about exim bank's working paper series...exim bank’s working paper series is an attempt to...

About Exim Bank's Working Paper Series

As part of its endeavour in enriching the knowledge of Indian exporters and thereby to enhance their competitiveness, Exim Bank periodically conducts research studies. These research studies are broadly categorized into three segments, viz. sector studies, country studies and macro-economic related analysis. These studies are published in the form of Occasional Papers, Working Papers and Books. The research papers that are brought out in the form of Working Papers are done with swift analysis and data collation from various sources. The research papers under the series provide an analytical overview on various trade and investment related issues.

Previous Working Papers brought out by Exim Bank

Paper No. 14 Prospects for Exports of Handicrafts from North Eastern Region (NER),October 2005

Paper No. 15 FDI Flows and Investment Policies in India and Select Asian Countries:A Comparative Analysis, October 2005

Paper No. 16 Indian Construction Industry: Opportunities Abroad, February 2007Paper No. 17 Potential for Enhancing India's Trade with Myanmar: A Brief Analysis, April 2012Paper No. 18 Potential for Enhancing India's Trade with Iran: A Brief Analysis, July 2012Paper No. 19 Potential for Enhancing India's Trade with Pakistan: A Brief Analysis, August 2012Paper No. 20 Potential for Enhancing India's Trade with China: A Brief Analysis, January 2013 Paper No. 21 Enhancing India's Trade Relations with Africa: Focus on Select Countries,

May 2013 Paper No. 22 Enhancing India's Trade Relations with LAC: Focus on Select Countries,

August 2013Paper No. 23 Enhancing India - Myanmar Trade and Investment Relations:

A Brief Analysis, August 2013Paper No. 24 Potential for Enhancing India's Trade with Russia: A Brief Analysis, September, 2013Paper No. 25 Indian Ceramic Industry: Scenario, Challenges & Strategies, September, 2013Paper No. 26 Potential for Enhancing India's Trade with France: A Brief Analysis, October, 2013Paper No. 27 Potential for Enhancing India's Trade with United Kingdom: A Brief Analysis, November,

2013Paper No. 28

February, 2014Paper No. 29 Enhancing India's Trade Relations with Southern African Development Community

(SADC): A Brief Analysis, March 2014 Paper No. 30 Potential for Enhancing India's Trade with Australia: A Brief Analysis, April 2014 Paper No. 31 Potential for Enhancing Intra-SAARC Trade: A Brief Analysis, June 2014Paper No. 32 Strategic Development of Ship Building Sector: Institutional Support System and Policy

Framework in India and Select Countries, July 2014Paper No. 33 Potential for Enhancing India’s Trade with Korea Republic: A Brief Analysis,

August 2014Paper No. 34 Enhancing India’s Bilateral Ties with Cambodia, Lao PDR, Myanmar, Vietnam:

A Brief Analysis, November 2014Paper No. 35 Indian Handloom Industry: A Sector Study, March 2015Paper No. 36 Turkey: A Study of India’s Trade and Investment Potential, March 2015Paper No. 37 Study on Indian Pharmaceutical Industry, March 2015Paper No. 38 Enhancing India’s Trade Relations with ECOWAS: A Brief Analysis, May 2015Paper No. 39 Potential for Enhancing India’s Trade with Iran: A Brief Analysis, June 2015Paper No. 40 Potential for Enhancing India’s Trade with Pakistan: A Brief Analysis, June 2015Paper No. 41 Potential for Enhancing India’s Trade with China: An Update, August 2015Paper No. 42 Potential for Enhancing India’s Trade with Russia: A Brief Analysis, August 2015Paper No. 43 Enhancing India’s Trade Relations with LAC: Focus on Select Countries, October 2015Paper No. 44 Turkey: A Study of India’s Trade and Investment Potential, October 2015Paper No. 45 Enhancing India’s Trade Relations with Africa: A Brief Analysis, October 2015 Paper No. 46 Indian Leather Industry: Perspective and Strategies, November 2015Paper No. 47 Make in India for the World: Realizing Export Potential of Railways, December 2015Paper No. 48 Export from West Bengal: Potential and Strategy, January 2016Paper No. 49 Act East: Enhancing India’s Engagements with Cambodia, LAO PDR, Myanmar,

Vietnam (CLMV), January 2016

Potential for Enhancing India's Trade with Germany: A Brief Analysis

EXPORT-IMPORT BANK OF INDIA

WORKING PAPER NO. 50

FOcus AFRIcA: ENhANcING INDIA’sENGAGEMENTs WITh sOuThERN AFRIcAN

DEvElOPMENT cOMMuNITy (sADc)

EXIM Bank’s Working Paper Series is an attempt to disseminate the findings of research studies carried out in the Bank. The results of research studies can interest exporters, policy makers, industrialists, export promotion agencies as well as researchers. However, views expressed do not necessarily reflect those of the Bank. While reasonable care has been taken to ensure authenticity of information and data, EXIM Bank accepts no responsibility for authenticity, accuracy or completeness of such items.

© Export-Import Bank of IndiaMarch 2016

Export-Import Bank of India 3

Focus Africa: Enhancing India’s Engagements with Southern African Development Community (SADC)

cONTENTs

Page No.

List of Tables 5

List of Charts 7

List of Exhibits 7

List of Annexures 7

Executive Summary 9

1. BackgroundandEconomicProfileofSADCCountries 22

2. InternationalTradeofSADCCountries 37

3. India’sBilateralTradeRelationswithSADCCountries 43

4. ForeignInvestmentinSADCCountries 55

5. India’sInvestmentRelationswithSADCCountries 62

6. Export-ImportBankofIndiainSADCRegion 72

7. InvestmentOpportunitiesforIndiainSADCCountries 80

8. StrategiesandRecommendationsforEnhancingBilateral 124 CommercialRelationswithSADCCountries

Project Team:Mr.DavidSinate,ChiefGeneralManagerMr.VanlalruataFanai,AssistantGeneralManagerMs.SnehalBangera,Manager



lIsT OF TABlEs

Table No. Title Page No.

1.1 NominalGDPofTradingBlocsinAfrica 23

1.2 SelectMacroeconomicIndicatorsofSADCRegion 24

1.3 MacroeconomicSnapshotofSADCCountries 25

1.4 MajorResourcesofSADCCountries 26

1.5 Sector-wiseGDPContributioninSADCCountries 26

1.6 MajorIndustriesinSADCCountries 27

1.7 MajorAgricultureandAlliedProductsofSADCCountries 28

2.1 SADC’sMajorExporters 38

2.2 SADC’sMajorExportItems 39

2.3 SADC’sMajorExportDestinations 40

2.4 SADC’sMajorImporters 40

2.5 SADC’sMajorImportItems 41

2.6 SADC’sMajorImportSources 42

3.1 India’sTradewithSADC,2004-2014 44

3.2 India’sMajorExportItemstoSADC 45

3.3 India’sMajorExportDestinationsinSADC 46

3.4 India’sMajorImportItemsfromSADC 47

3.5 India’sMajorImportSourcesfromSADC 48

3.6 India’sMajorExportDestinationsinSADC(2014)–AnOverview 49

3.7 India’sMajorImportSourcesfromSADC(2014)–AnOverview 52

4.1 FDIInflowsinSADCCountries 56

4.2 FDIOutflowsfromSADCCountries 57

4.3 DoingBusinessRankingsofSADCCountries 60

5.1 India’sApprovedOverseasDirectInvestmentinSADCRegion 63

5.2 FDIEquityInflowstoIndiafromSADCRegion 71

7.1 InvestmentRequirementofWaterSectorinAngola 82

7.2 ProjectedMiningProductioninBotswana 84

7.3 CostOptionsforElectricityGenerationinBotswana 87

Export-Import Bank of India6




lIsT OF chARTs

lIsT OF EXIBITs

lIsT OF ANNEXuRE

chart No. Title Page No.

2.1SADC’sForeignTrade,2004-2014 37

4.1FDIflowstoSADC 55

4.2SummaryofProjects,Capex,JobsCreatedinSADC 58

7.1BotswanaCoalProduction 84

7.2BotswanaCopperProduction 85

7.3BotswanaNickelProduction 85

7.4Botswana’sDiamondProductionbyVolume 86

7.5Botswana’sDiamondProductionbyValue 86

Exhibit No. Title Page No.

1.1 SADCMembers 22

Annexure No. Title Page No.

1 IndianCompanies/InvestorswithApprovedJVs/WOSsinSADCRegion 130

2 EximBankofIndia’sLOCsinSADCRegion 156

3 InvestmentPromotionAgenciesinSADCRegion 159



The Southern African Development Community(SADC)hasbeeninexistencesince1980,whenit was formed as an alliance of seven states inSouthern Africa [Angola, Botswana, Kingdomof Lesotho (Lesotho), Mozambique, Kingdomof Swaziland (Swaziland), United Republic ofTanzania (Tanzania), and Zambia] known asthe SouthernAfrican Development CoordinationConference (SADCC), with the main aim ofpolitical liberation of Southern Africa.

The transformation of the organization from aCoordinating Conference into a DevelopmentCommunity (SADC) took place on August 17,1992 in Windhoek, Namibia when the SADCTreatyandDeclarationwassignedattheSummitofHeadsofStateandGovernmenttherebygivingtheorganizationa legalcharacter.Theobjectivealso shifted to include economic integration following the independence of the Southern African countries. The treaty was amended onAugust14,2001recognizingnewchallengesandneed for institutional reforms.

SADC, currently comprising 15 member statesnamely Angola, Botswana, the DemocraticRepublic of the Congo (DR Congo), Lesotho,Madagascar, Malawi, Mauritius, Mozambique,Namibia, Seychelles, South Africa, Swaziland,Tanzania, Zambia andZimbabwe, is an integralpart of the African region comprising 32.5 percentoftotal landareaofAfrica,27.7percentoftotal population ofAfrica. SADC is the second-largestcontributor(intermsofGDP)totheAfricanregion,afterECOWAS.Itaccountsfor37percentofnominalGDPofSub-SaharanAfrica;27.9percentofGDPofAfricaand0.8percentofglobalGDPin2014.

Executive summary

TheaverageeconomicgrowthofSADCwasat4.6percentin2014,lowerthan5.4percentrecordedinthepreviousyear,mainlyduetosluggishgrowthin twoof itsmajor economies,SouthAfricaandAngola.WhileSouthAfrica’sgrowthwassubdueddue to frequentmining strikesandweaknessofthe randduring theyear, fall inoil sectoroutputaffectedthatofAngola.DRCongo,Mozambiqueand Tanzania were among the fastest growingeconomiesintheregionin2014.

Since mid-2014, major changes in the globaleconomicenvironmenthaveaffectedtheregion’sgrowth. Oil prices have declined since June2014,andsupplyanddemandfactorshavebothcontributed to these developments.

SADC’scombinedGDPstoodatUS$686.8billionin 2014, as compared to US$ 687.7 billion in2013.SADCislargelydominatedbyoilexportingeconomies. South Africa is the largest economy in the region, accounting for 51 per cent of theregion’s economy, followed byAngola (18.8 percent),andTanzania(7percent).

AveragepercapitaGDP,atcurrentprices,oftheregion,wasatUS$2,222.1in2014,afallcomparedtoUS$2,278.8in2013.Averageconsumerpriceinflation of the region on the other hand hasmoderated during the same period (Table).

The economies within the SADC region are atvarying stages of development, and also differsignificantly intermsoftheirsizes.For instance,theGDPofSouthAfrica,whichstoodatUS$350.1billionin2014,wasmuchlargerthanthecombinedGDPof the remaining fourteenSADCcountries,viz.US$336.7billion.Positivegrowthratesofreal



cou

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DRCongo

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366.2

350.1

317.3

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4.6

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44.4

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Source:IM

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ctober2015;FoodandAgricultureOrganizationoftheUnitedNations(F

AO);andEximBankAnalysis



GDPwererecordedinallthemembercountries in 2014,accompaniedbymoderateinflationinmostof the countries.

International Trade of sADc countries

ReflectingtheincreasingglobalizationoftheSADCeconomies, SADC’s global trade has witnessedsignificantupwardtrend inrecentyears. Duringtheperiod2004to2014,SADC’stotaltradehasrisen nearly three-fold, from US$ 137 billion in2004 toUS$410.7billion in2014,growingatacompoundannualgrowthrateof11percentoverthe period.

SADCasablochasshownstableperformanceintermsofitsglobaltrade.SADC’sshareinglobaltradehasincreasedfrom0.7percentin2004to1.1percentin2014.However,theshareofSADCinAfrica’stotaltradehasdecreasedfrom41percentin2004to34.8percentin2014.

Inthecaseofexports,SADC’stotalexportshaverisen fromUS$61 billion in 2004 toUS$208.3billion in2014,witha resultant rise in theshareof SADC in global exports from 0.6 per cent to1.1 per cent during the period. SADC’s exportshave been driven by exports of South Africa and Angola,thetwogiantsintheblocaccountingfor74percentoftheregion’sexports.

Asregardsimports,SADC’stotalimportsrosetoUS$202.4billion(1.1percentofglobalimports)in2014,upfromUS$76billion(0.8percent) in2004.

During the decade, trade balance of SADCreversedfromadeficitofUS$15billion in2004to a surplus of US$ 5.9 billion in 2014. Theshift to surplus was mainly driven by Angola(maintaining a trade surplus of US$ 37.2 billionin 2014), primarily due to large revenues fromoil exports. Other economies in the region that

maintainedasurplusduringtheyearincludeDRCongo,Swaziland,ZambiaandBotswana.IntheSADCregion,economiesthatmaintainedatradedeficit in 2014 include South Africa, Tanzania,Mozambique,ZimbabweandMauritius.

Among the countries in SADC, the largestexportersareSouthAfricaandAngola, togetheraccountingfor74percentofSADC’stotalexportsin 2014. Other important exporters from SADCincludeZambia,Botswana,DRCongo,NamibiaandTanzania.Themajor items exported by theregion include mineral fuels (crude petroleum),the largest export item accounting for as much as36percentofSADC’s totalexports in2014,followedbypearlsandpreciousstones,oresandslag, copper and its articles, vehicles, iron andsteelandmachinery. In2014,majormarkets forexports from SADC include China, USA, India,SouthAfrica,andSwitzerland.

Asregardsimports,theleadingimportersinSADCareSouthAfricaandAngola,togetheraccountingfor62.5percentofSADC’stotalimportsin2014.Mineral fuelsandmachineryare the two largestimport items, followed by electronic & electricalequipment,vehicles,plasticsandarticles,articlesof iron or steel and pharmaceutical products. As regards SADC’s global imports, China hasemerged as the leading supplier to SADC,accounting for as much as 14.4 per cent ofSADC’stotal imports in2014,followedbySouthAfrica and Germany. India is the fourth-largestsourceofSADC’simports,accountingfor5.3percentin2014.

India’s Bilateral Trade Relations with sADc countries

SADC has emerged as important partner forIndia, both as an export destination as also animportsource.Theeconomicandtradelinkages,whichsawanexpansionoftradevolumes,standtestimonytotheintensifiedeconomicengagement.



During the last tenyears, India’s total tradewiththeSADCcountrieshaswitnessedovereight-foldincreasefromUS$3.7billionin2004toUS$29.6billionin2014.

While India’s total exports to SADC has risenfromUS$1.6billion in2004toUS$15billion in2014,depictinganine-foldriseduringtheperiod,India’stotal importsfromSADChavealsorisen,althoughataslowerpace, fromUS$2billion toUS$14.6billion,showingaseven-foldrise.India’stradebalancewithSADCturnedintoasurplusof US$0.4billionin2014,afterwitnessingadeficitfor six consecutive years.

The increasing importance of India as SADC’strading partner can be assesses from the fact thatIndiaaccountsforarespectable7.4percentof SADC’s global imports in 2014, which wassignificant improvement compared to 2.1 percentrecordedin2004.Further,Indiaaccountsforaround7percentofSADC’stotalexports,upfrom3.3percentin2004,depictingtherisingimportanceofIndiainSADC’stradeconfiguration.

TheimportanceoftheSADCregioncanalsobegauged from the fact that the region accounted for4.7percentofIndia’sglobalexportsin2014,up from 2.2 per cent recorded in 2004. India’simportsfromSADCregion,asapercentageshareof India’s global imports, accounted for 3.2 percentin2014.Theperiodalsowitnessesariseinthe importance of SADC in India’s global tradeconfiguration.

Foreign Investment in sADc countries

FDIsflowstotheSADCregionhavebeenmainlybeen resource-based. According to the UnitedNationsConferenceonTradeandDevelopment’s(UNCTAD) World Investment Report 2015, FDIinflowstotheSADCregionstoodatUS$16billionin2014,ascomparedtoUS$5.6billionin2004.

FDIflowstoaregionaccountforanearly30percentofAfrica’stotalFDIinflowsin2014.

South Africa and Mozambique continued to bemajordestinationsforFDIinflowstoSADC.Otherdestinations forFDI flowsduring the sameyearwereZambia,TanzaniaandDRCongo.

Outward FDI flows from SADC declined to US$ 9.2 billion in 2014, as compared to US$ 13.2 billion recorded the preceding year.OutwardFDIfromSADCwereprimarilydominatedby investments from South Africa and Angola.

India’s Investment Relations with sADc countries

In the SADC region, Indian multi-nationalenterprises (MNEs) have ventured into bothGreenfieldandBrownfieldinvestments,spanningacross various sectors including manufacturing,mining,construction,andenergy,amongothers.According to data from the Ministry of Financeand Reserve Bank of India, India’s approvedcumulativeinvestmentsintheSADCregionduringApril1996toMarch2015amountedtoUS$46.5billion.Mauritius,Mozambique andSouthAfricawere the top destinations of India’s investmentsin the region. India’s investments in the SADCregionaccountedfornearly93percentofIndianinvestments in Africa.

Indian FDI in Africa has traditionally beenconcentrated in Mauritius, taking advantage ofthelattercountry’soffshorefinancialfacilitiesandfavourable taxconditions. Indian investorshave,however,beeninvestinginothercountriesintheregion,too.

Indianbanksaregrowing theirpartnershipswithSADC countries largely based on their clients,whohaveincreaseddemandforbankingoptionsintheregion.SelectIndianBanksinSADCregion



includeBankofIndia,BankofBaroda,StateBankofIndia,CanaraBank,andICICIBankLtd.Jointventures by Indian Banks in the SADC regionincludeIndo-ZambiaBankLtd.(BankofBaroda,BankofIndiaandCentralBankofIndia).

FDIinflowstoIndiafromSADCregionhavebeendominated by investments from Mauritius that accounts for35.2percentof India’soverallFDIinflow.DuringApril2000toMarch2015,FDIflowsfromtheregionintoIndiastoodatUS$88billion.Mauritius is the largest investor in India in terms of cumulativeFDIinflows,mainlyduetotheDoubleTaxation Avoidance Convention. Others countries from the region investing in India include South Africa,andSeychelles.

Exim Bank India’s Endeavours to harness synergies with sADc countries

The countries in the SADC region have alwaysbeen a focus region for Exim India, and thus acritical component of its strategy to promote and supporttwo-waytradeandinvestment.Asapartnerinstitution to promote economic development in the Region, the commitment towards buildingrelationshipswith theSADCRegion is reflectedin the various activities andprogrammes,whichExim India has set in place.

Exim India has representative offices inJohannesburg, South Africa and Addis Ababa,Ethiopia play a key role in facilitating economic cooperation with the SADC Region, and areclosely associated with several of the Bank’sinitiatives. The representative office interfacewith multilateral institutions such as AfricanDevelopmentBank(AfDB),Afreximbank,regionalfinancialinstitutionssuchasEasternandSouthernAfricanTradeandDevelopmentBank(PTABank),and developmental financial institutions such asIndustrialDevelopmentCorporationofSouthAfricaLtd.(IDC),aswellasIndianmissionsintheregion

with the aim of increasing bilateral commercialengagementsbetweenthetworegions.

A. Financing Programmes

i. lines of credit: To enhance bilateral trade and investment relations, Exim India has inplaceseveralLinesofCredit(LOCs)extendedto a number of institutions/agencies in the SADC region. These LOCs supplement the‘FocusAfrica’programmeoftheGovernmentofIndia(GOI)andareextendedespeciallytopriority sectors, identified byGOI formutualcooperation and benefit. Besides theseoperatingLOCextendedatthebehestofGOI,EximIndiaextendsitsowncommercialLOCsto various financial institutions and otherentitiesinAfrica.AsonJanuary31,2016,thetotalnumberofoperativeLOCstotheSADCregion stood at 46 extended to 12 countriesand amounting to US$ 2.4 billion. Of these,43LOCsaggregating toUS$2.3billion,areguaranteedbyGOI.

ii. Project Exports: Exim India extends funded and non-funded facilities for overseas industrial turnkey projects, civil construction contracts,suppliesaswellastechnicalandconsultancyservicecontracts.AsonSeptember30,2015,the value of ongoing 55 project contracts secured by Indian Project exporters in the SADCregionamountedto`116.4billion.Ofthese, 39 project contracts valued at ` 61.8billionareunderGOI-supportedLOCs.

iii. Buyer’s credit under National Export Insurance Account (NEIA): In order to provide further impetus to project exports from India onmedium-or long-termbasis,especially intheinfrastructuresector,EximIndia’sBuyer’sCredit under National Export Insurance Account(BC-NEIA)facilitatesprojectexportsfrom Indiabywayofextendingcredit facility



to overseas sovereign governments and government owned entities for import ofgoods and services from India on deferred creditterms.AsonDecember31,2015,EximIndia has sanctioned an aggregate amount of US$ 308.3 million under BC-NEIA for 8projectsintheSADCregion(infourcountriesnamely,Mozambique,Tanzania,ZambiaandZimbabwe)valuedUS$323.3million.

iv. Overseas Investment Finance: Exim India supports overseas investments [joint ventures (JVs) or wholly owned subsidiaries (WOS)]by Indian companies through its Overseas Investment Finance programme. As onDecember 31, 2015, Exim India through itsoverseas investment finance programmehas supported 26 Indian companies in four countriesintheSADCregionwithanaggregatesanction of `38.5billion.

v. Project Development company (PDc) in Africa: Addressing the limited institutional capacity in Africa on conceptualisation,management,executionandimpartingprojectdevelopment initiatives, Indian institutionssuch as Exim India, IL&FS, and State BankofIndiahavejoinedhandswiththeAfDB,andpromoted a Project Development Company(PDC) for infrastructure development inAfrica.

ThePDC,namedKukuzaProjectDevelopmentCompany,hasbeenincorporatedinMauritiusin July 2015. ‘Kukuza’ in Swahili means ‘acause to growth’. Reflecting the name, thePDCisexpectedtoprovidespecialistprojectdevelopment expertise to take the infrastructure project from concept to commissioning in the AfricanContinent.PDC’sprojectdevelopmentexpertise includes, among others, projectidentification,pre-feasibility/feasibilitystudies,preparation of detailed project reports, andenvironmental and social impact assessment.

B. Institutional Linkages

i. Association with African Development Bank (AfDB): India is a member of the African DevelopmentBank(AfDB)Group.ManyIndiancompanies participate in projects funded by theAfDBGroup.EximIndiaworksverycloselywithAfDBandhasanactiveprogrammewhichoffers a range of information, advisory andsupport services to Indian companies to enable more effective participation in projects funded by multilateral funding agencies, includingAfDB. Exim India assists Indian companiesin projects supported by AfDB by not onlyfundandnon-fundbasedassistance,butalsoby providing advance alerts on upcoming opportunities.With support from Exim India,Indian project exporters have secured a number of overseas contracts in Africa in sectors such as power, telecommunications,transport,watersupply&sanitation.EximIndiaandAfDBhavealsosignedanagreementforco-financingprojectsinAfrica.Theagreementenvisages joint financing of projects (prioritybeing given to support projects of small and medium enterprises) in regional membercountriesofAfDB.EximIndiaalsoorganizesBusiness Opportunities seminars in Projects fundedbyAfDBacrossvariouscentresinIndia.EximIndiatogetherwithFICCI(FederationofIndianChambersofCommerceandIndustry)organizestheAfrica–IndiaPartnershipDay,onthesidelinesofAfDB’sAnnualMeeting,withanobjectiveofsharingIndia’sdevelopmentalexperienceswithAfrica,particularlyinPublic-Private Partnership model of financinginfrastructure development.

ii. Exim India’s engagements in ITc’s sITA: On March 09, 2014, Department forInternational Development (DFID) mandatedthe International Trade Centre (ITC), UnitedKingdom,todesignandimplementaproject,called ‘Supporting India’sTradePreferences



for Africa’ now called ‘Supporting IndianTradeandInvestmentforAfrica’(SITA).SITAis a six-year (2014-2020) project that aimsat promoting exports from five East Africancountries – Ethiopia, Kenya, Rwanda, theUnitedRepublicofTanzaniaandUganda–toIndia through investment and skills transfer from the Indian side. Exim India had entered intoanMOUwithITCinGenevaonMarch26,2014,underwhichitwasassociatedwithITC’sSITAinitiative.TheProjectwasinitsinceptionPhase during March 2014 to March 2015,wherearoadmapforSITA,includingthefocussectors, was defined. The implementationphaseofSITA(March2015-March2020)wasofficiallylaunchedinNewDelhi,India,duringMarch19-20,2015.

iii. Member of Association of African Development Finance Institutions (AADFI): Exim India is a member of Association of African DevelopmentFinance Institutions (AADFI),aforumofinstitutions/bankswiththeobjectiveofcreating co-ordination and economic solidarity among the development finance institutionsin the African continent. The membership of AADFI helps to provide a platform forbuilding linkages with other institutions inAfrica,whicharemembersofAADFI.Further,Exim India’s equity in Agricultural FinanceCorporation,whichoffersconsultancysupportindevelopmentofagro-technology;promotermembershipin‘SmallFarmers’Agri-BusinessConsortium(SFAC)’,aninvestmentinstitutionwhose objectives include promoting smalland medium agri-business ventures, placesExim India in a vantage position to share its expertise and support development related activities in Africa.

iv. Global Network of Exim Banks and Development Finance Institutions (G-NEXID): Exim India has entered into a Memorandum of Understanding (MOU) with

fourEximBanksandDevelopmentFinancialInstitutions (DFIs) to form Global Networkof Exim Banks and Development FinancialInstitutions (G-NEXID). The five signatoriesareExport-ImportBankofIndia,Export-ImportBankofMalaysia,AfricanExport-ImportBank,AndeanDevelopmentCorporationandExport-ImportBankofSlovakia.G-NEXIDwasformallylaunchedatitsinauguralmeetingatUNCTAD,GenevaonMarch13,2006.AnnualMeetingsare held to deliberate upon measures to foster long-termrelationship,shareexperienceandstrengthen financial cooperation to promotetrade and investment relations betweendeveloping countries. G-NEXID has beengranted ‘observer’ status by UNCTAD.G-NEXID members in the African Region(particularly SADC region) include: AfricanExport-Import Bank, Cairo; DevelopmentBank of Namibia, Windhoek; DevelopmentBank of Zambia, Lusaka; DevelopmentBank of SouthernAfrica, Midrand; IndustrialDevelopment Corporation South Africa,Sandton;andPTABank,Nairobi.

C. Exim Bank as Consultant

i. Partner in Institutional Building in Africa: As a partner institution in promoting economic development inAfrica, Exim India shares itsexperience in the setting up of institutional infrastructure for enhancing international trade. In this regard, the Bank has takenactive participation in the institutional building process in a number of countries in Africa. Besides being associated in the setting up of the Afreximbank, Exim India undertookan assignment to design, develop, andimplement a programme on Film Financingfor Nigerian Export-Import Bank (NEXIMBank)forexpandingitsexposureinfinancingfilms (under Film Financing Programme).Exim India has also been involved in the designandimplementationofExportFinance



Programmes for Industrial DevelopmentCorporation, South Africa; ConsultancyAssignment for theGovernment ofMauritiuson ‘Projecting Mauritius as an investment hubforIndianFirms’;establishmentofExportCreditGuaranteeCompanyinZimbabwe;andpreparing a blue print for setting up of Export-ImportBankofZimbabwe.

ii. GPcl as a consultant: GlobalProcurementConsultantsLtd.(GPCL)hasbeenpromotedby Exim India in association with leadingpublic sector and private sector consultancy organizations. GPCL provides a uniqueplatform for sharing of collective Indian experience in a partnership mode withdevelopingcountriesandemergingeconomies,in the professionalmanagement of projects,with particular reference to procurementservices.GPCLprovidestechnicalassistanceinenhancingquality, transparency,efficiencyand effectiveness of procurement and implementation services to help attain desired institutional and corporate objectives. GPCLsupports, enhances and extends scope ofprojectsupervision,monitoringandevaluationas also strengthening of institutional capacity for effective programme/ project implementation.

D. Exim India’s Country Mission

With a view to enhancing India’s bilateraltrade and investment relations and in order to support Indian entrepreneurs in their globalisation endeavours, Exim India hascommissioned a country mission to select countries in Africa. The Mission endeavours toprovideaframeworkforenhancingIndia’sengagement in select countries in Africa by way of identifying key areas for commercialengagement while also assisting thesecountries in achieving their developmental

objectives. The Mission to Africa covered countriesincludingMozambique,RwandaandTanzania in November 2014. The MissionteamcloselycoordinatedwithIndianMissions,and held various rounds of interactions withGovernment officials of partner countries,multilateral institutions, business community,exporters, banks, Indian business diaspora,and other stakeholders, with a view toidentifying business, trade and investmentopportunities for Indian entrepreneurs.

E. Research Studies

In the area of knowledge building andtechnology transfer, Exim India’s researchstudies have focused on potential areas for boostingIndia’stradeandinvestmentrelationswithAfrica,theEconomicCommunityofWestAfrican States (ECOWAS), SouthernAfricanCustoms Union (SACU), Southern AfricanDevelopment Community (SADC), CommonMarket for Eastern and Southern Africa (COMESA),SelectWestAfricanandSouthernAfricanCountries,LeastDevelopedCountries(LDCs), as also the member countries ofMaghreb region.

Investment Opportunities for India in sADc countries

SADCeconomiesareoneofthemostresource–richcountriesintheworld.Areasofcriticalimportancefor SADC region include development of selectsectors including infrastructure, agriculture andagro-processing,mining,manufacturingand ICTsectors, among others. The primary reason forlowlevelsofdevelopmentintheregionstemsfromlimitedeconomiccapacitytoinvest.Giventhese,select sectors which hold potential for Indianinvestmentsintheregionhavebeenidentifiedinthe study.



strategies and Recommendations for Enhancing Bilateral commercial Relations with sADc countries

Broad strategies for enhancing bilateral commercialrelationswithSADCcountriesincludethefollowing.

• Development of a strong Private sector

AnimportantchallengefacedbyAfricancountries,especiallySADCmemberstatesisalackofcleardelineation of the roles of state and market. After the independence, most of the Africancountries tried to solve their immediate problems of poverty and food security by creating a strong state.Although, this has helped these countriesto improve their human development factors,economically resulted in poor performance and development. This has resulted in many of the SADC countries remain in a backward statecompared to many other developing countries. Hence,developmentofastrongprivatesectorinthe region is important. For the development ofprivate sector, many elements including a wellfunctioning financial system coupled with stablemacroeconomic fundamentals are necessary. India being an economy with almost a similarbackground is better suitable to help these nations in this respect than many developed countries. Indianinvestorscanplayamajorrolebywayoftransfer of technical knowhow and technologywhichissuitablefortheconditionsandneedsofadevelopingnation.ThiscouldhelpSADCcountriesto enhance its competitiveness by building its human and physical capital.

• cooperation in Agriculture sector Development

Agriculture and related activities constitute the bedrockofmost countries in theSADCRegion,and exports from the sector are important foreign

exchange earners for these countries. Many countries in SADC are home to the world’srichestagriculturalresources.Asaresult,severalGovernments in the region view that foreigninvestments in agriculture cultivationwould leadto possible benefits for rural poor, including thecreation of a potentially significant number offarm and off-farm jobs development of rural infra-structure, and social improvements, leading topovertyreduction.Moreover,nationalGovernmentswith a view to addressing the serious issue offoodshortagehavebeenframingpoliciestowardsattracting investors in the agricultural sector to tacklefood,employmentandsustainabilitycrises.If these countries could frame and implement their agriculturalpoliciesinsuchawaythatdiversifiesoutput,boostsproductivity,andpromotesstronglinkageswithothereconomicsectorsandservesbroad social policy objectives, then the regioncould easily overcome its underdevelopment and be on a path of development.

Indian companies can explore the possibilities of investment such as joint ventures or contract farming, setting up agro processing firms andinvestments in key stages of value chains. India’s investment could result in improving theagricultural sector of the host country through skill development, job creation, technologicalupgradation, supply of quality inputs likeseed, better supply chain management, andbiotechnology. India’s transfer of knowledge/technologycouldhelpthesecountriestodealwiththe problem of food crisis. Indian scientific andagricultural research institutions have assisted many entrepreneurs for developing their business ideas inSADCcountries. Indian investors couldalso focus on providing quality infrastructure toenhance the farm productivity in these countries.

Towards this end, the LOCs extended by theEximBankofIndiatoSADCcountries,whichareearmarked for agriculture, irrigation and relatedprojects,wouldalso serve to contribute towards



development of the agricultural and related sectors in the region.

• Development of Manufacturing sector

Development of manufacturing sector inSADC member states is very important for thedevelopment and growth of the region. ThedependenceofmanyoftheSADCmemberstateson primary commodity exports, combined withreliance on manufactured imports has negatively affectedthegrowthoftheregion.Alsotherecentglobal economic crisis has reduced development assistanceandprivatecapitalflowstotheregion.Hence, development of a strong manufacturingsector is necessary. At present, Africa’s sharein global manufacturing production and trade is very small. Furthermore, the manufacturingsector does not have strong links to the primary and service sectors. India could support SADCcountries in creating productive capacity-building through various support and training programmes and technical cooperation. Government of Indiais helping these countries to build up on their manufacturing sectors through various policies and programmes, normally announced duringIndia-Africa summits.

• Natural Resource Development

WithmanyofthecountriesinSADCareendowedwith mineral wealth and natural resources,enhanced bilateral cooperation for development/ exploration of natural resources in these countries could benefit both India and SADC.Mineral production and development constitute a significant part ofmany SADC countries, andremain a key factor in their future economic growth.TheSADC region has amajority of theworld’s known resources of platinum, chromiumand diamonds, as well as a large share of theworld’s bauxite, cobalt, gold, phosphate anduranium deposits. For instance, South Africa’smineralwealth issignificant,withgold,platinum,

coal, iron and diamonds being some of its keyexports;whileinthecaseofDRCongo,besidesrichdepositsofcopper,cobalt,zinc,anddiamonds,therearevastdepositsofgold,consideredtobethe richest undeveloped gold deposits inAfrica;Namibia has large reserves of uranium and is a leadingglobalproducers.AccordingtoWorldGoldCouncil, despite challenges India’s consumerdemand for goldwas the second-highest in theworld(accountingfor27percentoftheworldgolddemand), after China in 2015. In light of these,increased cooperation between India and theresource-rich countries inAfrica and specificallySADC countries in developing/ exploringnatural and mineral resources, with bilateralarrangements such as buy-back arrangements,could be an important strategy to enhance Indo-SADCcommercialrelations.

• cooperation in Infrastructure Development

An important area of bilateral cooperation could beinfrastructuredevelopmentinAfricancountries,especially SADC countries. Investment ininfrastructuredevelopment,duetoan increasingneed for better infrastructural facilities, coupledwith theendeavour ofSADCcountries for rapideconomic growth, could prove to be amutuallyrewarding area of bilateral cooperation. Thelack of adequate infrastructure across Africa iscurrently holdingback itsGDPgrowth. Lackofforwardandbackward linkagesbetweenamongdifferent modes of transportation, declining airconnectivity, poorly equipped ports, ageing railnetworks, and inadequate access to all-seasonroadsarekeyproblemsfacingmanyoftheSADCeconomies. Areas that hold immense investment opportunities include development of highwaysand roadways,developmentof railwaynetworksand power systems, which would also help inregional integration,and theAfricancontinentatlarge,toagreatextent.LargeIndianconstructioncompanies could explore business opportunities



tomeettheinfrastructuralrequirementsinSADCmember states, also contributing largely toeconomic development in the host countries.

Further,Indiacouldintensifyitsongoingcooperationin training, capacity building, consultancy andproject implementation through concessional credit in infrastructure areas, including watersupplymanagement,maritimeconnectivity, roadand railway construction and upgrading. Thussupporting Africa’s Program for InfrastructureDevelopment in Africa (PIDA) and enhancingcooperation in the Blue/Ocean Economy.

• cooperation in Energy and Power Generation

Another area, which holds immense potentialfor investment and cooperation, is electricitygenerationandpowertransmission.WhilemostMemberStatesofSADChaveabundantenergyresources, insufficient use of existing energysystems has resulted in effective generation of electricitywhichislessthaninstalledcapacityduetodrought,lackofmaintenanceandrehabilitationandalsogeneralsystemlossesofelectricitywhichincludestransmissionanddistribution.Asaresult,energyproductionandconsumptionvarieswidelythroughouttheregion.Withindustrialproductivitysteadilyincreasingintheregion,theWorldBankanticipates the demand for electricity to increase by40percentoverthenext10years.

Inthisregard,theSouthernAfricanPowerPoolisa key achievement of bothRegional Integrationand increased access to electricity. At present,nine SADC Member States have connectedtogethertheirpowergrids,creatingarudimentarybut competitive energymarket. In doing so, theSouthern African Power Pool has expandedtrade inelectricity, reducedcosts,and improvedenergystabilitythroughouttheregion.Witnessing

the benefits to participating Member States,SADC’s Regional Energy Sector Programmeaims to incorporate the other outlying SADCMemberStates into theSouthernAfricanPowerPool, extending grid connections to encompassthewholeregionandfurtheringthebenefitsofaregional energy market.

To further enhance development of the energy infrastructure, SADC encourages investment intheregion’selectricityinfrastructure,especiallyinelectricityplants,transmissionlines,coaldepots,and nuclear demonstration plants. Towards thisend, the LOCs extended by the Exim India tocountriesinSADC,whichareearmarkedforpowergeneration and transmission projects, wouldalso serve to contribute towards developmentof the energy sector and power generation andtransmission.

• Focus on Information Technology (IT) Development

The use of various electronic marketing technologies is necessary to improve and develop differentsectors,butitlargelydependsonInternetaccessandpenetrationratesincountries,whichisstillatabackwardstageinmostoftheSADCcountries. With the strength and capability thatIndia possesses in the realm of Information Technologysector, Indian ITfirmscouldexplorethe opportunities in SADC countries, and focuson investing in subsidiaries or joint ventures in the areas of e-governance, financial servicesand e-education. Indian companies could also share their expertise in providing softwareprogrammesandservicesforbanksandfinancialinstitutions in the region. For instance, Indiancompanies,suchasNIIT,Aptech,karROXwhichalreadyhavepresenceinSADCcountries,couldexpand theirnetworkof trainingcenters inother SADCcountries.Designingspecializede-learning



courses on the web for providing technologicalassistance, manufacturing process know-how,troubleshooting and other technical areas also presentopportunities.Suchinitiativeswouldhelpindustry and commerce, promote education inremote areas, create employment opportunitiesand provide healthcare to remote areas in the region,therebycontributingtooveralldevelopmentof nations in the region.

• cooperation in MsME sector

At present MSMEs (micro, small and mediumenterprises)makeup themajorityofbusinessesin Africa and especially in SADC and there isenormous scope for the development of this sector. SME sector development in the SADCregion is constrained by a number of factors like lack of accessibility to modern technology,limited access to international markets, lack ofmanagementskillsandtrainingandlackoffinance.Towardsdevelopingentrepreneurshipandhumancapability, India could share its expertise andexperience with countries in SADC, particularlyin theSMEsectorwherein Indiahasdevelopedsuccessful SME clusters. An important element in this direction could be for delegations from these countries to visit India to study success factor ofSMEclusters in India,anddevelopingsimilarclusters in their countries based on resource and skillendowments.SMEfinancingisanotherareawhereIndiacouldsupportthissector.

