india eximbank in africa
TRANSCRIPT
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EXIM BANK: PARTNER IN AFRICAS
DEVELOPMENTS.R. Rao
Chief General Manager
Export - Import Bank of India
Organisation for Economic Cooperation & Development
Paris, March 16-17, 2006
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Exim India
Indias Foreign Trade & Indo-African Trade
Exim Bank of India : An Overview & Initiativesin Africas Development
Structure of Presentation
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Exim India
Indias Foreign Trade
37
79
32
107
0
20
40
60
80
100
120
1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05
Exports Imports
(US$ bn)Merchandise Trade
Source: M ini stry of Commerce & I ndustry (MOCI), Government of I ndia (GOI)
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Exim India
Indias Services Exports
51.3
16.3 17.1
20.825.0
36.7
18.4
14.6 13.817.1
5
15
25
35
45
55
2000-01 2001-02 2002-03 2003-04 2004-05
(US$b
n)
Exports Imports
Source: Reserve Bank of I ndia
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Exim India
Trends in Software Exports
22.5
1.10.71.8 2.7
4.0
6.27.7
9.9
12.8
17.2
1995-96 1996-97 1997-98 1998-99 1999-
2000
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
P
One of the Fastest Growing Export Items
Source: NASSCOM
Software exports rose from US$ 0.7 bn
in FY 1996 to US$ 17.2 bn in FY 2005
Sharp rise in services exports due to
software exports
P - projection
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Exim India
Software ExportsRole of Exim Bank
Exim Bank associated with development of Indian softwareindustry since 1986
Comprehensive financing / service package for software
industry including:
- project / equipment finance; working capital finance
- overseas investment finance
- obtaining product / process certification
- export marketing & export product development
Establishment / expansion of software training institutes
Facilitates setting up of software technology parks (STPs)
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Indo-African Trade Relations
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Exim India
Indo-African Trade Relations
23602897
3140
3869
5382
20632616
34473208
3758
4424
5513
6586
7078
9140
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
2000-01 2001-02 2002-03 2003-04 2004-05
(US$
mn)
Exports Imports Total Trade
Source: M ini stry of Commerce & I ndustry (MOCI), Govt. of I ndia (GOI )
Note: Import data do not include oil imports
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Exim India
Indias Major Trade Partners in Africa, 2004-05
South
Africa
17.8%
Nigeria
11.4%
Egypt
7.9%
Kenya7.7%
Sudan
5.7%Togo
4.9%
Others
29.4%
Libya3.2%
Ghana
3.2%
Algeria
4.2%
Mauritius
4.6%
Exports (% share)
South
Africa
57.3%
Morocco
6.8%
Cote
d'Ivoire
4.2%
Others
12.5%
Guinea-
Bissau
1.9%
Ghana
1.3%
Tanzania
3.4%
Senegal
4.5%
Benin
2.1%
Tunisia2.3%
Egypt3.6%
Imports (% share)
Source: MOCI, GOI
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Exim India
Major Items of Trade, 2004-05
Others
20%Raw Cotton
3%
Metaliferrous
ores
6%
Inorganic
chemicals
16.2%Cashew nuts
8.8%
Wood &
wood pdts
4%
Gold42.3%
Primary & semi-
fin. iron & steel
4.8%
Cotton yarn &
fabrics
7.4%
Plastic &linoleum pdts.
4.5%
Transport
equipment
7.8%
Machy. &
instruments
8.2%
Non-basmati
rice
8.1%
Pharmaceuticals
8 .4%
Mfgs. of metals
9.6%
Petroleum
prdts.
13.0%
Manmade yarn
& fabrics
3.8%
Others
24.5%
Exports (% share) Imports (% share)
Source: MOCI, GOI
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Exim Bank of IndiaAn Overview & Initiatives in
Africas Development
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Exim India
SET UP BY AN ACT OF PARLIAMENT IN SEPTEMBER 1981
WHOLLY OWNED BY GOVERNMENT OF INDIA
COMMENCED OPERATIONS IN MARCH 1982
APEX FINANCIAL INSTITUTION
OBJECTIVES:
for providing financial assistance to exporters and importers, and for
functioning as the principal financial institution for coordinating the working
of institutions engaged in financing export and import of goods and services
with a view to promoting the countrysinternational trade
shall act on business principles with due regard to public interest
(Export-Import Bank of India Act, 1981)
Exim Bank of India
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Exim India
Leadership and Expertise in Indias Export Finance
Comprehensive Range ofProducts And Services
All Stages of the Business Cycle
1982-85
1986-94
ExportCredits
Exim Bank TODAY
Export CapabilityCreation
Product CentricApproach
Customer CentricApproach
To develop commercially viable
relationships with a target set ofexternally oriented companies by
offering them a comprehensive range ofproducts and services, aimed at
enhancing their internationalisation
efforts
Evolving Vision
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Exim India
Organisation: Network of Offices
HEAD MUMBAI
Domestic
Offices
9 Mumbai
Kolkata,
Bangalore
AhmedabadGuwahati
Delhi
Chennai
Hyderabad
Pune
OFFICES IN INDIA
OFFICES OVERSEAS
Overseas Rep.
