipment
Before concluding, let me briefly highlight how Exim Bank helps Indian companies in their globalisation efforts though enhancing their competitiveness.
For upgrading the technological competence, we offer finance towards import of technology, finance for product development and also for undertaking research and development. We also provide advisory services for location of joint venture partners as also structuring and facilitation of Joint Ventures
The Bank offers a wide range of lending and service programmes to assist Indian companies at all stages of the business cycle. Through import of technology, capital, goods and raw materials, the Bank facilitates the upgradation of technology and capabilities of Indian companies to enable them to enhance their competitiveness.
The broad array of support programmes offered by the Bank for product development, production marketing, as also preshipment and postshipment, enables Indian companies to add value resulting in exports of products, capital goods, services. The Bank has also been instrumental in promoting ventures overseas in the fields of manufacturing, assembly, marketing and trading.
ADDITION
VALUE

32. THANK YOU