• Investment in human Resource Development

An associated area of bilateral cooperation could also be investing in human resource development. Human resource development is recognised as thepremiereneedofmostSADCmemberstates.Businessesfocusingonhealth,educationandskilldevelopment aremore likely stable businesses,

which are in increasingly high demand in many countries,duetotheirdirectimpactonimprovingthestandardoflife.Towardsthisend,SADCmembercountriescouldalsotieupwithIndianinstitutionssuchastheCentralFoodTechnologicalResearchInstitute (CFTRI), Mysore and EntrepreneurshipDevelopmentInstituteofIndia(EDI),Ahmedabadand National Small Industries Corporation Ltd. (NSIC), New Delhi. Further, Indian institutionscould also share their expertise in the fields ofexportcapabilitycreationintheregion,institutionalstrengthening and export development in the form of technical assistance and sharing of expertise throughsitevisits.InthethirdIndia-AfricaForumSummitin2015,IndiaannouncedUS$600milliongrant assistance, including 50,000 scholarshipsforenhancingskills,trainingandlearning.IndianinvestorscouldalsohelpSADCgovernments insetting up various higher education institutes,universities and provide scholarships to students for various exchange programmes like Study India Programme, which could improve thequalityofeducationinthesecountries.Thistypeof academic arrangements between Indian andSADC universities will boost academic mobilitybetweenbothregions.

• Developing linkages with Investment Promotion Agencies/ chambers of commerce

Besides streamlining their investment regimes,many countries in the region have set up specialised investment promotion agencies/ Chambers of Commerce to promote and facilitate inflowofforeigninvestment intothesecountries,whilealsoservingasone-stop-shopforinvestmentrelated activities. In light of the key role of these institutions, building closer cooperationand linkages with these investment promotionagenciesinSADCwouldservetoenhanceaccessto information about investment opportunities in the region.



Such relationship would serve to enhanceknowledgeaboutpotentialareasforinvestmentsin the region.

• Focus on Multilateral Funded Projects

Besides participating in investment activities that are promoted by the respective governments of countriesinSADC,Indiancompaniescouldalsoendeavor to participate in multilateral funded projects.MultilateralinstitutionssuchastheWorldBankand theAfricanDevelopmentBank(AfDB)support and fund a number of projects in Africa and SADC. They broadly cover areas such asagriculture and related activities; infrastructuredevelopmentsuchas roads, telecommunication,

postal services, electricity, water supply andsanitation;miningandquarrying;ruralandurbandevelopment; environment and natural resourcedevelopment;healthcareandeducation;financialmarketdevelopment;andtourismdevelopment.

Thus,forIndia,withcountriesintheSADCregionemerging as important trade and investment partners, and the need of these countries forstrategic partnership in their developmental and growth endeavours, sharing of experiences incapacity building, investments and endeavoursin growth-inducing sectors in SADC memberstates could prove to be strategic in fostering and enhancing long term commercial relations as also presenceinSADCmemberstates.



1. Background and Economic Profile of sADc countries

The Southern African Development Community(SADC)hasbeeninexistencesince1980,whenit was formed as an alliance of seven states inSouthernAfrica known as the SouthernAfricanDevelopmentCoordinationConference(SADCC),withthemainaimofpoliticalliberationofSouthernAfrica.SADCCwasformedinLusaka,ZambiaonApril1,1980,followingtheadoptionoftheLusakaDeclaration-SouthernAfrica:TowardsEconomicLiberation. The founding member states are: Angola,Botswana,KingdomofLesotho(Lesotho),Mozambique,KingdomofSwaziland(Swaziland),

United Republic of Tanzania (Tanzania), andZambia.

The transformation of the organization from aCoordinating Conference into a DevelopmentCommunity (SADC) took place on August 17,1992 in Windhoek, Namibia when the SADCTreatyandDeclarationwassignedattheSummitofHeadsofStateandGovernmenttherebygivingtheorganizationa legalcharacter.Theobjectivealso shifted to include economic integration following the independence of SouthernAfrican

Exhibit 1.1: sADc Members

Source:SADC website(www.sadc.int)



countries.ThetreatywasamendedonAugust14,2001 recognizing the new challenges and needfor institutional reforms.

SADC was established under Article 2 of theSADCTreatybyitsmemberstatesrepresentedbytheirrespectiveHeadsofStateandGovernmentor duly authorised representatives to spearhead economic integration of Southern Africa.

SADC, currently comprising 15 member statesnamely Angola, Botswana, the DemocraticRepublic of the Congo (DR Congo), Lesotho,Madagascar, Malawi, Mauritius, Mozambique,Namibia, Seychelles, South Africa, Swaziland,Tanzania, Zambia andZimbabwe, is an integralpart of the African region comprising 32.5 percentoftotal landareaofAfrica,27.7percentoftotal population ofAfrica. SADC is the second-largestcontributor(intermsofGDP)totheAfricanregion,afterECOWAS.Itaccountsfor37percentofnominalGDPofSub-SaharanAfrica;27.9per

centofGDPofAfricaand0.8percentofglobalGDPin2014(Table 1.1).

TheaverageeconomicgrowthofSADCwasat4.6percentin2014,lowerthan5.4percentrecordedinthepreviousyear,mainlyduetosluggishgrowthin twoof itsmajor economies,SouthAfricaandAngola.WhileSouthAfrica’sgrowthwassubdueddue to frequentmining strikesandweaknessofthe randduring theyear, fall inoil sectoroutputaffectedthatofAngola.DRCongo,Mozambiqueand Tanzania were among the fastest growingeconomiesintheregionin2014.

Since mid-2014, major changes in the globaleconomicenvironmenthaveaffectedtheregion’sgrowth. Oil prices have declined since June2014,andsupplyanddemandfactorshavebothcontributed to these developments.

SADC’scombinedGDPstoodatUS$686.8billionin 2014, as compared to US$ 687.7 billion in

2010 2011 2012 2013 2014e 2015f

sADc 607.0 692.9 695.1 687.7 686.8 621.0

sAcu 406.2 452.7 432.5 401.1 385.6 349.6

EcOWAs 490.2 550.6 605.3 675.9 725.3 633.6

cOMEsA 542.2 540.0 637.9 654.3 674.4 705.9

EAc 99.0 105.4 123.9 135.2 147.6 145.7

cEMAc 75.4 90.8 89.9 92.3 94.7 74.5

uEMOA 72.8 79.8 82.4 90.5 96.4 87.5

Memo:

Africa 1936.5 2149.4 2298.9 2388.0 2461.5 2264.8

World 65338.9 72422.5 73777.3 75467.1 77269.2 73506.8

Table 1.1: Nominal GDP of Trading Blocs in Africa (us$ billion)

Note: e-Estimate;f-Forecasts SACU:SouthernAfricanCustomsUnion ECOWAS:EconomicCommunityofWestAfricanStates COMESA: Common Market for Eastern and Southern Africa EAC: East African Community CEMAC: Central African Economic and Monetary Community UEMOA:WestAfricanEconomicandMonetaryUnionSource:IMF,WorldEconomicOutlook,October2015;andEximBankAnalysis



2013.SADCislargelydominatedbyoilexportingeconomies. South Africa is the largest economy in the region, accounting for 51 per cent of theregion’s economy, followed byAngola (18.8 percent),andTanzania(7percent).

AveragepercapitaGDP,atcurrentprices,oftheregion,wasatUS$2,222.1in2014,afallcomparedtoUS$2,278.8in2013.Averageconsumerpriceinflation of the region on the other hand hasmoderated during the same period (Table 1.2).

The economies within the SADC region areat varying stages of development, and alsodiffer significantly in terms of their sizes. Forinstance,theGDPofSouthAfrica,whichstoodat US$ 350.1 billion in 2014, was larger than thecombinedGDPof the remaining fourteenSADCcountries, viz. US$ 336.7 billion (Table 1.3). PositivegrowthratesofrealGDPwererecordedbyallthemembercountriesin2014,accompaniedbymoderateinflationinmostofthecountries.

The SADC region has great economic potentialboth,intermsofdomesticproductionandregionaland international trade. The region is one of the world’smostmineral-rich regions. It is endowed

withnumerousnon-renewableresourcessuchascoal,crudeoil,naturalgasandminerals.SouthernAfrica also has huge reserves of diamonds,uranium,platinum,coalandcopper.Forinstance,SouthAfrica has theworld’s largest reserves ofmanganeseandplatinumgroupmetals (PGMs),andamongthelargestreservesofgold,diamonds,chromite ore and vanadium. Angola is the second-largest oil producer in Africa and the eighth-largest intheworld.Namibiawithanestimated11billionbarrels of oil reserves is regarded as the next big playerinAfrica’soilindustry.Therehavebeennewdiscoveriesofoil,gasandothernaturalresourcesinMalawi,Mozambique,Namibia andTanzania.Supportedbyitsvastunexploredreserves,SADCregion could develop into a new frontier for theinternational oil industry1(Table 1.4).

Servicesectorrepresentmore-thanhalfofSADC’sGDPin2014,andisthemaindriveroftheregionalgrowth(Table 1.5).However,incountriessuchasMalawi, Tanzania and Madagascar agricultureaccountsforasignificantshareintheGDP;whileindustrial sector dominates the Angolan economy. Major industries and major agricultural products in SADC countries are presented in Table 1.6 and 1.7.

Indicators 2010 2011 2012 2013 2014e 2015f

Real GDP Growth (%)* 5.9 5.5 5.1 5.4 4.6 3.9

Nominal GDP (us$ bn) 607.0 692.9 695.1 687.7 686.8 621.0

Consumer Price Inflation (avg, %)* 7.4 8.1 7.5 6.7 5.6 5.6

Population (mn) 280.4 287.5 294.7 301.8 309.1 316.5

GDP Per capita (us$)# 2164.5 2410.2 2358.4 2278.8 2222.1 1962.4

Note: e-Estimate;f-Forecasts;*-SimpleAverage;#-WeightedaverageSource:IMF,WorldEconomicOutlook,October2015;andEximBankAnalysis

Table 1.2: select Macroeconomic Indicators of sADc Region

1SouthernAfricanResearchandDocumentationCentre



cou

ntry

/ R

egio

nN

omin

al G

DP

(us$

bn)

Rea

l GD

P G

row

th(%

)G

DP

Per c

apita

(us$

)C

onsu

mer

Pric

e In

fla-

tion

(avg

, %)

Popu

latio

n(m

n)

land

A

rea

(‘000

sq

km)

2013

2014

e20

15f

2013

2014

e20

15f

2013

2014

e20

15f

2013

2014

e20

15f

2013

2014

e20

15f

2012

Ang

ola

124.2

129.3

102.

06.8

4.8

3.5

5245.4

5303.9

4061.8

8.8

7.3

10.3

23.7

24.4

25.1

1246.7

Botsw

ana

15.1

15.2

13.1

9.3

4.4

2.6

7261

.07233.1

6149.7

5.8

3.9

4.0

2.1

2.1

2.1

581.7

DRCongo

32.7

35.9

39.1

8.5

9.2

8.4

424.4

452.9

478.2

0.8

1.0

1.0

77.0

79.3

81.7

2344.9

Leso

tho

2.3

2.2

2.0

3.6

3.4

2.6

1194.7

1161

.710

62.6

5.0

3.8

3.9

1.9

1.9

1.9

30.4

Mad

agas

car

10.6

10.7

9.5

2.3

3.3

3.4

462.5

452.8

392.6

5.8

6.1

7.6

22.9

23.6

24.2

587.3

Malaw

i5.4

6.1

6.4

5.2

5.7

4.0

317.5

344.0

352.7

28.3

23.8

20.1

17.1

17.6

18.1

118.5

Mau

ritiu

s11

.912

.611

.63.2

3.6

3.2

9476.5

9999.3

9186.5

3.5

3.2

2.0

1.3

1.3

1.3

2.0

Mozam

bique

15.6

16.7

17.0

7.4

7.4

7.0

604.7

629.8

626.

24.2

2.3

4.0

25.8

26.5

27.1

799.4

Nam

ibia

12.9

13.6

12.9

5.1

4.5

4.8

5955.3

6188.1

5787.2

5.6

5.3

4.8

2.2

2.2

2.2

824.3

Sey

chel

les

1.4

1.4

1.4

6.0

3.3

3.515187.0

15140.714466.2

4.3

1.4

4.3

0.1

0.1

0.1

0.5

Sou

th A

frica

366.2

350.1

317.3

2.2

1.5

1.4

6889.7

6482.8

5783.5

5.8

6.1

4.8

53.2

54.0

54.9

1219

.1

Swaziland

4.6

4.4

4.3

2.9

2.5

1.9

4178.0

3994.2

3847.7

5.6

5.7

5.2

1.1

1.1

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44.4

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46.2

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7.9

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46.7

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26.8

26.6

24.5

6.7

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13.9

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Table 1.4: Major Resources of sADc countries

country ResourcesAngola Petroleum,diamonds,ironore,phosphates,copper,feldspar,gold,bauxite,uranium

Botswana Diamonds,copper,nickel,salt,sodaash,potash,coal,ironore,silver

DRCongo Cobalt,copper,niobium,tantalum,petroleum,industrialandgemdiamonds,gold,silver,zinc,manganese,tin,uranium,coal,hydropower,timber

Lesotho Water,agriculturalandgrazingland,diamonds,sand,clay,buildingstone

Madagascar Graphite,chromite,coal,bauxite,rareearthelements,salt,quartz,tarsands,semipreciousstones,mica,fish,hydropower

Malawi Limestone,arableland,hydropower,unexploiteddepositsofuranium,coal,andbauxite

Mauritius Arableland,fish

Mozambique Coal,titanium,naturalgas,hydropower,tantalum,graphite

Namibia Diamonds,copper,uranium,gold,silver,lead,tin,lithium,cadmium,tungsten,zinc,salt,hydropower,fish(note:suspecteddepositsofoil,coal,andironore)

Seychelles Fish,coconuts(copra),cinnamontrees

South Africa Gold, chromium, antimony, coal, iron ore, manganese, nickel, phosphates, tin, rare earth elements,uranium,gemdiamonds,platinum,copper,vanadium,salt,naturalgas

Swaziland Asbestos,coal,clay,cassiterite,hydropower, forests,smallgoldanddiamonddeposits,quarrystone,and talc

Tanzania Hydropower,tin,phosphates,ironore,coal,diamonds,gemstones,gold,naturalgas,nickel

Zambia Copper,cobalt,zinc,lead,coal,emeralds,gold,silver,uranium,hydropower

Zimbabwe Coal, chromium ore, asbestos, gold, nickel, copper, iron ore, vanadium, lithium, tin, platinum groupmetals

Source:CentralIntelligenceAgency(CIA)

country Agriculture Industry servicesAngola* 10.2 61.4 28.4

Botswana 2.4 39.2 58.4

DRCongo 21.2 33.2 45.6

Lesotho 8.0 31.9 60.1

Madagascar 26.5 15.9 57.6

Malawi 33.3 17.0 49.7

Mauritius 3.2 23.2 73.6

Mozambique 25.2 21.1 53.7

Namibia 7.0 31.8 61.2

Seychelles 2.3 12.3 85.4

South Africa 2.5 29.5 68.0

Swaziland 6.3 44.1 49.6

Tanzania 31.5 25.0 43.5

Zambia 9.6 33.9 56.5

Zimbabwe 14.0 29.4 56.6

sADc Average 13.5 29.9 56.6

Table 1.5: sector-wise GDP contribution in sADc countries (%)

*SourcedfromCentralIntelligenceAgency(CIA)Source:WorldDevelopmentIndicatorsDatabase(AccessedonFebruary29,2016);EximBankAnalysis



Table 1.6: Major Industries in sADc countries

country Major Industries

AngolaPetroleum;diamonds, ironore,phosphates, feldspar,bauxite,uranium,andgold;cement;basicmetalproducts;fishprocessing;foodprocessing,brewing,tobaccoproducts,sugar;textiles;shiprepair

Botswana Diamonds, copper, nickel, salt, soda ash, potash, coal, iron ore, silver; livestock processing;textiles

DRCongoMining(copper,cobalt,gold,diamonds,coltan,zinc,tin,tungsten),mineralprocessing,consumerproducts(textiles,plastics,footwear,cigarettes),metalproducts,processedfoodsandbeverages,timber,cement,commercialshiprepair

Lesotho Food,beverages,textiles,apparelassembly,handicrafts,construction,tourism

Madagascar Meat processing, seafood, soap, beer, leather, sugar, textiles, glassware, cement, automobileassemblyplant,paper,petroleum,tourism,mining

Malawi Tobacco,tea,sugar,sawmillproducts,cement,consumergoods

Mauritius Food processing (largely sugar milling), textiles, clothing, mining, chemicals, metal products,transportequipment,nonelectricalmachinery,tourism

Mozambique Aluminium,petroleumproducts,chemicals(fertilizer,soap,paints),textiles,cement,glass,asbestos,tobacco,food,beverages

Namibia Meatpacking,fishprocessing,dairyproducts,pasta,beverages;mining(diamonds,lead,zinc,tin,silver,tungsten,uranium,copper)

Seychelles Fishing,tourism,beverages

South Africa Mining(world’slargestproducerofplatinum,gold,chromium),automobileassembly,metalworking,machinery,textiles,ironandsteel,chemicals,fertilizer,foodstuffs,commercialshiprepair

Swaziland Coal,forestry,sugar,softdrinkconcentrates,textilesandapparel

Tanzania Agriculturalprocessing(sugar,beer,cigarettes,sisaltwine);mining(diamonds,gold,andiron),salt,sodaash;cement,oilrefining,shoes,apparel,woodproducts,fertilizer

Zambia Coppermining andprocessing, emeraldmining, construction, foodstuffs, beverages, chemicals,textiles,fertilizer,horticulture

ZimbabweMining (coal, gold, platinum, copper, nickel, tin, diamonds, clay, numerous metallic and non-metallicores),steel;woodproducts,cement,chemicals,fertilizer,clothingandfootwear,foodstuffs,beverages




Table 1.7: Major Agriculture and Allied Products of sADc countries

country Agricultural Products

Angola Bananas,sugarcane,coffee,sisal,corn,cotton,cassava(manioc,tapioca), tobacco,vegetables,plantains;livestock;forestproducts;fish

Botswana Livestock,sorghum,maize,millet,beans,sunflowers,groundnuts

DRCongo Coffee,sugar,palmoil, rubber, tea,cotton,cocoa,quinine,cassava(manioc, tapioca),bananas,plantains,peanuts,rootcrops,corn,fruits;woodproducts

Lesotho Corn,wheat,pulses,sorghum,barley;livestock

Madagascar Coffee,vanilla,sugarcane,cloves,cocoa,rice,cassava(manioc,tapioca),beans,bananas,peanuts;livestock products

Malawi Tobacco, sugarcane, cotton, tea, corn, potatoes, cassava (manioc, tapioca), sorghum, pulses,groundnuts,Macadamianuts;cattle,goats

Mauritius Sugarcane,tea,corn,potatoes,bananas,pulses;cattle,goats;fish

Mozambique Cotton,cashewnuts,sugarcane,tea,cassava(manioc,tapioca),corn,coconuts,sisal,citrusandtropicalfruits,potatoes,sunflowers;beef,poultry

Namibia Millet,sorghum,peanuts,grapes;livestock;fish

Seychelles Coconuts,cinnamon,vanilla,sweetpotatoes,cassava(manioc,tapioca),copra,bananas;tuna

South Africa Corn,wheat,sugarcane,fruits,vegetables;beef,poultry,mutton,wool,dairyproducts

Swaziland Sugarcane,cotton,corn,tobacco,rice,citrus,pineapples,sorghum,peanuts;cattle,goats,sheep

TanzaniaCoffee, sisal, tea, cotton, pyrethrum (insecticide made from chrysanthemums), cashew nuts,tobacco,cloves,corn,wheat,cassava(manioc,tapioca),bananas,fruits,vegetables;cattle,sheep,goats

Zambia Corn,sorghum,rice,peanuts,sunflowerseeds,vegetables,flowers, tobacco,cotton,sugarcane,cassava(manioc,tapioca),coffee;cattle,goats,pigs,poultry,milk,eggs,hides

Zimbabwe Tobacco,corn,cotton,wheat,coffee,sugarcane,peanuts;sheep,goats,pigs


Profiles of SADC Countries

ThefollowingsectionprovidesabroadoverviewoftheprevailingeconomicenvironmentinSADCmember countries.

South Africa

SouthAfrica is the largest country in theSADCregion and second-largest country in Africa,occupying a land area of 1.2 million squarekilometers (sq. kms). Located at the Southerntip ofAfrica,Namibia, Botswana andZimbabweform the northern border; Mozambique and

south Africa: Basic Factsland area: 1,219,090sqkmGDP:US$350.1bn(2014)Population: 54.0mn(2014)Consumer Price Inflation (avg, %):6.1%(2014)Exports:US$90.6bn(2014)Imports:US$99.9bn(2014)sovereign Rating:A2(ECGC)/BBB-(S&P)capital: Pretoria(administrative),CapeTown(legislative),Bloemfontein(judicial)language: Afrikaans, English, IsiNdebele, Sepedi,Sesotho, Swazi, Xitsonga, Setswana, Tshivenda,IsiXhosaandIsiZulucurrency: Rand (R) = 100 cents; R 10.85: US$ 1(2014)



Swaziland are to the east; with Lesotho as anenclave surrounded by South Africa. It has one of the longest coastlines in the region of 2,798kilometers on the Atlantic and Indian oceans.

In2014,SouthAfricahadanestimatedpopulationof54million,whichisthesecond-highestinSADCandfifth-highestinAfrica.SouthAfricaisafederalstate,comprisinganationalgovernmentandnineprovincialgovernments(EasternCape,Gauteng,KwaZulu-Natal, Mpumulanga, Northern Cape,Limpopo, NorthWest, Free State, andWesternCape).SouthAfricahaselevenofficiallanguages;Afrikaans,English, IsiNdebele,Sepedi,Sesotho,Swazi,Xitsonga,Setswana,Tshivenda, IsiXhosaandIsiZulu.

Angola

Angola,anAfricanenergygiant,andisthesecond-largest country in the SADC region and fifth-largest country inAfrica, occupying a land areaof1.2millionsq. kms.Angolahasanestimatedpopulationof24.4millionin2014.Portugueseistheofficial languageof the country. It is locatedin SouthernAfrica, bordered byNamibia on the

south, DR Congo on the north, Zambia on theeast,andtheAtlanticOceanonthewest.

Angolahaslargereservesofoil,gasanddiamonds.Italsohasreservesofironore,copperandgold.Thecountryhasover1,600kmofcoastlineandis rich in marine resources. The country has substantial water resources provided by theKwanza,CuneneandCuangorivers,andhasonlypartially developed its agricultural and hydroelectric potential. Arable land as a percentage of total land areaisroughly4percent.TheAngolaneconomyis dominated by the capital-intensive oil sector,which accounts for around 45 per cent of GDPand maximum of export revenue2.

The current low oil-price environment is drivinga slowdown across almost all sectors of theeconomy, and forcing fiscal consolidation. Thegovernment is pursuing a policy of import substitution across various products, facilitatedby high import tariffs and protective import quotas or bans, which aim to protect domesticindustries from cheaper imports and encourage nationalproductionanddistribution.Angolaiswellendowedwithagriculturalnatural resourcesandtheareaundercultivationisincreasing,howeverharvests remain low.The farming sector suffersfromlimitedcompetitionandprocessingfacilities,frequent droughts and a lack of co-operationamong farmers; making Angola a net importerof staple foods. Mining is dominated by diamond production, and the government is encouragingforeign private investment in mining ventures. Manufacturing is another target growth areafor the country, particularly food and beverageproduction,andtextilemanufacturing.Therecentboom in the construction sector has been affected bylowoilprices,asithasimpactedthenationalfinancesandbusinessactivity3.

Angola: Basic Facts

land area: 1,246,700sqkm

GDP:US$129.3bn(2014)

Population: 24.4mn(2014)

Consumer Price Inflation (avg, %):7.3%(2014)

Exports:US$63.8bn(2014)

Imports:US$26.5bn(2014)

sovereign Rating:B1(ECGC)/B+(S&P)

capital: Luanda

language:Portuguese(official),Umbundu,Kimbundu,KikongoandotherBantu-grouplanguages

currency: Kwanza(Kz):Kz98.30:US$1(2014)

2 Source: OPEC3Source:Dun&Bradstreet



Tanzania

TanzaniaislocatedinEastAfricaandisborderedby Kenya and Uganda to the north, Rwanda,Burundi, and DR Congo to the west, Zambia,Malawi,andMozambiquetothesouth,andIndianOcean to the East. It is the fourth-largest among SADC countries,with a land area of 0.9millionsq. kms. Dar-es-Salaam is the largest city inTanzania,which is also amajor sea port of thecountry,servingasthegatewaytoEastAfricaandCentral Africa.

Agriculture is the dominant economic activity,amountingtoaroundone-thirdoftotalGDPand80per cent of employment. The productive capacity of the industrial sector is restricted by energy shortages, poor management and occasionalliquidity concerns.Tourismandgoldexportsarekey sources of foreign exchange earnings.

Tanzania has an estimated population of 46.7million in2014.Tanzania is recognizedasa lowincome country by World Bank, and has alsoreached the completion point for Heavily Indebted Poor Countries (HIPC) initiative. Tanzaniahas made significant progress over the pasttwo decades to achieve and maintain macro-

economicstability,andisconsideredasoneofthebestperformersinSubSaharanAfrica.Tanzaniahas commercially exploitable deposits of a range ofminerals including gold, diamonds andvariousgemstones,andhassubstantialreservesof uranium, nickel, platinum and natural gas.Tanzania also has deposits of tanzanite, a bluegemstoneuniquetothecountry.Totalarablelandas percentage of total land area in Tanzania is16.3percent.

DR Congo

DRCongoislocatedatcentralAfrica,withCentralAfricanRepublicandSouthSudanborderingthenorth;Uganda,Rwanda,andBurundiintheeast;ZambiaandAngolatothesouth;andtheRepublicof the Congo, theAngolan enclave of Cabinda,andtheAtlanticOceantothewest.DRCongoisamemberofSADCandCOMESA.

DRCongocoveringalandareaof2.3millionsq.kms, is the second-largest country in Africa byarea,afterAlgeria,andtheeleventh-largestintheworld.Withapopulationof79.3million in2014,DRCongo is the fourthmostpopulousnation inAfrica and seventeenth most populous nation in theworld.

Tanzania: Basic Facts

land area: 947,300sqkm

GDP:US$48.1bn(2014)





sovereign Rating:B2(ECGC)

capital: Dodoma

language: SwahiliandEnglish

currency: Tanzanian shilling (TSh); TSh 1,654: US$1(2014)

DR congo: Basic Factsland area: 2,344,885sqkmGDP:US$35.9bn(2014)Population: 79.3mn(2014)Consumer Price Inflation (avg, %):1.0%(2014)Exports:US$7bn(2014)Imports:US$6.5bn(2014)sovereign Rating:C1inRestrictedCover–GroupICategory(ECGC)/B-(S&P)capital: Kinshasalanguage: French (official and business), Lingala,Swahili,Kikongo,Chiluba,otherlocalcurrency: Congolesefranc(FC)=100centimes;thecurrency trades on the parallel market at a slight dis-count;FC925.2:US$1(2014)



In terms of resources, DRCongo is one of therichest in Africa. It has huge potential for mineral production, hydroelectricity and agriculture. The mainmineralsarecopper,cobalt,zinc,diamondsand columbo-tantalite (coltan). Cadmium,cassiterite (tin ore), gold, silver, wolframite(tungstenore)anduraniumareminedonasmallerscale. Most mining of base metals takes place in Katanga.MostdiamondproductionisintheKasaiprovinces. There are vast gold deposits said to be the richest undeveloped gold deposits in Africa in the Kilomoto concessions of Orientale provinceandaroundTwangizainSouthKivu.DRCongoisconsideredastohaveworld’slargestdepositsofcobalt.Arable landcoversonly3percentofthecountry’sarea.

Despite a vast array of natural resources, DRCongo is one of the poorest countries in the world, following many years of conflict. Theeconomy has a very large informal sector that accountsfor largeshareofemployment, incomeandtrade.Whileagriculture(includingfishingandforestry)accountedforanestimated21percentofGDP,andisthemainemployerinthecountry,commercial agricultural production or processing is limited, with most producers engaged insubsistence farming. Mining and related activities are important source of export earnings. The mining sector has established important linkages to the transportation, construction and securitysectors.

Zambia

Zambia is a landlocked country located inSouthern Africa; surrounded by DR Congo innorth, Tanzania in north-east, Malawi in east,Mozambique,Zimbabwe,BotswanaandNamibiainsouth,andAngolainwest.LusakaisthecapitalcityofZambia.Zambiahasatotallandareaof0.8millionsq.kms.andhasanestimatedpopulationof15millionin2014.

Zambia is known for its high-quality copper andcobalt reserves. Zambia is Africa’s top copperproducer,and is themainexportof thecountry.Zambia is internationally recognised as amajorproducer of various precious and semi-precious gemsincludingemeralds,aquamarines,amethystandtourmalinesandthequalityofthesegemsarehighlycompetitivewithworldmarkets.Therearealso gold and coal reserves in the country. The country also has abundant hydroelectric potential. Total arable land amounts to only 5.1 per cent of total land area.

Zambia is a lower-middle income country,relies heavily on the mining sector, particularlycopper. The Zambian government is committedto a process of economic diversification, ashighlighted in successive five-year nationaldevelopment plans, and is attempting to attractforeign investment to non-mining sectors such as agriculture,manufacturingandtourism.

Mozambique

Mozambiqueis locatedinsouth-eastAfrica,withalandareaof0.8millionsq.kms.ThecountryisborderedbytheIndianOceantotheeast,Tanzaniatothenorth,MalawiandZambiatothenorthwest,

Zambia: Basic Facts


GDP:US$26.6bn(2014)





sovereign Rating:A2(ECGC)/B(S&P)

capital: Lusaka

language: English (official),Nyanja,Bemba,Tonga,Loziandotherlocallanguages

currency:ZambianKwacha(ZK)=100ngwee;ZK6.15: US$1(2014)



ZimbabwetothewestandSwazilandandSouthAfricatothesouthwest.Thecapitalcity,Maputo,is located at the southern tip of the country.

Mozambiquehasanestimatedpopulationof26.5millionin2014;withmajorityofpopulationlivinginrural areas.

Mozambique is following a new growth modelbased on extractive industries. An abundance of cheap hydroelectricity is the country’s mostsignificant resourceandhashelped inattractingforeigninvestment.Mozambiquehashydroelectricgeneration potential of about 12,500 megawatt(mw), 80 per cent of which is concentrated inthe Zambezi basin4. In addition, Mozambique,witha2,500kmcoastline,hassignificantmarineresources; prawns were the country’s mainexport until the development of the aluminium industry.Mineralresources(includingreservesofaluminium,beryllium,gold, gemstones, titanium,coal and bauxite) are also substantial, althoughthey have only recently begun to be exploited. Titanium deposits has been discovered in Moma district of the country has been estimated to be sufficientfor120yearsofproduction.Naturalgashas also been found in commercial quantities

in thecountry,which isexpected to improve theeconomic status of the country. Around 7 per cent of total land area is arable land.

Mozambique’seconomicgrowth (realGDP)hasaveraged around 7 per cent, which has beensupported by large-scale foreign investment projectsintheextractivesector(includingoil,gasandsolidminerals).ThediscoveryoflargenaturalgasfieldsoffMozambique’scoastlinein2011hasthe potential to make Mozambique one of thelargestproducersofnaturalgasintheworld.

Botswana

BotswanaisalandlockedcountryinthecentreofSouthern Africa. It is bordered by South Africa to thesouthandsoutheast,Namibiatothewestandnorth,Zimbabwetothenortheast,andZambiatothe north. The country covers an area of about 0.6 millionsqkms.Botswanahasatotalpopulationsizeof2.1million,andthepopulationisconcentratedin theeasternparts of the country.Setswana isthenationallanguage,whileEnglishistheofficiallanguageusedinbusinessandmostGovernmentaffairs. There are also some indigenous languages whichincludeseveralethnicgroups.

Mozambique: Basic Facts


GDP:US$16.7bn(2014)





sovereign Rating:B1(ECGC)/B-(S&P)

capital: Maputo

language: Portuguese(official)andthreemainAfricanlanguage groups: Makua-Lomwe, Tsonga and Sena-Nyanja

currency:Metical(MT);MT31.4:US$1(2014)

Botswana: Basic Facts


GDP:US$15.2bn(2014)





sovereign Rating:A2(ECGC)/A-(S&P)

capital: Gaborone

language: SetswanaandEnglish

currency: Pula (P) = 100 thebe; P 8.98: US$ 1(2014)

4EnergySecurityinMozambique,InternationalInstituteforSustainableDevelopment(2010)



Theminingsector,dominatedbydiamondmining,is a major contributor to the export base, andgovernment policy endeavours to reduce the vulnerability arising from the heavy dependence on diamonds. The livestock industry contributes about80percentofagriculture’sshareofGDP5.

Sound macroeconomic policies and the prudent use of diamond revenues have transformed Botswana from a largely informal subsistenceeconomywithminimal infrastructure into one ofthe leading economies in Africa.

Zimbabwe

Zimbabwe is a land-locked country bounded byMozambiquetotheeast,Zambiatothenorthandnorthwest,SouthAfricatothesouth,andtothesouth west by Botswana. Zimbabwe occupies390,757sq.kmsoflandinsouthcentralAfrica.

Zimbabwe’seconomyisdependentonagriculturalproducts including tobacco, cotton and sugarcane. Major export commodities are tobacco and

horticulture products. Smaller crops like sugar,tea,coffee,cotton,seeds,maize,smallgrainsandoilseeds are also being exported. The agricultural sectorisanimportantcontributortothecountry’sexportactivities,withmarketsinAmerica,Europe,Africa and the Far East. Zimbabwe is richlyendowedwithmineralresources,over40differenttypesofmineralsareminedinthecountry,includingthemajormineralsgold,chrome,asbestos,coal,ironore,nickel,copper,diamondsandplatinum.Other contributors to the economy are industry and cattle farming. The principal manufactured exports include ferro-alloys, clothing, metal products,chemicals, plastics and cotton-lint. Livestockagriculture(cattle)isoneofthecountry’sforemosteconomic activities6.

Namibia

Namibia,withatotalatotallandareaof824,269sq. kms, is bordered by Angola to the north,BotswanaandZimbabwe to theeastandSouthAfrica to the south. The country is bordered by the AtlanticOceaninthewest.

Zimbabwe: Basic Facts


GDP:US$13.8bn(2014)


Consumer Price Inflation (avg, %):-0.2%(2014)



sovereign Rating:C1(ECGC)

capital: Harare

language: English(official),Shona,Ndebeleandlocaldialects

currency:Zimbabwedollar(Z$)=100cents;Follow-ingaperiodoframpantinflationthegovernmentmovedto amulti-currency system, using nine currencies, in-cluding the US dollar and the SouthAfrican rand, inpreferencetotheZimbabwedollar(Z$);theZimbabwedollarhasineffectbeendemonetized

Namibia: Basic Facts


GDP:US$13.6bn(2014)



Exports:US$6bn(2014)



capital: Windhoek

language: English (official),Oshivambo (variousdia-lects), Nama-Damara,Afrikaans, Herero, Rukavango,Lozi,German,TswanaandseveralBushman(San)dia-lects

currency:Namibiadollar(N$)=100cents;introducedinSeptember1993,peggedatparitywiththeSouthAf-ricanrand;NS$10.85:US$1(2014)

5www.sadc.int6 ibid



The economy is heavily dependent on the extractionandprocessingofmineralsforexport;making mining the largest contributor to the country’s GDP. Rich alluvial diamond depositsmakeNamibia a primary source for gem-qualitydiamonds. Marine diamond mining is becoming increasingly important as the terrestrial diamond supply has dwindled. The rising cost of miningdiamonds, increasingly from the sea, however,hasreducedprofitmargins.Namibiaistheworld’sfifth-largestproducerofuranium.Italsoproduceszinc,goldandcopper7.

Mauritius

Mauritius is situated in the south west IndianOcean,approximately2,400kmsfromthesoutheastcoastofAfrica.Withatotallandareaof2,040sqkms,theislandishousetoapopulationof1.3million.

Mauritius has one of the most successful and competitive economies in Africa. It has developed from being a low-income, agriculturally-basedeconomy to a middle-income, diversifiedeconomy.Financialservices(particularlyoffshorecompanies), ICT, agriculture and textiles arepresently the main drivers of growth. Mauritius

is among the world’s ten largest exporters ofsugarandthesecond-largestexporterofwoollenknits. Mauritius offers a very conducive business environment to investors and is ranked first inAfricaontheWorldBank’sEaseofDoingBusinessRanking.Thegovernmentaimstodevelopalargerandmoredynamic ‘oceaneconomy’ focusedoninternationaltrans-shipments,bunkeringservices,cruiseshipstop-oversandfishsectorprocessing.

Madagascar

Madagascar is an island situated off the east coast ofAfrica,andisseparatedfromthemainlandbytheMozambique Channel.Agriculture, includingfishingandforestry,isamainstayoftheeconomy,accountingformorethanone-fourthofGDPandemployingroughly80percentofthepopulation8. Traditionally, Madagascar is a producer of teaandcoffeebutwithlowmarketpricesthisindustryhas declined over the years. Madagascar is a keyproduceroffish,crabs,prawns,musselsandother seafood. Other important industrial activities include processing of meat and seafood, soap,brewery products, tanneries, sugar, textiles,glassware, cement, automobileassembly, paperandpetroleum.Madagascar’smineralpotentialisunderexploited,anditisperceivedasakeysectorthat can play an important role in the development of the country9.Mauritius: Basic Facts


GDP:US$12.6bn(2014)





sovereign Rating:A2(ECGC)

capital: Port Louis

language: French, English, Creole, Bhojpuri, Tamil,Hindi,Urdu

currency: Mauritius rupee (MRs) = 100 cents; MRs30.62:US$1(2014)

Madagascar: Basic Facts


GDP:US$10.7bn(2014)






capital: Antananarivo

language: Malagasy,French

currency:Ariary(AR);AR2414.8:US$1(2014)

7CentralintelligenceAgency(CIA)8 ibid9www.sadc.int



Malawi

MalawiisalandlockedcountrylocatedinsoutherncentralAfrica,andisborderedbyTanzaniatothenorth and north east, Mozambique to the east,southandsouthwest,andZambiatothewest.

Malawi’s relatively small economy is heavilyreliantonagriculture,whichcomprisesabout30percentofGDP,constitutesover80percentoftotalexportearningsandsupports85percentofthe population10. The agricultural sector includes arable agriculture, forestry and fisheries. Theeconomy is also a major producer of tobacco,especially of the burley variety, which typicallyaccounts for 30-40 per cent of total exportearnings,followedbyteaandsugar.

The tourism industry is seen as a sector for economic growth and diversification, as well asfor increasing foreign exchange earnings.

Swaziland

Swazilandisasmall,landlocked country covering atotalareaof17,364sq.kms.andislocatedinthesouthernpartofAfricaborderedbyMozambiqueto

the east and the restbySouthAfrica.Swazilanddepends heavily on South Africa and for 60 per cent of its exports and for more than 90 per cent ofitsimports.Swaziland’scurrencyispeggedtothe South African rand, effectively relinquishingSwaziland’smonetarypolicytoSouthAfrica11.

The country relies largely on agriculture, withsugar, coca-cola concentrate, cotton, citrusfruitsandcannedproductsandmaizebeing thelargest exports. The nearest harbour is at Maputo in Mozambique, which is about 235 kms fromMbabane,theadministrativecapital,and200kmsfromMatsapha,thecountry’smainindustrialarea.It is fromhere thatmost of the country’s exportproducts are shipped12.

Lesotho

Lesotho is situated in the south eastern region of SouthernAfrica, covering an area of 30,344sq. kms. and is entirely surrounded by SouthAfrica. Lesotho relies on South Africa for much of its economic activity; Lesotho imports 90per cent of the goods it consumes from South Africa, including most agricultural inputs. Thecountry’sremittancesarealsomainlyfromSouthAfrica.

Malawi: Basic Factsland area: 118,484sqkmGDP:US$6.1bn(2014)Population: 17.6mn(2014)Consumer Price Inflation (avg, %):23.8%(2014)Exports:US$1.4bn(2014)Imports:US$2.8bn(2014)sovereign Rating:C1(ECGC)capital: Lilongwelanguage: Chichewa (national language),English (of-ficial language); Chichewa is increasingly understoodthroughout the country, but Chitumbuka is the linguafranca in Northern regioncurrency: Malawi kwacha (MK) = 100 tambala; MK424.90:US$1(2014)

swaziland: Basic Facts


GDP:US$4.4bn(2014)






capital: Mbabane

language: SiswatiandEnglish

currency: Lilangeni=100cents;pluralemalangeni(E); pegged at parity to the rand; E 10.8: US$ 1(2014)

10Dun&Bradstreet11CentralIntelligenceAgency(CIA)12 www.sadc.int



Lesotho has a total population of 1.9 million. Lesotho’s largest private employer is the textileand garment industry - approximately 36,000,mainly women, work in factories producinggarmentsforexporttoSouthAfricaandtheUS13. Diamondmining inLesothohasgrown in recentyearsandisexpectedtocontribute8.5percenttoGDPby2015,accordingtocurrentforecasts.