Offices
5 Washington D.C.
Singapore
Johannesburg
London
Budapest
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Exim India
Range of Products & Services
Pre-Shipment
ExportMarketing
ExportProduction
ExportProduct
Development
ImportFinance
AdvisoryServices
InvestmentAbroad
Post-Shipment
Presence Across All Stages of Business Cycle
INFORMATION
AdvisoryServices
KnowledgeBuilding
SUPPLEMENTS FINANCING PROGRAMMES
Value Based Services
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Exim India
Major Programmes
Supplier's & Buyer's Credit
Pre-Shipment Credit
Guarantees & L/Cs
PROJECTS
Lines of Credit
Pre-Shipment Credit
Post-Shipment Credit
PRODUCTS
Supplier's Credit
Buyer's Credit
SERVICES
EXPORT CREDIT
TERM LOANS
WORKING CAPITAL
EXPORT MARKET/
EXPORT PRODUCT DEVELOPMENT
EXPORT
FACILITATION
OVERSEAS INVESTMENT
FINANCE
DIRECT EQUITY PARTICIPATION
IN INDIAN EXPORTING COs
DIRECT EQUITY PARTICIPATION
IN INDIAN OVERSEAS VENTURES
IMPORT FINANCE
CAPITAL GOODS, RAW MATERIALS
FINANCE FOR EXPORTING COS
EXPORT MARKETING
SERVICES
MULTILATERAL FUNDED
PROJECTS
JOINT VENTURE
FACILITATION
CONSULTANCY SUPPORT
WORKSHOPS & SEMINARS
INFORMATION SERVICES
VALUE-ADDED SERVICES
encompass all sectors
of the economy
Agriculture, Industry
and Services.
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Exim India
Support for Execution of Projects
Exim Bank plays a pivotal role in promoting and financing Indian companies in
the execution of projects
Over the past two decades, increasing number of projects have been executed
by Indian companies in North Africa, Sub Saharan Africa,West Asia, South &
South East Asia, CIS and Latin America
Pioneering Role in Promoting Project Exports
No. of Contracts : 190
Value of Contracts : US$ 6 bn
No. of Countries : 42
Projects currently under execution with Exim Bank support
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Exim India
Exim Bank: Facilitator in Project Execution
Turnkey contract for Gas Based Power Project in Tanzania funded by
World Bank.
Transmission System Rehabilitation and Maintenance Project in Zambia.
Turnkey contract for Multi-Product Pipeline Project in Sudan
Consultancy assignment in Small Town water supply project in Nigeria.
Supplies for Urban Power Rehabilitation Project in Uganda.
Transmission Line Projects in Algeria, Tunisia
Construction of Cyber Towers in Mauritius
Facilitating and Supporting Infrastructure Development
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Exim India
Support for Sourcing Equipment / Projects
Enables import of Indian equipment and technology on deferred credit
terms
Particularly relevant for small and medium sectors
Lines of Credit are extended to Overseas Governments, Government
agencies overseas, National or regional development banks abroad,
Commercial banks abroad
60 Operative LOCs amounting to US$ 1.63 billion in more than 70
countries
Lines of Credit (LOC): A catalyst for trade promotion
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Exim India
Lines of Credit Extended to Africa
33 LOCs currently in operation in Africa amounting to US$ 1 billion
Countriescovered includeAngola, Burkina Faso, Burundi,Chad,Comoros,
Congo, Cote dIvoire, Djibouti, Equatorial Guinea, Egypt, Eritrea, Ethiopia,
Gambia,Guinea Bissau, Kenya,Lesotho,Malawi,Mali,Mauritius,Morocco,Mozambique, Niger, Rwanda, Senegal, Seychelles, Somalia, South Africa,
Sudan,Tanzania,Togo, Uganda,Zambia& Zimbabwe.
