India deepens financial relations with Africa

27 May 16

India has opened a $10bn line of credit for Africa, it was announced at the African Development Bank’s annual meetings in Zambia earlier this week.

 

The Export-Import (EXIM) Bank of India’s chair, Yaduvendra Mathur, announced on Wednesday that the concessional funds would be available over a five year period, as pledged in October last year by the country’s government.

Mathur said the funds are intended for healthcare, in particular to develop public-private partnerships, but will be available for us across a wide variety of sectors.

Indian prime minister Narendra Modi pledged to provide the credit last year in an effort to strengthen ties with African nations and counter growing Chinese influence on the continent.

Following Mathur’s announcement, it was declared that India will host the AfDB’s annual meetings next year.

India and Africa plan to strengthen their partnership on healthcare, with the continent using India’s experience in implementing PPP projects in health, as well as the power and transport sectors. .

Joseph Kasonde, Zambia’s health minister, explained that the Exim Bank is assisting the country in establishing 650 health posts.

“We are now in discussion about the PPP arrangement with India to improve the healthcare systems in our country, therefore diminishing the need for people to travel for treatment,” Kasonde said.

In October, Modi also announced plans to deepen the India-Africa partnership on clean energy, sustainable habitats, public transport and climate resilient infrastructure.

AfDB acting vice president of sector operations Kapil Kapoor saying the country was best-placed to Africa as it looks to secure $60bn of investment needed for the continent until 2021.

In his October announcement, Modi also pledged to deliver a $600m grant, a $100m India-Africa Development Fund and 50,000 scholarships in India over the next five years.

The AfDB’s annual meetings have been underway this week in Lusaka, Zambia. Other announcements at the meeting include the bank’s plans to tackle Africa’s $120bn trade finance gap by extending its offering across the continent, and the launch of a scheme to ramp up agriculture and increase food security.

 

  • Emma Rumney

    Emma is a reporter at Otsubo7 International. She also writes for in the UK.

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