Seychelles

Seychelles is an island located in the Indian Ocean, to northeast of Madagascar and east

of Kenya. The Seychelles economy is primarilydominatedbythetourismindustry,whichemploysabout30percentofthelaborforceandprovidesmorethan70percentofhardcurrencyearnings,followedbytunafishing.

Inrecentyears,thegovernmenthasencouragedforeign investment to upgrade hotels and other services.At thesame time, thegovernmenthasmoved to reduce the dependence on tourism by promoting the development of farming, fishing,and small-scale manufacturing14.

lesotho: Basic Facts


GDP:US$2.2bn(2014)



Exports:US$1bn(2014)



capital: Maseru

language: Sesotho and English

currency:Loti,pluralmaloti(M)=100lisente;peggedatparitywiththerand;M10.8:US$1(2014)

seychelles: Basic Facts

land area: 455sqkm

GDP:US$1.4bn(2014)






capital: Victoria

language: Creole,English,French

currency:Seychellesrupee(SRs)=100cents;SRs12.75:US$1(2014)

13CentralIntelligenceAgency(CIA)14Ibid



ReflectingtheincreasingglobalizationoftheSADCeconomies, SADC’s global trade has witnessedsignificantupwardtrend inrecentyears. Duringtheperiod2004to2014,SADC’stotaltradehasrisen nearly three-fold, from US$ 137 billion in2004 toUS$410.7billion in2014,growingatacompoundannualgrowthrateof11percentoverthe period (chart 2.1).

SADCasablochasshownstableperformanceintermsofitsglobaltrade.SADC’sshareinglobaltradehasincreasedfrom0.7percentin2004to1.1percentin2014.However,theshareofSADCinAfrica’stotaltradehasdecreasedfrom41percentin2004to34.8percentin2014.

Inthecaseofexports,SADC’stotalexportshaverisen fromUS$61 billion in 2004 toUS$208.3billion in2014,witha resultant rise in theshareof SADC in global exports from 0.6 per cent to1.1 per cent during the period. SADC’s exports

have been driven by exports of South Africa and Angola,thetwogiantsintheblocaccountingfor74percentoftheregion’sexports.

Asregardsimports,SADC’stotalimportsrosetoUS$202.4billion(1.1percentofglobalimports)in2014,upfromUS$76billion(0.8percent) in2004.

During the decade, trade balance of SADCreversedfromadeficitofUS$15billion in2004toasurplusofUS$5.9billionin2014.TheshifttosurpluswasmainlydrivenbyAngola(maintainingatradesurplusofUS$37.2billionin2014),primarilydue to large revenues from oil exports, despiteregistering a fall during the year. Other economies in the region that maintained a surplus during the year includeDRCongo,Swaziland,ZambiaandBotswana. In the SADC region, economies thatmaintaineda tradedeficit in2014 includeSouthAfrica, Tanzania, Mozambique, Zimbabwe andMauritius.

2. International Trade of sADc countries

chart 2.1: sADc’s Foreign Trade, 2004-2014

Source:ITCTrademap,derivedfromUNcomtrade;andEximBankAnalysis



sADc — Exports

Major Exporters

Among the countries in SADC, the largestexportersareSouthAfricaandAngola, togetheraccountingfor74percentofSADC’stotalexportsin 2014. Other important exporters from SADCincludeZambia,Botswana,DRCongo,NamibiaandTanzania(Table 2.1).

Export Items

Reflectingthesignificantrise inexportsofcrudepetroleum from SADC, mineral fuels are thelargest export items, accounting for as muchas36percentofSADC’s totalexports in2014,followedbypearlsandpreciousstones,oresand

slag, copper and its articles, vehicles, iron andsteel and machinery (Table 2.2).

Withintheregion,majorexporters of mineral fuels include Angola, South Africa and Mozambique.SADC accounts for 2.4 per cent of the worldexportsofmineralfuelsin2014,ofwhichAngolaalone accounts for 2 per cent. Among mineral fuel exports, crude petroleum is a dominant exportitem.

Major exporters of pearls and precious stones in theSADCregionincludeSouthAfrica,Botswana,Namibia,andTanzania.The regionaccounts for3.8 per cent of the world exports of pearls andpreciousstones.Within thiscategory,diamonds,gold and platinum are the major export items from the region.

Exporters 2012 2013 2014 share (%)

sADc 221100.2 218621.5 208267.9 100.0%

South Africa 98872.2 95111.5 90612.1 43.5%

Angola 74214.6 71390.5 63755.9 30.6%

Zambia 9364.7 10594.1 9687.9 4.7%

Botswana 5971.2 7573.3 7915.5 3.8%

DRCongo 6873.8 7665.3 7044.6 3.4%

Namibia 5377.0 6337.2 5983.8 2.9%

Tanzania 5547.2 4412.5 5704.7 2.7%

Mozambique 3469.9 4023.7 4725.3 2.3%

Zimbabwe 3882.4 3507.3 3063.7 1.5%

Mauritius 2257.7 2341.3 2663.0 1.3%

Madagascar 1224.5 1626.9 2243.2 1.1%

Swaziland 1705.5 1861.8 1883.6 0.9%

Malawi 1182.9 1208.0 1421.6 0.7%

Lesotho 678.2 354.6 992.4 0.5%

Seychelles 478.3 613.5 570.5 0.3%

Table 2.1: sADc’s Major Exporters (us$ mn)




Ores,slagandash account for 7.7 per cent of the region’sexports,withmajorexportersbeingSouthAfricaandDRCongo.

Major Export Markets

Whilewestern developed countries such as theUS, Switzerland, and Belgium continue to bemajordestinationsforSADC’sexports,developingcountries such as China and India have emerged as major export destinations in recent years. In fact, in2014,Chinaand Indiahaveemergedasthefirstandthird-largestdestinationsforSADC’sglobal exports, accounting for 22 per cent and6 per cent, respectively ofSADC’s total exports (Table 2.3).

hs code Product label 2012 2013 2014 share (%)

TOTAL All products 221100.2 218621.5 208267.9 100.0%

27 Mineralfuels,oils,distillationproducts 84576.4 81646.2 75052.5 36.0%

71 Pearls,preciousstones,metals,coins 30280.9 29265.2 26588.6 12.8%

26 Ores,slagandash 17135.0 18079.7 16049.6 7.7%

74 Copper and its articles 10658.2 10895.7 10709.5 5.1%

87 Vehiclesotherthanrailway,tramway 9400.0 8855.3 9261.6 4.4%

72 Iron and steel 7455.4 6841.4 7493.3 3.6%

84 Machineryandequipment 8014.0 7624.2 7446.2 3.6%

08 Ediblefruit,nuts,peelofcitrusfruit,melons 2684.2 2983.3 3406.8 1.6%

76 Aluminium and its articles 2939.1 3036.9 3363.6 1.6%

85 Electrical,electronicequipment 2718.1 2692.2 3235.5 1.6%

Table 2.2: sADc’s Major Export Items (us$ mn)


Major suppliers toChina from theSADC regionincludeSouthAfrica,Angola,Zambia,DRCongoand Mozambique. While major suppliers to theUS were South Africa, Angola and Mauritius;SouthAfrica,Angola,andTanzaniawerethemainsuppliers to the Indian market.

sADc – Imports

Major Importers

Asregardsimports,theleadingimportersinSADCareSouthAfricaandAngola,togetheraccountingfor62.5percentofSADC’stotalimportsin2014(Table 2.4).



Importers 2012 2013 2014 share (%)

China 50851.9 49923.1 45761.0 22.0%

USA 18766.9 16753.6 13862.2 6.7%

India 12697.1 11710.4 12514.0 6.0%

South Africa 11594.0 11719.4 9946.7 4.8%

Switzerland 6959.8 7284.0 7141.2 3.4%

Belgium 4047.3 4510.3 6685.7 3.2%

Japan 6515.4 6426.3 6059.7 2.9%

Botswana 5538.2 5559.0 5865.3 2.8%

Netherlands 4810.7 5995.2 5767.7 2.8%

Namibia 4423.3 4580.2 5425.7 2.6%

Table 2.3: sADc’s Major Export Destinations (us$ mn)


Table 2.4: sADc’s Major Importers (us$ mn)

Importers 2012 2013 2014 share (%)

sADc 194829.8 204635.5 202408.8 100.0%

South Africa 104144.3 103441.3 99892.7 49.4%

Angola 20628.6 23395.2 26538.7 13.1%

Tanzania 11715.6 12525.4 12691.1 6.3%

Zambia 8805.2 10161.8 9539.0 4.7%

Mozambique 6177.2 10099.1 8743.1 4.3%

Namibia 7132.0 7574.5 8531.0 4.2%

Botswana 8025.3 7433.5 7830.5 3.9%

DRCongo 6018.5 6949.1 6545.0 3.2%

Zimbabwe 7362.5 7704.2 6379.8 3.2%

Mauritius 5772.0 5395.5 5607.2 2.8%

Madagascar 2659.0 2699.4 3354.8 1.7%

Malawi 2330.4 2844.6 2798.6 1.4%

Swaziland 1786.3 1752.5 1679.1 0.8%

Lesotho 1594.2 1836.9 1580.2 0.8%

Seychelles 678.6 822.3 698.0 0.3%




Major Import Items

In contrast to SADC’s export basket which islargely dominated by crude oil, SADC’s importbasket is relatively diversified. Mineral fuelsandmachineryare the two largest import items,followed by electronic and electrical equipment,vehicles, plastics and articles, articles of iron orsteel and pharmaceutical products (Table 2.5).

WhileSADC isemergingasamajorexporterofcrude petroleum, petroleum products dominateimports of the region. These products include: large volumes of petroleum oils, not crude (HS2710)mainlyimportedbySouthAfrica,Tanzania,Zimbabwe and Mozambique; crude petroleumoils (HS-2709)mainly imported bySouthAfrica,Zambia andAngola; and electrical energy (HS-2716) mainly imported by Mozambique, SouthAfricaandBotswana.

Major importers of machinery and equipment,the second-largest import item of the region,includeSouthAfrica,AngolaandZambia.Amongmachinery and equipment, portable digitalcomputerswerethemajorimportitems.

Electrical and electronic equipment, the third-largest import item of the region, accounted for8.3percentoftheregion’sglobalimports.Theseitems were mainly imported by South Africa,AngolaandTanzania.

Major Import Sources

As regards SADC’s global imports, China hasemerged as the leading supplier to SADC,accounting for as much as 14.4 per cent ofSADC’stotal imports in2014,followedbySouthAfrica and Germany. India is the fourth-largestsourceofSADC’simports,accountingfor5.3percentin2014(Table 2.6).

hs code Product label 2012 2013 2014 share (%)

TOTAL All products 194829.8 204635.5 202408.8 100.0%

27 Mineralfuels,oils,distillationproducts 36996.8 39143.9 37487.7 18.5%

84 Machineryandequipment 26309.8 26209.7 25552.6 12.6%

85 Electrical,electronicequipment 15153.9 16472.9 16792.0 8.3%

87 Vehiclesotherthanrailway,tramway 17452.7 17293.6 16644.9 8.2%

39 Plastics and its articles 5151.2 5351.2 5598.0 2.8%

73 Articles of iron or steel 5021.4 5351.1 5571.8 2.8%

30 Pharmaceutical products 4205.5 4404.1 4518.6 2.2%

71 Pearls,preciousstones,metals,coins 3741.8 4489.4 4288.4 2.1%

90 Optical,photo,technical,medicalap-paratus 3479.9 4651.6 3825.3 1.9%

72 Iron and steel 3398.7 3881.4 3453.0 1.7%

Table 2.5: sADc’s Major Import Items (us$ mn)




China’smainmarketsintheSADCregionincludeSouthAfrica,AngolaandTanzania.SouthAfrica,thesecond-largestimportsourceoftheregion,mainly exported to its neighbouring countries,

Exporters 2012 2013 2014 share (%)

China 24448.7 26525.1 29109.9 14.4%

South Africa 25980.8 27121.0 25523.4 12.6%

Germany 11788.1 12391.3 11842.7 5.9%

India 8610.7 11157.6 10786.5 5.3%

USA 11007.0 9631.8 10228.2 5.1%

Saudi Arabia 8266.9 8361.9 7423.8 3.7%

Japan 6279.3 5958.4 5733.2 2.8%

UK 8178.5 7410.9 5567.9 2.8%

Nigeria 3783.0 3639.3 5154.2 2.5%

Portugal 4415.0 4923.2 4945.4 2.4%

Table 2.6: sADc’s Major Import sources (us$ mn)


namely,Namibia,BotswanaandMozambique.Inthecaseof India, itsmainmarkets in theSADCregion comprise South Africa, Tanzania andMozambique.



3. India’s Bilateral Trade Relations with sADc countries

Towards developing extensive economic andstrategicrelationswithSADC,theGovernmentofIndiasignedtheMemorandumofUnderstanding(MOU) on economic cooperationwithSADConOctober14,1997.Thebroadareasofcooperationincludeagriculture,waterresourcesmanagement,human resource development, entrepreneurialdevelopment, promotion of small and mediumscale industries, non-conventional energysources, communication, commerce, banking,diplomacy and enterprises development through private sector involvement.

AsafollowuptotheMOU,theFirstIndia-SADCForummeetingwasheld inWindhoek,Namibia,on April 28, 2006. The Forum agreed to focuscooperation in the sectors of trade, industry,finance and investment; food, agriculture andpharmaceuticals; water resource management;and information and communications tech-nology.

Further,IndiahasdevelopedcooperationwiththeAfrican continent through the traditional bilateral engagementswithAfricanstatesandmultilateralengagements at the continental level through the AfricanUnion(AU),andattheregionallevel,Indiahas engaged Regional Economic Communities(RECs). The India-Regional EconomicCommunities(RECs)Meetings,thatincludeover40 RECs fromAfrica (including SADC), have asignificantroleinstrengtheningIndia-Africatradeand investment relations.

WiththeincreasingdiversificationofIndia’sglobaltradetowardsotherdevelopingcountries,SADChasemergedasimportantpartnerforIndia,both

as an export destination as also an import source. Theeconomicandtradelinkages,whichsawanexpansion of trade volumes, stand testimony totheintensifiedeconomicengagement.Duringthelast tenyears, India’s total tradewith theSADCcountrieswitnessedovereight-foldincreasefromUS$3.7billionin2004toUS$29.6billionin2014(Table 3.1).

While India’s total exports to SADC has risenfromUS$1.6billion in2004toUS$15billion in2014,depictinganine-foldriseduringtheperiod,India’stotal importsfromSADChavealsorisen,althoughataslowerpace, fromUS$2billion toUS$14.6billion,showingaseven-foldrise.India’stradebalancewithSADCturnedintoasurplusof US$0.4billionin2014,afterwitnessingadeficitfor six consecutive years.

The increasing importance of India as SADC’strading partner can be assesses from the fact thatIndiaaccountsforarespectable7.4percentof SADC’s global imports in 2014,whichwas asignificant improvement compared to 2.1 percentrecordedin2004.Further,Indiaaccountsforaround7percentofSADC’stotalexports,upfrom3.3percentin2004,depictingtherisingimportanceofIndiainSADC’stradeconfiguration.

TheimportanceoftheSADCregioncanalsobegauged from the fact that the region accounted for4.7percentofIndia’sglobalexportsin2014,up from 2.2 per cent recorded in 2004. India’simportsfromSADCregion,asapercentageshareof India’s global imports, accounted for 3.2 percentin2014.Theperiodalsowitnessesariseinthe importance of SADC in India’s global trade configuration.



India’s Major Export Items to sADc

Table 3.2presentstrendsinIndia’smajorexportitems to SADC. Mineral fuels and vehicles arethelargestitemsinIndia’sexportbaskettoSADC,withacombinedshareof48percentofIndia’stotalexportstoSADCin2014.OtherimportantitemsofIndia’sexportstoSADCincludepharmaceuticals,ships, boats and other floating structures,machinery,electrical&electronicequipment,andcereals.

The importance of India as a source for SADCimports of mineral fuel oils can be gauged from the fact that Indiaaccounts for 19.4per cent ofSADC’s global import of this product. Likewise,SADCisanimportantmarketforIndia’sexportofmineralfuels,accountingfor11.6percentofIndia’sglobalexports.Atthedisaggregatedlevel,India’sexportstoSADCmainlycomprisepetroleumoils(HS-2710). Major markets for India within the

Table 3.1: India’s Trade with sADc, 2004-2014 (us$ bn)

India’s Exports to sADc (us$ bn) 1.6 2.3 3.6 4.6 6.3 4.7 7.1 9.4 9.7 14.1 15.0

Share in India’s exports to the world (%) 2.2% 2.3% 2.9% 3.2% 3.4% 2.6% 3.2% 3.1% 3.3% 4.2% 4.7%

Share in SADC’s imports from the world (%) 2.1% 2.7% 3.3% 3.6% 4.0% 3.8% 4.8% 5.0% 5.0% 6.9% 7.4%

India’s Imports from sADc (us$ bn) 2.0 2.9 3.1 4.5 7.5 9.2 12.4 16.1 17.5 15.9 14.6

Share in India’s imports from the world (%) 2.1% 2.1% 1.7% 2.0% 2.4% 3.5% 3.6% 3.5% 3.6% 3.4% 3.2%

Share in SADC’s exports to the world (%) 3.3% 4.3% 3.7% 3.3% 4.3% 7.5% 7.2% 7.3% 7.9% 7.3% 7.0%

India’s Total Trade with sADc (us$ bn) 3.7 5.3 6.6 9.1 13.7 13.9 19.5 25.5 27.1 30.0 29.6

India’s Trade Balance with sADc (us$ bn) -0.4 -0.6 0.5 0.2 -1.2 -4.5 -5.4 -6.7 -7.8 -1.7 0.4


regionforthiscommodityincludeTanzania,South Africa,Mozambique,MauritiusandNamibia.

Vehicles other than railway and tramway arethe second-largest item in India’s export basketto theSADCregion,accounting for9.4percentof India’s exports to the region in 2014.Amongvehicles, India’s major exports to the regionincludecars,trucksandmotorcycles.SouthAfricaistheleadingmarket inSADCaswellasAfrica,followedbyTanzania,DRCongo,ZimbabweandMozambique.

As regards pharmaceuticals, SADC account forasmuchas11.5percentofIndia’sglobalexportsof this commodity. The largest markets in the regionareSouthAfrica,Tanzania,Mozambique,Zimbabwe and Zambia. In fact, India accountsfornearly30per centofSADC’sglobal importsof pharmaceuticals. Medicament mixtures are the main items in India’s export basket ofpharmaceuticalstoSADC.



hs code Product label

India’s exports to sADcshare in India’s exports

to sADc in

2014

share in sADc’s imports

from world in

2014

share in India’s exports to world in 2014

2012 (us$ mn)

2013 (us$ mn)

2014 (us$ mn)

TOTAl All products 9,651.3 14,121.1 15,019.8 100.0% 7.4% 4.7%

27 Mineralfuels,oils,distillationproducts 3,384.3 6,571.7 7,254.9 48.3% 19.4% 11.6%

87 Vehiclesotherthanrailway,tramway 1,333.3 1,479.1 1,352.4 9.0% 8.1% 9.3%

30 Pharmaceutical products 865.5 1,255.0 1,340.7 8.9% 29.7% 11.5%

89 Ships,boatsandotherfloatingstructures 0.1 25.3 656.1 4.4% 19.5% 14.4%

84 Machineryandequipment 373.5 510.5 487.8 3.2% 1.9% 3.6%

85 Electrical,electronicequipment 439.7 498.0 328.4 2.2% 2.0% 3.6%

10 Cereals 375.2 418.9 312.1 2.1% 9.9% 3.1%

73 Articles of iron or steel 180.6 202.6 235.7 1.6% 4.2% 3.1%

39 Plastics and its articles 226.8 260.0 224.0 1.5% 4.0% 4.1%

62 Articlesofapparel,accessories,not knit or crochet 115.8 186.6 195.5 1.3% 13.1% 2.2%

52 Cotton 139.6 158.8 178.4 1.2% 24.5% 2.0%

72 Iron and steel 195.8 307.0 159.5 1.1% 4.6% 1.8%

40 Rubberanditsarticles 103.4 96.9 151.8 1.0% 5.8% 5.5%

29 Organic chemicals 162.9 194.9 139.1 0.9% 7.1% 1.2%

02 Meat and edible meat offal 101.4 131.6 131.5 0.9% 6.8% 2.6%

Table 3.2: India’s Major Export Items to sADc


India’s Major Export Destinations in sADc

SouthAfrica is India’s largest export destinationin SADC, accounting for around 40 per cent ofIndia’stotalexportstotheregionin2014(Table 3.3).OthermajorexportmarketsinSADCincludeTanzania,Mozambique,MauritiusandAngola.

South Africa is a leading market in Africa and SADC for India’s exports of vehicles andpharmaceuticals. South Africa is also an important market for India’s export of mineral fuels, oils,distillation products, machinery and equipment,electricalandelectronicequipment.

Tanzania is India’ssecond-largestexportmarketinSADCwithashareof24.7percent inIndia’stotalexportsin2014.ItisIndia’slargestmarketinAfricaforaluminiumanditsarticles;fourth-largestmarketinAfricaformineralfuels,pharmaceuticals,electrical and electronic equipment, and sixth-largest market in Africa for export of vehicles and machineryandequipment.

InthecaseofMozambique,itisthelargestmarketforIndia’sexportoffertilizerstoAfricaandalsoamajormarketinSADCforIndia’sexportofmineralfuels,cottonandinorganicchemicals.



Table 3.3: India’s Major Export Destinations in sADc (us$ mn)

Importers 2012 2013 2014share

in 2014 (%)

sADc 9651.3 14121.1 15019.8 100.0%

South Africa 4973.3 5742.5 5722.4 38.1%

Tanzania 1602.5 3665.5 3714.3 24.7%

Mozambique 888.4 1615.5 1957.9 13.0%

Mauritius 672.4 945.3 1504.5 10.0%

Angola 534.9 559.7 610.4 4.1%

Zambia 233.0 379.3 381.1 2.5%

Malawi 130.8 227.4 243.2 1.6%

DRCongo 120.8 145.2 220.7 1.5%

Zimbabwe 133.2 195.1 198.0 1.3%

Madagascar 155.7 240.8 196.9 1.3%

Namibia 56.8 230.1 116.5 0.8%

Botswana 54.1 59.3 50.5 0.3%

Lesotho 18.0 28.5 39.9 0.3%

Seychelles 31.0 59.5 37.4 0.2%

Swaziland 46.5 27.4 26.2 0.2%


India’s Major Import Items from sADc

Table 3.4 presents the major items in India’simport basket from SADC, as per 2-digit HScommodity codes. Reflecting the increasedimportanceof theSADC regionas a source forIndia’s crude oil imports,minerals fuels (HS-27)arethelargestitemsinIndia’simportbasketfromSADC,accountingforasmuchas55percentofIndia’stotalimportsfromSADCin2014.

India’s imports of crude petroleum from SADCstoodatUS$8.1billionin2014,andaccountedforasmuchas4.6percentofIndia’sglobalimportsofcrude. Angola and South Africa are major sources forIndia’simportofcrudepetroleum,cumulativelyaccountingfor19percentofIndia’stotalimportsfrom Africa. Angola is the eleventh-largest source of India’sglobal importsofcrudepetroleumandsecond-largest source from Africa.



hs code Product label

India’s imports from sADc share in India’s imports

from sADc in

2014

share in sADc’s exports to world in 2014

share in India’s imports

from world in

2014

2012 (us$ mn)

2013 (us$ mn)

2014 (us$ mn)

TOTAl All products 17469.5 15856.2 14584.9 100.0% 7.0% 3.2%

27 Mineralfuels,oils,distillationproducts 9862.9 8862.2 8072.3 55.3% 10.8% 4.6%

71 Pearls,preciousstones,metals,coins 4890.0 4463.5 3531.2 24.2% 13.3% 5.9%

26 Ores,slagandash 400.3 341.1 754.0 5.2% 4.7% 10.0%

72 Iron and steel 729.8 578.2 578.5 4.0% 7.7% 5.1%

74 Copper and its articles 291.4 305.5 257.0 1.8% 2.4% 8.0%

07 Edible vegetables and certain roots and tubers 183.8 180.0 223.6 1.5% 36.8% 8.3%

08 Ediblefruit,nuts,peelofcitrusfruit,melons 177.4 173.2 159.5 1.1% 4.7% 6.2%

84 Machineryandequipment 86.1 98.6 146.9 1.0% 2.0% 0.5%

29 Organic chemicals 84.0 92.3 112.7 0.8% 7.7% 0.6%

76 Aluminium and its articles 119.1 167.6 108.0 0.7% 3.2% 3.0%

09 Coffee,tea,mateandspices 67.9 54.1 86.2 0.6% 11.6% 13.0%

44 Woodandarticlesofwood,woodcharcoal 12.9 28.3 65.1 0.4% 6.5% 2.4%

47 Pulpofwood,fibrouscellulosicmaterial,waste 66.3 89.9 62.1 0.4% 7.4% 3.7%

28 Inorganic chemicals 113.6 109.4 47.0 0.3% 3.6% 0.9%

52 Cotton 80.5 24.8 41.4 0.3% 8.5% 5.5%

Table 3.4: India’s Major Import Items from sADc


Pearls and precious stones were the second- largest items in India’s import from SADC,accountingforaround24percentofIndia’simportsfrom SADC. The region is a major source forIndia’simportofunwroughtgold.TheimportanceofIndiaasadestinationforSADC’sexportscanbegaugedfromIndia’ssignificantshare(13.3percent) in SADC’s exports to theworld. Likewise,SADCisamajorsourceforIndia’simportofpearlsandpreciousstones,accountingfor5.9percentin its global imports. South Africa is the largest source for India’s import of pearls and precious

stones andmetalsfromSADCaswellasAfrica,followedbyBotswana.

OtherimportantitemsofimportfromSADCinclude:oresandslag,ironandsteel,copperandarticles,ediblevegetables,certainrootsandtubers,ediblefruitsandnuts,andmachinery.

India’s Major Import sources in Africa

Table 3.5 lists the major import partners for India in the SADC region. SouthAfrica is the largest



import source, followed by Angola, Botswana,Tanzania,MozambiqueandZambia.

SouthAfricaisamajorsupplierofcrudepetroleum,unwroughtgold,unmounteddiamonds,oresandslag,andnickel to India.Angola isan importantsourceforIndia’sglobalimportofcrudepetroleum,

while Tanzania is the largest source of India’simport of edible vegetables and certain roots from Africain2014.

Inanutshell,India’smajorimportersandexportersinSADC,withtheirrespectiveimportandexportitems are presented in Table 3.6 and 3.7.

Exporters 2012 2013 2014 share in 2014 (%)

sADc 17469.5 15856.2 14584.9 100.0%

South Africa 8034.7 7351.8 5993.8 41.1%

Angola 8020.4 6798.3 5641.7 38.7%

Botswana 65.4 190.6 1046.0 7.2%

Tanzania 492.3 818.7 927.2 6.4%

Mozambique 267.6 247.4 328.6 2.3%

Zambia 289.7 273.8 219.6 1.5%

Swaziland 65.9 30.2 121.7 0.8%

DRCongo 19.9 24.1 118.3 0.8%

Madagascar 91.7 51.0 71.1 0.5%

Malawi 42.5 19.8 31.7 0.2%

Namibia 8.0 14.3 31.5 0.2%

Zimbabwe 33.4 10.4 30.5 0.2%

Mauritius 31.8 20.7 21.2 0.1%

Lesotho 3.8 3.5 1.1 0.0%

Seychelles 2.4 1.6 0.9 0.0%

Table 3.5: India’s Major Import sources from sADc (us$ mn)




Table 3.6: India’s Major Export Destinations in sADc (2014) - An Overview

countryvalue in

2014 (us$ mn)

hs code commodity

share in exports to respective country (%)

south Africa 5722.4

TOTAL All products 100.0%

27 Mineralfuels,oils,distillationproducts 34.2%

87 Vehiclesotherthanrailway,tramway 15.5%

89 Ships,boatsandotherfloatingstructures 11.5%

30 Pharmaceutical products 8.0%

84 Machineryandequipment 3.5%

Tanzania 3714.3






85 Electrical,electronicequipment 2.2%

Mozambique 1957.9





52 Cotton 2.2%

39 Plastics and its articles 1.9%

Mauritius 1504.5



62 Articlesofapparel,accessories,notknitorcrochet 4.2%

10 Cereals 3.2%

52 Cotton 2.4%


Angola 610.4



02 Meat and edible meat offal 17.8%


10 Cereals 5.9%

22 Beverages,spiritsandvinegar 5.7%



countryvalue in

2014 (us$ mn)

hs code commodity


Zambia 381.1





73 Articles of iron or steel 8.8%


Malawi 243.2





72 Iron and steel 5.0%


DR congo 220.7






52 Cotton 5.3%

Zimbabwe 198.0



61 Articlesofapparel,accessories,knitorcrochet 15.0%




Madagascar 196.9


10 Cereals 23.5%


52 Cotton 9.7%





countryvalue in

2014 (us$ mn)

hs code commodity


Namibia 116.5






61 Articlesofapparel,accessories,knitorcrochet 5.7%

Botswana 50.5



71 Pearls,preciousstones,metals,coins 20.3%




lesotho 39.9



52 Cotton 30.0%


63 Othermadetextilearticles,sets,wornclothing 4.2%


seychelles 37.4


10 Cereals 14.4%


88 Aircraft,spacecraft,andparts 9.7%


25 Salt,sulphur,earth,stone,plaster,limeandcement 7.3%

swaziland 26.2



29 Organic chemicals 13.6%







countryvalue in

2014 (us$ mn)

hs code commodity share in

imports from respective country (%)

south Africa 5993.8




26 Ores,slagandash 11.3%



Angola 5641.7





76 Aluminium and its articles 0.2%

74 Copper and its articles 0.1%

Botswana 1046.0




28 Inorganicchemicals,preciousmetalcompound,isotopes 0.1%

74 Copper and its articles -

76 Aluminium and its articles -

Tanzania 927.2



08 Ediblefruit,nuts,peelofcitrusfruit,melons 15.0%

07 Edible vegetables and certain roots and tubers 13.9%

09 Coffee,tea,mateandspices 5.0%

44 Woodandarticlesofwood,woodcharcoal 2.2%

Mozam-bique 328.6




08 Ediblefruit,nuts,peelofcitrusfruit,melons 2.9%



Table 3.7: India’s Major Import sources from sADc (2014) - An Overview



countryvalue in

2014 (us$ mn)



Zambia 219.6




52 Cotton 3.8%


81 Otherbasemetals,cermets,articles 0.5%

swaziland 121.7





90 Optical,photo,technical,medicalapparatus 1.9%

38 Miscellaneous chemical products 0.8%

DR congo 118.3




12 Oilseed,oleagicfruits,grain,seed,fruit 5.8%



Madagascar 71.1




33 Essentialoils,perfumes,cosmetics,toiletries 7.4%

81 Otherbasemetals,cermets,articles 4.6%


Malawi 31.7



52 Cotton 6.5%



41 Rawhidesandskins(otherthanfurskins)andleather 0.4%



countryvalue in

2014 (us$ mn)



Namibia 31.5


79 Zincanditsarticles 79.9%





Zimbabwe 30.5


52 Cotton 37.6%

24 Tobacco and manufactured tobacco substitutes 33.0%



32 Tanning,dyeingextracts,tannins,derivs,pigments 6.2%

Mauritius 21.2





47 Pulpofwood,fibrouscellulosicmaterial,waste 7.4%


lesotho 1.1



51 Wool,animalhair,horsehairyarnandfabric 21.1%

32 Tanning,dyeingextracts,tannins,derivs,pigments 20.9%

12 Oilseed,oleagicfruits,grain,seed,fruit 7.3%


seychelles 0.9




39 Plastics and its articles 4.0%



‘-’nilornegligibleSource:ITCTrademap,derivedfromUNcomtrade;andEximBankAnalysis



The SADC countries signed the Finance andInvestment Protocol in 2006, acknowledgingthe need for accelerate growth, investment andemployment in the Region through increasedcooperation, coordination and management ofmacroeconomic,monetaryandfiscalpolicies.Theregion also felt that sustained macroeconomic stability is a precondition for both, sustainableeconomic growth and creation of a monetaryunion.

SADCcountrieshaveencouraged foreigndirectinvestment (FDIs) by developing various pro-investmentpolicies.SADCiscurrentlyinvolvedintherevisionofthepolicyframeworkforinvestmentadopted by the Organization for EconomicCooperation and Development (OECD) after200215.

TheSADCIndustrializationStrategyandRoadmap2015 - 2063 during the Summit in Harare,Zimbabwe,onApril29,2015,hasprovidedalong-term perspective to sustainable and equitabledevelopment, and thus to poverty reduction.The Strategy primarily aims at technological and economic transformation of the SADC regionthrough industrialization, modernization, skillsdevelopment, science and technology, financialstrengthening and deeper regional integration.

ThecurrenttrendofFDIflowsintoSADCcountriesis a reflection of the region’s improved overalleconomicperformanceandgrowingattractiveness.FDIsflowstotheSADCregionhavebeenmainlybeen resource-based. According to the UnitedNationsConferenceonTradeandDevelopment’s

4. Foreign Investment in sADc countries

15SADC,‘InvestmentFocusGroupMeetingStrengtheningthePolicyFrameworkforInvestment’,Johannesburg,3–4July2014’http://www.sadc.int/news-events/events/investment-focus-group-meeting/

Chart 4.1: FDI flows to SADC (US$ mn)

Source:WorldInvestmentReport2015,UNCTAD;andEximBankAnalysis

SADC’s FDI Inflow SADC’s FDI Outflow



(UNCTAD) World Investment Report 2015, FDIinflowstotheSADCregionstoodatUS$16billionin2014,ascomparedtoUS$5.6billion in2004(chart 4.1).FDIflows toa regionaccount foranearly30percentofAfrica’stotalFDI inflowsin2014.

On a year-on-year basis, FDI inflows to SADCdeclinedby1.7percentin2014ascomparedtoUS$16.2billioninthepreviousyear,mainlydueto the sharp fall in inflows to SouthAfrica andMozambique.SouthAfrica received investmentsworth US$ 5.7 billion in 2014, down by 31 percent from 2013; andMozambique saw its flowsdecline by 21 per cent toUS$ 4.9 billion in thesame year.

Despite the fall in investments during the year,South Africa and Mozambique continued to bemajordestinationsforFDIinflowstoSADC.Otherdestinations forFDI flowsduring the sameyearwere Zambia, Tanzania and DR Congo (Table 4.1).

In South Africa, the services sector receivedstrong inflows,ascompaniesplan touse itasabase to expand regionally. Select non-financialinvestmentsinSouthAfricainclude,multi-nationalenterprises (MNEs) setting up Africa-orientedinformation technology services and call centres (e.g. Wipro India’s establishment of a softwarecompany in2014)and investments inhospitality(e.g.Marriott’sacquisitionofthe116-hotelProteaHotelGroup,completedin2014)16.

country / Region 2004 2012 2013 2014

SADC Inflow 5576.8 14734.8 16243.2 15960.4

South Africa 798.0 4558.8 8300.1 5712.3

Mozambique 475.5 5629.4 6175.1 4901.8

Zambia 364.0 2433.4 1809.8 2483.8

Tanzania 330.6 1799.6 2130.9 2141.6

DRCongo 409.0 3312.1 2098.2 2063.2

Zimbabwe 8.7 399.5 400.0 544.8

Mauritius 11.2 589.0 258.6 418.4

Namibia 225.8 1133.4 800.5 413.7

Botswana 391.1 487.2 398.5 393.2

Madagascar 95.2 812.5 567.1 350.7

Seychelles 37.4 260.2 170.2 228.7

Malawi 107.8 129.5 119.5 130.0

Lesotho 55.6 56.6 50.3 46.4

Swaziland 69.6 31.5 84.4 12.7

Angola 2197.2 -6898.0 -7120.0 -3881.0

Table 4.1: FDI Inflows in SADC Countries (US$ mn)

16WorldInvestmentReport2015,UNCTAD

NegativeFDIflowsimplythatnewinvestmentswereoffsetbysomelargedivestmentsSource:WorldInvestmentReport2015,UNCTAD;andEximBankAnalysis



Outward FDI flows from SADC declined to US$ 9.2 billion in 2014, as compared to US$ 13.2 billion recorded the preceding year.OutwardFDIfromSADCwereprimarilydominatedby investments from South Africa and Angola (Table 4.2).

South African MNEs invested in telecommunications, mining and retail. SouthAfrica’sMTN is onemajor investor, establishingdata centres, sales offices and 4G projects inCôte d’Ivoire, Ghana, Swaziland and Uganda. Mauritian companies, Smile Telecoms andLiquid Telecom, established several greenfieldFDIprojectsacrossSub-SaharanAfrica inorder

to construct a cross-country 4G and fibre-opticnetwork.

SADC’s FDI inflow - Projects, Capex, Jobs created

For the purpose of the following analysis, datafrom Financial Times’ FDI Markets has beenused. According to chart 4.2,capitalinvestmentsin SADC recovered since 2013, and stood atUS$34.4billionin201417.However,therisewasprimarilydrivenby few largedeals.Thenumberof incomingprojectsdeclinedto266in2014,ascompared to347 in thepreviousyear.Likewise,the number of jobs created also declined.

country / Region 2004 2012 2013 2014

SADC Outflow 2120.5 5719.7 13156.1 9211.2

South Africa 1350.1 2987.6 6648.9 6937.5

Angola 783.2 2740.8 6044.2 2131.0

DRCongo 7.6 420.5 400.7 343.6

Mauritius 31.7 180.4 134.6 90.8

Zimbabwe 0.0 49.0 27.0 72.0

Seychelles 7.6 8.5 7.9 8.1

Madagascar - - - -

Mozambique - 3.2 - -

Tanzania - 0.0 - -

Swaziland -1.4 39.3 4.4 -0.7

Lesotho 0.9 -38.2 -34.0 -31.4

Namibia -22.2 -11.3 -13.2 -34.2

Botswana -38.7 -8.0 -84.6 -43.0

Malawi 1.8 49.8 -46.0 -50.0

Zambia - -701.9 66.2 -212.6

Table 4.2: FDI Outflows from SADC Countries (US$ mn)

‘-’nilornegligibleNegativeFDIflowsimplythatnewinvestmentswereoffsetbysomelargedivestmentsSource:WorldInvestmentReport2015,UNCTAD;andEximBankAnalysis

17Data fromFDImarketsmaydiffer fromthatofUNCTAD,asFDIMarkets tracks thecapital investmentat thedateofannouncementoftheinvestment,whileofficialdatatracksFDIatthedatethecapitaleffectivelycrossesborders.Further,UNCTAD receives data from national authorities, whereas FDI Markets collects data from media sources, industryorganisationsandinvestmentagenciesaswellasinformationfrommarketresearch.



Largest investments in the region during the decade have been in the coal, oil and naturalgas,metals,realestate,alternativeorrenewableenergy, and communication sectors. Majorrecipientstoinvestmentinthecoal,oilandnaturalgas sector were Angola, Mozambique, SouthAfrica,TanzaniaandZimbabwe.

Investments in the regionweremainly from theUS,France,theUK,China,Brazil,andPortugal,among others.

Governments throughout theSADCregionhavebeen at the forefront to attract more investment. The region’s FDI reforms aimed at removal ofobstacles to FDI so that foreign investors canparticipate in development of most sectors of

national interest. The standards of treatment of FDI have been improved, with the principle ofnon-discrimination recognised across the region. If exceptions exist, they are primarily motivatedby the aim of increasing local participation in investment projects and to provide special support to local enterprises18.

Limitationsonprofit remittancesandrepatriationof capital have been dropped or substantially relaxed.Thishascometogetherwithconstitutionalprovisions on the protection of property rights in most countries, which allow expropriations onlyin exceptional circumstances to be motivated by a public purpose. The need for compensation whenagovernmentexpropriatespropertyisalsouncontested across the region.

Chart 4.2: Summary of Projects, Capex, Jobs Created in SADC

Source:FDIMarkets;andEXIMBankAnalysis

18OECD-SADCPolicyBrief,June2015



There are also statutory guarantees for contract enforcement and recourse to legal systems for redress. Mechanisms for dispute settlement are ontherisewitharbitrationandmediationcentresset up in several countries. Governments havealso initiated reforms to improve access to land.

To further attract investors, all SADC countrieshavesetupinvestmentpromotionagencies,eventhough their performance varies from one country to another. Some countries also have one-stop shops service centres. SADC countries offergeneroustaxincentivestomaketheFDIclimatemore attractive.

