EXIM BANK: PARTNER IN AFRICA’S DEVELOPMENT S.R. Rao Chief General Manager Export-Import Bank of India Organisation for Economic Cooperation & Development Paris, March 16-17, 2006
Mar 27, 2015
EXIM BANK: PARTNER IN AFRICA’S DEVELOPMENT
EXIM BANK: PARTNER IN AFRICA’S DEVELOPMENT
S.R. RaoChief General Manager
Export-Import Bank of India
Organisation for Economic Cooperation & Development
Paris, March 16-17, 2006
2
Exim India
India’s Foreign Trade & Indo-African Trade
Exim Bank of India : An Overview & Initiatives in Africa’s Development
Structure of PresentationStructure of Presentation
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Exim India
India’s Foreign TradeIndia’s 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: Ministry of Commerce & Industry (MOCI), Government of India (GOI)
4
Exim IndiaIndia’s Services ExportsIndia’s Services Exports
51.3
16.3 17.120.8
25.0
36.7
18.414.6 13.8
17.1
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 India
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Exim IndiaTrends in Software Trends in Software ExportsExports
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 2005-06P
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
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Exim India
Software Exports – Role of Exim BankSoftware 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)
Indo-African Trade RelationsIndo-African Trade Relations
8
Exim India
Indo-African Trade Indo-African Trade RelationsRelations
23602897 3140
3869
5382
20632616
34473208
3758
4424
5513
65867078
9140
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
2000-01 2001-02 2002-03 2003-04 2004-05
(US
$ m
n)
Exports Imports Total Trade
Source: Ministry of Commerce & Industry (MOCI), Govt. of India (GOI)
Note: Import data do not include oil imports
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Exim India
India’s Major Trade Partners in Africa, 2004-05India’s Major Trade Partners in Africa, 2004-05
South Africa17.8%
Nigeria11.4%
Egypt7.9%
Kenya7.7%
Sudan5.7%
Togo4.9%
Others29.4%
Libya3.2%
Ghana3.2%
Algeria4.2%
Mauritius4.6%
Exports (% share)
South Africa57.3%
Morocco6.8%
Cote d'Ivoire 4.2%
Others12.5%
Guinea-Bissau1.9%
Ghana1.3%
Tanzania3.4%
Senegal4.5%
Benin2.1%
Tunisia2.3%
Egypt3.6%
Imports (% share)
Source: MOCI, GOI
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Exim India
Major Items of Trade, 2004-05Major Items of Trade, 2004-05
Others20%
Raw Cotton3%
Metaliferrous ores6%
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 rice8.1%
Pharmaceuticals 8.4%
Mfgs. of metals9.6%
Petroleum prdts.13.0%
Manmade yarn & fabrics
3.8%
Others24.5%
Exports (% share) Imports (% share)
Source: MOCI, GOI
Exim Bank of India – Exim Bank of India – An Overview & Initiatives An Overview & Initiatives in Africa’s Developmentin Africa’s Development
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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 country’s international trade…”
“… shall act on business principles with due regard to public interest”
(Export-Import Bank of India Act, 1981)
Exim Bank of IndiaExim Bank of India
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Exim India
Leadership and Expertise in India’s Export Finance
Comprehensive Range of Products And Services
– All Stages of the Business Cycle –
1982-85
1986-94
ExportExportCreditsCredits
Exim Bank TODAY
Export Capability Creation
Product Centric Approach
Customer 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”
Evolving VisionEvolving Vision
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Exim India
Organisation: Network of OfficesOrganisation: Network of Offices
HEAD OFFICE
MUMBAI
Domestic Offices
9 MumbaiKolkata, Bangalore AhmedabadGuwahati
Delhi Chennai Hyderabad Pune
OFFICES IN INDIA
OFFICES OVERSEAS
Overseas Rep. Offices
5 Washington D.C.SingaporeJohannesburg
London Budapest
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Exim India
Range of Products & ServicesRange of Products & Services
Pre-Shipment
Export Marketing
Export Production
Export Product
Development
Import Finance
Advisory Services
Investment Abroad
Post-Shipment
Presence Across All Stages of Business Cycle
INFORMATION
Advisory Services
Knowledge Building
SUPPLEMENTS FINANCING PROGRAMMES
Value Based Services
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Exim India
Business StrategyBusiness Strategy
FINANCING PROGRAMME ADVISORY SERVICES RESEARCH & ANALYSIS
Export Finance for Projects/Products/ Services/
Finance for Export Oriented Units:
Manufacturing Facilities/ Product Development/ Export Marketing
Finance for Agri Export Business
Overseas Investment: Equity Loan/ Equity
Investment Overseas
Opportunities in Multilateral Funded Projects
Joint Venture Facilitation Service
Export Marketing Service for SMEs
Sector Studies on potential export sectors
Country Studies on potential markets
THREE-PRONGED APPROACH
