FRB has a presence in Botswana, Eswatini, Ghana, Lesotho, Mozambique, Namibia, Nigeria, South Africa, Tanzania and Zambia, in addition to a representative office in Mumbai. The agreement opens financing channels to support trade between India and Africa, aiming to strengthen the growing economic engagement between India and African countries.
The agreement was signed under India Exim Bank’s latest trade facilitation initiative, the Trade Assistance Programme. Under this programme, India Exim Bank provides credit enhancement to trade instruments, thereby increasing the capacity of commercial banks/financial institutions to undertake cross-border trade transactions involving markets where trade lines are constrained, or where potential is untapped.
Speaking at the event, India Exim Bank’s Chief General Manager, Vikramaditya Ugra, highlighted, “Over the past few months, India Exim Bank has supported various trade transactions under this programme, covering various sectors including agriculture, automotive parts, capital and engineering goods, food, iron & steel and textiles.”
India Exim Bank’s publication ‘Reinvigorating India’s Economic Engagement with South Africa’ was also released at the Conclave. With the increasing diversification of India’s global trade towards developing countries, South African countries have emerged as important trading partners for India. The India Exim Bank has found substantial complementarity in India’s exports and South African Customs Union (SACU) imports over the past decade. The study identified products with strong export potential from India to SACU. The Preferential Trade Agreement is expected to reduce trade barriers between India and SACU, leading to an overall increase in India’s trade and investment with SACU and with the wider Southern African Development Community (SADC) region. As new trade and investment partnerships form around the world, the study highlights the need for India and Southern African countries to forge mutually beneficial cooperation in a number of areas of interest.