Further,thesigningofbilateralinvestmenttreaties(BITs), as an affirmation of an open investmentclimate,hassupplementeddomestic regulationsto liberalise and protect investments. Together,the 15SADCMemberStates have signed over250BITs,ofwhichover100areinforce.Countriesin the consolidating phase of their enabling environment for investment, like Mauritius,Mozambique, the Seychelles and Zambia haveinparticularbeenquiteactive inexpandingtheirnetwork of investment treaties. There is alsoan emerging trend towards conclusion of BITswith emerging economies and among SADCcountries themselves. A number of countries have also joined international organisations and mechanisms related to investments such as the World Bank’s Multilateral Investment GuaranteeAgency (MIGA), the International Centre forSettlement of Investment Disputes (ICSID),the World Intellectual Property Organisation(WIPO),theAfricanRegionalIntellectualPropertyAssociation (ARIPO), and the World TradeOrganisation(WTO).

Doing Business Rankings

Doing Business Rankings, conducted by theWorldBankandInternationalFinanceCorporation(IFC),providesanaggregaterankingontheease

of doing business based on indicator sets that measure and benchmark regulations applying to businesses through their life cycle. The Ease of Doing Business Rankings 2016, covers 189economiesacrosstheworldandarerankedfrom1–189.Ahighrankingontheeaseofdoingbusinessindex means the regulatory environment is more conducive to the starting and operation of a local firm.Therankingisbasedon10topics,namely,starting a business, dealing with constructionpermits, getting electricity, registering property,gettingcredit,protectingminorityinvestors,payingtaxes,tradingacrossborders,enforcingcontractsand resolving insolvency, and equal weight isgiven to each topic.Doingbusiness rankingsofSADCcountriesispresentedinTable 4.3. Among SADC members, six countries, namely Angola,DR Congo, Madagascar, Malawi, SeychellesandTanzania,witnessedanimprovementintheirdoing business rankings over the previous year.

Angola

Angola,wasranked181st in theDoingBusinessRankings 2016, an improvement of two placesfrom the previous year. Select initiatives that led to this improvement in rank include:

lStarting a Business: Angola made starting a business easier by improving registration procedures and reducing the fees to register a company.

lPaying Taxes:Paying taxesweremade lesscostly for companies by reducing the corporate income tax rate.

DR congo

DRCongo,wasranked184thintheDoingBusinessRankings2016,an improvementof threeplacesfrom the previous year. Select initiatives that led to this improvement include:



lStarting a Business:DRCongomadestartinga business easier by simplifying registration procedures and reducing the minimum capital requirement.

lDealing with Construction Permits: Dealingwith construction permits was made lessexpensive by halving the cost to obtain a building permit.

Madagascar

Madagascar, was ranked 164th in the DoingBusinessRankings2016,animprovementoftwo

places from the previous year. Select initiatives that led to this improvement include:

lRegistering Property: Madagascar made transferring property less costly by loweringthe property transfer tax.

lGettingCredit:Accesstocreditwasimprovedby broadening the range of assets that can be used as collateral (including future assets),by allowing a general description of assetsgrantedascollateralandbyallowingageneraldescription of debts and obligations.

SADC Countries DB2015 DB2016Change over

previous year

Rank in Sub-Saharan

Africa Region in

2016*Angola 183 181 42

Botswana 72 72 - 3

DR Congo 187 184 44

Lesotho 110 114 10

Madagascar 166 164 32

Malawi 144 141 16

Mauritius 31 32 1

Mozambique 128 133 14

Namibia 101 101 - 7

Seychelles 104 95 5

South Africa 69 73 4

Swaziland 102 105 8

Tanzania 140 139 15

Zambia 91 97 6

Zimbabwe 153 155 27

Table 4.3 Doing Business Rankings of sADc countries

*Total47countriesintheSub-SaharanAfricaRegionSource:WorldBank’sDoingBusinessReport2016

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▲▌▲▌

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▲▌

▲▌

▲▌

▲▌

▲▌

▲▌

▲▌

▲▌



lProtecting Minority Investors: Madagascar strengthened minority investor protections by requiringthatdirectorswithaconflictofinterestfully disclose the nature of their interest to the board of directors.

lTrading Across Borders: Time for border compliance for both exporting and importing wasreducedbyupgradingportinfrastructure—and also reduced the time for documentary compliance for importing.

Malawi

Malawi,wasranked141st in theDoingBusinessRankings2016,an improvementof threeplacesfrom the previous year. Select initiatives that led to this improvement include:

lGetting Electricity: Malawi reduced thetime required to get electricity by engagingsubcontractors to carry out external connection works.

lResolving Insolvency: New rules providingclearproceduralrequirementsandtimeframesforwindingupofacompanywereadopted.

seychelles

Seychelles,wasranked95thintheDoingBusinessRankings 2016, an improvement of nine placesfrom the previous year. Select initiatives that led to this improvement include:

lGetting Credit: Seychelles improved access to credit information by establishing a credit registry

Tanzania

Tanzania,wasranked139thintheDoingBusinessRankings 2016, an improvement of one placefrom the previous year. Select initiatives that led to this improvement include:

lTrading Across Borders: Tanzania reducedthe time for both exporting and importing by implementing the Tanzania CustomsIntegratedSystem(TANCIS),anonlinesystemfor downloading and processing customsdocuments.



In recent years, besides being major recipientsof global FDI inflows, India is emerging as animportantglobalinvestorwithincreasingoverseasinvestments in target markets.

Though India had business interest and investment inAfricasinceverylong,thesewerelargelydrivenby small and medium enterprises and traders. ButtherecentwaveofFDIfromIndiatoAfricaisdriven by the bigger Indian companies.

IntheSADCregion,mostIndiancompanieshavemade significant investment in the extractionsector. Sustained increase in commodity prices coupledwithincreasingdemandforenergyandrawmaterials in the domestic economy are the major driving forces for these companies. Particularly for oil and energy companies, the quest for energysecurity in India is one of the major motivating factors for investing in the region.

IntheSADCregion,IndianMNEshaveventuredintobothGreenfieldandBrownfieldinvestments,spanning across various sectors including manufacturing,mining,construction,andenergy,among others.

Indianbanksaregrowing theirpartnershipswithSADC countries largely based on their clients,whohaveincreaseddemandforbankingoptionsintheregion.SelectIndianBanksinSADCregionincludeBankofIndia(SouthAfrica,TanzaniaandBotswana),BankofBaroda(Mauritius,Seychelles,SouthAfrica,BotswanaandTanzania),StateBank

of India (SouthAfrica,MauritiusandBotswana),CanaraBank(SouthAfrica),andICICIBankLtd(SouthAfrica).JointventuresbyIndianBanksintheSADCregionincludeIndo-ZambiaBankLtd.(BankofBaroda,BankofIndiaandCentralBankofIndia).

According to data from the Ministry of Financeand Reserve Bank of India, India’s approvedcumulative investments in the SADC region19 during April 1996 to March 2015 amounted to US$ 46.5 billion. Mauritius, Mozambique andSouthAfricawere the topdestinationsof India’sinvestments in the region. India’s investments intheSADCregionaccountedfornearly93percentofIndianinvestmentsinAfrica(Table 5.1).

Indian FDI in Africa has traditionally beenconcentrated in Mauritius, taking advantage ofthelattercountry’soffshorefinancialfacilitiesandfavourable taxconditions. Indian investorshave,however,beeninvestinginothercountriesoftheregion,too.

Mauritius

India’s approved FDI outflows to Mauritiusamounted to US$ 4.6 billion during 2014-15,and were mainly in the manufacturing sector,accounting for 65 per cent of total investments. CumulativeFDIoutflowfromIndia intoMauritiusduringApril 1996 – March 2015 was US$ 43.2billion.

19Approved Overseas Direct Investment implies RBIApprovals for Overseas Direct Investment in Equity, Loan andGuarantees

5. India’s Investment Relations with sADc countries



Among Indian companies, eight Public SectorEnterprises are currently functioning in Mauritius. BankofBaroda,LifeInsuranceCorporation(LIC),and New India Assurance Corporation (NIAC)were the first to establish operations, followedbyotherPSUsincludingIndiaHandloomHouse,TelecommunicationsConsultantIndiaLtd.(TCIL),IndianOil(Mauritius)Ltd.,MahanagarTelephone(Mauritius)Ltd.andStateBankofIndia(Mauritius)Ltd.Besidestheircoreactivities,thePSUshavealso contributed to various activities in Mauritius undertheirCorporateSocialResponsibility(CSR)schemes.

Some high-visibility Indian-assisted projects in Mauritius include theMahatmaGandhi Institute,the Upadhyay Training Centre, the Jawaharlal

Nehru Hospital, the Subramania Bharati EyeCentre, the Rajiv Gandhi Science Centre andthe Rabindranath Tagore Institute. Prestigioussymbols of recent Indian assistance include the CyberToweratEbeneandtheSwamiVivekanandaInternationalConferenceCentre(SVICC).

The Offshore Patrol Vessel Barracuda, built byanIndianshipyardunderaGovernmentofIndia’s(GOIs)LineofCredit,wascommissionedintotheMauritianNational CoastGuard inMarch 2015.India also provides extensive capacity building andtraininginputstotheMauritianarmedforces,besides carrying out regular joint patrolling/surveillance exercises in the Mauritian Exclusive Economic Zone (EEZ). India has also providedassistanceinthesettingupofMauritius’sNationalHydrographicUnit.

s.No Name of the country

April 1996 to March 2007

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15April

1996 to March 2015

1 Mauritius 2572.1 1506.3 2651.2 2351.8 13106.9 7421.1 4438.9 4581.9 4580.8 43211.0

2 Mozambique 10.1 3.2 4.9 - 3.0 1.0 0.6 2643.1 7.7 2673.5

3 South Africa 59.1 46.2 22.1 70.2 41.8 12.2 137.5 19.1 29.5 437.6

4 Zambia 2.5 - 0.5 0.1 0.9 2.8 4.5 12.0 41.7 64.8

5 Tanzania 4.5 10.5 0.1 21.3 6.6 7.4 7.4 3.8 1.6 63.2

6 Botswana 3.5 2.3 8.1 5.7 2.9 5.6 3.9 0.9 5.0 38.0

7 Seychelles - - - - 2.5 0.7 - 0.3 - 3.5

8 Zimbabwe 2.5 - - - - 0.1 - - 0.2 2.9

9 Madagascar - - - - - 0.6 1.9 - 0.3 2.8

10 Namibia 0.1 - 0.1 - 0.6 1.3 - 0.2 - 2.3

11 Malawi - - 1.0 0.3 - - - - 0.1 1.4

12 Swaziland - - - 0.4 - - - - - 0.4

sADc 2654.6 1568.5 2692.1 2449.7 13165.2 7453.4 4594.7 7261.3 4667.0 46501.3

Table 5.1: India’s Approved Overseas Direct Investment in sADc Region (us$ mn)

Note:‘-’nilornegligibleSource:MinistryofCommerceandIndustry(MOCI),GovernmentofIndiaandRBI



A three-yearAgreementbetween theMangaloreRefineryandPetrochemicalsLtd.(MRPL)andtheState Trading Corporation of Mauritius for supply of all petroleum requirements of Mauritius wasrenewedinJuly201320.

India and Mauritius have signed several bilateral agreementssomeofwhichinclude:

lDouble Taxation Avoidance Convention(1982);

lAir Services Agreement (1972; amended in1995);

lBilateral Investment Promotion and Protection Agreement(1998);

lAgreement for Cooperation in Information Technology(2000);

lMemorandum of Understanding (MOU) onCooperationinBiotechnology(2002);

lExtraditionTreaty(2003);

lMOUonCooperationinthefieldofEnvironment(2005);

lMOUforCooperationinthefieldofHydrography(2005);

lMOU for setting up a Preferential TradeAgreement(2005);

lSupplyContractofoneDhruvAdvancedLightHelicopter;

lMOU on the setting up of Public KeyInfrastructure (PKI) in Mauritius based onIndianPKImodel;

lMOUonScienceandTechnologyCooperation(2012);

lEducationalExchangeProgramme(2012);

lMOUonTextiles(2012);

lMOUbetweenRajivGandhiScienceCenter(RGSC) Trust Fund, Mauritius and NationalCouncilofScienceMuseums(NCSM),India,forsettingupahybridplanetarium(2012);

lMOUoncooperationinMSMESector(2013);

lMOUon cooperation inCommunication andBroadcastingbetweenMauritiusBroadcastingCorporationandPrasarBharti(2014);

lMOU on Cooperation in Ocean Economy(2015);and

lMOU in the field of Traditional Systems ofMedicine(2015)

Mozambique

India’s approved FDI outflows to Mozambiqueamounted to US$ 7.7 million during 2014-15.India’s investment in Mozambique is mainly inmining and transportation sectors. Cumulative FDIoutflowintoMozambique,duringApril1996-March2015stoodatUS$2.7billion.

Some of the Indian companies present in Mozambique includeTata Steel, Jindal Steel &PowerLtd.(JSPL),JSW,Essar,MidwestAfrica,CoalIndiaLtd.incoalmining;DamodarFerroinironoremining;Essarinportdevelopment;andPureDiets,RajarambapuGroup,HKJalanGroupandAsianTeacompanyinagriculture21.

20MinistryofExternalAffairs(MEA),GovernmentofIndia21ibid



ONGCVideshLtd.andOilIndiaLtd.completedtheacquisitionof20percentalreadyheldbyanotherIndianoilcompany,BharatPetroResourcesLtd.(BPRL).Mostrecently,InternationalCoalVenturesPvt. Ltd. – a special venture set up by SteelAuthorityof IndiaLtd.,CoalIndiaLtd.,RashtriyaIspatNigamLtd.,NationalMineralDevelopmentCorporation Ltd. (NMDC) and National ThermalPower Corporation Ltd. acquired coal assets inTetefromRioTinto.

India and Mozambique signed a BilateralInvestment participating stake in Area 1 of the Rovumagasblock.This is inadditionto10per cent already held by another national oil company,BPRL.

IndiaandMozambiquesignedadouble taxationavoidance agreement on May 31, 2011 and aBilateral Investment Promotion and Protection Agreement on February 19, 2009, which cameintoeffectonSeptember23,2009.

south Africa

India’sapproveddirectinvestmentsinSouthAfricastoodatUS$437millionduringApril1996-March2015. Major Indian companies in South Africa includeTata (automobiles, IT, hospitality, andferrochromeplant), UB Group (breweriesandhotels),Mahindra(automobiles)andanumberofpharmaceuticalcompanies,includingRanbaxy,Cipla,amongothers,aswellasITcompaniesandsome investments in the mining sector.

AccordingtotheMinistryofExternalAffairs(MEA),GOI, select areas of cooperation between Indiaand South Africa include:

lThe India-South Africa Joint Commission atthe level of ForeignMinisters was set up in1994.

lOn June 6, 2003, the Foreign Ministers ofIndia, Brazil and South Africa (IBSA) metin Brasilia and agreed to set up a DialogueForumasapartof the IBSA initiative,whichwas further upgraded to a Summit level in2006. Under the IBSA initiative, 16 SectoralWorking Groups have been established inareassuchashealth,agriculture,education,human settlements, science and technologyand defence.

lSouthAfricawasalsoadmittedasamemberoftheBRICSgroupingandattendedthe3rdBRICSmeeting held in April 2011 atSanya, China. The 4th Summit was held inNewDelhi,India,followingwhichSouthAfricahosted the 5th Summit at Durban in March2013.Thereafter,6thBRICSSummitwasheldinFortaleza,BrazilinJuly2014and7thBRICSSummitwasheldintheRussiancityofUfainJuly2015.

Zambia

India’s approved direct investments in ZambiaamountedtoUS$64.8millionduringApril1996-March 2015. Indian companies have invested mainly in mining, manufacturing and bankingsectorsinZambia.

Some of the Indian companies that have invested inZambiaincludeVedantaResources,TataGroup(includingTataAfricaHoldings,TataConsultancyEngineering,TajPamodzi,andTataMotors),RJCorporation, Nava Bharat Ventures Ltd., DharniSampadaPvt.Ltd.,andBhartiAirtel.

Indo-ZambiaBankLtd.isaregisteredcommercialbank in Zambia formed as a joint venture (JV)between the Government of Zambia (GoZ) andthreeIndianbanksnamely,BankofBaroda,Bankof India and Central Bank of India.



RJ Corporation is the authorized bottlers ofPepsiCo in Zambia. Nava Bharat SingaporeLtd., a subsidiaryofNavaBharatVenturesLtd.,Hyderabad,purchased65percentequitysharesinMambaCollieriesLtd.(GoZholdstheremaining35percentsharesthroughZambiaConsolidatedCopperMineInvestmentHoldings).

TaurianManganeseLtd.,partofDharniSampadaPvt. Ltd., invested in manganese mining inZambia and plans to invest in construction of amanganese processing plant in Serenje district in Central Province.

NRB Pharma Ltd. started construction of apharmaceutical plant in Lusaka South Multi-Facility Economic Zone (MFEZ) in June 2013.BhartiAirtel launcheditsbrand,AirtelZambia, inNovember 2010 and is now the leading mobileserviceprovider inZambia. InvestmentsbyTataincludeafive-starhoteltheTajPamodzi,managedbytheTajHotelsgroup;a jointventurebetweenZambiaElectricitySupplyCompany(ZESCO)andTata Africa Holdings called “Itezhi Tezhi PowerCorporationLtd.”(ITPC).

Further, Indian companies have signed variousagreements for the development of various sectorsinZambia.MylonLaboratoriesLtd.ofIndiasigned an Agreement with Zambian Authoritiesto construct a state of the art oral solid dosage pharmaceutical facility in Lusaka South MFZE.Cooperation Agreement between BLK SuperSpecialtyHospital,NewDelhi,andtheUniversityTeachingHospitalofZambia inJuly2015;MOUbetweenApolloGroupofHospitalsandZambianHealthMinistryinOctober2015arefewexamplesof collaborations in the health sector.

Select areas of cooperation between India andZambiainclude:

lIndiaandZambiahavesetupaJointPermanentCommission at the Ministerial level.

lThe two countries signed an Agreement for Cooperation in Trade and an MOU forCooperationinAgriculture(2003).

lIn April 2012, Zambia was notified as oneof the beneficiary of India’s Duty Free TariffPreference Scheme (DFTP). The Schemegrantsdutyfreeaccessonabout85percentof India’s total tariff lines and preferentialaccess(PositiveList)onabout9percentoftariff lines. Only 6 per cent tariff lines are under theExclusionList.DutyfreeandPositiveListcover about 92.5 per cent of global exports of LeastDevelopmentCountries(LDCs).

Tanzania

ApprovedIndianinvestmentsinTanzaniastoodatUS$63.2millionduringApril1996-March2015.Major Indian companies and brands operating in Tanzania include Bank of Baroda, Bank ofIndia, Tata International Ltd., NMDC, insurancecompanies (LIC, NIC, United India), RelianceIndustriesLtd.,KamalGroupofIndustries,BhartiAirtel, Escorts, Ashok Leyland, Eicher, Bajaj,TVS, Kirloskar and Godrej. All major Indianpharmaceutical companies have their distributors andrepresentativesinTanzania.

Tanzania is one of the largest beneficiaries oftraining slots allocated under the Indian Technical and Economic Cooperation Programme (ITEC)andSpecialCommonwealthAssistanceforAfricaProgramme (SCAAP) programmes, and alsoavails number of such training slots offered under India–Africa Forum Summit (IAFS). The twocountriessignedanAgreementonFriendshipandTechnical,EconomicandScientificCooperation,within the framework of ITEC cooperation.Startingwith24traineesannually,ithasgraduallyincreased to 330 slots in 2014-15. 285 slots forcivilianofficersand39 fordefenceofficerswereutilizedintheyear2014-15.



Some of the important bilateral agreements betweenIndiaandTanzaniainclude:

lAgreement on Friendship and Technical,EconomicandScientificCooperation(1966);

lTrade Agreement (2000), following which aJointTradeCommitteewasestablished;

lMOUforCo-operationinthefieldofAgricultureandAlliedSectors(2002);

lAgreement on Cooperation in Information TechnologyandServices(2004);

lMOUonJVbetweenNationalSocialSecurityFund,Tanzania,MinistryofHealthandSocialWelfareandApolloHospitalsLtd.(2011);

lAgreementonDoubleTaxationandPreventionofFiscalEvasion(2011);

lJoint Action Plan between National SmallIndustries Corporation Ltd. and Small IndustriesDevelopmentOrganisation (2011);and

lLetterofIntentbetweenMinistryofSteel,India,andMinistryofEnergyandMinerals,Tanzania(2013).

Other Areas of Cooperation include:

lAn IT Resource Centre at Arusha, projectfor establishing Incubation Centres at Small Industry Development Organization (SIDO),and a Vocational Training Centre (VTC) atZanzibararebeingfundedunderGOIgrants.

lSIDO of Tanzania was established with theassistance of the National Small Industries

Corporation Ltd. (NSIC), India, inNovember 2007.

lTwoIndianfundedIT/Communicationprojectshave been established: A Centre of Excellence inICTbyC-DAC;andthePanAfricane-NetworkProject by TCIL. The Centre is named “India-TanzaniaCentreforExcellenceinInformationandCommunicationTechnology”(ITCoEICT).The ITCoEICTwassetupatDar-es-SalaamInstitute of Technology.

Botswana

India’sapproveddirect investments inBotswanastoodatUS$38billionduringApril1996toMarch2015.

Botswanaismineral-richcountryandoffersgreatpotential for investment in the mining sector. Indian diamond companies and businessmen,especially from Gujarat (Surat) have alwaysshownkeeninterestinbuyingroughdiamondsaswellasininvestmentinthedownstreamindustriesin thediamondsector,mainly in thecuttingandpolishing of the rough diamonds. At present three major Indiancompanies,Shrenuj,BlueStarandKGK Diamonds have offices and factories inBotswana.

Besides, diamonds, Botswana also has hugedepositsofcoal,copper,nickel,sodaash,salt,anduranium.JSPLtookoverCICEnergy(aCanadiancompany) for beneficiation of coal mining andpowerproduction.JSPLhasplanstosetuptwocoal-fired300MWpowerintheMamambulacoalblocksareaswherehugecoaldepositshavebeenfound.

AccordingtoMEA,selectBilateralAgreementsbetweenIndiaandBotswanainclude:

lBilateralTradeAgreement(2001);



lProtocol for Foreign office consultations(2002);

lAgreementonBilateralCooperation(2006);

lAgreement on the Avoidance of DoubleTaxation(2006);

lProgrammeforCulturalCooperation(2007);

lPan African E-Network Project (2008),inauguratedin2010;

lMOUonCooperationinAgriculture(2010);

lEducationalExchangeProgramme(2010);

lMOUonMSME/SMME(2010);

lMOUonScienceandTechnology(2010);

lMOUs between NSIC of India and LocalEnterprisesAuthorityofBotswana(2010);

lAgreement on the Establishment of JointMinisterialCommission(2011);and

lMemorandumofAgreement (MOA) betweenIndiaandBotswanaforSecondmentofIndianArmy personnel for training BDF personnel(2014).

seychelles

India’sapproveddirectinvestmentsinSeychellesduringApril 1996-March 2015 stood atUS$3.5million.India’sBhartiAirtelTelecomgrouphassetup its mobile telephone and internet services in Seychellessince1998.Tatahasso farsuppliedmost of the fleet of buses for Seychelles to ply

between its capital city Victoria and other regions of Mahé Island.

SelectAgreementsbetweenIndiaandSeychellesinclude:

lTradeAgreement(2000);

lJointBusinessCouncil(2000);

lBilateral co-operation in various fields isgovernedbytheJointCommission(JCM)onEconomicandTechnicalCo-operation;

lIndia and Seychelles signed a Bilateral Investment Promotion and Protection Agreement(BIPA)onJune02,2010,whichisyettocomeintoforce;

lMOU on Renewable Energy Cooperation(2015);

lMOU for Cooperation in the field of Hydro-graphy(2015);

lProtocol on Sale of Navigational Charts / ElectronicNavigationalCharts(2015);and

lAgreement on the Development of FacilitiesonAssumptionIsland(2015).

Zimbabwe

DuringApril1996toMarch2015,thecumulativeIndianFDIinZimbabwestoodatUS$2.9million.IndianpublicsectorcompanieslikeIndianRailwayConstruction Company (IRCON), Rail IndiaTechnical & Economic Services (RITES),Waterand Power Consultancy Services (WAPCOS)and TCIL have in the past executed infrastructure projectsinZimbabwe.



Indian companies, Kirlosker and Jain Irrigationhavesuppliedpumpsandirrigationequipment.

Indian pharmaceutical companies in ZimbabweincludeRanbaxy,Cipla,amongothers.

Chadha Power of India has been awarded acontract to refurbish four units at the HwangeThermalPowerStationnearVictoriaFalls.

Surface Investment has set up a multi-seed edible oil producing plant near Harare capable of producing100,000bottlesofedibleoildaily.Theproject is a joint venture betweenMidexGlobalPvt. Ltd., Indore and Industrial DevelopmentCorporationofZimbabwe.

PMElectronics,India,isexportingtransformerstoZimbabweElectricitySupplyAuthority(ZESA).Thecompany has also signed a technology transfer agreementwithZESAEnterprises–asubsidiaryofZESA–foratransformermanufacturingprojectin Harare.

Technofab Engineering Ltd., Delhi won threeorders for rehabilitation of water supply andsewagesystemsinMutare,Harare,Chitungwiza,Kwekwe,ChegutuandMasvingo.Theproject isfundedbyCrownAgentsonbehalfofMinistryofFinance,GovernmentofZimbabwe.

AngeliqueInternationalLtd.,Delhiwereawardedcontractforworks“EmergencyPowerInfrastructureRehabilitation Project” by the Government ofZimbabwein2013.TheprojectwascompletedinJuly,2014.

TataInternationalhasacquiredBlackwoodHodge(Zimbabwe)Pvt.Ltd.,and is theauthorizedandsoledistributorofTataVehiclesinZimbabwe.

IndiaandZimbabwesignedtheJointCommissionAgreementinJanuary1987.

Madagascar

Indiancompanieshaveinvestedinthemining,oilandgassectors,telecomsectorandhealthsectors.Select Indian companies investing in Madagascar include Airtel (telecom), Dr. Aggarwal’s EyeHospital(healthcare),amongothers.

Namibia

Some of the major Indian investors in Namibia include Vedanta Resources of India, whichacquired Skorpion Zinc Mine (Namibia) fromAnglo American Zinc. A Tsumeb-based jointventurebetweenIndianGPTGroupofCompaniesandTrans-Namib,GPT-TransNamibiaConcreteSleepers(Pty),wasformedforproducingconcreterailwaysleepersforlocaluse.

India and Namibia established a Joint TradeCommittee in 1995.

Malawi

IndiancompaniesinMalawiareengagedinagro-processing, chemicals, energy, financial serviceand insurance, food processing, informationtechnology and software development, logistics,textile, cosmetics and pharmaceuticals, mining,manufacturing, hotel and hospitality, amongothers.

Indian companies that have invested in Malawiinclude, among others, Bharti Airtel, MahindraInfotech,HiTosLinearAgencyPvt.Ltd.,WeismannLtd., Tata, Mahindra, Godrej, Kirloskar, AshokLeyland,andTVS.In2012,DhunseriPetrochemandTea Ltd. (DPTL) invested inTeaEstates in



Malawi. To promote trade and investment fromIndia, theMalawiHighCommissionhasopeneda business centre in Surat, Gujarat in October2013.

Select bilateral agreements India has entered into withMalawiinclude:

lGeneralCooperationAgreement(2010);

lMOU on Cooperation in the field of MineralResourcesDevelopment(2010);

lMOU on Cooperation in the field of RuralDevelopment(2010);

lMOUonCooperationinthefieldofHealthandMedicine(2010);

lMOUonCooperationinthefieldofAgricultureandAlliedSectors(2010);

lProtocol for Consultations between Ministryof ForeignAffairs of Malawi and Ministry ofExternalAffairsofIndia(2010);and

lNational Small Industries Corporation of India and One Village One Product of Malawi forcooperation in the development of small scale enterprisesinMalawi.

swaziland

Indian companies have invested mainly in the mining sector of Swaziland. Indian investors inSwazilandincludeEkasilaaMiningPvt.Ltd.,JSWGroupandIndianImmunologicalsLtd.

DR congo

There are a few Indian companies engaged intheminingofcopper,cobaltanddiamond inDRCongo. In 2010, a contract to lay down powertransmission linesof 400KVoveradistanceof260 kms from Inga in Bas Congo province to the

capitalKinshasawas signedbetweenKalpataruPowerTransmissionLtd.,IndiaandtheCongoleseNational Electricity Company, SNEL. KECInternationalsignedanagreementwithSNELforsupplyandinstallationof2,200kmsopticalpowerground wire, on the existing 220 KV and 500KVtransmission lines.BhartiAirtelhasacquiredZainCommunicationsNetwork in the country in2010.TataMotorshaveadistributioncentreinDRCongo.

Select bilateral agreements between India andDRCongoinclude:

lJoint Commission for Political, Economic,Scientific,TechnicalandSociocultural(2008);

lCulturalCooperationAgreement(2009);

lForeignOfficeConsultations(2010);

lAgreement on Mutual Promotion and ProtectionofInvestments(2010);and

lIndia and DR Congo signed a BilateralInvestment Promotion and Protection Agreement(BIPA)onApril13,2010,whichisyettoberatified.

Angola

Among Indian companies in Angola, RITESundertook a Rehabilitation study for theAngolaRailway system, as a part of Africa Fundinitiatives.

lesotho

According to MEA, select Agreements signedbetweenIndiaandLesothoinclude:

lBilateral MOU on Rural Development wassignedwiththeGovernmentofLesothoinJuly2011;and



lNational Small Industries Corporation and Basotho Enterprises DevelopmentCorporation (BEDCO) have signedMOU forMutual Cooperation for the Development ofSmall Industries in Lesotho. This envisages strengthening the capacity of BEDCO fordevelopmentsustenanceandgrowthofsmallenterprises inLesotho, facilitating transferoftechnologiesfromIndiatoLesotho,assistanceinsettingupaCommonFacility-cum-TrainingCentre to meet the skill and technology needs of small enterprises in Lesotho and facilitating enterprise-to-enterprise contacts with a viewto promote Indian investment and industrial partnerships in Lesotho.

FDI inflows to India from SADC

FDIinflowstoIndiafromSADCregionhavebeendominated by investments from Mauritius that accounts for35.2percentof India’soverallFDIinflow.MauritiusisthelargestinvestorinIndiain

termsofcumulativeFDIinflows,mainlyduetotheDouble Taxation Avoidance Convention. Otherscountries from the region investing in India include SouthAfrica,andSeychelles(Table 5.2).

country

FDI Inflow during April 2000 to March 2015

(us$ mn)share in

India’s FDI inflow (%)

SADC 88,028.23 35.40

Mauritius 87,555.00 35.2

South Africa 289.6 0.1

Seychelles 181.3 0.1

Tanzania 1.6 -

DRCongo 0.5 -

Others 0.2 -

Table 5.2: FDI Equity Inflows to India from SADC Region (us$ mn)

‘-’nilornegligibleSource: Department of Industrial Policy and Promotion,MinistryofCommerceandIndustry,GovernmentofIndia



6. Export-Import Bank of India in sADc Region

Export-Import Bank of India (Exim India)commenced operations in 1982. The Bank wassetupunderanActofParliament(Export-ImportBank of India Act 1981), for providing financialassistance to exporters and importers, and forfunctioningastheprincipalfinancialinstitutionforcoordinating theworking of institutions engagedin financing export and import of goods andservices with a view to promoting the country’sinternational trade. In its endeavour to promote India’sinternationaltrade,EximIndia’svisionhasevolvedfromfinancing,facilitatingandpromotingtrade and investment, to a conscious andsystematic effort at creating export capabilities;Exim India today seeks to develop commercially viable business relationships with externallyoriented companies.

The countries in the SADC region have alwaysbeen a focus region for Exim India, and thus acritical component of its strategy to promote and supporttwo-waytradeandinvestment.Asapartnerinstitution to promote economic development in the Region, the commitment towards buildingrelationshipswith theSADCRegion is reflectedin the various activities andprogrammes,whichExim India has set in place.

Exim India has representative offices inJohannesburg, South Africa, and Addis Ababa,Ethiopia,playakey role in facilitatingeconomiccooperation with the SADC Region, and areclosely associated with several of the Bank’sinitiatives. The representative offices interfacewith multilateral institutions such as AfricanDevelopmentBank(AfDB),Afreximbank,regional

financialinstitutionssuchasEasternand Southern AfricanTradeandDevelopmentBank(PTABank),and developmental financial institutions such asIndustrialDevelopmentCorporationofSouthAfricaLtd.(IDC),aswellasIndianmissionsintheregionwith the aim of increasing bilateral commercialengagementsbetweenthetworegions.

lines of credit

To enhance bilateral trade and investment relations, Exim India has in place several Linesof Credit (LOCs) extended to a number ofinstitutions/agencies in theSADC region.TheseLOCssupplementthe‘FocusAfrica’programmeoftheGovernmentofIndia(GOI)andareextendedespeciallytoprioritysectors,identifiedbyGOIformutual cooperation and benefit. Besides theseoperating LOC extended at the behest of GOI,EximIndiaextends itsowncommercialLOCstovariousfinancial institutionsandotherentities inAfrica,suchas,PTABank(covering17countriesintheeasternandsouthernAfricanregion),Indo-Zambia Bank and Afreximbank. These LOCsfacilitateimportofproject-relatedequipmentsandservices from India on deferred credit terms. At the same time,manyof theseLOCsareearmarkedfor infrastructure and related projects. As on January31,2016, the totalnumberofoperativeLOCsto theSADCregionstoodat46extendedto12countriesandamountingtoUS$2.4billion.Ofthese,43LOCsaggregatingtoUS$2.3billion,areguaranteedbyGOI.AlistofLOCsextendedto African countries is given at Annexure 2 and select examples include:



l Angola – Railway rehabilitation project;industrialpark;andtextileproject;

l DR congo – Hydroelectric project; settingup a cement factory, acquisition of buses,rehabilitation of manganese mine and acquisition of equipment; transmission anddistributionproject;andinstallationofpumps;

l lesotho – Export of tractors, pump sets,consultancyservicesandirrigationequipment;andvocationaltrainingcentreproject;

l Madagascar –Riceproductivityandfertilizerproductionproject;

l Malawi – Cotton processing; one-villageone-project; green belt initiative; irrigationand threshing plant; procurement of design,supply, installation and commissioning offuel storage facilities; irrigation network; andcommissioningofsugarprocessingfacility;

l Mauritius–Supplyofoffshorepatrolvessel;purchase of specialised equipment andvehicles; and acquisition of Waterjet FastAttackCraft;

l Mozambique – Gaza Electrification Project;waterdrillingproject;ITparkproject;agriculturalproductivity enhancing programme; housingproject; road rehabilitation project; ruraldrinking water and electrification project;and solar photovoltaic module manufacturing plant;

l seychelles–Exportofvehicles,spareparts,automobile tyres, cables,medicine etc.; andimport of goods and services from India for specificprojects;

l swaziland – IT project; and agriculturaldevelopment and mechanization ofagriculture;

l Tanzania – Export of tractors, pumps andvehicles;watersupplyschemes;andextensionofpipeline;

l Zambia – Hydroelectric project; and Pre-fabricatedHealthPosts;and

l Zimbabwe –Up-gradationofpumpingstationandriverwaterintakesystem;andrenovation/upgradationofthermalpowerplant.

Institutions:

l Afreximbank–Generalpurpose;

l Eastern and southern African Trade and Development Bank (PTA Bank) – Generalpurpose;

l Indo-Zambia Bank–Generalpurpose.

Project Exports

Exim India plays a pivotal role in promoting and financingIndiancompaniesinexecutionofprojects.Towards thisend, the institutionextends fundedand non-funded facilities for overseas industrial turnkey projects, civil construction contracts,supplies as well as technical and consultancyservice contracts. In theAfrican Region, Indiancompanieshaveimplementednumerousprojects,spanningvarioussectors,withsupportfromEximIndia.Theseprojects,inturn,facilitateandsupportinfrastructure development in host countries,thereby contributing to the overall development process in the region.

AsonSeptember30,2015,thevalueofongoing 55 project contracts secured by Indian Project



exporters in the SADC region amounted to `116.4billion.Ofthese,39projectcontracts valued at `61.8billionareunderGOI-supportedLOCs.Such projects include, besides others: settingup of industrial park project and textile project in Angola;upgradingroadproject inTanzania;andpower (generation and transmission) projects inDRCongo,Mauritius,Mozambique,TanzaniaandZambia.

Buyer’s credit under National Export Insurance Account (NEIA)

In order to provide further impetus to project exports from India on medium- or long-term basis, especially in the infrastructure sector, inApril2011,aproductcalledBuyer’sCreditunderNational Export Insurance Account (BC-NEIA)was introduced. Under this programme, EximIndiafacilitatesprojectexportsfromIndiabywayof extending credit facility to overseas sovereign governments and government owned entitiesfor import of goods and services from India on deferred credit terms. Indian exporters can obtain paymentofeligiblevaluefromEximIndia,withoutrecoursetothem,againstnegotiationofshippingdocuments.NEIAisaTrust,setupbyMinistryofCommerceandadministeredbyECGC.

As on December 31, 2015, Exim India hassanctioned an aggregate amount of US$ 308.3millionunderBC-NEIAfor8projectsintheSADCRegion (in four countries namely Mozambique,Tanzania, Zambia and Zimbabwe) valued US$323.3million.

Overseas Investment Finance

Further, Exim India supports Indian companiesin their endeavour to globalise their operations,throughoverseasjointventures(JVs)andwhollyownedsubsidiaries(WOS).Suchsupportincludesloansandguarantees,equityfinanceandinselectcasesdirectparticipationinequityalongwithIndian

promoters to set up such ventures overseas. In the SADCRegion,EximIndiahassupportedseveralsuch ventures in countriessuchasSouthAfrica,MauritiusandTanzania,acrossarangeofsectorslikeagricultureand foodprocessing,agro-basedproducts,autoandautocomponents,chemicals,construction,electronics,engineeringgoods,EPCservices,miningandminerals,plasticsproducts,packaging, software and IT enabled services,and textiles. These ventures serve to promote value addition, as also contribute to capacitybuilding and capacity creation in host countries. As on December 31, 2015, Exim India throughitsoverseas investmentfinanceprogrammehassupported 26 Indian companies in four countries intheSADCregionwithanaggregatesanctionof`38.5billion.

Project Development company (PDc) in Africa

Africa is a region of opportunities, as thecontinent is receiving plenty of investments in the infrastructurespace.ThePPPstructureisslowlygettingpopularisedbythenationalgovernments,increasing the interest of the private sector in infrastructuredevelopment.However,institutionalcapacity in several African nations is in a nascent stage.

Addressing the limited institutional capacity in Africa onconceptualisation,management,executionandimparting project development initiatives, IndianinstitutionssuchasEximIndia,IL&FS,andStateBankof Indiahave joinedhandswith theAfDB,and promoted aProjectDevelopmentCompany(PDC)forinfrastructuredevelopmentinAfrica.

The PDC, named Kukuza Project DevelopmentCompany,hasbeen incorporated inMauritius inJuly2015.‘Kukuza’inSwahilimeans‘acausetogrowth’.Reflectingthename,thePDCisexpectedto provide specialist project development expertise to take the infrastructure project from concept to



commissioningintheAfricanContinent.ThePDCwillprovidetheentiregamutofprojectdevelopmentexpertise tovarious infrastructureprojects, suchas project identification, pre-feasibility/ feasibilitystudies, preparation of detailed project reports,environmental and social impact assessment,etc.

The PDC shall utilise the domain expertise ofeach partner during the project development process to establish a bankable and sustainable implementation format based on an in-depth understanding of the concerns of all the stake holders - public authority, users community,developers/ investors and lenders.

Association with African Development Bank (AfDB)

India is a member of the African DevelopmentBank (AfDB) Group. Many Indian companiesparticipateinprojectsfundedbytheAfDBGroup.Exim India works very closely with AfDB andhas an active programme which offers a rangeof information, advisory and support servicesto Indian companies to enable more effective participation in projects funded by multilateral funding agencies, including AfDB. Exim Indiaassists Indian companies in projects supported by AfDB by not only fund and non-fund basedassistance,butalsobyprovidingadvancealertson upcoming opportunities. With support fromEximIndia,Indianprojectexportershavesecureda number of overseas contracts in Africa in sectors such as power, telecommunications, transport,water supply& sanitation.Exim India andAfDBhavealso signedanagreement for co-financingprojects in Africa. The agreement envisages jointfinancingofprojects (prioritybeinggiven tosupportprojectsofsmallandmediumenterprises)inregionalmembercountriesofAfDB.EximIndiaalsoorganizesBusinessOpportunities seminarsinProjectsfundedbyAfDBacrossvariouscentresin India.