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Exim IndiaMajor ProgrammesMajor Programmes
Su p plie r 's & Bu yer 's Cred it
P re -Sh ip m en t Cred it
G u aran tees & L /Cs
PR O JEC TS
L in es of C red it
P re -Sh ip m en t Cred it
Po st-Sh ip m en t Cred it
PR O D U C TS
Su p plie r's Cred it
B u yer 's Cred it
SER VIC ES
EXPORT CREDIT
TER M LO AN S
W O R K IN G C APITAL
EXPO R T M AR K ET/EXPO R T PR O D U C T D EVELO PM EN T
EXPO R TFAC ILITATIO N
O VER SEAS IN VESTM EN TFIN AN C E
D IR EC T EQ U ITY PAR TIC IPATIO NIN IN D IAN EXPO R TIN G C O s
D IR EC T EQ U ITY PAR TIC IPATIO NIN IN D IAN O VER SEAS VEN TU R ES
IM PO R T FIN AN C EC APITAL G O O D S, R AW M ATER IALS
FINANCE FOR EXPORTING COS
EXPO R T M AR K ETIN GSER VIC ES
M U LTILATER AL FU N D EDPR O JEC TS
JO IN T VEN TU R EFAC ILITATIO N
C O N SU LTAN C Y SU PPO R T
W O R K SH O PS & SEM IN AR S
IN FO R M ATIO N SER VIC ES
VALUE-ADDED SERVICES
… encompass all sectors of the economy
… Agriculture, Industry and Services.
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Exim India
Support for Execution of Support for Execution of ProjectsProjects
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 ContractsNo. of Contracts :: 190190
Value of ContractsValue of Contracts :: US$ 6 bnUS$ 6 bn
No. of CountriesNo. of Countries :: 4242
Projects currently under execution with Exim Bank support
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Exim India
Exim Bank: Facilitator in Project Exim Bank: Facilitator in Project
Execution 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
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Exim India
Support for Sourcing Equipment / Support for Sourcing Equipment / ProjectsProjects
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
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Exim India
Lines of Credit Extended to Lines of Credit Extended to AfricaAfrica
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)
Facilitates import of project-related equipments and services
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 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.
Facilitates value addition, contributes to capacity building & capability creation in host countries
Overseas Investment Overseas Investment FinanceFinance
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Exim India
Exim Bank: Facilitating Indian Exim Bank: Facilitating Indian Investment in AfricaInvestment 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
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Exim IndiaSupport ActivitiesSupport 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 & 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
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Exim India
Exim Bank - A Partner Institution to Exim Bank - A Partner Institution to Promote Economic Development in AfricaPromote 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
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Exim India
International Finance Corporation, Washington under
the following arrangements:
Consultancy Support Services: Tie ups in AfricaConsultancy Support Services: Tie ups in Africa
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
Tie-up with
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Exim IndiaIndian Consultancy Assignments in AfricaIndian 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 Investment Promotion
Mauritius Software
Gambia Paper
Zimbabwe Printing Press
Indicates assignments completed by Indian Consultants in Africa Contributes towards private sector development in host countries
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Exim India
Design and implementation of Export Finance Programmes of Industrial Development Corporation, South Africa
Exim Bank: Partner in Institution BuildingExim Bank: Partner in Institution Building
Consultancy assignment for the Government of Mauritius on “Mauritius as an Investment Hub for Indian Firms”
Establishing the Afreximbank
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Exim India
Other Initiatives in AfricaOther 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
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Exim India
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
Other Initiatives in AfricaOther Initiatives in Africa
Key partner institution in India-Africa Conclaves held in March &
November 2005 in New Delhi
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Exim India
Exim Bank : Partner in Exim Bank : Partner in DevelopmentDevelopment
Technology
Capital
(Foreign Investment)
Raw Materials
Capital Goods
Final Products
Capital Goods
Capital
(Overseas Ventures)
Product
Development
Production
Marketing
Pre shipment
Post shipmentVALUEVALUE ADDIT
ION
ADDITIO
N
EXPORT
EXPORT
MMII
TTRR
OOPP
32
Exim India
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