Africa–IndiaPartnershipDay

EximIndiatogetherwithFICCI(FederationofIndianChambersofCommerceandIndustry)organizestheAfrica–IndiaPartnershipDay,onthesidelinesof AfDB’s Annual Meeting, with an objective ofsharing India’s developmental experiences withAfrica, particularly in Public-Private Partnershipmodel of financing infrastructure development.Exim India,alongwithFICCI,hasso farhostedthreesuchevents;firstbeingonMay30,2013inMarrakech,Morocco;followedbyKigali,Rwanda,onMay22,2014,andAbidjan,Côted’Ivoire,onMay27, 2015.TheAfrica-IndiaPartnershipDayhasbecomearegularfeatureoftheAfDBAnnualMeeting, and showcases the immense scopefor expanding the mutually enriching partnership betweenAfrica-India.

Exim India’s engagements in ITc’s sITA

OnMarch09,2014,DepartmentforInternationalDevelopment (DFID)mandated the InternationalTrade Centre (ITC), United Kingdom, to designand implement a project, called ‘SupportingIndia’s Trade Preferences forAfrica’ now called‘SupportingIndianTradeandInvestmentforAfrica’(SITA).SITAisasix-year(2014-2020)projectthataimsatpromotingexportsfromfiveEastAfricancountries–Ethiopia,Kenya,Rwanda,theUnitedRepublic of Tanzania and Uganda – to Indiathrough investment and skills transfer from the Indianside.EximIndiahadenteredintoanMOUwith ITC in Geneva on March 26, 2014, underwhichitwasassociatedwithITC’sSITAinitiative.The Project was in its inception Phase duringMarch2014toMarch2015,wherearoadmapforSITA, including the focus sectors, was defined.TheimplementationphaseofSITA(March2015-March2020)wasofficiallylaunchedinNewDelhi,India,duringMarch19-20,2015.



Member of Association of African Development Finance Institutions (AADFI)

Exim India is a member of Association of African Development Finance Institutions (AADFI), aforumof institutions/bankswith theobjectiveofcreating co-ordination and economic solidarity among the development finance institutions intheAfricancontinent.ThemembershipofAADFIhelps to provide a platform for building linkages withotherinstitutionsinAfrica,whicharemembersofAADFI.

Further,EximIndia’sequityinAgriculturalFinanceCorporation, which offers consultancy supportin development of agro-technology; promotermembership in ‘Small Farmers’ Agri-BusinessConsortium (SFAC)’, an investment institutionwhose objectives include promoting small andmediumagri-businessventures,placesEximIndiain a vantage position to share its expertise and support development related activities in Africa.

Global Network of Exim Banks and Development Finance Institutions (G-NEXID)

Exim India has entered into a Memorandum of Understanding(MOU)withfourEximBanksandDevelopmentFinancialInstitutions(DFIs)toformGlobalNetworkofEximBanksandDevelopmentFinancial Institutions (G-NEXID). The fivesignatories are Export-Import Bank of India,Export-Import Bank ofMalaysia,African Export-Import Bank, Andean Development Corporationand Export-Import Bank of Slovakia. G-NEXIDwas formally launched at its inaugural meetingatUNCTAD,GenevaonMarch13,2006.AnnualMeetings are held to deliberate upon measures tofosterlong-termrelationship,shareexperienceand strengthen financial cooperation topromotetradeandinvestmentrelationsbetweendevelopingcountries.G-NEXIDhasbeengranted‘observer’statusbyUNCTAD.

G-NEXIDmembersintheAfricanRegioninclude:African Export-Import Bank, Cairo; BanqueNationaled’Investissement,Côted’Ivoire;BanquePour Le Financement De Petites Et MoyennesEntreprises, Tunis; Central African StatesDevelopment Bank, Brazza Ville; DevelopmentBank of Mali, Bamako; Development Bank ofNamibia, Windhoek; Development Bank ofZambia,Lusaka;DevelopmentBankofSouthernAfrica,Midrand;EastAfricanDevelopmentBank,Kampala; Economic Community of WesternAfrican States, Lome; Industrial DevelopmentBank of Kenya, Nairobi; Industrial DevelopmentCorporation South Africa, Sandton; NigerianExport-Import Bank, Nigeria; and PTA Bank,Nairobi.

Exim India’s country Mission

WithaviewtoenhancingIndia’sbilateraltradeandinvestment relations and in order to support Indian entrepreneurs in their globalisation endeavours,Exim India has commissioned a country mission to select countries in Africa. The Mission endeavourstoprovideaframeworkforenhancingIndia’s engagement in select countries inAfricaby way of identifying key areas for commercialengagementwhilealsoassistingthesecountriesin achieving their developmental objectives. This initiative is backedbyExim India’s longstandingstrategic and commercial relations with variousinstitutions, bodies and organisations in Africathrough its various capacity building programmes in various sectors in these countries.

The Mission to Africa covered countries including Mozambique,RwandaandTanzaniainNovember2014. The Mission team closely coordinatedwithIndianMissions,andheldvariousroundsofinteractionswithGovernment officials of partnercountries, multilateral institutions, businesscommunity, exporters, banks, Indian businessdiaspora, and other stakeholders, with a viewto identifying business, trade and investmentopportunities for Indian entrepreneurs.



GPcl as a consultant

Global Procurement Consultants Ltd. (GPCL)has been promoted by Exim India in association with leading public sector and private sectorconsultancy organizations.GPCL’s shareholdingpattern creates a synergetic fusion of expertise,thereby providing a unique platform for sharingof collective Indian experience in a partnership mode with developing countries and emergingeconomies, in the professional management ofprojects,withparticularreferencetoprocurementservices. GPCL synthesizes India’s consultancyexpertise in project management and procurement across varied sectors of the economy including finance, infrastructure, energy, transportation,environment, information and communicationtechnology, industry, agriculture, mining, waterresources,healthandeducation.GPCLprovidestechnical assistance in enhancing quality,transparency, efficiency and effectiveness ofprocurement and implementation services to help attain desired institutional and corporate objectives. GPCLsupports,enhancesandextendsscopeofproject supervision, monitoring and evaluationas also strengthening of institutional capacity for effective programme/ project implementation. In doingso,GPCLleveragesuponitsdemonstratedstrengths derived from its core staff, panel ofspecialists, and resourcesof its shareholders toassist funding and project executing agencies.

GPCLhasademonstratedtrackrecordspanningall stages of the procurement cycle covering procurement advisory services, procurementmanagement, procurement review, performancereview,provisionofsupportservices,valuations,financial advisory services, overall procurementauditandgovernance,asalsoassociatedservicesrelated to training and capacity building. GPCLhas undertaken a number of assignments, inIndiaandnumerouscountriesabroad,directlyfor

multilateral funding agencies or in projects funded by them.GPCLalsohas thedistinctionofbeingselectedinsomeinstancesbytheWorldBankonasolesourcebasis,bothinIndiaandabroad.

GPCL has extensive experience supportingprojects in Africa, and assignments undertakeninclude:

1. Procurement Audit of contracts in WorldBank funded projects in Eritrea, Ghana,Malawi,NigeriaandUgandacoveringHealth,Education,Agriculture, Infrastructure, Power,PrivatizationandEmergencyrehabilitation.

2. comprehensive re-appraisal of WaterSupplyProjectsinNigeriafundedbyAfDB.

3. country Procurement Assessment Review (cPAR) in the Kingdom of Swaziland forAfDB inorder toexamine theexistingpublicprocurement framework, benchmark themwithgoodprocurementpractices,andproviderecommendations to revamp the system for better governance.

4. Procurement Monitoring AgentforaWorldBankfundedhealthprojectinKenyacallingforreviewoftheprocurementofgoods,servicesand minor works including an audit of theprocurement processes of the institutions and procurement units supported by the project.

Partner in Institutional Building in Africa

As a partner institution in promoting economic development in Africa, Exim India shares itsexperience in the setting up of institutional infrastructure for enhancing international trade. In thisregard,theBankhastakenactiveparticipationin the institutional building process in a number of countries in Africa. Besides being associated



in thesettingupof theAfreximbank,Exim India undertookanassignmenttodesign,develop,andimplement a programme on Film Financing forNigerian Export-Import Bank (NEXIM Bank) forexpanding itsexposure infinancingfilms (underFilmFinancingProgramme).EximIndiahasalsobeen involved in the design and implementation of Export Finance Programmes for IndustrialDevelopment Corporation, South Africa;Consultancy Assignment for the Governmentof Mauritius on ‘Projecting Mauritius as an investmenthubforIndianFirms’;establishmentofExportCreditGuaranteeCompanyinZimbabwe;and preparing a blue print for setting up of Export-ImportBankofZimbabwe.

In2015,InternationalTradeCentre(ITC),Geneva,under its ‘Supporting Indian Trade and Investment for Africa (SITA)’ Project, awarded Exim Indiawith Phase - 1 of an assignment for ‘InstitutionCapacityBuildingforExportCreditandInsurance’to enhance trade competitiveness in Rwanda.The objective of the assignment is to establish a rationale and suggest a broad frameworkfor establishing an Export Credit Insurance CorporationinRwanda.

Institutional linkages

Exim India has been consciously forging a networkof alliancesand institutional linkages tohelpfurthereconomicco-operationwiththeSADCRegion.Towardsthisend,EximIndiahastakenupequityinAfreximbank,andDevelopmentBankofZambia.TheseendeavoursaresupplementedbythevariousMemorandaofCooperation(MOCs)/MemorandaofUnderstanding(MOUs),theBankhas in place, with key institutions in theAfricanRegion including: AfDB; Eastern and SouthernAfricanTradeandDevelopmentBank(PTABank);Afreximbank; Board of Investment, Mauritius;

ECO Bank (Pan African Bank); and IndustrialDevelopment Corporation of South Africa Ltd.(IDC)

Knowledge Building and Technology Transfer

Intheareaofknowledgebuildingandtechnologytransfer, Exim India’s research studies havefocused on potential areas for boosting India’strade and investment relations with Africa,the Economic Community of West AfricanStates (ECOWAS), Southern African CustomsUnion (SACU), Southern African DevelopmentCommunity(SADC),CommonMarketforEasternand Southern Africa (COMESA), Select WestAfrican and Southern African Countries, LeastDevelopedCountries(LDCs),asalsothemembercountries of Maghreb region. The recent research publications relating to Africa include:

lEnhancingIndia’sTradeRelationswithAfrica:A Brief Analysis

lSADC:AStudyofIndia’sTradeandInvestmentPotential

l IBSA : Enhancing Economic Co-operation across Continents

lCOMESA: A Study of India’s Trade andInvestment Potential

lSelectSouthernAfricanCountries;and

lSouthernAfricanCustomsUnion(SACU).

Representative Office

Exim India has representative offices in AddisAbaba, Ethiopia; Johannesburg, South Africa;and Dakar, Senegal, which play a key role in



facilitatingeconomiccooperationwiththeAfricanregion.EximIndia’sJohannesburgrepresentativeoffice has jurisdication over all SADC membercountries except Tanzania. Tanzania falls underthe jurisdiction of Exim India’s Addis Ababarepresentativeoffice.

Therepresentativeofficesinterfaceswithvariousinstitutions such as Industrial DevelopmentCorporation of South Africa Ltd., AfricanDevelopmentBank,regionalfinancial institutionssuch as Eastern and Southern African Trade and Development Bank (PTA Bank), AfrExim India,and West African Development Bank (BOAD)aswellasIndianmissionsintheregion,thereby

being closely associatedwiththeBank’sinitiativesin the African region.

In a Nutshell

Insum,EximIndia,withitscomprehensiverangeof financing, advisory and support services,seeks to create an enabling environment for enhancingtwo-wayflowoftrade,investmentandtechnologybetweenIndiaandtheSADCRegion.While promoting infrastructure developmentand facilitating private sector development in hostcountries, thevariouseffortsofExim India,ensconcedinitsrangeofactivities,alsocontributetowards institutional building in the AfricanRegion.



7. Investment Opportunities for India in sADc countries

The SADC member countries encourage investment from other nations to be their partner inachievingtheir long-termeconomicgoals.Forthis reason, SADC has developed policies andprocedures encouraging foreign direct investment (FDI), placing funding directly into production,which in turn contributes towards job creation,development of infrastructure and industry and economic progress in the region.

As the guiding financial policy for SADC, theProtocolonFinanceandInvestmenthighlightstheimportanceofFDI.Article3ofAnnex1indicatesthat Member States of SADC should promoteentrepreneurship in industries that specificallyattractFDI.Similarly,Article4ofAnnex3directsMember States to collaboratively develop a frameworkforTaxIncentivesthatwilldrawforeigndirect investment into the region.

Restrictions on Foreign Investment

While all SADC Member States encourageinvestment, each Member State still currentlyoperatesitsownregulatoryframeworkwithitsownlevel of economic liberalisation. Although many Member States are fully open to foreign investment in several sectors, certain strategic sectors stillhave limits on foreign investment. These sectors fall under special policies and programmes aimed at economically empowering the people in theregion and protecting sovereignty.

According to SADC Secretariat, five SADC countries restrict foreign investment in telecommunications, with only Mauritius and

Zambiaallowing100percentforeignownership;MadagascarandMozambiqueonlyrestrictfixedlinetelecommunications,allowingforeignownershipofmobileservices;Angolarestrictsforeignownershipto10percentinbanking,50percentininsurance,and 80 per cent in transportation; Tanzaniarestricts foreign investment in insurance to 66 per cent; and most SADC countries restrictmediaownershipbyforeigninvestors,especiallytelevision broadcasting and only Madagascar and Zambiapermit100percentforeignownershipinthe media sector.

FocusinvestmentsectorsinSADCCountriesarestatedinthefollowingsection.

ANGOlA

On August 11, 2015, the Angolan GovernmentpublishedandenforcedanewPrivateInvestmentLaw(Lawno.14/15).Thislawaimstoreducethebureaucracy surrounding the procedures for the acceptance of eligible investments, as well astomatch the incentive and benefitmechanismswith Angola’s current economic framework,thereby increasing the level of attractiveness for investors.

ThenewLawisapplicableforforeigninvestments,regardlessoftheiramount,aswellasforinternalinvestments with a global amount equal toorgreaterthanKZ50million.

Incentives and tax benefits are now analyzedobjectively, in accordance with specific criteriaincluded in the Law, allowing for a gradualreduction of:



lIndustrialTax;

lInvestmentIncomeTax;and

lUrbanPropertyTransferTax.

This Law is, however, is not applicable forinvestment projects approved prior to its entrance intoforce.Accordingly,suchprojectsareregulatedbytheLawsandtheinvestmentcontractsunderwhichtheoriginalinvestmentwasauthorized.Anybenefitsandfacilitiesgrantedunderpreviouslawsremainvalid,inaccordancetotheiroriginalterms,although these may not be extended.

For the purpose of this present Law, a privateinvestment is defined as (i) the use in nationalterritory of capital, technologies and know-how,capital goods and others in specific economicprojects,oras (ii) theuseof funds intended tocreate new companies, groups of companiesor any other form of corporate representation of domesticorforeignprivatecompanies,aswellastheacquisitionofthewholeorpartofthecapitalof existing Angolan companies, with a view toimplementingorcontinuingaspecific economicactivity according to their corporate objects.

TheGovernmentofAngolaisfocusedoneconomicdiversificationandinnovationofnewtechnologies.Major non-oil growth sectors in the country areinfrastructure, technology, agriculture, fisheries,hospitality,forestry&timber,miningandminerals.Of these, infrastructure is perhaps the mostsignificant in terms of size and socio-economicimpact. Reflecting the need of the economy,infrastructure is attracting the majority share in FDI, which in critical sectors such as railways,ports, bridges, roads and buildings (factories,manufacturing plants) and new technologies inutilities and energy.

Thehospitalitymarketisalsoattractingsignificantinvestments from the public and private sectors and the government is providing tax exemptions

and incentives for companies setting up hotels and other hospitality facilities in the country.

Innovation in technology is also a major focus for investors.Withyoungpopulation,witharoundhalfof thepopulationbelow theageof20,and theyhaveahugeappetitefortechnology.ForeignfirmsthatcaninvestingrowingtechnologybusinessesinAngolacandowellintheconsumertechnologysector.

Technology in business – from engineering tofarming or energy (particularly off-the-grid andrenewables) is witnessing interest from foreigncompanies. Organizations that are pioneeringnewtechnologiesinareasofsustainableenergyare of particular interest to many African nations.

The sectors which provide the best businessopportunitiesinAngolawouldincludeoil,minerals,civilconstructionandroad,rail,portandairportinfrastructure,waterprojects,agriculture,telecommunications,banking,tourismandenergy.A brief highlight of select sectors are presented below.

Agriculture and related activities

The Republic of Angola is one of the largestcountries of Africa south of the Sahara. The primary sector provides employment and food to themajorityoftheAngolanpopulation(60-70percent).

Opportunities exist in activities such as -

lSeed production for cereals

lFertilizerindustries

lAgri-industriesforprocessingmaize,palmoil,sugar,soybeans,cassavaetc

lStorage and silos



lPlants producing tools and other agricultural equipment;

lAgriculturalmechanization;

lFruitproductionandprocessing;

lCattleproduction;

lIndustrialpoultrybreeding;

lAnimalfeedproduction;and

lFisheries.

Water sector

Angola has a total water project portfolio of US$ 6 billion during the period 2013-2017. Theinvestmentrequirementofthecountryisgiveninthefollowingtable 7.1.

Mining sector

ThemininggoalsoftheAngolaGovernment,withaproductiontargetofUS$405million,whichistobeimplementedintheperiod2013-2017,includethefollowing:

l Diversificationofminingproduction(diamonds,iron,copper,gold,phosphatesanddimensionstones)andrevenuesources;

l Control and surveillance of geological and miningactivities;

l Investment across the row diamond:exploration,miningandjewellery;

l Partnershipswithglobalgroupsintheareaofstoning;

l Geophysical,geologicalandgeochemical;

l Ensuring greater geological and mining base asnewprojectssupport;and

l Generateemployment.

Areas of interest for Private investment are presented in the table alongside.

The diamond exploration activity is further broadening on traditional areas, and non-traditional,whereprospectingprojectsareinplace.Key sectors include LundaSouth, LundaNorth,Cuanza South, Cunene, Bié, Uíge, Malange,Huila, Kwanza South, Zaire, Huambo, Namibe,Cunene,MoxicoandKuandoKubango.

WATER sEcTOR (AMOuNTs IN usD) 2013/2017 years Following Total

Water supply in luanda 1,211,079,180 14,511,820 1,225,591,000

Constructionofsystem4bitawtp/distrbSyst. 500,000,000 0 500,000,000

Constructionofsystemforpiping/distribwtpquilongagrande 711,079,180 14,511,820 725,591,000

Expansion of Provincial Water supply and sanitation system 4,684,545,000 138,000,000 5,172,545,000

Provincial Capitals 2,710,000,000 0 2,710,000,000

Municipal Centers 1,412,545,000 0 1,412,545,000

Rural systems-PAT 562,000,000 138,000,000 1,050,000,000

Water Resources 53,400,000 0 53,400,000

Total-WaterSector 5,949,024,180 152,511,820 6,451,536,000

Table 7.1: Investment Requirement of Water sector in Angola – 2013-2017 (us$)

Source: National Private Investment Agency of Angola



Most of the projects identified relate to gold (18 projects), basic metal (18 projects), copper(8 projects), iron (6 projects), semi-precious (6projects)andbarita(6projects).Othersincludeplatinum, sodium, rock salt, uranium, nickel,fluorite,magnesium,molebditeandmica.

Manufacturing sector

Angola’spriorityindustriesinclude:

lAgro-industry;

lFoodindustries(sugar,coffeeandpalmoil);

lGrindingindustry;

lBeverageindustry(juices,milk);

lPackagingindustry;

lLeatherindustryandcork;

lTextile Industry (rehabilitation Textang II,TextileAfricaandSATEC);

lPulpandpaperindustry;

lConstructionof23andceramic industriesofpaintsandvarnishes;

lManufactureofrubberproducts;

lIndustryelectricalequipment;

lChemicalindustry(ethanol,fertilizerandsoil);

lPharmaceuticalindustry;

lLightmetalandmetalproducts(aluminum);

lIndustryofbuildingmaterials(cement);and

lAutomotive industry.

Oil & Gas

Along with oil production, around 1.2 BSCFDof associated gas is produced of which, 60 percent is flared. The flaring of associated gasrepresents a significant economic loss. Asidefromwhich, combustion productsmake amajorcontribution to environmental damage. But theAngolangovernmentisnowseekingtomakemore productive use of the resource. Converting some of it into LiquefiedNaturalGas (LNG) forexport and using some for domestic electricity production.

TheAngolanLNGProjectwill:

l Facilitatedevelopmentoffieldswithoutflaringthe associated gas.

l Generaterevenuesfromaresourcethatusedtobeconsideredasaby–productinoil-relatedoperations.

l AllowSonangoltomoveintoanewbusinessarea.

l Be an anchor project for future opportunities in gasutilizationandindustrialdevelopment.

l Generate new jobs opportunities fornationals.

sector Number of ProjectsLunda Norte 16

Lunda Sul / Moxico 17

Malange/CuanzaSul 23

Uige/Bengo/Zaire 12

Moxico 17

Planalto Central 24

Total 108

Diamond Exploration Areas in Angola



BOTsWANA22

Key Priority areas for investment in Botswanainclude mining, energy, agriculture, livestockvalue chain investment, financial and businessservices,Transportandlogistics,ICT,andHealthSector.InvestmentOpportunitiesinBotswanaaregivenbelow.

Mining

Opportunities for investment in the mining sector includeprospecting,expansionofexistingminingprojects, new mining projects, beneficiation ofminerals and business opportunities resulting fromlinkswithothersectors.Projectedproductionof mining activities is given in table 7.2.

Beneficiation and Value-Added Production: coal

Several authorities have pointed out that Botswanaishometo(unproven)reserveofover200billion tonsofestimatedcoal resources, themajorityofwhichremainsuntapped.recognizingthispotential,andthatthecoalsectorcouldbethemostpropitiousnewexportsectorandapotentialsubstitute for Botswana’s diamond revenue intime,developmentofthecoalsectorhasbecomeakeypriority(chart 7.5).

Beneficiation and Value-Added Production: copper/Nickel

AccordingtotheUnitedStatesGeologicalSurvey(USGS),Botswana’sminesproducedanaverage

22BotswanaInvestmentandTradeCentre

commodity 2016f 2017f

Coal(‘000tons) 7,600.00 15,800.00

Copper(‘000tons) 62.4 65.8

Diamond(‘000carats) 25,700.00 26,200.00

Table 7.2: Projected Mining Production in Botswana

f - forecastSource:KPMG(2014)

chart 7.1: Botswana coal Production, 2003–12

Source:KPMG,2014



of27,140tonsp.a.ofcopperover2006–10,whileaveraging 23,156 tons per annum of coppersmelter production over the corresponding period (chart 7.2).

Nickel is another material receiving much interest in Botswana. According to the United StatesGeologicalSurvey(USGS),anestimated26,000tonsofnickelwereminedin2012,whichtranslatestoaround1.2percentofglobalproduction(chart 7.3).

Beneficiation and Value-Added Production: Diamonds

Beneficiationofdiamondsisaparticularlypromisingavenue for adding value to natural resources.

Botswana Diamond Hub has been established to develop a sustainable secondary diamond industryinBotswana.Inthecontinuingexpansionof diamond ancillary businesses, significantnumber of cutting and polishing companies have been licensed and are in operation. Although a significant proportion of these companies arelocated in and around Gaborone, there is alsoscope for establishing operations in other parts of the country.

Opportunities in the diamond sector present themselvesinthefollowingforms:

lDirect Opportunities: These involve areas such asdiamondtrading,cuttingandpolishing.

chart 7.2: Botswana copper Production, 2003–12

Source:KPMG,2014

chart 7.3: Botswana Nickel Production, 2003–12

Source:KPMG,2014



lAncillary Support Services: These encompass theprovisionofspecificallytailoredservicestothediamondsectorsuchasbanking,security,insurance, certification and brokerageservices.

lSupport and Outsourcing: Provision of generalserviceswhicharenotuniqueto thediamond industry, such as general securityservices,informationtechnologyandsupport,accounting and human resources services.

lEconomic Spin-offs:Industriesthatwillbenefitfrom the growth and activity in the diamondsector such as hotels, restaurants andtransportation services.

Botswana in the largest producer of diamond inthe world in terms of value, and a third largestproducerintermsofvolume,afterRussiaandDRCongo (chart 7.4 and 7.5) .

chart 7.4: Botswana’s Diamond Production by volume, 2012 (mn of carats)

Source:KPMG(2014)

Source:KPMG(2014)

chart 7.5: Botswana’s Diamond Production by value, 2012 (us$ bn)



Energy

Botswanacurrentlyhaslimitedenergyresourcesand therefore still relies on imported energy sources, especially petroleum products andelectricity. At present, access to electricityremains limited toa relatively lowpercentageofthepopulation.Urbanhouseholdshaveahigherelectricityconnectionrateat43percent,comparedto18percentforruralhouseholds.Thiscouldbeattributed to the high connection costs in the rural areas. The number of villages electrified as ofJanuary2014was350outofatotalnumberof494villages.EnergyresourcesavailableinBotswanaincludecoal,solarandbio-energy(biomassandbio-fuels). Botswana has indicated reserves ofsome212billiontonnesofcoalcountrywide.TheMorupule deposit is the only one being mined currently tosupplyMorupulepowerstation,BCLsmelterandBotswanaAsh.ThevastmajorityofBotswana’scoalresourcesareunexploited.

Table 7.3 shows that domestic coal is the leastcostly option and given the relatively short constructionperiodsforsmallandstandard-sizedprojects,thereispotentialforinvestmentincoal-to-power projects to replace electricity importsfromEskomandensuredomesticenergypowersecurity.

The ElectricitySupplyActwasamendedin2008toenableIndependentPowerProducers(IPPs)inBotswanatogenerateandsellpower.

health sector

The Botswana health system comprises bothgovernment (public-sector) and private-sectorservice providers. Public-sector healthcare servicesareprovidedatminimalfeesforcitizenswhile foreign nationals pay reasonable andsubsidised fees. Private-sector healthcare services aremostly usedbypatientswhoopt not to usepublic-sector health services. Healthcare delivery is decentralised, with primary healthcare beingthe pillar. Botswana has an extensive networkofhealthfacilities:hospitals,clinics,healthpostsand mobile stops.

The opening of a 450-bed Medical TeachingHospitalin2014/15,providingbothundergraduateand postgraduate tuition in addition to healthcare and research capability, will improve personnelavailability and quality of healthcare. There ishuge shortage of hospitals and a large portion of services have been outsourced and most of pharmaceuticalproductsandmedicalequipmentsare being imported. Some of the investment

Table 7.3: cost Options for Electricity Generation in Botswana

Source:BotswanaInvestmentandTradeCentre



opportunities identified by Botswana Investment andTradeCentrearehighlightedbelow.

Public Sector Investment Opportunities

lTwo acute care referral hospitals: Southern(+500beds);Northern(435beds);

lOnereferralpsychiatrichospital(300beds);

lSevenDistricthospitals(bedcapacityof270–330);

lSixteen Primary hospitals and three mine hospitals(50to90beds);and

lSeveral clinics of different sizes across thecountry(somewith20–30bedcapacity).

Private Sector Investment Opportunities

lTwohospitals inGaborone (up to300beds)andasmallerprivatehospitalinFrancistown;

lSeveral private practices offering medical and alliedhealthservicesaroundthecountry;and

lOutsourced services or in partnership withGovernment in areas of special need inthe public sector (e.g. haemodialysis andcardiologyservices).

Specialised Medical Services Investment Opportunities

lDiagnostic Facilities (Imaging andLaboratory);

lPharmaceutical Manufacturing Industries;and

lManufacturingofBiomedicalEquipment.

Agriculture

Since Botswana is a Net Food ImportingDeveloping Country (NFIDC), there is anopportunity in domestic production of basic foodstuffs, particularly cereals (grain sorghumandmaize)andpulses.Cerealnationaldemandstands at 200 000 tons per year, of which only17 per cent is supplied through local production. Investments in arable agriculture will stimulateprivate sectordevelopment, createemployment,createvalue-additionopportunities,andenhancefood security and ultimately exports23.

The Pandamatenga agricultural Infrastructure developmentproject,locatedinanareareceivingthehighestaverageannualrainfall,couldcreatespin-offs in sunflower processing instead ofexportingsunflowerproductionforprocessing.

The Zambezi Agro-commercial DevelopmentProject presents another investment opportunity. The Zambezi River will supply irrigation to willhelp increase 20 000 hectares of agricultural development.

National Master Plan for Arable Agricultural and Dairy Development (NAMPAADD) report alsoidentify projected irrigation in Mmadinare-Tobane (750 hectares), supplied by Shashe Dam, andin Selebi-Phikwe (1,019 hectares) supplied byLetsibogoDam.Spinoffinvestmentopportunitiesof these projects include horticulture packaging and gross sales to domestic and international markets at standardized rates. Tomato pasteproductionisanotheropportunity,utilizingsurplustomato production, and opens the possibility toother food packing opportunities.

23Source:BotswanaInvestmentandTradeCentre,http://www.bitc.co.bw/sector/agriculture?page=1



24DRCongoInvestmentPromotionAgency

DR cONGO24

Key Priority areas for investment in DR Congoincludethefollowing.

Tourism

DRCongo has huge potential for investment intourism sector. Around 12 per cent of the territory has been established as protected areas. The country has 7 national parks and 57 reservations areas. The country also has the presence of four endemic species: MountainGorilla,Okapi,Bonobo and Congolese Peacock. The ecosystem varietiescoversalmost145millionha.

IdentifiedInvestmentopportunitiesinclude–

lRehabilitation and construction of hotels,restaurants,protectedareasandothertouristicinfrastructure;

lDesigningnewtouristicsites;

lModernisation of national parks and joint managementopportunity;

lDevelopmentofeco-tourism;

lConstruction of hotel in the Virugna park and a touristsite;

lRehabilitationofthebotanicalEALEgardeninEquateur;

lCreation of fluvial boating touristictransportation;

lCreation of both a marina, lakesidetransportationandhiking;

lSetting up of a cable car in the Virunga mountains and in the volcanic site withaccommodationandcatering;and

lCreation of seaside resorts with beaches,shorelineaccesscampingequipment

Telecommunication

DRCongohas theadvantageofbeingahub inthe heart of Africa. The country has a market of nearly 70 million users and a penetration rate of 37 per cent for mobile telephone and 6 percent for the internet. In order to build a national modern facility for telecommunication the country hasofferedvariousopportunities for investment,whichinclude–

lSettingupofpublicphones;

lDevelopmentofcompanies for telecommuni-cationconstructionoffacilities;

lComputerisation of both public and private servicesandfinancialauthorities;and

lCreationofanationalnetworkoffiberopticscable.

Power

DRCongohasidentifieditspotentialingeneratingelectricity through hydroelectricity, biofuels andrenewableenergy

lHydroelectric Potential:100000Megawatts;

o 23percentoftheglobalpotential;

o 37percentoftheAfricanpotential;

o 52percentofAfricanreserves;

lBiofuels: possibility of huge production

lRenewable energy: solar, wind, turbine,biomass and geothermal



InvestmentOpportunitiesexistsinthefollowing:

lConstructionofhydroelectricdams;

lConstruction of 4 Pan African energyhighways:

• Inga-Cabinda(Angola)-Pointe-Noire

• Gabon-Cameroon-Nigeria;

• Inga-Kolwezi-ZambiaZimbambwe-RSA;

• Inga-Angola-Namibia-Botswana-RSA

• Inga-SouthSudan-Egypt.

lConstructionofhydroelectricplantsWanieofRukula (688 MW) of Sombwe (186 MW) ofKalengwe(204MW)andKamimbi/FUTA(53MW);

lRehabilitationandmodernisationofG16andG13groupsofINGAIandG24IngaII;

lConstructionofIngaIIIlowhead(4800MW);

lConstructionofIngaIIIhighhead(3000MW);

l217 hydroelectric sites identified for constructionofhydroelectricpowerplants;

lProductionPotentialestimatedat44000MW;and

lTransportation,DistributionandMarketing.

Agro-Industrial sector

DR Congo is endowed with 80 million ha. ofarable landand4millionhaof irrigable landsofwhich only 10 per cent is currently exploited. Ithas a vast area of pasture for raising more than 40millionlargeheadslivestock.Thecountryalsohaveafishpotentialof700000 tonsperyear,avaried climate and abundant rainfall (1000 mmperyear)andalargereservesoffreshwater.

Investmentopportunitiesidentifiedinclude:

lDevelopmentoffishingindustry;fishfarming,processingandpreservation;

lDevelopment of the Special EconomicZone(SEZ)Malukuaimedamongotherstotheimplementation of the agribusiness industry sector;

lDevelopment of perennial crops industries:coffee, cocoa, tea, cinchona, hevea, sugarandpalmoil;

lDevelopmentoffoodcropsindustries:maize,cassava,riceandsoya;

lDevelopment of economic activities in theagro industrial parks organisedby the state,including that of Bukanga-Lonzo which isalreadyoperational;

l22 agro-industrial parks have already been identified, including some with feasibilitystudies;and

lCreation of an international market in Kinshasa.

hydrocarbon sector

Potential for investments include:

lCostalbasin:(5992sq.km,ProvinceofKongoCentral);

lThesedimentarybasinofthecentralbasin;

l(800,000sq.km)with32blockswhicharenotyetallocated;and

lThebasinofthewesternbranchofEastAfricaRift:

o TheAlbertineGraben(5blocks,1openforexploration);



o TheTanganyikaGraben(11blocks)

o LakeKivu(openforexplorationofmethanegas)

o LakeUpemba

Investment Opportunities exists in the followingactivities:

lCertificationofoilandgasreserves;

lProspection and exploration of sedimentary basins;

lExploitationofLakeKivumethanegas;

lConstructionofapipelinecrossingthebasin;

lConstructionofstoragefacilities;

lConstructionofarefinery;

lProductionofroadbitumeninKongoCentralProvince;and

lStorage,transportationandPipelines.

Mining

Potentialexistsinthefollowingindustries:

lCopper-cobalt-Zincindustry;

lDiamondindustry;

lChromium-Nickelindustry;

lTinindustry;

lAuriferous: current mineral resources estimatedataround750tonsofGold;

lBauxiteandphosphateindustry;and

lIron and manganese industry.


lSetting up of processing units of the transformationofminingproducts;

lSetting up of diamond hewing, gold refineryandofsmeltingoresoftinaccompanying;

lExistence of geological research zones forexplorationworksanddevelopmentofdepositsandconvincingindicesofcassiterites,wolfram,coltan,gold,diamond,copper;and

lInstallationofcablemanufacturingindustries,etc.

Infrastructure

Potentialexistsinthefollowingsegments:

lRoadnetworkof145,000km,withonly3,000kmcoveredroads;

l5,033 km rail road network to rehabilitatecompletely;

lMaritime,riverandLakenetworkof16,238kmtotag,dredgeandexploit;

l270airportPlatformstoreconstruct;

l2maritimeinternationalportstomodernise;

lTo equip and dredge several ports in thecountry;and

lInterconnection roads of economic pools.


lConstructionofadeepwaterportatBanana;



lConstruction of railroads, including theBanana-Matadi-Kinshasa-Ileborailway;

lModernisationofSNCCandSCTPrailroads;

lModernisation of the maritime ports of Matadi andBoma;and

lModernisation of SCTP ports in the country.

lEsOThO25

Potential sectors for investment in Lesotho include thefollowing.

Renewable Energy

Lesotho produces 80 megawatts of electricityand the demand inwinter goes as high as 120megawatts. Opportunities lie in the generationofsolarenergy,windenergyandhydropowertogenerate electricity and meet the current supply gap.Excesspowercanbesold toneighbouringcountries.

(a)Hydropower

The Lesotho Highlands Water project offersopportunities for mid to large scale hydropowerdevelopment and several studies have been conducted on possible pumped-storage plants as well.Itisestimatedthatthelarge-scalehydropowergeneration potential for Lesotho is approximately 450MW.

Additionally, there is significant potential forsmall scale hydro as well as wind and solarenergy. As to small scale hydro, there arecurrently four mini hydro-power stations in themountains at Semonkong, Tlokoeng, TsoelikeandMants’onyane. It isestimated that thereareroughlyother20-40sitesavailableforexploitationwithacombinedpotentialofmore than20MW.

The situation in Lesotho is conducive to developing small hydropower systems due to adequateexistinghydropower resourcesandasettlementpattern in rural areas that favours decentralised energy systems. The current legislation that allowsindependentpowerproducerstogenerateelectricity for the national grid and the creation of a National Rural Electrification Fund by thegovernment is seen by the authors as facilitating the uptake of small hydropower technology.Feasibilitystudieshavebeencompletedonthreepreferred sites: Tlokoeng, Motete and Qacha’sNek.

(b)Windenergy

Asregardswindenergy,ithasbeenestimatedthatLesothohasthepotentialtogenerateover6,000MW of wind power in the future. Opportunitiesabound for investors in this area. Current projects includethe35MWLetsengWindprojectandtheSemonkongWindproject.

(c)Solarenergy

As regards solar energy, the Lesotho EnergyMaster Plan estimated solar energy at an annual averageof7,520MJ/sq.mperdayonhorizontalsurface. As part of the national sustainable developmentpolicy,oneofthemainobjectivesofthe government in the energy sector is to promote the adoption of solar energy technologies. The draft paperonrenewableenergypolicyenlistssolarPVapplications and solar thermal technologies.

Manufacturing

(a) Textile and garments

Lesotho’s garment industry producesapproximately 90 million knitted garments a year. It is estimated that Lesotho consumes between22,000 and 26,000metric tons of knitted fabric

25LesothoNationalDevelopmentCorporation



peryear.Awiderangeof (mainlycotton)knittedgarments isproduced fromsingle/double jersey,pique, interlock and rib fabrics. A number offactories are now beginning to produce fleeceknitwear made from synthetics. An opportunityexists for establishment of higher value added garmentsaswellasforestablishmentofknitmillsto support the local garment industry.

(b)Consumer electrical and electronicappliances

Opportunities exist in the production of a widerangeoffinishedgoodsfrommanufacturedpartsorsub-assemblies. These could involve assembly of intricatemanufacturedproductssuchasengines,computers,electricalandelectroniccomponents,radioortestequipment,machinetoolcontrolsandprototypes of different types of products to meet the domestic and international markets. Currently only four companies assemble electronic and electrical products such as television sets and circuit breakers for international and regional brands.

(c) Leatherandfootwear

The leather industry in Lesotho is in its infancy stage.Thecountryhas twoshoemanufacturingfactoriesdespitethefactthatshoesqualifyforallbenefitsunderAfricanGrowthandOpportunityAct(AGOA).Thetwocompaniesproducemainly forexportwhilealargeshareofthedomesticmarkethas to rely on imports from South Africa.

Investment opportunities in this sector wouldincludeleathertanningandfinishing,footwearandfootwear components, leather garments, leathergoods including bags, car seat covers, wallets,belts,glovesandotheraccessories.

MADAGAscAR26

Sixprioritysectorshavebeenidentified:tourism,agribusiness, light manufacturing industry,Information and Communication Technology (ICT),infrastructureandmining

Agribusiness

Agribusiness is the key sector in Madagascar. Someofthepotentialproductsaregivenbelow:

lOilseeds-includingsoya,palmoil

lSugar–Sugar,ethanol,rum

lFreshvegetables,fruitsandbeverages

light Manufacturing Industry

Madagascar is endowed with highly qualifiedlabour in textile industry. It is the largest exported of garments in the Sub Saharan region

Mining

Mining products which have opportunities forinvestment include

lGemstone:Diamond,emerald,ruby,sapphire,beryl,garnetandtourmaline;

lOrnamental and Industrial Stone: Quartz,crystal,graphite,gypsum,labradorite,marbleand jasper

lMetals:Gold,iron,chrome,uranium,titanium,copper and nickel

Tourism

lDiscovery tourism, sports, adventure,culturetourism and ecotourism

26EconomicDevelopmentBoardofMadagascar



Information and communication Technology (IcT)

lThecountryisconnectedtotheworldthroughtwomajorfibres:theEasternAfricaSubmarineCable System (EASSy), in the south of theislandandLowerIndianOceanNetwork(LION)in the east. The sector has been liberalised in 2005.

MAlAWI27

TheGovernment,throughtheMalawiGrowthandDevelopmentStrategy(MGDS),hasidentifiedthepromotion of local and foreign direct investment as a tool for achieving sustainable economic growth, reducing poverty, increasing exportsand improving infrastructure development. The Governmentrecognizesthattheprivatesectoristheengineforsustainableeconomicgrowth.Theprioritized sectors identified by the Governmentoffer the optimum returns to local and foreign investors. These targeted priority areas are:

Agriculture and Agro-processing

There are various investment opportunities in agriculture, including livestock production (fordairy and beef), aquaculture, horticulture, agro-processing, sugar, piggery, honey production,integratedcottondevelopment,cassavaproduction,and mushroom growing. These agriculturalproducts can be processed and exported under trading arrangements encompassing SADC,COMESA, and GSP SCHEMES of the EU’sEBA Initiative, AGOA, China General TariffPreferential Treatment, the India PreferentialTrade Arrangement Benefiting LDCs, and theJapanPreferentialTradeArrangementBenefitingLDCs.Investmentopportunitiesasbeenidentifiedinthefollowingsegments:

a) Soya beans: Processing factory for turningsoyaintoyogurt,cheese,tofu,miso,candles,cattle feeds, bio diesel, cooking oil, meatsubstitutes, and margarine for local andinternational markets.

b) FruitsandVegetables: Cold room and relevant transportation infrastructure; Processingfactories for value addition to make purée,spices, pastes and juices; Storage, cleaningandgradingfacilities;Large-scalecommercialfarming; Market development; and Contractfarming.

c) PigeonPeas/Pulses: Large scale commercial production of pigeon peas for household and industrial use; Processing pigeon peas intoDahlfortheAsianmarket;Productionfactoryfor food supplements.

d) Tea: Large-scale commercial production;ExporttradetoSouthAfrica,Asia,KenyaandEurope ;Setting-upa teaprocessing factoryfor local and international markets.

e) Sugar Production: Malawi is home to a talltropical SouthEastAsian grass (Saccharum officinarum) which has thick, solid, toughstems that are a chief commercial source of sugar. Sugar cane products include table sugar, falernum, molasses, rum, bagasseandethanol.Malawiproducesenoughsugarfor its internal consumption and for export. Investment Opportunities include:

lLarge scale production of sugarcane in the areas under theGreenBelt Initiative(GBI)

lSugarcane processing facilities for export markets

lEthanol factories.

27MalawiInvestmentandTradeCentre(MITC)



f) Integrated Cotton Development: TheMalawi government would like to developan integrated cotton industry as a future potential diversification strategy away fromtobacco,particularlygiventhegrowingglobalanti-smoking lobby. This strategy involves developing the industry across the value chain from seed multiplication to textile manufacturing. Investment Opportunities include:

lSelling certified seeds, chemicals andfumigants, and sprayers; and contractfarming

lLarge scale commercial farming

lSetting up ginning, yarn and textilefactories

lExporting processed cotton and textile products to the USA under the AGOATrade Agreement

g) Other opportunities in agri- and agro-processing industry include:

lLivestock Production

lCassava production

lMushroom Production

lFisheries/Aquaculture

Tourism Development

Malawi is endowed with beautiful and uniquetourist sports including Lake Malawi, nationalparksandgamereserves,MulanjeMountain,wildgame(thebigfive), forestreserves,andculturaland historical sites such as missionary graves and slave trade villages. Investment Opportunities identifiedbytheGovernmentofMalawiinclude:

lEco-tourism

lHotels,campsandlodges

lWaterandlakesports

lCultural and traditional troupes (communitybasedtourism)

lWildernesssafari,travelandtours

lGameandforestlodges

lCasinos and entertainment centre

Mining

Malawiisnaturallyendowedwithvastunexploitedmineral resources. Government expects theincrease in the contribution of the mining sector toGDPbyatleast10percentannually.Currentlymining is limited to: coal mining, quarrying,limestone production, and gemstone mining.Gemstoneexportsaredominatedbyaquamarine,amethyst, red and rhodolite garnets, quartz,aegerine and feldspar. Investments opportunities inindustriesrelatedtothefollowing:

lGold

lUranium

lPlatinumgroupofminerals(pgms)

lBase metals

lNickel and copper

lDimensionstone

lPhosphates

lHeavy mineral sands



lGraphite

lCoal

Manufacturing

Manufacturing accounts for about 17 per cent of Malawi’sGDP.Asmostofthetraditionalagriculturalcrops such as tobacco and tea are exported in a semi-processedstate,therearegreatopportunitiesfor investors to convert these agricultural products into high-value finished products. Investorsmayventure into the manufacture of any of the products listedbelow:

(a)Textile and Garment manufacturing: Withmarket opportunities under AGOA andpreferential bilateral agreements betweenMalawi and South Africa, investing in thegarment/textile industry would be a smartchoice for foreign investors.

(b)Lightmanufacturing: Malawi importsmost ofits required household electrical fittings (e.g.cables, plugs, switches) and engineeringmaterials,e.g.steel-basedproducts.Investorsare therefore invited to invest in this sector to reduce current imports and save foreign exchange.

(c) Forestry: Malawi’s large forest plantationsareViphyaPlateau(Lusangazi,Chikangawa)Nyika Plateau at Chelinda, Dedza, Mulanjemountains and Zomba Plateau. InvestmentOpportunities include - Value addition to the country’s vast forest resources via themanufacturing of timber and timber-based productssuchasblackboards,cheapboards,plywoodetc.;Replantingoftheforest;Possibleconcessionoftheforestareas;Logandloggingsupply agreements for harvesting and cutting of existing timber.

Energy Development

Energy development is crucial as it supports otherindustriesforsustainableeconomicgrowthand infrastructure development. Huge private investmentisrequiredtomeetincreasingenergydemand for both household and industry use. Hydro electricity, fossil fuels and biomass arethe most used energy sources in Malawi. TheGovernmentisinvitinglocalandforeigninvestorstoinvestinthefollowingareas:

lHydro generation, distribution andtransmission;

lSolarenergy;

lWindenergy;

lFuelstorageandoilpipelinefacilities;

lThermalpowerplant;

lBiomassstoves;

lBiogasandRPG;and

lConduct feasibility studies for possible hydro generation sites.

The Greenbelt Initiative

This is a government initiative aimed at contributing towards the attainment of sustainable economicgrowthanddevelopment in linewith theMGDS.It targets coverage of 1 million ha. of land aimed at reducing poverty, improving livelihoods andsustainable food security at both household and national level through increased production and productivity of agricultural crops, livestock andfisheries. Investment Opportunities exists inIrrigationCanals,Factories,Warehouses,Banks,Schools etc.



Nsanje World inland Freeport

Malawi’s statusasa land-lockedcountryaffectsthecostofproductionas the landedcostof rawmaterials is high. Government of Malawi hasinitiated this project to provide a least cost access totheIndianOceanportofChindeinMozambique.Thewaterwaycoversadistanceof238kmandisexpected to reduce transportation costs by almost 60 per cent. Investment Opportunities exist in the followingactivities:

lConstructionofoilpipelineandrefinery;

lStoragefacilitiesandwarehouses;

lHotels, shopping complexes, boats andbarges;and

lRealestatedevelopments.

MAuRITIus28

Mauritius is gradually transforming itself into a hub and an international jurisdiction for investors in searchofsecurity,transparentregulationandhighvalue-addition.Overtheyears,theeconomyhasbeen successfully made a shift from a agro-based economy to a diversified, innovation-driven andknowledge-based economy, underpinned by abroad spectrum of business activities. According totheBoardofInvestment(BOI),Mauritiusoffersexcellent business opportunities in the followingindustry sectors:

Agro-Industry

The agro-industry sector offers investment opportunitiesinthefollowingareas:

lAgriculturalbiotechnology;

lAgro-processing;

lBiofarming;

lDairyfarming;

lSeedproduction;and

lTechnology-based farming.

TheGovernmenthasbeenactivelyencouragingagricultural and agro-industrial development to diversifytheindustry. Today, investments inthissector are oriented towards technology-drivenand high-value activities.

Aquaculture

Situated in one of the world’s cleanest oceans,Mauritius offers investment opportunities in:

l Lagooncageculturewithaproductionrangeof300to500tonnesperproductionunit,

l Offshore lagoon cage culture with anapproximate production capacity of 2,000tonnesperproductionunit,

l Inlandaquaculturefarms,

l Tuna ranching and fattening in cages and hi-tech production techniques such as aquapods.

Education

Mauritius has emerged as a provider of qualityeducation in the region. Investment opportunities exist for the setting up of:

l World-class pre-primary, primary andsecondaryschools;

l Pre-vocationalandvocationalschools;

l University campuses, Business andProfessional Schools

28BoardofInvestment,Mauritius



Banking

Mauritius offers a well-capitalized sophisticatedbanking sector comprising local and international bankswhichareactivelyservicingawide rangeofretail,corporate,institutionalandprivateclientbase. Services offered include traditional retail and corporate banking services, internationalremittance, internet banking, trade and loanfinance, global business, investment banking,custodian services, treasury services andecommerce among others. International names operating in Mauritius include HSBC, BarclaysandStandardChartered,amongothers.

Opportunities exist in setting up of:

lPrivateBanking;

lInvestment and cross border investment/ globalbusinessBanking;and

lIslamic Banking.

healthcare

The healthcare sector in Mauritius has metamorphosed itself into an integrated cluster underpinned by a core group of high-value activities such as hi-tech medicine, medicaltourism,medicaleducationandwellness.Globalhealthcare companies have invested in multi-specialty and super-specialty centres of excellence tocaterforthegrowinghealthcareneedsofbothnational and international patients.

There are opportunities for the setting up of:

lMultispecialtyandsuper-specialtycentres;

lSpecialised diabetes research and treatment centres;

lSpecialised centres for elderly care &rehabilitativemedicine;

lSpecialised centres for novel treatments stem-celltherapies;

lPlasticreconstructivesurgeryclinics;

lClinics for dental surgery and dento-facial orthopaedics;

lConvalescence and pain clinics providing specialised care to patients suffering from acuteandchronicconditions;and

lWellnesscentresandhealthresorts.

IcT-BPO

The sector has developed distinctive strengths in Telecoms, BFSI, IT Application Developmentas well as Maintenance support. Businessopportunitiesexistinthefollowingsegments:

lBPOVoice-CallCentres;

lBPONon-Voice-BackOffice,Payroll,Financeand accounting outsourcing, Legal ProcessOutsourcing;

lInformationTechnologyOutsourcing-softwaredevelopment,Mobileappsdevelopment,Webdevelopment,E-commerce,Multimedia;

lITServices-DataCentres,DisasterRecovery,Training,Consultancy;

lTelecommunication;and

lICTTrade-retailandwholesale.

logistics

The logistics and distribution sector offers the followinginvestmentopportunities:



lWarehousingandstorage;

lBreakingbulk,sorting,grading,cleaningandmixing;

lLabelling, packing, re-packing andrepackaging;

lManufacturing;

lMinorprocessingandLightassembly;

lStorage, maintenance and repairs of emptycontainers;

lShip building, repairs and maintenance ofshipsandaircrafts;

lFreightforwardingservices;and

lQualitycontrolandinspectionservices.

Manufacturing

The manufacturing sector of Mauritius has evolved into a technology intensive sector and offers investment opportunities in:

lTextilesandgarment;

lNon-textilescomprisinglightengineering;

lFoodandseafoodprocessing;and

lHigh-precision engineering comprising productssuchaswatch& jewellery,medicaldevices, pharmaceuticals, electroniccomponents and products, parts for theaerospaceandautomotiveindustries,amongstothers.

Mauritius offers a number of benefits tointernational manufacturing companies to set up productionunitslocally.Thesebenefitsinclude:

lPreferentialmarket access theUSA throughtheAGOA; the EU through the partial EPA;and Africa through SADC and COMESAmemberships;

lCompetitivefactorcosts;

lModerninfrastructureforsettingupfactories;

lModernFreeportandlogisticsfacilities;

lBilateral agreements for free and preferential tradewithTurkeyandPakistan,respectively;

lSea and air connectivity through major shippinglinesandairlines,respectively;

lHighly skilled, adaptable and bilingual workforce;

lStreamlined procedures for the recruitment of expatriatesandforeignlabour;and

lTo give a further impetus to the manufacturing sector,Governmenthasintroducedameasureallowingmanufacturing factories to setup intheFreeportfortheproductionofgoodsaimedprimarily at the African market.

Film Industry

The Film Rebate Scheme, a new cash rebateof 30 per cent on local Qualifying ProductionExpenditures (QPEs), was introduced at thebeginningof2013whichmakesMauritiusattractivetointernationalfilmproducers.Therebateappliesto a wide variety of projects comprising featurefilms,televisiondramas,documentariesandhigh-end commercials.

Ocean Economy

The Government Programme 2015 reflects thevisionof theGovernment to transformMauritius



into an ocean state by promoting the ocean economy as one of its main pillars of development. AMinistryofOceanEconomy,MarineResources,Fisheries, Shipping and Outer Island dedicatedto ocean related activities has been created. In addition, the legal and regulatory frameworksto monitor ocean economy operators will beestablished.

Mauritiushasatotalmaritimezoneof2.3millionsquare kilometres with an Exclusive EconomicZone of 1.96 million square kilometres and acontinentalshelfof396,000squarekilometresco-managedwiththeRepublicofSeychelles.Furthersubmissions for an Extended Continental Shelf of 303,000squarekilometresonseabedandsubsoilwillbemadetotheCommissionontheLimitsoftheContinentalShelfinrespectofRodriguesandChagos Archipelago.

Thekeyinvestmentopportunitiesidentifiedundertheoceaneconomyareasfollows:

lSeabed exploration for hydrocarbons and minerals;

lFishing,Seafoodprocessingandaquaculture;

lDeepOceanWaterApplications(DOWA);

lMarineServices;

lSeaport-relatedactivities;

lMarineRenewableEnergies;and

lOceanKnowledge.

Renewable Energy

According to Statistics Mauritius, 2575 GWhof electricity were generated for sales in2013 representing a 3.2 per cent increase inconsumption compared to 2012. Peak powerdemand capacity increased from 430.1 MW to

441.1 MW for the same period and renewableenergies (R.E) accounted for 20.6 per cent oftotalproduction.Whilebagasseremainsthekeysourceof renewableenergy (16.4percent), theremaining 4.2 per cent of electricity generationcamefromhydro,wind,landfillgasandsolarPVin2013.In2014,some18Gwhofelectricitywereproduced from solar energy.

Although the country welcomes all types ofrenewableenergyprojects,inlinewithinternationalbest practices in the sector and a policy decision fromGovernment in2014,all renewableenergyprojectswouldonlybeconsideredunderatenderexercise.

Third Party Providers: Nevertheless, privatesectorinitiativeswhichdonotrequireGovernmentintervention can be immediately considered. The NationalBudget 2014 announced regulations toliberalisesaleofelectricitytothirdpartywithinwell-defineddevelopments.Thismeasureenablesthegeneration of electricity from renewable energysources by private promoters for direct sales to third-partyoccupiers(includingtenants).Moreover,opportunitiesexist forEnergyEfficiencyProjectstargeting Large Energy Consumers and Energy Audit,ManagementandAdvisoryServices.

Waste to Energy: Waste to energy projects inMauritius require a secured regular supply ofwaste prior to any negotiations with the CEB.Presently, thenear totality ofwaste inMauritiushas already been committed for composting and wastetoenergyprojects.

R&D in renewable energy: The micro-climate generated by Mauritius’ unique topology, itsattractive investment climate and existing research institutionsworkingonrenewableenergyprojects,are the key assets of Mauritius as a test base for R&Dprojectsthatcanbereplicatedonaregionalscale. Moreover opportunities for collaboration exist for theuseof thewatersofMauritius as a testbaseformarinerenewableenergies.



Transformational Energy Projects: Deep OceanWater Applications (DOWA) that exploit deepsea water currents for cooling and other uses.Geothermal energy, currently under study,taps into the potential of heat generated by the earth. Offshore wind farms which, followingpreliminary results by the Mauritius ResearchCouncil,demonstratethepotentialforlargescaledevelopments in the waters of both MauritiusandRodrigues. Offshorewave farms forwhichpreliminary studies from theMauritiusResearchCouncil have demonstrated conclusive results.

seafood

The rational exploitation of fish has enabledthe local seafood industry to be founded on the development of value-added fisheries andseafood-related activities. The sector offers opportunities in:

lFishing;

lTranshipment;

lStorageandwarehousing;and

lLight processing such as sorting, grading,cleaning,filleting,loiningandcanning.

MOZAMBIQuE29

Select sectors that offer investment potential in Mozambiqueinclude:

Agriculture and Agro-Processing

The agricultural sector is a key priority for the country. According to Mozambique InvestmentPromotionCentre,only14percentofarablelandhas been utilised. The national strategy aims at achievingaprofitableandproductiveagriculturesector, which contribute to food security and

producer income in a competitive and sustainable manner. However, the sector faces somemajorchallenges, which include, among others, lowproductivity, small size landholdings, limited useof improved technology, fertilizers, pesticides,andimprovedseeds.Keyopportunitiesidentifiedincludericedevelopment,potatoseed,sugarcane,cashewandhugeirrigationpotentialasonly50,000ha.oflandareunderirrigation,ascomparedto3million ha. potential for irrigation.

Given the agricultural potential of the region inwhich Nacala is located (North of the Country),the area of agro-processing also constitutes a hugeopportunity for investment,highlighting theneed forprocessingproductssuchas: (i)Maize(ii)Peanuts,(iii)Sesame(iv)Cassava(v)Beans,(vi) Vegetables, (vii) Cashew nuts, (viii) Cotton, (ix) Tobacco, (x) Wood, (xi) Tropical fruits,especiallybananasandmangoes,amongothers

Gas

Growthinmediumtermisexpectedtobebolsteredby the launchofconstructionworkson liquefiednaturalgas(LNG)facilities,followingdiscoveryoflargereservesofnaturalgasintheRovumaBasinin 2012. Natural gas in the long term is expected to emerge as the major driver of export.

Mining and Mineral Resources

The diversity and vastness of unexploited mineral resources in the country represent major investment opportunities for the exploration,extraction, processing and utilization of varioustypes of resources. Key resources include coal,gold, titanium, ilmenite, zircon, rutile, tantalite,marbles,andpreciousstones.

In the medium term, besides agriculturalcommodities, Mozambique’s exports will bedominated by raw mining and aluminium. Coal

29nvestmentPromotionCentre(CPI),Mozambique



also emerged as one of the key drivers of export growth, and is poised to overtake aluminiumasthe country’smain export.However coalminingcurrentlyfacesfewchallengesincludingdepressedprices and infrastructure constraints.

Some of the potential projects highlighted by the Investment Promotion Centre include:

lManicaGoldProject,ManicaProvince:ProjectSize:US$28million;and

lExploration of LimestoneDeposit, ZambéziaProvince:ProjectSize:US$1million.

Transport Infrastructure

Developing road and rail transport networks tolinkthecountry’shugecoalreservestothemaincorridorsisakeyfocusarea,asisexpandingportfacilities. Transport projects, including increasedrail links to ports and expanding port capacities to allow for greater exports, are in the pipeline.TherearethreemajorcorridorsinMozambique’srail network: The Nacala railroad (CFM Norte);Beira railroad (CFM Centro); Maputo railroad(CFMSul).

Manufacturing

Oneofthecountry’sbiggestchallengesisaddingvaluetoitsprimaryproductsandthusmaximizingits natural resources. This sector offers investment opportunities almost all over the country. Keyopportunities identified include cement, cokingcoalplant,aluminium,textileindustry,packaging,agro-industry,bio-dieselandironandsteel.

Tourism

Investment opportunities exist in national parks and reserves, benefiting from fauna and flora,combined with beach tourism along the 2,700

kmcoast,andon islandsandarchipelagos.Thehistoricandculturaltourism,andbusinesstourismhasbeengrowinginrecentyearsrepresentingavery viable option in many regions of the country.

Energy

Withthestartofcommercialextractionofnaturalgas, rehabilitation and construction of newhydroelectric dams, start of the exploitation andfoment of alternative and renewable energiessuchassolarandbiofuels(bioethanol,biodieselandbiogas),thecountryhasexpandeditsenergygenerationcapacitypotentialtomorethan16,000mw.Takingintoaccountthetotalliberalizationofenergysector thusallowingprivateparticipation,including in the form of public-private partnership (PPP),thesectorrepresentsamajor investmentand growth opportunity. Most of Mozambique’selectricity capacity is exported to South Africa with less than a quarter of Mozambicans beingconnected to the local grid. Electricidade de Moçambique (EdM), the national electricityprovider,expectselectricitydemandinthecountrytogrowbyaround15-20percentperannumoverthenextfewyearsonthebackofaboominthecoal and natural gas industries. At the same time the energy sector is expected to continue its expansion of nearly 10 per cent a year.

NAMIBIA30

Investments potential by industry / sector are highlightedbelow:

Agribusiness

lHungorobproject;

lIndustrializationofWoodfromInvasiveTreesproject;

lCultivationofpotatoesandonionsproject;

30MinistryofIndustrialization,TradeandSMEDevelopment



lNkurenkuruIrrigationProject;

lProduction of vegetables and cereal crops project;

lFruitandVegetableProductionproject;

lIntegratedFarmingProject;

lFishfarmingandvegetableplantingproject;

lCombinedagriculturalproject;

lMahanguproductionplantproject;and

lCropDevelopmentProject.

Aquaculture

lMarineandfreshwateralgaeproject;

lOmahekeaquacultureproject;

lAquacultureProject;and

lEstablishment of fish ponds and vegetablegarden project.

Energy

lEnergygenerationfrombiomassproject;

lManufacturing of photovoltaic cells and solar panels;

lProductionofEnergyfromSolidWaste;

lElectricityGenerationfromLandfillGas;

lSolarPhotovoltaic(PV)Project;and

lBiomassGasification(BMG).

Infrastructure

lConstruction of Accommodation Apartments forrentalservicesinWindhoek;

lServicingofMunicipalLand;

lConstruction of Mixed Infrastructure DevelopmentinTsumeb;

lConstruction of low cost houses andcommercialproperties;

lConstruction of District Road DR 3609Oshakati-Omungwelume-Ongenga RoadInfrastructureDevelopment;

lUpgrading of the Railway Line Network inNamibia;

lEstablishingaPrivateHospitalinRundu;

lConstruction of private accommodation complexforstudents;

lConstruction of Namibia Trade Houses in the DemocraticRepublicofCongo;and

lWalvisBayMarinaFacility.

Manufacturing

Investment opportunities in the sector wouldinclude:

lBricks,TilesandStoneCrushingPlant;

lProductionofFertilizersandChemicals;

lChlorineandCausticSodaFactory;

lComputermanufacturingassemblylineplant;



lProductionofdiapersandsanitarypads;

lProcessing, dehydration, packaging ofgeneral food products and production of fuel briquettes;

lSafetyequipmentmanufacturingplant;

lManufacturingofToiletRolls;

lMiningandExplorationEquipmentPlant;

lNamibiaFoodDevelopmentCentre;

lCornprocessingplant;

lInkandCartridgemanufacturingplant;

lDetergent, soap and washing powdermanufacturingplant;

lRoofing sheets and gutter manufacturingplant;

lIndustrialtoolsmanufacturingplant;and

lHarvesting and processing.

Mining

Opportunitiesexistinthefollowingsectors

lMineralexploration;

lCopperMining;

lMineralProspectingandExploration;

lSmallscaleminingproject;

lSodaliteprocessingplant;

lSandstoneandquartziteprocessing;

lMiningofbaseandraremetals;and

lSharpshoot Mining.

services

lAmbulanceandRescueServiceProject;

lEstablishment of a Mobile Computer Literacy Center;

lEstablishing a communication and marketing company;

lEstablishment of Private School in the Caprivi Region;

lEstablishment of Business and Conferencing Facilities;

lEstablishment of Secondary Education School intheKavangoRegion;

lImport and Export of finished fuel and oilproducts;

lEstablishmentofaNeurologicalRehabilitationUnit;

lEstablishment of Micro Medi-Clinics in OkakararaandOtjinene;

lEstablishmentofaconstructioncompany;

lMobilevendingandpaymentservicesproject;and

lTourist Helicopter Service.

Tourism

lEstablishmentofwellnesscentre;

lEstablishmentofatouristparklodge;

lLodgeDevelopmentatOkongo;

lConstructionoftouristlodge;

lDevelopment of Conference andAccommodationCentre;



lEstablishmentofprivateresortscompany;

lTouristResortDevelopment;

lShipanga Bungalows, Campsite & CaravanPark;

lEstablishmentofwaterfrontrestcamp;

lLodgeestablishmentinWindhoek;

lEstablishmentofLodgeandTourismfacility;

lEstablishment of tourist facilities near SpitzkoppeMountains;

lEstablishmentoflodgeatRuacana;and

lConstructionoflodgeinDordabis.

sEychEllEs31

Select sectors that offer investment opportunities inSeychellesarehighlightedbelow.

Agriculture

lEnvironmentally-friendly agriculture Agro-processing and

lCrop cultivation and rearing of livestock (poultry,pigs,cattle,goatsandrabbits).

Energy

ThevastmajorityofSeychelles’electricitydemandis met by the state-owned oil-fuelled powerstationatRocheCaimanonMahé’seast coast.Experienced managerial and technical staff,combined with regular spending on equipmentupdates, ensures a constant supply of power.In order to reduce the dependency on fossil fuel the Government has invested into wind farmsproviding7percentoftheenergyrequirements.

The Seychelles Energy Commission is the regulator for the production of energy and have also been mandated to set the tariff for selling extra units to the grid by independent powerproducers.

Investment opportunities

(a)Oil Exploration: Seychelles vast Exclusive Economic Zone (EEZ), which encompasses1.3 million sq. kms. of the western IndianOcean is being increasingly viewed as apotential source of as yet unexploited oil and gas reserves. Initial exploration in some areas hasalreadybegun,and there ispotential forfurther exploration in other, still unexploredareas. The acreage being prospected for oil is21,426sq.kms.andanadditional205,000sq.kms.isstillavailableforprospecting.

(b)Oil Support Services: Through SEPEC,Seychellesalsopresentlyownsandoperatessix double-hull oil tankers transporting oil to andfromcountriesallovertheworld.

(c) Renewal Energy Support and TechnicalServices Project: Anumberofthecountry’souterislands, resortownersandenvironmentalistsare pioneering sustainable energy sources,mostnotably,intheuseofsolarenergy.

(d)Photo Voltaic Systems and SystemMaintenance: Photovoltaic energy systems are another very popular solar option,especially for hotels and remote outer islands. Such an investment would greatly reducethe peak demand for electricity and wouldsimultaneously showcase this environment-ally-benign technology in an appeal to the environmentally-conscious tourist.

(e)WaterSolarHeaters: Whileouterislandhotelswould likely be the primary market for such

31Seychelles Investment Board



a product, the environmental awareness ofmanySeychelloishomeownerswouldmakeprivate residences a promising secondary target group.

International Financial services

Over the last decade, Seychelles has seensignificant success in establishing itself as awell-known and respected international financialservices jurisdiction. This journey started withthe establishment of the International Business CompaniesActin1994nowtheFinancialServicesAuthority(FSA)andsincethentheSeychelleshasswiftlybeenacknowledgedbytheglobalfinancialcommunity as one of the most competitive and recognizedjurisdictionsforInternationalbusinesscompany incorporations.

Productsincludethefollowing:

(a) InternationalbusinessCompanies(IBC):IBCsare limited companies that carry out business activities outside of Seychelles. They are incorporatedbytheRegistrarof InternationalBusiness Companies which is the FinancialServices Authority (FSA). These companiesare created for conducting international business outside of Seychelles and are exempt from all forms of taxation. IBCs are idealforawidevarietyofusessuchasholdingcompanies, asset protection, patents andcopyright holding companies.

(b) International trusts: Trusts set up under theInternational Trust Act 1994, provide anefficient, sensible and legitimate means ofprotecting investor’s assets depending onrequirements. There are various purposesfor trusts and these include property-holding trusts,charitabletrustsorpurposetrustswhicharenotusedforthebenefitofindividuals,butforsomespecificpurpose.

(c) Foundations:TheSeychellesFoundationAct2009 encompasses many of the best provisions found in other foundation jurisdictions yet provides more precision on essential legal issuesinadditiontomoreflexibilityandbetterasset protection.

(d)Companies Special License (CSL): TheSeychelles CSL is a local tax resident company specially licensed under the Companies (Special Licences)Act, 2003 bythe Financial Services Authority (FSA) andis subject to a tax rate of 1.5 per cent of its worldwide (gross) income. It is incorporatedas a domestic company under the Companies Act1972butawardedaspeciallicensebyFSAwhich grants the company a special statusas it benefits fromaccess to theSeychelles’growingnetworkofDoubleTaxationAvoidanceAgreements (DTAAs) and can also operatepartofitsbusinesswithinSeychelles.

(e)Protected Cell Companies (PCC): Underthe Protected Cell Companies Act, 2003 acompany incorporated under the Companies Act 1972 can be authorized to divide intoidentifiable cells without having to assumea separate legal entity. Cells within a PCCare protected against liabilities incurred by cells of the same company making it an attractive solution for many business activities such as captive insurance or mutual funds businesses.

(f) Limited Partnerships: Limited Partnershipsare registered under the Limited Partnership Act 2003 and are subject to the SeychellesCommercial Code. Under the Act limitedpartnerships must carry out its business activities outside the Seychelles and enjoys benefitssuchasexemptionsfromstampduty,exchangecontrols,tradestax(customduties)on capital goods for use in its office, socialsecuritycontributionsandworkpermitfeesinrespect of foreign employees.



(g)MutualandHedgeFunds:Under theMutualFundandHedgeFundAct2008,Seychelles’licensed funds may be administered in Seychelles or in a recognized jurisdictionand can be incorporated as a company,partnership or unit trust. Various types of mutual funds are available such as private funds, professional funds, and public funds.The Act also caters for exempt foreign funds which are funds licensed outside ofSeychelles that may obtain authorization tobe administered by a Seychelles licensed Fund Administrator. Funds offer increaseddiversificationofinvestments,thatismanagedandadministeredbyprofessionals,aswellasthe ability to participate in investments that is available to various classes of investors.

Tourism

Theopeningofthecountry’sinternationalairportin1971pavedthewayforthegrowthoftheSeychellestourismindustry.Sincethebeginning,Seychelleshas been the preferred island destination. Visitor arrivalshavesteadilygrownfromamere37,000in1975 toaround200,000visitors in2011,withmost visitors staying an average of 10 nights.

Over the years the tourism industry has contributed tomore than 20 per cent of the country’sGDPand 60 per cent of total foreign exchange receipts making it the single largest earner of foreign exchange in the economy. Over 15 per cent of thetotalworkforceisdirectlyemployedintourismrelated businesses including accommodation,restaurants, car hire businesses, airlines, touroperator,divecentresetc.

Investment opportunities:

(a)Eco Tourism Villa: One of the many nichemarkets ripe for development in Seychelles is ecotourism. This market offers the perfect opportunitytounitetourismdevelopmentwith

thelocalcommunityandthecountry’spristinenaturalenvironment,whilehelpingtomaintainlocal traditions and culture and to foster sustainable development.

(b) IntegratedTourismProjects:Thisintegratesamix of tourism and residential accommodation and range of activities to capture the diversity thattheSeychellesIslandshavetooffer,andindeedtransporttravellerto‘anotherworld…’especially on outer islands.

(c) NicheHotels: Seychelles focus on broadening the variety and number of hotels on offer,rangingfromnichehotels,ecotourismvillas,guesthouses and self-catering establishments to deluxe 5-star properties and magnificentisland resorts. There are around 25 large hotelsinSeychelleswiththenumberofbedsineachrangingfrom50to300.

(d)Mini Cruises: This would target over 115islandstosailto,eachwiththeirowndistinctivefeatures:granitesculptures,coralformations,reefs teeming with life and vibrant colours,exoticbirds,beautifulsunsetsandsunrises.

(e)YachtMarinas: Mega-YachtsandSuperYachts,oftherichandfamousoftenmaketheirwaytoourshores,increasingtheprospectstodevelopand offer infrastructural and logistical services to such clients. Investment opportunities include sea based dive operations, live-aboard yachting experiences, mini-cruises,excursions,water-sports(indesignatedareasonly)andotherleisuremarineactivities.

Policies and legislations

Government policy for tourism developmentwill continue to encourage the attainment ofthe highest standards in the industry and the distributionof thebenefitsof the industry for theoptimumsocialandeconomicbenefitofthepeople



ofSeychelles.However, itwouldnotbeallowedtocompromisethecountry’snaturalenvironmentand biodiversity and its international reputation asanenvironmentalleader.Thepolicywillreflectthe dependence of a successful tourism industry uponaclean,protectedenvironmentandhappy,prosperous society.

Fisheries

Seychelles lies at the centre of the westernIndian Ocean tuna migratory routes, making ittheregion’smostefficienthubfromwhichtofishtunaandtuna-likespecies.Further,Seychelles,isthe shortest distance to and from 90 per cent of the tuna fishinggrounds in the IndianOcean. Itisstrategically locatedfor fuelefficiencyandtheSeychellesportprovides24hourserviceswithaverylowturnaroundtime.

There are opportunities for investment in the followedactivities:

lMariandAquaCulture

lProcessing/Value Addition

lTunaFishingFleet

lRetail/Distribution Centre for MarineEquipment’s

lMarine/ElectronicRepairShop

sOuTh AFRIcA32

The potential of the South African economy is evident in the diverse sectors and industries that existinthecountry,thefollowingaresomeofthesectorswhich havehigh growth and investmentpotential:

Agro-Processing

ThefollowingareinvestmentopportunitiesintheAgro-Processing sector:

lFisheries and aquaculture, i.e. freshwateraquacultureandmariculture;

lFood processing in the milling and bakingindustries;

lBeverages viz, namely fruit juices, and thelocal beneficiation, packaging and export ofindigenousteas;

lHigh-value natural fibres viz, organic cottonanddownstreammohairproduction;

lHigh-value organic food for the local and exportmarket;

lBiofuels production viz, biodiesel, bioethanolandbiogas;

lProcessingofseedoils,teaextracts,includingbuchu, honeybush, and other oil derivatives(avocado,amarulaetc.);and

lDiversification / beneficiation of biomasssources,i.e.sugar,maize.

Business Process Outsourcing and IT-Enabled services

The following are investment opportunities intheBusinessProcessOutsourcing&ITEnabledServices sector:

lCallCentres;

lBack/OfficeProcessing;

32DepartmentofTradeandIndustry,RepublicofSouthAfrica



lSharedCorporateServices;

lEnterprise solutions, e.g. fleet managementandassetmanagement;and

lLegal process outsourcing.

capital / Transport equipment, metals & electrical machinery and apparatus

The following are investment opportunities incapital/transport equipment, metals & electricalmachinery&apparatussector:

lBasicironandsteel;

lBasicpreciousandnon-ferrousmetals;

lCastingofmetals;

lOther fabricated metal products; metalworkserviceactivities;

lGeneralpurposemachinery;

lSpecialpurposemachinery;

lToolingmanufacturing;

lFoundries;

lElectricmotors,generatorsandtransformers;

lElectricitydistributionandcontrolapparatus;

lInsulatedwireandcable;

lAccumulators, primary cells and batteries;and

lWhitegoodsandassociatedcomponents.

Electro-Technical

Thefollowingareinvestmentopportunitiesintheelectro-technical sector:

lAdvancedtelecommunications;

lSoftwaredevelopment;

lSoftwareandmobileapplications;

lSmartmetering;

lEmbeddedsoftware;

lRadiofrequencyidentification;

lProcess control, measurement andinstrumentation;

lSecurityandmonitoringsolutions;

lFinancialsoftware;

lManufacturingsensors;and

lDigitalTVandSet-TopBoxesduetomigrationto full digital television as Analogue.

Textile, clothing and leather

Thefollowingareinvestmentopportunitiesinthetextile,clothingandleathersector:

lSpinning,weavingandfinishingoftextiles;

lKnittedandcrochetedfabricsandarticles;

lWearingapparel,exceptfurapparel;

lDressinganddyingoffur;and

lLeatherskinsandhidesbeneficiation.

consumer Goods

ThefollowingareinvestmentopportunitiesintheConsumerGoodssector:

lWhiteGoodsandassociatedcomponents



Boatbuilding

Thefollowingareinvestmentopportunitiesintheboatbuilding sector:

lBoatbuilding and associated services industry

oEngines and engine systems

oMarineequipmentandaccessories

Pulp, Paper and Furniture

Thefollowingareinvestmentopportunitiesinthepulp,paperandfurnituresector:

lManufacture of wood and products of woodandcork,exceptfurniture;

lManufacture of articles of straw and plaitingmaterials;

lManufacture of paper products; publishing,printing and reproduction of recorded

oPaper and paper products

oFurniture

Automotives and components

Thefollowingareinvestmentopportunitiesintheautomotives and Components sector:

lEngines, radiators, filters and componentsthereof;

lAirConditioners/ClimateControlsystems;

lAlarmsandTrackingdevices;

lAxles,transmissionshafts;

lBodypartsandpanels;

lCatalytic converters, silencers and exhaustsystemsandcomponents;

lSeats and parts thereof, seatbelts, leathercovers;

lSuspensionandshockabsorbers,springsandpartsthereof;

lSteeringwheels,columnsandboxes;

lIgnition, starting equipment, gauges andinstrumentparts;

lLightingequipment;

lWiring harnesses, instrument panels vehicleinteriors, electronic drive train components,bodyparts;and

lAdvanced robotics.

Green Economy Industries

Thefollowingareinvestmentopportunitiesinthegreen economy industry sector:

lPowergeneration:

oIndependent power generation, energyinfrastructure and alternative energy

oNuclearBuildProgramme,i.e.jointventures,consortiumsandtheestablishmentofnewcompaniestogrowSouthAfrica’snuclearmanufacturing capability and nuclear supply industry to supply into the nuclear build programme

lRenewableenergy:

oOnshore wind power - manufacturing ofturbines/blades

oSolarPVandConcentratedSolarPower-manufacturing/assembly



oBiomass

oSmall hydro

lEnergy-efficiency and energy-savingindustries:

oSolarwaterheaters

oNational Cleaner Production Centre (CSIR)

lWasteManagement:

oReducinglandfill

lLowering greenhouse gas emissions fromlandfillsites

Advanced Manufacturing

Thefollowingareinvestmentopportunitiesintheadvanced manufacturing sector:

lAdvancedmaterialsmanufacturingviz,Nano-materials

oHigh-performance materials based on natural resources (advanced bio-composites)

oComposites (intelligent textiles usedin medical, building and constructionindustries)

oContinuous fibre reinforced thermoformcomposites

oBiochemical and Biologics for applications inagriculture,industryandhealth/medicalsectors

lDigitalTVandSet-TopBoxesduetomigrationto full digital television as Analogue, to becompleted by 2015

lElectricity Demand Side ManagementSolutions to improve electricity efficiencyusage

Laser technology

lLasers and laser-based additive manufacturing

lVarious applications

Advanced Robotics

lMobile Intelligent Autonomous Systems

lApplications in the mining industry, datacollectionandanalysis,agriculture-tested

Bio-manufacturing

lBiochemical and biologics for applications in agriculture,industryandhealth/medical.

Tourism

Thefollowingareinvestmentopportunitiesinthetourism sector:

lAccommodation - hotels, boutique hotels,lodgesandresorts;

lUrban integrated tourism/entertainmentprecincts;

lAdventure,eco,sport,conferenceandculturaltourism;

lInfrastructuredevelopment;

lLeisure complexes and world-class golfcourses;

lHarbourandwaterfrontdevelopments;

lTransfrontierconservationareas;



lTourismtransport-aviation,rail,cruiseliners;

lGreen building and green technologies fortourism;

lAttractionsandactivity-basedtourism;and

lMuseums and heritage, cultural, music, artsfestivals and events.

chemicals, Plastic Fabrication and Pharmaceuticals

Thefollowingareinvestmentopportunitiesinthechemicals,plasticfabricationandpharmaceuticalssector:

lBasicchemicals;

lWatertreatmentchemicalproducts;

lMan-madefibres;

lPlastic products: polypropylene and polyvinculchloride;

lMedical (dripsandsyringes),manufactureofactivepharmaceuticalingredient;

l(APIs)forkeyanti-retrovirals(ARVs);

lManufacture of reagents for AIDS/HIVdiagnostics;and

lProduction of vaccines and biological medicines.

creative and Design Industry

Thefollowingareinvestmentopportunitiesinthecreative and design industry:

lFilmand Media

oFilm studios, treaty film co-productionventures,distributioninfrastructure

oServicing of foreign productions

oProduction of film and documentaries,commercials, stills photography andmultimedia

oPost-production

lDesign

oJewellerymanufacturinganddesign

oFashiondesign

Infrastructure Development

TheSouthAfricangovernmenthas identified18strategicintegratedprojects(SIPs)coveringmorethan 150 specific infrastructure interventions,ranging across rail, road, ports, dams, irrigationsystems,sanitationandenergy.

Oil and Gas

Thefollowingare investmentopportunities inOilandGaswhichformspartoftheservicessector.

lMarineRepairengineering

lLogistics services

lFabricationservices

lCommunal services



sWAZIlAND33

The Swaziland Investment Promotion Authority(SIPA)wascreatedthroughanActofParliament,the Swaziland Investment Promotion Act 1998andwas formally launched inApril of the sameyear. SIPA is a Category A Public Enterprise and iswhollyfundedbytheGovernmentofSwaziland,with initial assistance from theEuropeanUnion.Some of the focus sectors and investment potential highlightedbytheSIPAarepresentedbelow:

Agriculture

Agriculture has traditionally been the backbone ofSwaziland’seconomy,withasizableshare intheGPPbothdirectly and indirectly, as industryinputs. The sector is a major source of employment for over 70 per cent of the rural population. The diverse agricultural activities that take place in the country include sugar cane, citrus fruit, cotton,maize and other cereal production, as well asforestry, livestock and other undertakings whichgenerate foreign exchange earnings.

Areas of potential investment exist in various segments including baby vegetables, vegetabledrying, frozen vegetables, tomato sauceproduction, peanut butter production, processedmeat, dairy products, cassava processing andstarch,aquaculture,floricultureandcotton.

Manufacturing

Swaziland offers immense opportunities in themanufacturing sector. The country’s strategiclocation further enhances Swaziland’s exportpotential,whichisanchoredbytheGovernment’sfocusonvalueadditiontoawiderangeoflocallyavailable unprocessed resources. Manufacturing operations range from small factories to large concerns employing thousands of people and utilising the latest technology. This sector accounts

for around 65 per cent of total FDI and as anemployerissecondonlytoagriculture,providingjobsforabout26percentoftheworkforce.

Investment Opportunities in the manufacturing sectorarehighlightedbelow.

(a) Engineering, Steel, Refrigeration andAssembly

lElectronic components manufacture and assembly

lManufacture of automobile spare parts

lProcessingofhidesandskins(Leathergoodsandfootwear)

lPharmaceuticals

lBiotechnology,

lFurniture and other timber-relatedmanufacturing.

(b) Food,ConfectionaryandBeverage

lFruit,vegetablepreservationandbottling

lBottling (preservation) of pickles andchutneys

lBottling of jams and jellies

lProcessing of beans and other legumes

lDairy products (e.g.Yoghurts, custards) andicebottlingofspring-waterandflavoredspringwater

lJuice squeezing (fresh juice from oranges,grapefruitsguavasetc)forsaletorestaurantsand public

33SwazilandInvestmentPromotionAuthority(SIPA),SwazilandInvestmentGuide



Mining

Swaziland has identified rich deposits of anumber of precious stones and gems. Though thesemineralsareonlypresentinsmallvolumes,they have not been exhaustively extracted from the ground. In a number of mines, specificallythe diamond and gold mines, operations havebeen suspended due to mining protocols and regulations awaiting review by the appropriatemining regulations body. The host of minerals in thecountry includes:asbestos,coal,quarriedstone, soapstone, kaolin, talc, silica and others.Such wealth illustrates the potential of mininginSwaziland.Development in themining sectorisexpected tohavea trickle-downeffecton thewholeSwaziland’seconomy.

Tourism

Swaziland’s tourism industry remainsoneof thefastestgrowing industriesanda largegeneratorof income.Thecountry’s stability and lowcrimerate compare well with neighbouring countriesSouthAfricaandMozambique.Uniqueattractionsand close proximity to theworld-famous KrugerNationalParkmakeSwazilandapopularplacetovisit.

Investment Opportunities include:

lDevelopmentofastate-of-the-artgovernmentownedICC;

lDevelopment of a golf estate, casino andsupportingfacilities;and

lAholidayhousingestate tocater for (mainlyforeign)holidaymakersmostlyforeign.

Textiles

Textile and garment production plays asignificantrole in Swaziland’s manufacturing sector. In

recentyears,the textile and garment industry has growntoofferawiderangeofservices,includingspinning,weaving,knitting,dyeing,andfinishing.Introducing such labour intensive processes locally has increased employment opportunities and the industry currently provides jobs for over 15,000Swazis.

TANZANIA34

With Tanzania gearing up to become a middleincomecountry(MIC)by2025,thevariousprioritysectorsenvisagedbytheGovernmentofTanzaniaincludethefollowing:

Agricultural sector

Agriculture sector accounts for around 50 per cent ofGDP,70per cent of rural household income,andprovidesemployment for80percentof theentire workforce. The sector remains critical forachieving sustained growth, poverty reduction,and rural development. Potential irrigable farmland inTanzaniaisapproximately29millionha.,outofwhich only 0.28 million ha. are under irrigationfarming. Investment opportunities available in segments such as importing of modern-and-efficient farmingequipment, for instance tractorsand power tillers; providing training of modernfarming, including application and know-how ofirrigationtechnology.Inthesugarcanesector,thecurrentsugarsupplygapisapproximately300,000tons;additional400,000tonssugarsupplygapisobserved in the EAC common market. As regards Rice, Tanzania has to import rice to meet partof the local demand which is rising especiallyamongthegrowingmiddleincomeclass.Further,currentriceyieldsarelow,creatingopportunityforinvestorsreadytointroducelatesttechniquesandinputs to enhance rice productivity.

34TanzaniaInvestmentCentre



Natural Resources

Opportunities existing in segments such as fishingandrelatedactivities likefishprocessing,cold chain, boat building, construction of afish harbor; industrial establishments to utilizeforests to produce timber, chipboards, plywood,fiberboard, furniture; supporting transportationnetwork;andnewandefficienttechnology.Mainlyduetooutdatedtechnology,only30-40percentof the rawmaterial contributes towards thefinalproductandtherestiswasted.

Tourism

The tourist industry supports 27,000 jobs andgeneratesaroundaquarterofTanzania’sforeignexchange. Opportunities for investment include establishment of tourist attractions like theme parks and gambling resorts, which are stilluntapped. Others include establishing amusement parks,deep-seafishingandseaandlakecruising.There around 170 registered and licensed tourist class hotels, offering 11,568 rooms inTanzania.Investment is, however, required for additionalhotelcapacityinexistingtouristlocationsandnewinvestment in untapped areas.

Manufacturing

Thesector contributesaround8per cent to theGDP, and employs around 140,000 workers.Thesectorgeneratesaroundone-fifthof foreignexchange earnings - third largest after agriculture and tourism. With the “Sustainable IndustrialDevelopment Policy” envisaging industrializationofTanzaniaduringthefirstquarterof21st century tobecomeasemiindustrializedcountrytothetuneofcontributing40percentofGDP, thepotentialfor investment in this sector is great. Potential sectorsforinvestmentassuggestedtoTanzaniaInvestment Centre (TIC) include: fruit/vegetableprocessing, cashew nut processing, textile andapparel, and leather. Export Processing Zone

(EPZ)andSpecialEconomicZone(SEZ)provideforawiderangeofinvestmentopportunitieswithinthe zones, where multiple incentives are beingoffered for investors.

Oil & Gas

There have been several gas discoveries on the coastalshoreoftheIndianOceanatSongosongo,MnazibayandMkuranga,whichactascatalystfor development of natural gas sector. There are around 22 Oil Companies undertaking exploration activities for oil and gas inTanzania. There arestill numerous deep-sea blocks that are yet to be explored, for which the Tanzania PetroleumDevelopment Corporation (TPDC), the NationalOil Company invites participation of oil and gas companiesandotherspecializedinvestors.

Mining

Government of Tanzania’s plan is to increasetheminingsector’scontributiontoGDPto10percent by 2025. Government has a special focusoncoaltomakeitoneofkeydriversofTanzania,mainly because the country planned to deploy coal-firedpowertooffsettheshortageofenergy.Investment opportunities exist in activities such as establishmentofgold refinery;gemstonecuttingandpolishing;rockandmineralcarvings;mineralprocessingindustry;andmineralexploration(Over800,000sq.kmofvariedgeologicalterrainswithpotentialmineralresources).

Transportation

Transportationsegment’s contribution toGDP isover 5 per cent. Investment opportunities exist in areassuchas railway, roads,maritime transportand air transport.

Information and communication (IcT)

The goals and targets discussed in Vision 2025 that are especially relevant to competitiveness



include promotions of science & technology,education,andICTs.OpportunitiesforinvestmentexistsinE-Business,provisionofmediaservices,supply of digitization equipment, softwaredevelopment,businessprocessoutsourcing,andruralcommunication,amongothers.

Energy

Petroleumandelectricityaccountforabout8percentand1.2percent,respectively,oftheprimaryenergyused,whilecoal,solarandwindaccountforlessthan1percent.Tanzaniahaspercapitaelectricity consumption at 46/KWh per annum,and is among the lowest in the region. Further,at present, only 21 per cent of the population(withabout7.4percent in theruralareas)haveaccesstoelectricity.ThegovernmentofTanzaniais,therefore,encouraginginvestmentstoexpandgenerating capacity, distribution system anddeveloping indigenous sources of energy.

ZAMBIA35

Investment opportunities have been identifiedby Zambia Development Authority (ZDA), incollaboration with United Nations Conferenceon Trade and Development (UNCTAD), theInternational Chamber of Commerce (ICC),Ministry of Commerce and Trade and Industry. Focussectorsarehighlightedbelow.

Agriculture and Agro-Processing

Zambia is endowed with a large land resourcebase of 42million ha. of which only 1.5millionha. is cultivated every year. There are abundant waterresourcesforirrigationandthecountryhas40percentof thewater inCentralandSouthernAfrica.

The main priority crops for investment in the countryare;wheat,sugar,cotton,tobacco,coffee,

teaandmaize.Therearealsoothercropssuchascow peas, groundnuts, cassava, rice, sorghum,soyabeans,sunflower,wheat,anddrybeanswithenormous investment potential.

AgroprocessingopportunitiesinZambiainclude:

lPeanut butter production

lCashewnutprocessing

lAnimal or stock feed production

lCassavaprocessing(foodandotherindustrialproducts)

lCashewnutprocessing

lGrainmilling(rice,maize,wheat)

lEdible oil production

lFruitcanningandjuiceextraction

lMeat,dairy,leatherandleatherproducts

lFishcanningandfishmealproduction

lCotton spinning and textiles

lBio-diesel production and ethanol production

lHoney processing

Tourism sector

Zambia’s tourism sector is currently one of thecountry’s growth potential areas. It has beengiven the non-traditional export status and is receivingalotofsupportfromtheGovernmentbyway of infrastructure development, promotion ofincreasedprivatesectorparticipation,aswellasattractive tax incentives for all investments in the

35ZambiaDevelopmentAgency



sector. In the ‘IndustrializationandJobCreationStrategy’ (2013), published by the Governmentof Zambia, tourismhas been defined as prioritysector,with the target tocreate300,000 jobsby2016. This represents significant growth fromthe57,337jobsintheTourismsectorcountedin2013.

(a)Hotel Industry: Investment opportunities in hotel development are evidenced in the substantial number of operators already establishedinthecountry.Zambiahasawiderangeofstandardswhenitcomestoplacestostay–fromfive-starhotelsandfirstclassluxurylodges, to rustic bush camps, guesthousesand campsites. Additionally, the majority ofvisitorswhoenteredintothecountrytravelledfor business purposes, this illustrates theabundantinvestmentopportunitiesinZambia.

(b)Eco-tourism:Investmentopportunitiesexistinsafaris,canoeing,gamedrives,naturewalks,bungijumping,microlightflights,sportfishing,rock-climbing and orienteering.

(c) Cultural tourism: Investment opportunitiesinclude packaging cultural ceremonies to local and foreign tourists; and community/ethno/ruraltourismwheretouristsvisitmodelvillagestolearnabouttheZambianwayofliving.

(d)Movietourism:Taxconcessionsareprovidedtomovieproductioncompaniesandotherfilmmakers for shooting the movies on location in the country.

Mining and Related sector

Zambia possesses the world’s highest-gradedeposits of copper and is ranked 7th largest copper producer in the world for producing copper. In2013, Zambiawas the sixth largest producer ofcopperwith800,000tonsincreasingfrom572,793

tonsproductionin2008.IthasbeenprojectedthatcopperproductioninZambiawillreach1,500,000tonsbytheyear2018duetonewprojects.

Lead and zinc are next important commoditiesproducedbyZambia.Withatotalof11metrictonsof ore containing zinc and lead combined in 40percentproportion,Kabweisoneofthehighest-gradeleadandzincdepositsintheworld.AlthoughZambiaiscurrentlythesmallestcoalproducerintheregion,theircoaloutputisestimatedtogrowfrom281,000tonsin2014tomorethan2milliontons by 2017.

Investment prospects in the mining sector of Zambiainclude:

(a)Uranium: In Zambia, there are variousuranium deposits available in different areas. Many companies have carried out uranium explorations in Zambia with a special focusonpotentialmineralizationintheCopperbelt,KarooAgesedimentsand theDomesregionoftheNorthwestProvince.

(b)Coal:coalisminedattheMaambaminethathas 20 million metric tons of reserve. The coal found in this region is sub-bituminous durain-fusainwithrelativelyhighashcontent.

(c) Carbonaceous shales and thin coal seamshavealsobeen identified in theeasternpartof theBartoseBasinand lowerKarooof theLuangawandLuano-Lukusashi.

Infrastructure

(a)EnergyInfrastructure

Zambiaisendowedwithawiderangeofenergyresources, particularly woodlands and forests,hydropower, coal and renewable sources ofenergy. Petroleum is the only energy source that



is currentlywholly imported.Hydropower is themost important energy source in the country after wood fuel contributing about 10 percent to thenational energy supply and is generated by three majorhydroelectricpowerstations.Otherenergyresourcesarepetroleum,coalandwood.

There have not been any major additions to the country’s generation capacity in the last 20-30 years despite the huge potential in hydroresources.ItisestimatedthatZambiapossesses40percentofthewaterresourcesintheSouthernAfrican Development Community. Zambia hasabout 6,000 MW unexploited hydro powerpotential, while only about 2,434.3 MW is thecurrent installed capacity.

Demandforelectricityislikelytoincrease,creatinga deficit ofmore than550MW inZambia alone.TheSADCregionhasbeen facingpowerdeficitsince 2007, 73 power generation projects arerequired to increasegeneration from thecurrent56,000 MW and surpass projected demand of96,000MWby2027.

Opportunitiesinthepowersectorinclude:

lElectricityGenerationandtransmission;

lRefineries,storagefacilitiesandpipelinesforpetroleumandgas;

lRenewableenergyfacilities;and

lTransport facilities for coal distribution and exports.

(b)Transportinfrastructure

Transportinfrastructurecovers:roadsandbridges,railways, airports and aerodromes andmaritimeand inland waterways. The state of transport

infrastructure, however, remains inadequate tosustain and match the desired levels of growthduetoweakstructuralandmanagementcapacityresulting in over commitments, high cost ofconstructionandlowinvestment.

Airport-Governmenthasembarkedonaprogramto improve the infrastructure at all the international airports.This isbeingdone incollaborationwithprivate sector participation. The developments include the runways, terminals and auxiliaryfacilitiesinandaroundtheairportssuchashotels,shoppingmalls,Conference facilitiesetc.Scopefor private sector participation in development of airports also exists in the identifiedairfield atChipata, Kitwe, Kasama, Mongu, Solwezi andMansa.

Roads- Government of Zambia has embarkedon the Link Zambia 8,000 project (AcceleratedNationalRoadsConstructionProgramme)aimedatrehabilitatingandconstructingtheroadnetwork.Theaimistoconstructanefficientroadnetworkand international highways linking Zambia toSouth Africa, Zimbabwe, Mozambique, Malawi,Tanzania, DRCongo and Namibia. This projectalso aims at contributing to the reduction of road usercostsand transit timesacrossZambia. Asthe second largest copper producer in Africa,Zambiareliesheavilyonitsroadnetworktoshipmine inputs and exports overseas through its eight neighbouringcountries.Zambia’sneighboursalsoheavilyuseZambian roads toprovidea reliableand shorter path to African ports.

Railways- Government is seeking privatesector participation in the development and rehabilitation of the railway infrastructure.Someof the opportunities include Chingola to Jimbe(BorderwithAngolan);Kafue(Zambia)–ZawiinZimbabwe; TAZARA Nseluka – Mpulungu port;Extension of theMchinji/ChipataRailway line to



TAZARA;Railway linkwithZambiaandNamibia(Livingstone–Sesheke).

(c) Telecom

The Zambian telecom sector has seen positiveand significant development over the lastdecade with reforms in 1994 which openingthe Zambian telecom market to new entrants. One of the significant measures includes theestablishment of national ICT policy for regulating the telecom sector of Zambia. The ZambiaNational Information and Communications Technology ICT policy has been developed based on thirteen pillars and three core thematic areas: capacity building, effective regulatory and legalframework and efficient and competitive ICTsector. Further, to regulate the information andcommunication sector, the Zambia Informationand Communications Authority (ZICTA) wasdeveloped. In addition, implementation ofthe Information and Communications Act in 2009 and partial privatization of the ZambiaTelecommunicationsCompanyLimited(ZAMTEL),along with liberalization of the internationalgateway(atelephonenumberthroughwhichcallsare routed to get cheaper rates on international long distance calls) have helped in making thetelecomsectorofZambiaaprofitableinvestmentarea.

Investment Opportunities: Zambia is lookingfor a fourth major mobile service provider for covering the entire country. It has also launched PublicPrivatePartnerships(PPPs)toaccelerateinvestment in telecom sector by local and internationalinvestors.ZambiaisgettingastrategicequitypartnerforZAMTELinordertoincreasethecompetitiveness of the company. The government isalsoprovidingfiscalandotherincentivesviatheZambiaDevelopmentAuthority(ZDA).

Manufacturing sector

The Government of Zambia has put in placemeasurestosupportmanufacturingactivities,suchas the establishment of Multi-Facility EconomicZones (MFEZs) and Industrial Parks (these areindustrial areas for both export orientated and domesticorientatedindustries,withthenecessarysupport infrastructure installed),andprovisionofsector-specificinvestmentincentives.Governmentalso promotes small and medium enterprises in rural and urban areas so as to enhance labour intensive light manufacturing activities in these areas.

(a) TextileandClothing:Cottonisgrown,ginnedand spun in Zambia at industrial sites withstate of the art spinning, weaving andprocessing factories aswell aswarehouses.Products include cotton yarn and grey cloth of world class of world class quality. TheEuropeanUnionisamajorexportmarketforthe textileproducts fromZambia,withSouthAfrica and Mauritius being other potential markets. In additionZambia qualifies for theUSAAfricaGrowthOpportunityAct (AGOA),andZambiantextilesalreadyentertheUnitedStates market.

(b) Mineral Processing: There is scope for investmentinthemanufactureofcopperwireand other copper products, such as copperplateandtubing,andalsoforincreasedcopperrodandcablesmanufacturingactivitieswhichare already being undertaken in the country (and account for a significant proportionof Zambia’s non-traditional exports. Thecutting and polishing of gemstones for export also has great potential value, as does themanufacturingofjewelry.

(c) ChemicalProducts:Zambiacurrentlyimportsabout US$ 200 million worth of fertilizersannually, most of this is imported by the



government in order to subsidise the small scale farmers in rural areas. The limited government subsidies on agriculture inputs andthehighcostofconventionalwatersolubleP fertilizers increases the cost of agricultureproduction. Major investment opportunities existintheproductionoffertilizersduetothepresenceoffeasiblesourcesofPfertilizersinthefollowingareas:

lthe Chilembwe deposits near Petaukedistrictestimatedat1.6milliontonnes;

lMumbwadepositsat500,000tonnes;

lNkombwe (near Isoka district) at 500milliontonnes;and

lKaluwe(nearLuangwa)estimatedat207million tonnes.

(d) Engineering and Metal Works: Engineering products have a ready local market from the mines (for the supply of mining equipment),constructioncompanies,andotherindustries.FurthermoreZambia imports allmajor spareparts required for machinery and thereforeinvestment opportunities also exist in the local manufacture of spare parts for various industrial machines.

(e) Leather Products: Leather products have a ready market in the international and regional markets. In fact Zambian leather productsalsoqualifytoentertheUnitedStatesmarketundertheUSA-AfricaGrowthOpportunityAct(AGOA).

(f) Electrical Appliances: This potential for manufacture of electrical appliances is evident from the high demand for imports of electronic goods in the country.

(g) Pharmaceutical Products: Currently most packaging materials used by manufacturing companies in the country are imported from the Republic of South Africa, China, Indiaand Europe. The companies spend about US$30millionannuallyforimportingpackagingmaterials–whichisanindicationforthehugelocal demand for these materials in the country and the investment opportunities arising out of this demand.

Multi-facility Economic Zone

TheMulti- Facility Economic Zone (MFEZ) is aGovernment programme, introduced to Zambiain 2005 by the Japanese Government throughJapan International Corporation Agency (JICA).The aim is to create a platform for Zambia toachieve economic development by attracting significantdomesticandforeigndirectinvestment(FDI)throughastrengthenedpolicyandlegislativeenvironment. The initiative emphasises on political will and integrity, private sector dynamism andintegrity and civil service efficiency and integrityas key forces that enable the economy to attain accelerated economic development.

TheMFEZincentivesarenondiscriminatoryandapplies fairly to all eligible investors be it from ZambiaoroutsideZambia.

The Ministry has to date declared six areas as MFEZs and /or Industrial Parks vis-à-vis:Chambishi,LusakaEast,LusakaSouth,Lumwana;andNdola (SubSaharan gemstones exchange)andRomaasanIndustrialParks.

ZIMBABWE36

Select investment sectors in Zimbabwe arehighlightedbelow.

36ZimbabweInvestmentAuthority



Energy

Zimbabwe has several investment opportunitiesin the sector and it is advocating for PPPs as an alternative model for Investment in Zimbabwe.Some of the opportunities for investment include:

lInvestmentincurrentelectricityplants;

lInvestmentintonewpowergenerationplantswhichincludeHwangepowerstation;

lExtensionoftheKaribaPowerStation;

lExtensionoftheGaireziPowerstation;

lDevelopLupaneGasfieldsasanalternativesourceofenergy;and

lTransmission and integration project.

Manufacturing

The manufacturing sector produces in excess of 6,000 products or commodities ranging fromfood and clothing to fertilizers and chemicals,metal products of all kinds, electricalmachineryand equipment and motor vehicle assembly.The manufacturing industry is closely linked to agriculture with an excess of 60 per cent ofmanufacturing value added either related to agro-industry or to the provision of inputs to the agricultural sector.

lClothing and Textiles

o Only a small number – less than 10 percent manufacture for export despite the growing regional market and inroads inpast years into new markets mainly inEurope.

o There is a great deal of opportunities to develop this side of the industry through investment in CMT work with a soundmarketing base.

o There are opportunities for investment on a joint venture basis into textile design which will enable the industry to attractcustomersfromawidermarketbase.

o Within the industry there isunder-utilizedcapacity, which could be developed withexternal partners into more, specialisedmanufacture through an improved marketing strategy.

lFood

o Opportunities for investment are available withinthevarioussub-sectorsofthefoodmanufacturing industry.

o The processing of meat products for both local and export markets is encouraged.

o There are also investment opportunities

PROJECTOuTPuT

(MW)

cOsT

(Million us$)PROJECTED COMPLETION

DATE

KaribaSouthExtension 300 506 2017HwangeExpansion 600 2148 2017HwangeLifeExtension 124 500 2019MunyatiRepowering 90 90 2016Solar 100 600 2017BatokaGorge 800 2200 2020



to further develop the diary processing industry through modern packaging and design.

lOil Processing and Milling

o A large area for joint venture investment lies withintheoilprocessingindustrywhereaninfluxofsmall-scaleindigenousproducerswouldbenefitfromnewtechnologyandtheestablishment of regional or international marketingorganizations.

o Further opportunity exists in the growingdemand for cereals and snack-type products to service not only supermarket requirements but there are many newfranchise outlets.

lTimberandFurniture

o Opportunities for investment in manufacturing arewithin the sub-sectorssuch as the timber industry whichcomprises timber producer; saw millers,timberprocessors,materialmanufacturersand timber traders.

o Opportunities for the investorexistwithinsome of the smaller and older established business where there is a need for theinjection of finance, technology anddevelopmentofnewmarkets.

lChemicals

o The local market for fertilizers andpesticides offers opportunity for further development to provide additional manufacturing capacity for local demand andexportwithintheregion.

o There is potential for investors to increase production of ethanol and opportunity to

the investor for increased production for new export markets, the introduction ofnew technology and licence to producenewproducts.

lPharmaceuticals

o Opportunity exists for the development of medical products from locally grown,natural raw materials including thecontrolled growth of prescribed drugs forthe industry.

lMetals and Minerals

o Metalssuchasnickel,chrome,copperandplatinumareproductsoftheZimbabweanmining industry but most of these are exported in a raw state. In recent yearsprocessing plants have been developed but there is opportunity for conversion of raw materials into processed or semiprocessed products for export.

o The utilisation of regional natural resources and development of transport corridors onabuildOperateandtransferbasiswillprovide opportunities for the investor to participate in such development or trade at more competitive prices.

o In this instance most metals are traded through the mineral Marketing Corporation of Zimbabwe but this does not precludeinvestorsworking inpartnershipwith thisorganisation.

IcT

Opportunities in ICT and related areas are availableinthefollowingareas:

lInstallationofFibreOptictransmissioncablesin the North- South trade Corridor: Beitbridge-Masvingo-Gweru-Harare-Kariba;



lMultimediadevelopment;

lInstallation of fibreOptic transmission in theEastWest tradeTelecomCorridor :Mutare-Harare-Gweru-Bulawayo-Plumtree;

lBulawayo - Victoria Falls Fibre OpticInstallation;

lE-Governmentinitiatives;

lI.C.Tsoftwaredevelopment,localmanufactureofhardware,circuitboardsandmicro-chips;

lProvision of Postal Services,Telecommunication Services, PrivateBroadcastingServices,andMediaServices;

lSupplyofdigitalisationequipment;

lBusinessprocessoutsourcing;

lRuralcommunication(internetvillages);

lDatastorageareanetworks;

lCallcentres;

lIntegratedsolutionplanning;and

lFilmindustryandgraphics.

Tourism

Opportunitiesexistinthefollowingareas:

lDevelopment of Tourism Infrastructure thatincluderesorttownssuchasVictoriaFallsandKariba.

lRefurbishmentofAirportInfrastructureinresorttownssuchasVictoriaFallssandKariba.

lTourismDevelopmentZoneswhichareinandaround major centres of attraction such as Gonarezhou, Great Limpopo Trans-FrontierPark (GLTP)/Chiredzi and surroundings,GreatZimbabweNationalMonumentlikeLakeMtirikwiandsurroundings.

lPartnershipswithlocalhotelsforrefurbishmentof existing infrastructure.



8. strategies and Recommendations for Enhancing Bilateral commercial Relations with sADc countires

The study, in the previous chapters, provided abroad overview of economic environment, tradepatterns and investment climate of countries in SADC, besides analyzing India’s bilateral tradeand investment relations and identifying potential areas formutual cooperation. Exim India’s keyinitiatives endeavours to foster closer economic cooperation between India and Africa, andspecifically SADC were also highlighted in theprevious chapter.

The concluding chapter endeavours to provide broad strategies and recommendations whichcould serve to facilitate and enhance two-waytrade and investment between India and SADCmember states, based upon the analysis andfindingsofthestudy.

Strategy to enhance trade and investment relations with countries in SADC would entailan integrated approach comprising, amongothers: development of a strong private sector;cooperation in agricultural development,development of manufacturing sector; naturalresource development, cooperation in hoteland tourism industry, focus on IT development,human resource development especially SME sector,cooperationininfrastructuredevelopment,besidesbroadeninglinkageswithtradepromotioninstitutions and investment promotion agencies in the region. Such endeavours could also be supplemented by measures such as: increased participation in multilateral funded projects;entrepreneurship development and institutional

building;cooperationinbanking/financialsector;setting up business hub (s) in the region, andcooperation with chambers of commerce andindustry in the region.

• Development of a strong Private Sector

AnimportantchallengefacedbyAfricancountries,especiallySADCmemberstatesisalackofcleardelineation of the roles of state and market. After the independence, most of the Africancountries tried to solve their immediate problems of poverty and food security by creating a strong state.Although, this has helped these countriesto improve their human development factors,economically resulted in poor performance and development. This has resulted in many of the SADC countries to remain in a backward statecompared to many other developing countries. Hence,developmentofastrongprivatesectorinthe region is important. For the development ofprivate sector, many elements including a wellfunctioning financial system coupled with stablemacroeconomic fundamentals are necessary. India being an economy with almost a similarbackground is better suitable to help these nations in this respect than many developed countries. Indianinvestorscanplayamajorrolebywayoftransfer of technical knowhow and technologywhichissuitablefortheconditionsandneedsofadevelopingnation.ThiscouldhelpSADCcountriesto enhance its competitiveness by building its human and physical capital.



• Cooperation in Agriculture Sector Development

Agriculture and related activities constitute the bedrockofmost countries in theSADCRegion,and exports from the sector are important foreign exchange earners for these countries. Many countries in SADC are home to the world’srichestagriculturalresources.Asaresult,severalGovernments in the region, view that foreigninvestments in agriculture cultivationwould leadto possible benefits for rural poor, including thecreation of a potentially significant number offarm and off-farm jobs, development of ruralinfrastructure,andsocialimprovements,leadingtopovertyreduction.Moreover,nationalGovernmentswith a view to addressing the serious issue offoodshortagehavebeenframingpoliciestowardsattracting investors in the agricultural sector to tacklefood,employmentandsustainabilitycrises.If these countries could frame and implement their agriculturalpoliciesinsuchawaythatdiversifiesoutput,boostsproductivity,andpromotesstronglinkageswithothereconomicsectorsandservesbroad social policy objectives, then the regioncould easily overcome its underdevelopment and be on a path of development.

Indian companies can explore the possibilities of investment such as joint ventures or contract farming, setting up agro processing firms andinvestments in key stages of value chains. India’s investment could result in improving theagricultural sector of the host country through skill development, job creation, technologicalupgradation, supply of quality inputs likeseed, better supply chain management, andbiotechnology. India’s transfer of knowledge/technologycouldhelpthesecountriestodealwiththe problem of food crisis. Indian scientific andagricultural research institutions have assisted many entrepreneurs for developing their business ideas inSADCcountries. Indian investors could

also focus on providing quality infrastructure toenhance the farm productivity in these countries.

Towards this end, the LOCs extended by theEximBankofIndiatoSADCcountries,whichareearmarked for agriculture, irrigation and relatedprojects,wouldalso serve to contribute towardsdevelopment of the agricultural and related sectors intheregion.Forinstance:

LOC to the Government of DR Congo for- installation of hand pumps and submersible pumps;

LOCtotheGovernmentofLesothoforsupply- ofpumpsetsandirrigationequipment;

LOC to the Government of Madagascar- for financing a project for enhancing riceproductivity;

LOCtotheGovernmentofMalawiforfinancing- irrigation projects and cotton processing facilities;

LOC to the Government of Mozambique for- enhancing productivity of rice, wheat,maizecultivation,

LOC to the Government of Seychelles for- exportofrice,potatoes;

LOC to the Government of Swaziland for- agricultural development and mechanizationofagriculture;

LOCtotheGovernmentofTanzaniaforexport- oftractors,pumpsandequipmentsfromIndiatoTanzania;and

LOCtotheGovernmentofZimbabweforup-- gradationofDekaPumpingStationandRiverWaterIntakeSysteminZimbabwe



With these LOCs in place, increased exports ofagro-related machinery and equipment to theregionbyIndianentrepreneurs/exporterswouldserve to enhance bilateral cooperation in the agriculturalsector,asalsotooveralldevelopmentof the region.

Development of Manufacturing sector•

Development of manufacturing sector inSADC member states is very important for thedevelopment and growth of the region. ThedependenceofmanyoftheSADCmemberstateson primary commodity exports, combined withreliance on manufactured imports has negatively affectedthegrowthoftheregion.Alsotherecentglobal economic crisis has reduced development assistanceandprivatecapitalflowstotheregion.Hence, development of a strong manufacturingsector is necessary. At present, Africa’s sharein global manufacturing production and trade is very small. Furthermore, the manufacturingsector does not have strong links to the primary and service sectors. India could support SADCcountries in creating productive capacity-building through various support and training programmes and technical cooperation. Government of Indiais helping these countries to build up on their manufacturing sectors through various policies and programmes, normally announced duringIndia-Africa summits.

Natural Resource Development•

WithmanyofthecountriesinSADCareendowedwith mineral wealth and natural resources,enhanced bilateral cooperation for development/ exploration of natural resources in these countries could benefit both India and SADC.Mineral production and development constitute a significant part ofmany SADC countries, andremain a key factor in their future economic growth.TheSADC region has amajority of theworld’s known resources of platinum, chromium

and diamonds, as well as a large share of theworld’s bauxite, cobalt, gold, phosphate anduranium deposits. For instance, South Africa’smineralwealth issignificant,withgold,platinum,coal, iron and diamonds being some of its keyexports;whileinthecaseofDRCongo,besidesrichdepositsofcopper,cobalt,zinc,anddiamonds,therearevastdepositsofgold,consideredtobethe richest undeveloped gold deposits inAfrica;Namibia has large reserves of uranium and is a leadingglobalproducers.AccordingtoWorldGoldCouncil, despite challenges India’s consumer demand for goldwas the second-highest in theworld(accountingfor27percentoftheworldgolddemand), after China in 2015. In light of these,increased cooperation between India and theresource-rich countries inAfrica and specificallySADC countries in developing/ exploringnatural and mineral resources, with bilateralarrangements such as buy-back arrangements,could be an important strategy to enhance Indo-SADCcommercialrelations.

Focus on Information Technology (IT) • Development

The use of various electronic marketing technologies is necessary to improve and develop differentsectors,butitlargelydependsonInternetaccessandpenetrationratesincountries,whichisstillatabackwardstageinmostoftheSADCcountries. With the strength and capability thatIndia possesses in the realm of Information Technologysector, Indian ITfirmscouldexplorethe opportunities in SADC countries, and focuson investing in subsidiaries or joint ventures in theareasofe-governance,financialservicesande-education. Indian companies could also share theirexpertiseinprovidingsoftwareprogrammesand services for banks and financial institutionsin the region. For instance, Indian companies,such as NIIT, Aptech, karROX which alreadyhavepresenceinSADCcountries,couldexpandtheir network of training centers in other SADC



countries. Designing specialized e-learningcourses on the web for providing technologicalassistance, manufacturing process know-how,troubleshooting and other technical areas also presentopportunities.Suchinitiativeswouldhelpindustry and commerce, promote education inremote areas, create employment opportunitiesand provide healthcare to remote areas in the region,therebycontributingtooveralldevelopmentof nations in the region.

Investment in human Resource Develop-• ment

An associated area of bilateral cooperation could also be investing in human resource development. Human resource development is recognised as thepremiereneedofmostSADCmemberstates.Businessesfocusingonhealth,educationandskilldevelopment aremore likely stable businesses,which are in increasingly high demand inmanycountries,duetotheirdirectimpactonimprovingthestandardoflife.Towardsthisend,SADCmembercountriescouldalsotieupwithIndianinstitutionssuchastheCentralFoodTechnologicalResearchInstitute (CFTRI), Mysore and EntrepreneurshipDevelopmentInstituteofIndia(EDI),Ahmadabadand National Small Industries Corporation Ltd. (NSIC), New Delhi. Further, Indian institutionscould also share their expertise in the fields ofexportcapabilitycreationintheregion,institutionalstrengthening and export development in the form of technical assistance and sharing of expertise throughsitevisits.InthethirdIndia-AfricaForumSummitin2015,IndiaannouncedUS$600milliongrant assistance, including 50,000 scholarshipsforenhancingskills,trainingandlearning.IndianinvestorscouldalsohelpSADCgovernments insetting up various higher education institutes,universities and provide scholarships to students for various exchange programmes like Study India Programme, which could improve thequalityofeducationinthesecountries.Thistype

of academic arrangements between Indian andSADC universities will boost academic mobilitybetweenbothregions.

cooperation in Infrastructure Develop-• ment

An important area of bilateral cooperation could beinfrastructuredevelopmentinAfricancountries,especially SADC countries. Investment ininfrastructuredevelopment,duetoan increasingneed for better infrastructural facilities, coupledwith theendeavour ofSADCcountries for rapideconomic growth, could prove to be amutuallyrewarding area of bilateral cooperation. Thelack of adequate infrastructure across Africa iscurrently holdingback itsGDPgrowth. Lackofforwardandbackward linkagesbetweenamongdifferent modes of transportation, declining airconnectivity, poorly equipped ports, ageing railnetworks, and inadequate access to all-seasonroadsarekeyproblemsfacingmanyoftheSADCeconomies. Areas that hold immense investment opportunities include development of highwaysand roadways,developmentof railwaynetworksand power systems, which would also help inregional integration,and theAfricancontinentatlarge,toagreatextent.LargeIndianconstructioncompanies could explore business opportunities tomeettheinfrastructuralrequirementsinSADCmember states, also contributing largely toeconomic development in the host countries.

Further,Indiacouldintensifyitsongoingcooperationin training, capacity building, consultancy andproject implementation through concessional credit in infrastructure areas, including watersupplymanagement,maritimeconnectivity, roadand railway construction and upgrading. Thussupporting Africa’s Program for InfrastructureDevelopment in Africa (PIDA) and enhancingcooperation in the Blue/Ocean Economy.



Developing linkages with In• vestment Promotion Agencies / chambers of commerce

Besides streamlining their investment regimes,many countries in the region have set up specialised investment promotion agencies/ Chambers of Commerce to promote and facilitate inflow of foreign investment into thesecountries,whilealsoservingasone-stop-shopforinvestment related activities. In light of the key role of these institutions, building closer cooperationand linkages with these investment promotionagenciesinSADCwouldservetoenhanceaccessto information about investment opportunities in the region. A list of such investment promotion agencies and chambers of commerce is provided in Annexure 3.

Such relationship would serve to enhanceknowledgeaboutpotentialareas for investment,upcomingprojectsindifferentsectors,prospectiveinvestment partners, as also procedures, rulesandregulationsrequiredforventuringintospecificsectors in these countries and incentives offered to investors.Further,investmentpromotionaleventswithselectinvestmentpromotionagencieswouldfoster increased interaction between potentialinvestors and concerned agencies in potential sectors in target countries in the region.

Energy and Power Generation•

Another area, which holds immense potentialfor investment and cooperation, is electricitygenerationandpowertransmission.WhilemostMemberStatesofSADChaveabundantenergyresources, insufficient use of existing energysystems has resulted in effective generation of electricitywhichislessthaninstalledcapacityduetodrought,lackofmaintenanceandrehabilitation

andalsogeneralsystemlossesofelectricitywhich includestransmissionanddistribution.Asaresult,energyproductionandconsumptionvarieswidelythroughouttheregion.Withindustrialproductivitysteadilyincreasingintheregion,theWorldBankanticipates the demand for electricity to increase by40percentoverthenext10years37.

Inthisregard,theSouthernAfricanPowerPoolisa key achievement of bothRegional Integrationand increased access to electricity. At present,nine SADC Member States have connectedtogethertheirpowergrids,creatingarudimentarybut competitive energymarket. In doing so, theSouthern African Power Pool has expandedtrade inelectricity, reducedcosts,and improvedenergystabilitythroughouttheregion.Witnessingthe benefits to participating Member States,SADC’s Regional Energy Sector Programmeaims to incorporate the other outlying SADCMemberStates into theSouthernAfricanPowerPool, extending grid connections to encompassthewholeregionandfurtheringthebenefitsofaregional energy market.

To further enhance development of the energy infrastructure, SADC encourages investment intheregion’selectricityinfrastructure,especiallyinelectricityplants,transmissionlines,coaldepots,and nuclear demonstration plants. Towards thisend, the LOCs extended by the Exim India tocountriesinSADC,whichareearmarkedforpowergeneration and transmission projects, wouldalso serve to contribute towards developmentof the energy sector and power generation andtransmission.Forinstance,besidesothers:

LOC to the Government of DR Congo for- executionofhydro-electricpowerproject;

LOC to the Government of Mozambique for- severalelectrificationprojects;and

37www.sadc.int



LOCtotheGovernmentofZambiaforItezhi-- TezhiHydropowerproject.

cooperation in MsME sector•

At present MSMEs (micro, small and medium-sized enterprises) make up the majority ofbusinessesinAfricaandespeciallyinSADCandthere is enormous scope for the development of thissector.SMEsectordevelopmentintheSADCregion is constrained by a number of factors like lack of accessibility to modern technology,limited access to international markets, lackof management skills and training and lack of finance38. Towards developing entrepreneurshipand human capability, India could share itsexpertiseandexperiencewithcountriesinSADC,particularly in theSMEsectorwherein Indiahasdeveloped successful SME clusters. An important element in this direction could be for delegations from these countries to visit India to study success factor of SME clusters in India, and developingsimilar clusters in their countries based on resource andskillendowments.SMEfinancingisanotherareawhereIndiacouldsupportthissector.

Focus on Multilateral Funded Projects•

Besides participating in investment activities that are promoted by the respective governments of countriesinSADC,Indiancompaniescouldalsoendeavor to participate in multilateral funded projects.MultilateralinstitutionssuchastheWorld

Bank and the AfricanDevelopmentBank(AfDB)support and fund a number of projects in Africa and SADC. They broadly cover areas such asagriculture and related activities; infrastructuredevelopmentsuchas roads, telecommunication,postal services, electricity, water supply andsanitation;miningandquarrying;ruralandurbandevelopment; environment and natural resourcedevelopment;healthcareandeducation;financialmarketdevelopment;andtourismdevelopment.

Focus on these funded projects and increasedparticipation by Indian project and service exportersinsuchprojectswouldservetoenhanceIndia’s commercial presence in these countries.Atthesametime,effortstoparticipateintechnicalassistance in terms of project preparation and advisoryservices insuch fundedprojectswouldsupport increased presence in the region.

conclusion

Thus,forIndia,withcountriesintheSADCregionemerging as important trade and investment partners, and the need of these countries forstrategic partnership in their developmental and growth endeavours, sharing of experiences incapacity building, investments and endeavoursin growth-inducing sectors in SADC memberstates could prove to be strategic in fostering and enhancing long term commercial relations as also presenceinSADCmemberstates.

38SADCDevelopmentFinanceResourceCentre(DFRC)



Botswanai.

sector-wise Indian companies/ Investors (us$ mn)

BOTsWANA 34.9

Manufacturing 34.9

SuashishDiamondsLtd 23.4

BlueStarDiamondsPvtLtd 10.0

Sahajanand Technologies Pvt Ltd 1.5

Malawiii.


MAlAWI 1.4

community, social and Personal services 1.1

Hi-Tos Liner Agency Pvt Ltd 1.1

Electricity, Gas and Water 0.2

WeizmannLtd 0.2

Manufacturing 0.1

AmitaJayminDesai 0.1

Financial, Insurance, Real Estate and Business services -

Nihilent Technologies Pvt Ltd. -

OnmobileGlobalLtd -

Annexure 1 : Indian companies/Investors with approved JVs/ WOSs in SADC Region



Mauritiusiii.


MAuRITIus 40687.2

Manufacturing 20349.9

RelianceIndustriesLtd 8539.5

Essar Steel India Ltd 1829.7

SuzlonEnergyLtd 1653.1

UnitedPhosphorousLtd 1599.9

TataPowerCoLtd 1566.0

RelianceEnergyGeneration&DistributionLtd 1300.5

Tata Chemicals Ltd 864.5

GodrejConsumerProductsLtd 627.1

ShreeRenukaSugarsLtd 387.3

International Hospital Ltd 310.8

Mahindra&MahindraLtd 249.2

Shrenuj&CoLtd 243.8

Cairn India Ltd 150.4

MahindraForgingLtd 123.0

Siva Ventures Ltd 121.7

PSL Ltd 117.7

GalaxySurfactantsLtd 77.4

Bilcare Ltd 72.6

AvitelPostStudiozLtd 61.3

Meditab Specialities Pvt Ltd 43.5

Madhurima International Pvt Ltd 42.9

JSWSteelLtd 29.7

CosmoFilmsLtd 29.1

Vivimed Labs Ltd 28.6

Asian Paints Ltd 27.7

CoromandelFertilizersLtd 23.5

Solar Industries India Ltd 23.5

Biltube Industries Pvt Ltd 23.0



Tyche Peripheral Systems Ltd 22.0

Cipla Ltd 21.6

PiramalRealtyLtd 19.6

DolphinOffshoreEnterprises[I]Ltd 16.6

Mcdowell&CompanyLtd 13.8

OCL India Ltd 10.9

DodhiaTechnoEngineeringPvtLtd 10.1

ElephantaGasesLtd 7.3

StephensFinancialServicePvtLtd 6.8

WelspunGlobalBrandsLtd 6.1

AdhunikAlloysAndPowerLtd 6.1

JindalSteelAndPowerLtd 4.9

Healing Cross Pharma Pvt Ltd 3.5

SequentScientificLtd 3.5

GoaCarbonsLtd 3.5

Marganta Textiles Pvt Ltd 3.0

StemputicsResearchPvtLtd 2.5

Measurement And Controls India Ltd 2.2

KapavrukshSystemsLtd 2.0

Vraksh Technologies Ltd 1.8

Mumbai Mantra Media Ltd 1.8

ParentearlDrugs(India)Ltd 1.5

KanadeAnanYdyogPvtLtd 1.5

Everest Industries Ltd 1.2

Ispat Industries Ltd 1.2

OrientalRubberIndustriesLtd 1.2

AirworksIndiaEnggPvtLtd 1.0

PrincewareInternationalPvtLtd 0.9

Medley Spirits Pvt Ltd 0.8

Hester Biosciences Ltd 0.6

DCMShriramConsolidatedLtd 0.6

KamnaIndustriesPvtLtd 0.5



Ajay Enterprises Pvt Ltd 0.3

ThomsonPress[India]Ltd 0.3

Prudent Advisors 0.3

Metalfab Hitech Pvt Ltd 0.3

HanumanTextileManufacturing&InvestmentCo.Ltd 0.1

Pioneer Embroideries Ltd 0.1

ADMehtaExportPvtLtd 0.1

AarshayGemsPrivateLtd 0.1

AyushDiamondsPvtLtd 0.1

PDMehtaExportPrivateLtd 0.1

RohanExportPvtLtd 0.1

Ajanta Pharma Ltd 0.1

RamaAdvisors 0.1

Sun Pharmaceutical Industries Ltd 0.1

Positiville Co -

UniphosEnvirotronicPvtLtd -

KasiakResearchPvtLtd -

Medispray Laboratories Pvt Ltd -

SRFLtd -

ArcheanFertilizerPvtLtd -

QuattroBPOSolutions -

Britannia Industires Ltd -

SBL Industries Pvt Ltd -

Tulip Lab Private Ltd -

RuiaSonsPvtLtd -

Essar Oil Ltd -

GlobalGreenCompanyLtd -

Spentex Industries Ltd -

Financial, Insurance, Real Estate and Business services 8679.9

RHCHoldingPvtLtd 1666.5

ETHL Communications Holdings Pvt Ltd 776.9

TataPowerCoLtd 733.2



Sterlite Infra Ltd 710.0

3IInfotechLtd 480.2

Greatship[India]Ltd 431.1

ReligareCapitalMarketsLtd 417.2

EdelweissFinancialServicesLtd 370.0


FinancialTechnologies[I]Ltd 335.6

SesaGoaLtd 242.3

GMRInfrastructure(Overseas)Ltd 164.5

GeodesicLtd 157.8

GMRAirportsLtd 140.2

Essar Investments Ltd. 126.3

UflexIndustriesLtd 120.1

EdeweissCapitalLtd 105.0

Motherson Sumi Systems Ltd 104.5

Siva Ventures Ltd 99.7

IntelenetGlobalServicesLtd 77.7


WiproLtd 75.7

RegiusInfotechPvtLtd 69.7

JSWEnergyLtd 60.5

DionGlobalSolutionsLtd 54.1

Tata Auto Comp Systems Ltd 46.6

CromptonGreavesLtd 45.3

LaqshyaMediaPvtLtd 44.5

IBSSoftwareServicesPvtLtd 36.3

OswalChemicalsAndFertiliersLtd 34.1

RRInfotechLtd 33.9

ZeeEntertainmentEnterprisesLtd 32.0

UTVSoftwareCommunicationsLtd 31.6

NSLRenewablePowerPvtLtd 28.8

IndiareitFundAdvisorsPvtLtd 22.9



DatamaticsGlobalServicesLtd 20.6

CrewB.O.S.ProductsLtd 18.0

HindujaGlobalSolutionsLtd 18.0

LodhaDevelopersPvtLtd 17.5

KalyaniInfotechSolutionsLtd 17.4

Time Technoplast Ltd 16.9

GMRHoldingsPvtLtd 16.2

Sterling Infotech Ltd 16.2

SB&TInternationalLtd 15.4

AzaleaEnterprisesPvtLtd 14.7

Elecon Engineering Company Ltd 14.7

ShapoorjiPallonji&CoLtd 13.7

CamlinFineChemicalsLtd 13.3

RRKHoldingsPvtLtd 12.5

Sterlite Technologies Ltd 12.4

JMFinancialConsultantsPvtLtd 12.0

CamlinFineSciencesLtd 11.0

PowerBuildLtd 10.5

DharmanandanDiamondsPvtLtd 10.5

BancoProducts(India)Ltd 9.2

NagarjunaFertilizersAndChemicalsLtd 9.1

Sesa Sterlite Ltd 6.7

Natco Pharma Ltd 6.5

HindusthanInfrastructureProjects&EngPvtLtd 5.8

IndianMetalsAndFerroAlloysLtd 4.1

Sea Sterlite Ltd 4.0

LodhaCrownBuildmartPvtLtd 3.5

InfoDriveSoftwareLtd 3.2

KRMMarketingPvtLtd 3.0

RelianceCapitalAssetManagementLtd 2.9

Baaya International 2.9

ApolloInfrastructureProjectsFinanceCompanyPvtLtd 2.1



KSHoldingsPvtLtd 1.7

Total Securities Ltd 1.6

DspBlackRockInvestmentsManagersLtd 1.2

AzureKnowledgeCorporationPvtLtd 1.2

InfoEdge[India]Ltd 1.1

India Infoline Ltd 1.0

Videocon Industries Ltd 0.8

UnitedTelecomsLtd 0.8

Aster Infratek Pvt Ltd 0.6

AmbitCorporateFinancePvtLtd 0.6

NJIndiainvestPvtLtd 0.6

Spanco Bpo Ventures Ltd 0.5

Crest Communication Ltd 0.5

ISON Infotel Pvt Ltd 0.4

RadikalInternationalPvtLtd 0.4

WintonRoavicPvtLtd 0.4

Shakun India Pvt Ltd 0.4

AKMSystemsPvtLtd 0.4

Spark Capital Advisors India Pvt Ltd 0.3

SaagRRInfraLtd 0.3

IL&FSInvestmentManagersLtd 0.3

Mira Exim Pvt Ltd 0.3

Orbis Capital Limited 0.3

KPGlobalVenturesPvtLtd 0.2

L&TCapitalCompanyLtd 0.2

TayanaSoftwareSolutionsPvtLtd 0.2

ZoomCommunicationPvtLtd 0.2

IDFCAssetManagementCompanyLtd 0.2

Earthstone Holding Pvt Ltd 0.2

Ekasilaa Mining Pvt Ltd 0.2

Shapoorji Pallonji And Company Pvt Ltd 0.2

VimiInvestmentsAndFinancePvtLtd 0.1



Bilcare Ltd 0.1

Transtel Systems Pvt Ltd 0.1

SRFLtd 0.1

Benchmark Asset Management Co Pvt Ltd 0.1

IPCA Laboratories Ltd 0.1

PulsarKnowledgeCentrePvtLtd 0.1

UnifiWealthManagementLtd 0.1

Mope Invetment Advisors Pvt Ltd 0.1

ForefrontCapitalManagementPvtLtd 0.1

MotilalOswalAssetManagementCompanyLtd 0.1

DevyangRealtyHoldingsPvtLtd 0.1

Seed Advisory Pvt Ltd 0.1

RelianceStrategicInvestmentsLtd 0.1

AztecsoftLtd 0.1

ConfidencePetroleumIndiaLtd 0.1

Heritage Infrareal India Pvt Ltd 0.1

KironDShah 0.1

Prime Broking Co I Ltd 0.1

Mint Strategy Advisors Pvt Ltd 0.1

RelianceEquityAdvisorsIndiaLtd 0.1

Sigma Ventures Pvt Ltd 0.1

Tata Sons Ltd 0.1

JaihindProjectsLtd -

HDFCHoldingsLtd -

Indiabulls Technology Solutions Ltd -

Axis Convergence Pvt Ltd -

AurumInternationalFinvestPvtLtd -

Elitecore Technologies Pvt Ltd -

CnbFinwizPrivateLtd -

Energy Engineers Pvt Ltd -

Milestone Capital Advisors Pvt Ltd -

FutureCapitalHoldingsLtd -



Cambridge Technology Enterprises Ltd -

Carnoustie Management Pvt Ltd -

Manaksia Ltd -

HazelMercantileLtd -

Hi-Tech Housing Projects Pvt Ltd -

InfinityEntertainmentPvtLtd -

Silverskills Pvt Ltd -

Ensource Consulting Pvt Ltd -

RegalSolutionsPvtLtd -

K&YConsultantsPvtLtd -

LodhaDwellersPvtLtd -

HDFCInvestmentsLtd -

Coral Esecure Pvt Ltd -

ProficientBuildwellPvtLtd -

PankulRathore -

LodhaImpressionRealEstatePvtLtd -

Espire Infolabs Pvt Ltd -

ShreeNiwasCottonMillsLtd -

Essar Steel Ltd. -

MaplewoodFinancialServicesPvtLtd -

Wholesale, Retail Trade, Restaurants and hotels 4374.3

Aamby Valley Ltd 824.4

JindalSteelAndPowerLtd 728.6

Apollo Tyres Ltd 625.9

HouseOfPearlFashionsPvtLtd 576.0

PearlGlobalIndustriesLtd 506.9

Redington(India)Ltd 362.7


Samvardhana Motherson International Ltd 86.6

Essel Propack Ltd 77.0

Padma Pharmaceuticals Pvt Ltd 66.9

JainIrrigationSystemsLtd 39.2



RelianceMediaWorksLtd 27.0

EIH Ltd 26.0

EurecaForbesLtd 18.6

UTVSoftwareCommunicationsLtd 18.1

MahindraHolidays&ResortsIndiaLtd 15.0

DBHospitalityPvtLtd 14.2

Neha International Ltd 10.7

Maharashtra Hybrid Seeds Co Ltd 9.9

RJCorporationLtd 8.8

PMP Auto Components Pvt Ltd 8.6

DeltaHospitality&LeisurePvtLtd 7.4

REIAgroLtd 4.8

GatiLtd 4.2

Adani Enterprises Ltd 3.4

Emudhra Consumer Services Ltd 2.1

JackbroGlobalPvtLtd 1.8

Trent Ltd 0.8

SPRTextilesPvtLtd 0.8

KeimedLtd 0.6

TravelFoodServicesPvtLtd 0.6

Oriental Technocraft Pvt Ltd 0.5

Pantheon Management Pvt Ltd 0.5

Hindustan Platinum Ltd 0.5

RadikalOverseasPvtLtd 0.5

CreativeHomeFurnishingIntl.PvtLtd 0.3

DevyaniInternationalPvtLtd 0.3

Varna Creations And Services 0.1

ProficientSolutionsPvtLtd 0.1

Nissi Exim Pvt Ltd 0.1

Varun Industries Ltd -

AliHussainIcecandywala -

Arvind Ltd -



NumericPowerSystemsLtd -

DiffusionEngineersLtd -

M/S Maskara Textiles Pvt Ltd -

GlobalNetworkings -

KapokhFibersAndIndustriesLtd -

Vinca Infrastructure Pvt Ltd -

ABM Architects Pvt Ltd -

GeetanjaliWoollensPvtLtd -

Bydesign India Pvt Ltd -

SKSIspatAndPowerLtd -

Impulse India Pvt Ltd -

Emergent Ventures India Pvt Ltd -

Blubay Technologies Pvt Ltd -

Essar Oil Ltd -

construction 2515.9

GMRInfrastructureLtd 1309.5

EssarProjects(India)Ltd 538.5

Advance Investments 131.0

AlbastaPowerLtd 100.0

KECInternationalLtd. 88.5

Hindustan Construction Company Ltd 73.0

Essel Airpore Infrastructure Pvt Ltd 64.8

Navayuga Engineering Co Ltd 60.6

EssarConstructions(India)Ltd 40.1

Nagarjuna Construction Co Ltd 35.0

NCC Ltd 18.9

PiramalSunteckRealtyPvtLtd 11.3

SunteckRealtyLtd 11.0

LodhaDevelopersPvtLtd 10.2

PatelRealtyIndiaLtd 6.0

DeltaCorpLtd 4.5

Silverglen Infrstrure Pvt Ltd 3.9



Action Infraprojects Pvt Ltd 2.3

NCC Infrastructure Hoildings Ltd 1.7

SewInfrastructureLtd 1.5

Lanco Infratech Ltd 1.0

KalpataruPowerTransmissionLtd 0.8

Patel Engineering Co. Ltd. 0.6

SujanaTowerLtd 0.4

Afcon Infrastructure Ltd 0.3

AkritiJewelcraftzPvtLtd 0.2

GMRAirportDevelopmentLtd 0.2

GammonIndiaLtd 0.1

Assotech Ltd 0.1

GMREnterprisesPvtLtd -

GMRHoldingsPvtLtd -

AcropolisCapitalGroup -

Tata Projects Ltd -

SunilMantriRealtyLtd -

LodhaPropertiesDevelopmentPvtLtd -


Aegis Ltd 943.6

ManipalUniversalLearningPvtLtd 199.1

ZeeEntertainmentEnterprisesLtd 183.1

PrimeFocusLtd 118.2

PanIndiaNetworkInfravestPvtLtd 68.8

ManipalGlobalEducationServicesPvtLtd 49.5

AsianHotel(North)Ltd 35.7

Television Eighteen India Ltd 33.0

DMHealthcarePvtLtd 28.9

Aptech Ltd 22.8

FortisGlobalHeathcareLtd 15.1

JSSEducationFoundationPvtLtd 9.4

AirworksIndiaEnggPvtLtd 8.8



Batliboi Ltd 6.1

ChemiotekResearchInternationalPvtLtd 4.9

Apollo Hospitals Enterprises Ltd 4.3

AmityGlobalVarsityPvtLtd 2.4

DrAgarwalEyeInstitude 2.2

SagarHealthCare&DiagnosticServices 1.5

AsiaPacificCommunicationAssociatesPvtLtd 1.3

Scrabble Entertainment Pvt Ltd 1.3

Nova Medical Centers Pvt Ltd 1.2

Annet Communication Pvt Ltd 1.0

Metropolis Healthcare Ltd 0.7

NovaPulseIVFClinicPvtLtd 0.7

JagathraHoldingsPvtLtd 0.6

SouthYarraHoldings 0.5

Thyrocare Technologies Ltd 0.3

APCDrilling&ConstructionPvtLtd 0.3

PolpitFinancialConsultantsPvtLtd 0.2

Interglobe Enterprises Ltd 0.2

Maragadham Education Pvt Ltd 0.2

Cause Entertainment Pvt Ltd 0.1

FrankfinnOverseasPvtLtd 0.1

NewDelhiTelevisionLtd 0.1

AmbitCorporateFinancePvtLtd -

Thyrocare International Ltd -

VedicureWellnessPvtLtd -

KailashPictureCompanyPvtLtd -

Transport, storage and communication services 1569.0

Bharti Airtel Ltd 1165.9

EssarShippingPorts&LogisticsLtd 204.1

GlobalTelesystemsLtd 94.0

Varun Corporation Ltd 20.9

Britannia Industires Ltd 20.0



Altruist Technologies Pvt Ltd 19.4

VihaanNetworksLtd 17.5

GTLInfrastructureLtd 12.0

Transport Corporation Of India Ltd 4.7

MicroqualTechnoLtd 2.7

Cox&KingsLtd 2.7

Tarun Shipping And Industries Ltd 2.6

PFSShippingIndiaLtd 1.1

ZeroGApartmentsPvtLtd 1.0

Netxcell Ltd 0.2

KesariVacationsPvtLtd 0.1

Haiertelecom India Pvt Ltd 0.1

CitycomNetworksPvtLtd -

Innovis Telecom Services Pvt Ltd -

Agriculture, Mining, hunting, Forestry and Fishing 1236.7

EssarShippingPorts&LogisticsLtd 505.4

SterlingOilResourcesLtd 306.6

ShivvaniOilAndGasExploration 86.2

International Coal Ventures Pvt Ltd 77.0

WelspunCorpLtd 58.4

JindalPetroleumLtd 56.0

Lustre Manufacturers Pvt Ltd 26.0

Shriram Bioseed Ventures Ltd 23.9

M/SPrivilegeOil&GasPvtLtd 22.5

GvMinesMinerals&MetalsPvtLtd 13.1

PaharpurCoolingTowers 13.0

GokulRefoils&SolventsLtd. 9.3

AssociatedStoneIndustries(Kotah)Ltd 8.4

Sterling International Enterprises Ltd 5.1

WaltairPromotersPrivateLtd 5.0

Balasore Alloys Ltd 4.8

M.K.ShahExportsLtd 4.5



AmishaFincapPvtLtd 4.5

Adventa India Ltd 2.0

VandanaGlobalLtd 1.3

Coastal Marine Construction And Engineering Ltd 1.2

Varun Industries Ltd 0.5

Ace Corporate Agri Ventures Private Ltd 0.4

Barista Coffee Company Ltd. 0.4

InlandRoadTransportPvtLtd 0.3

RKInfraventuresPvtLtd 0.2

AdhunikAlloysAndPowerLtd 0.2

TirupatiCarbons&ChemicalsPrivateLtd 0.2

ShreeRenukaEnergyLtd 0.1

MinmetIntlResourcesPvtLtd 0.1

Action Minerals Pvt Ltd 0.1

Classic Marble Company Pvt Ltd -

Videocon Oil Ventures Ltd -

GillandersArbuthnotAndCompanyLtd -

Shapoorji Pallonji Infrastructure Capital Company Ltd -

JswIspatSteelLtd -

BinaniZincLtd -

SDKEnterprisesPvtLtd -

Shreepati Logistic India Ltd -

WelspunConstructionPvtLtd -

Miscellaneous 185.1

GMRInfrastructureLtd 68.8

IBN18BroadcastLtd 56.3

NDTVLtd 29.2

GMREnergyLtd 11.7

Britannia Industries Ltd 8.8

JaiRealtyVenturesLtd 6.5

HindustanSanitarywareandIndustriesLtd 3.5

GimpexLtd 0.1



AmbitCorporateFinancePvtLtd 0.1

PestControl(India)PvtLtd 0.1

ExcelColours&fritsLtd -


VaayuRenewableEnergy(Purna)PvtLtd 23.8

UEMIndiaPvtLtd 3.2

Mohan Exports India Pvt Ltd 1.9

QuippoEnergyPvtLtd 1.3

VaayuRenewableEnergy(Meghna)PvtLtd 0.1



Mozambiqueiv.


MOZAMBIQuE 2663.5


ONGCVideshLtd 2640.0

Coal India Ltd 5.0

ResourcesInternational 2.6

Thriveni Earth Movers Pvt Ltd 1.4

Vandana Vidhyut Ltd 0.3

JindalMetalAndMiningLtd 0.3

JindalPolyFilmsLtd 0.2

Anilkumar V Patel -

AustralCoke&ProjectsLtd -

Bhavik Parsottamdas Patel -

Hemantbhai Satishbhai Patel -

AdhunikAlloysAndPowerLtd -

Teleminex India Pvt Ltd -

RachanaGlobalExcavationLtd -

RSTMiningAndLogisticsPvtLtd -


RitesLtd 3.9

RiteshProperties&IndustriesLtd 2.2



Essar Ports Ltd 4.1

Manufacturing 2.7

BeekayUniversalImpexPvtLtd 2.0

PSI Hydraulics 0.3

GravitaIndiaLtd 0.2


construction 0.2

RailtechInfraventurePvtLtd 0.2

Standardbuild Infrastructure Ltd -


KwalityPharmaceuticalsPvtLtd 0.1



Namibiav.


NAMIBIA 2.2


Navayuga Infotech Pvt Ltd 0.1

Manufacturing 2.1

GPTInfraprojectsLtd 2.1

Praj Industries Ltd -

Wholesale, Retail Trade, Restaurants and hotels -

PanoramicUniversalLtd -

seychelles vi.


sEychEllEs 3.5


SriHarivallabhaaEnterprises&InvestmentsPvtLtd 2.5

Manufacturing 0.9

M/S Sainov Spirits Pvt Ltd 0.7

Ambey Capital Pvt Ltd 0.3

Financial, Insurance, Real Estate and Business services -

DirectInformationPvtLtd -

Prism Infomatics Ltd -

Wholesale, Retail Trade, Restaurants and hotels -

CrazypricingOnlineServicesPvtLtd -



south Africavii.


sOuTh AFRIcA 376.9

Manufacturing 209.6

Tata Steel Ltd 81.5

Tata Intl. Ltd 64.8

RocklandSteelTradingPvtLtd 14.6

Dr.Reddy’sLaboratoriesLtd. 10.3

Intas Pharmaceuticals Ltd 9.4

KiranGlobalChemsLtd 5.9

Praj Industries Ltd 4.8

Tata Motors Ltd 3.3

Parle Biscuits Pvt Ltd 2.6

Mahindra&MahindraLtd 2.1

GoodearthAgrochemPvtLtd 1.7

ASPL Ventures Pvt Ltd 1.6

Tagros Chemicals India Ltd 1.0

KLTAutomativeAndTubularProductsLtd 0.9

MetropolisHealthServices(I)PvtLtd 0.9

Agni Steels Pvt Ltd 0.6

MBDWorldwidePvtLtd 0.5

Mahendra Brothers Exports Pvt Ltd 0.5

GPTInfraprojectsLtd 0.4

IndustrialFiltersAndFabricsPvtLtd 0.4

Bhavna Tradelink Pvt Ltd 0.4

Enercon[I]Ltd 0.3

Shankar Packaging Ltd 0.3

Vulcan Indl Engg Co Ltd 0.2

Citron Infraprojects Ltd 0.2

NumericPowerSystemsLtd 0.2

IPCA Laboratories Ltd 0.1

Elecon Engg. Co. Ltd 0.1



ION Exchange India Ltd 0.1

Mcnally Bharat Engineering Co. Ltd 0.1

Emcure Pharmaceuticals Ltd 0.1

SpanDiagnosticsLtd -

Alkem Laboratories Ltd -

GeospatialMediaAndCommunicationsPvtLtd -

OrchidChemicals&PharmacueticalsLtd -

GISDevelopmentPvtLtd -

Bennett Coleman And Co. Ltd -


The Indian Hotels Co Ltd 55.4

Larsen&ToubroInfotechLtd 31.5

Tata Consultancy Services Ltd 11.5

GeneralInsuranceCorporation 10.0

RamcoSystemsLtd 2.0

FinancialTechnologies[I]Ltd 1.6

Tech Mahindra Ltd 0.5

M/S Cahead Info Technologies India Pvt Ltd 0.3

CytespaceResearchPvtLtd 0.2

CorpusSoftwarePvtLtd 0.1

ZensarTechnologiesLtd 0.1

SRGMiningInternationalPvtLtd 0.1

Solid Tech India Computer Services Pvt Ltd -

Sankhyaa Learning Pvt Ltd -

Mouri Tech Pvt Ltd -

Tata Projects Ltd -

Mphatek Systems Pvt Ltd -

UboraTechnologiesPvtLtd -

WoneManagementSystemsPvtLtd -

ExpertGlobalSolutionsPvtLtd -

Pierian Services Pvt Ltd -

Altura Consulting Pvt Ltd -



WinjitTechnologiesPvtLtd -

Second Avenue Consulting Pvt Ltd -

IcreateSoftwareIndiaPvtLtd -

Indiabulls Technology Solutions Ltd -


Marico Industries Ltd 34.3

Saumya Textiles Pvt Ltd 1.8

GuptaCoalIndiaLtd 1.5

ChadhaPower 1.0

FortuneMetaliksLtd 0.5

EuroSafetyFootwearIndiaPvtLtd 0.3

Allengers Medical Systems Ltd 0.2

Precision Bearing Pvt Ltd 0.1

PankajBKoshti 0.1

Silwin -

ForacePolymersPvtLtd -

Multigraph Machinery Co. -

Pride Overseas Pvt Ltd -

BRKCommodityIndiaLtd -

Legacy Enterprises Pvt Ltd -

Macleods Pharmaceuticals Ltd -


WorldsWindowUrjaPvtLtd 4.4

Vijay Mining And Infra Corp Pvt Ltd 3.4

GenesisMining&MineralsPvtLtd 0.6

DashPetroleum&EnergyResourcesPvtLtd 0.2

ALP Overseas Pvt Ltd -

Indian Technomac Company Ltd -

NMDCLtd -

construction 3.7

JyotiStructuresLtd 2.8

Tata Communications Ltd 0.8



KalpataruPowerTransmissionLtd 0.1


Essel Media 1.0


IntegratedWirelessSolutionsPvtLtd 0.4

Interglobe Air Transport Ltd -

I 2 I Telesource Pvt Ltd -

Seagull Maritime Agencies Pvt Ltd -


Enercon(India)PowerDevelopmentPvtLtd 0.1

IL&FSEnergyDevelopmentCompanyLtd 0.1

swazilandviii.


sWAZIlAND 0.4


Ekasilaa Mining Pvt Ltd 0.4



Tanzaniaix.


TANZANIA 58.6

Manufacturing 45.7

PSI Hydraulics 20.1

Banco Products India Ltd 12.5

FairDealCarsPvtLtd 5.2

PrincewareInternationalPvtLtd 1.0

RJFeedsPvtLtd 0.9

Alpha Nippon Innovatives Ltd 0.8

Nestor Pharmaceuticals Ltd 0.3

Mercury Industries Ltd 0.2

WebstarVyapaarPvtLtd 0.2

Grow-WellEngineeringExportPvtLtd 0.1

Potla Nishanthi 0.1

Madhavi Potla -

S.S. Control Systems Pvt Ltd -

Lovson Exports Ltd -

Balaji Iron And Minerals Pvt Ltd -

PotlaNageswaraRao -


RitesLtd 8.3

Dr.PVAMohandas 0.1

Dr.PrithviMohandas 0.1

Mallika Mohandas 0.1


RoyalOrchidHotelsLtd 2.0

Excel Crop Care Ltd 0.1

Diamond&GemDevelopmentCorporationLtd -

Shashank Bhasker Trivedi -

Baramati Agro Ltd -




TanworldInternationalPvtLtd 0.9

Vasista Mines Private Ltd 0.3

FrigerioConservaAllanaLtd 0.2

IndagroFoodsLtd 0.2

Bhrithi Mining Pvt Ltd -

Teleminex India Pvt Ltd -


SriGaneshForwardersPvtLtd 0.3

Sidhhartha Corporation Pvt Ltd 0.2

IL&FSMaritimeInfrastructureCoLtd -


Matchit Consultants Pvt Ltd 0.1

Nihilent Technologies Pvt Ltd -

OnmobileGlobalLtd -

RMNInfotechPvtLtd -

Electricity, Gas and Water -

IL&FSEnergyDevelopmentCompanyLtd -



Zambiax.


ZAMBIA 62.4


Bank of Baroda 7.9

Central Bank of India 7.9

Bank of India 7.8

OnmobileGlobalLtd 0.2

Capital Corp 0.2

Orbit Investments and Trading Pvt Ltd 0.2

HindustanDorr-OliverLtd -


PLRProjectsPvtLtd 11.1

EastlandSwitchgearsPvtLtd 1.8

Chiteta Mining Company Pvt Ltd 1.7

EurasianMinerals&EnterprisesPvtLtd 1.4

Suyog Chemicals Pvt Ltd 0.7

Star Orechem International Pvt Ltd 0.3

SM Niryat Pvt Ltd 0.3

KohlenstoffResourceDevelopersPvtLtd 0.2

Omax Minerals Pvt Ltd -

GRNConstructionsPvtLtd -

construction 10.9

Chetak Enterprises Ltd 8.1

ERAHsg&Developers(I)Ltd 1.2

SRRProjectsPvtLtd 0.8

GKCProjectsLtd 0.6

ManjiKhimjiHirani 0.1

VoiceRealtechPvtLtd -

BuniyadDwellingPvtLtd -

BSBKPrivateLtd -

Arvee Electricals and Engineers Pvt Ltd -



Manufacturing 9.8

Manjeet Cotton Pvt Ltd 4.9

Mcnally Bharat Engineering Co. Ltd 3.7

Capital Corp 0.7

Orbit Investments and Trading Pvt Ltd 0.6


GravitaEximLtd 0.1

TyreTechnocrats(India)PvtLtd 0.1

community, social and Personal services -

Paritoshbhai Pravinchandra Modi -

Zimbabwe xi.


ZIMBABWE 0.3


Shyam Metalics and Energy Ltd 0.1

Manufacturing 0.2

MidexGlobalPvtLtd 0.2

Negligible- Note–theabovedataiscumulativefromJuly2007–March2015Source:ReserveBankofIndia(RBI);andEximBankAnalysis



Annexure 2 : Exim Bank of India’s lOcs in SADC Region (As on January 31, 2016)

GOI-supported lOcs•

sr. No. country Borrower

Amount of credit(us$ mn)

Products/Projects covered

1 Angola GovernmentofAngola 40.0 Railwayrehabilitation

2 Angola GovernmentofAngola 30.0 Industrial park

3 Angola GovernmentofAngola 15.0 Settingupatextileproject(CottonGinning&

Spinning)

4 DRCongo GovernmentofDRCongo 33.5 settingupacementfactoryinDRCongo,acquisition

of228busesandacquisitionofequipmentsforMIBA

5 DRCongo GovernmentofDRCongo 25.0 Installation of hand pumps and submersible pumps

6 DRCongo GovernmentofDRCongo 42.0 ExecutionofKakobolaHydroelectricPowerProject

7 DRCongo GovernmentofDRCongo 168.0 KetendeHydro-electricProject

8 DRCongo GovernmentofD.R.Congo 82.0 KatendeHydro-electricProject

9 DRCongo GovernmentofDRCongo 34.5 DevelopmentofPowerDistributionProjectin

Bandundu Province

10 DRCongo GovernmentofDRCongo 109.9 TransmissionanddistributionprojectinKasai

province

11 Lesotho GovernmentofLesotho 5.0

Generalpurpose:Contractsapprovedincludeexportofpumpsets,consultancyservicesandirrigationequipment

12 Lesotho GovernmentofLesotho 4.7 Vocationaltrainingcentreforempowermentofyouth

andwomen

13 Madagascar GovernmentofMadagascar 25.0 Projectforriceproductivity(US$10mn)andproject

forfertilizerproduction(US$15mn)

14 Mauritius GovernmentofMauritius 48.5 OffshorePatrolVesselfromM/sGardenReach

Shipbuilders&EngineersLtd.

15 Mauritius GovernmentofMauritius 46.0 Purchaseofspecialisedequipmentandvehicles

16 Mauritius GovernmentofMauritius 18.0 TofinancetheacquisitionofWaterjetFastAttackCraft

17 Malawi GovernmentofMalawi 30.0 Supplyofirrigation,storage,tobaccothreshingplant

andonevillage-oneprojectinMalawi

18 Malawi GovernmentofMalawi 50.0

Cottonprocessingfacilities(US$20mn),GreenBeltInitiative(US$15mn)OneVillageOneProduct(OVOP)(US$15mn)






19 Malawi GovernmentofMalawi 76.5

Procurementofdesign,supply,installationandcommissioningoffuelstoragefacilities,irrigationnetwork,commissioningofsugarprocessingfacilityinSalima district

20 Mozambique GovernmentofMozambique 20.0

Generalpurpose-Contractsapprovedincludesupplyofwaterdrillingmachinery,equipments,accessories,componentsandspares,supportvehicles,waterandfueltankersandelectricalequipments

21 Mozambique GovernmentofMozambique 20.0 GazaElectrificationProject

22 Mozambique GovernmentofMozambique 20.0 Transferofwaterdrillingtechnologyandequipment

23 Mozambique GovernmentofMozambique 25.0

TofinanceITParkProjectwhichwillcompriseconstructionofbuildingand(a)incubatorfacility,(b)researchandlearningcenterand(c)technologyparkand administrative facility.

24 Mozambique GovernmentofMozambique 30.0 RuralElectrificationProjectsintheprovincesofGaza,

ZambeziaandNampulainMozambique

25 Mozambique GovernmentofMozambique 25.0 RuralElectrificationofCaboDelgado,Manicaand

Niassa Provinces

26 Mozambique GovernmentofMozambique 20.0 Enhancingproductivityofrice,wheat,maize

cultivation

27 Mozambique GovernmentofMozambique 13.0 Solar Photo Voltaic Module Manufacturing Plant

28 Mozambique GovernmentofMozambique 250.0 improvingthequalityofpowersupplyinMozambique

29 Mozambique GovernmentofMozambique 19.7 Ruraldrinkingwaterprojectextension

30 Mozambique GovernmentofMozambique 149.7 RehabilitationofRoadbetweenTica,BuziandNova

SofalainMozambique

31 Mozambique GovernmentofMozambique 47.0 Constructionof1200housesinMozambique

32 Seychelles GovernmentofSeychelles 8.0 GeneralPurpose-Contractscoveredincludeexport

ofrice,potatoesandbuses

33 Seychelles GovernmentofSeychelles 10.0

ImportofgoodsandservicesfromIndiaforspecificprojectsfundedbyDevelopmentBankofSeychelles(DBS)

34 Swaziland GovernmentofSwaziland 20.0 IT Park

35 Swaziland GovernmentofSwaziland 37.9 AgriculturalDevelopmentandMechanizationof

AgricultureinSwaziland

36 Tanzania GovernmentofTanzania 40.0 Exportoftractors,pumpsandequipmentsfromIndia

toTanzania.

37 Tanzania GovernmentofTanzania 36.6 Financingthepurchaseof723vehicles

38 Tanzania GovernmentofTanzania 178.1 WatersupplyschemestoDar-es-Salaam






39 Tanzania GovernmentofTanzania 268.4 ExtensionofLakeVictoriaPipelinetoTabora,Igunga

andNzega

40 Zambia GovernmentofZambia 50.0 Pre-fabricatedHealthPostsinZambia

41 Zambia GovernmentofZambia 29.0 Itezhi-TezhiHydropowerproject

42 Zimbabwe GovernmentofZimbabwe 28.6 Up-gradationofDekaPumpingStationandRiver

WaterIntakeSysteminZimbabwe

43 Zimbabwe GovernmentofZimbabwe 87.0 Renovation/Up-gradationofBulawayoThermal

PowerPlant

Africa Total 2316.6

Institutional lOcs•

sr. No. Borrower Region

Amount of credit (us$ mn)


1 AfreximBank Pan-African Institution 30.0 GeneralPurpose

2

Eastern and Southern African Trade and DevelopmentBank(PTABank)(covering17countries in the eastern and southern African region)

Pan-African Institution 25.0 Generalpurpose

3 Indo-ZambiaBank Southern Africa 5.0 Generalpurpose

sub-Total 60.0



AngolaNationalAgencyofPrivateInvestment(ANIP)-www.investinangola.com

BotswanaBotswanaInvestmentandTradeCentre(BITC)-http://www.bitc.co.bw/

DR congoDRCNationalAgencyforInvestmentPromotion(ANAPI)-www.anapi.org

lesothoLesothoNationalDevelopmentCorporation(LNDC)-www.lndc.org.ls

MadagascarEconomicDevelopmentBoardofMadagascar(EDBM)-www.edbm.gov.mg

MalawiMalawiInvestmentandTradeCentre(MITC) – http://www.mitc.mw/

MauritiusBoardofInvestmentofMauritius(BOI)-www.boimauritius.com

MozambiqueInvestmentPromotionCentreMozambique(CPI)–www.cpi.co.mz

NamibiaNamibiaInvestmentCentre(NIC)-http://www.mti.gov.na/

seychellesSeychellesInvestmentBureau(SIB)-http://www.sib.gov.sc/

Annexure 3 : Investment Promotion Agencies in sADc Region



south AfricaSouthAfricaDepartmentofTradeandIndustry(DTI)-http://www.thedti.gov.za/

swazilandSwazilandInvestmentPromotionAuthority(SIPA)–www.sipa.org.sz

TanzaniaTanzaniaInvestmentCentre(TIC)–www.tic.co.tz

ZambiaZambiaDevelopmentAgency(ZDA)–http://www.zda.org.zm/

ZimbabweZimbabweInvestmentAuthority(ZIA)–http://www.investzim.com/

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