Institutionsinclude:
- ABSA Bank, South Africa
- Offshore Development Company, Namibia
- Eastern and Southern African Trade & Development Bank (PTA Bank)
- West African Development Bank (BOAD)
- Eastern African Development Bank (EADB)
Facilitates import of project-related equipments and services
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Exim India
Supported 127 overseas ventures by 104 Indian companies in 44 countries.
Aggregate loans extended amount to approx. US$ 470 mn.
Term loan towards equity of Indian company (promoter funding)
Term loan towards Indian promotersloans to overseas Joint Ventures (JVs):
Term loan or working capital directly to JVs
Term loan to overseas JVs for import of plant and machinery and services
from India; Can be structured as supplierscredit or buyerscredit / LOC
Exim Bank also undertakes direct equity participation in Indian ventures
abroad to enhance credibility and acceptability of Indian ventures overseas.
Facilitates value addition, contributes to capacity building & capability
creation in host countries
Overseas Investment Finance
Exim Bank: Facilitating Indian
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Exim India
Exim Bank: Facilitating IndianInvestment in Africa
Indicates presence of Indian companies in some of the countries in Africa in
the form of joint ventures, supported by Exim Bank.
Mauritius Infotainment Sector
Kenya Precured Tread Rubber
Morocco Fertilisers & Chemicals
Uganda Pharmaceuticals
South Africa Computers
Zambia Precious stones
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Exim India
Support Activities
Cooperation arrangements with International Finance Corporation
(World Bank Group) to facilitate utilisation of Indian consultancy
services: Africa Project Development Facilities
Publications of export related research papers and newsletters
Sector Studies & Coun try Studies (Occasional Paper/Working Paper
series)
Expo rt Ad vantage (Quarter ly)
Ag ri-Expor t Ad vantage (Bim on thly in 10 region al languages)
Indo-Afr ica Bu siness (Quarter ly)
Multilateral Funded Projects tracks opportunities and offers value
added information, advisory & support services to Indian companies to
enable their participation
Exim Bank - A Partner Institution to
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Exim India
Exim Bank - A Partner Institution toPromote Economic Development in Africa
Provides I nformation, Advisory &
Support Services to facil i tate
participation of I ndian companies in
Af r ica in projects, supply & services
contracts funded by mul ti lateral
agencies such as Afr ican Development
Bank, Af rexim Bank,PTA Bank, East
Af r ican Development Bank, World
Bank.
Examples of Funded Projects in Africa executed by Indian companies:
Supply of Pharmaceuticals; Ghana Sewerage Study; EthiopiaTransmission Lines; Kenya Telecom Project; Malawi
Supply of Earth Moving Equipment; Tunisia Sugar Plant; Nigeria
Railway Restructuring Project; Tanzania
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Exim India
International Finance Corporation, Washington under
the following arrangements:
Consultancy Support Services: Tie ups in Africa
Af r ica Project Development Facil ity (APDF)
Afri ca Enterpri se Fund (AEF )
Technical Assistance & Trust Fund (TATF)
Eastern & Southern Af r ican Trade & Development
Bank (PTA Bank)
Af r ican Management Services Company (AMSCO)
Under Government of I ndia-Af r ican Development
Bank Cooperation Agreement
Tie-up with
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Exim India
Indian Consultancy Assignments in Africa
Ghana Refrigeration
Cameroon Cement
Nigeria Poultry
Kenya Financial Training
Madagascar Software
Zambia Gems & Jewellery
Uganda Nutri -Product Factory
Tanzania Accounting
Namibia I nvestment
Promotion
Mauritius Software
Gambia Paper
Zimbabwe Printing Press
Indicates assignments completed by Indian Consultants in AfricaContributes towards private sector developmentinhost countries
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Exim India
Design and implementation of Export Finance Programmes ofIndustrial Development Corporation, South Africa
Exim Bank: Partner in Institution Building
Consultancy assignment for the Government of Mauritius onMauritius as an Investment Hub for Indian Firms
Establishing the Afreximbank
Oth I iti ti i Af i
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Exim India
Other Initiatives in Africa Strong Relationship with African Development Bank (AfDB)
Co-financing Agreement with AfDB
Seminars organised with AfDB in major cities in India
CEO level delegations led by Exim Bank to AfDB
Institutional Linkages in Africa
Industrial Development Corporation of South Africa Limited (IDC)
Foreign Investment Promotion Agency, Tunisia
Banque Internationale Arabe de Tunisie
Board of Investment of Mauritius
Member of Association of African Development Finance Institutions
Oth I iti ti i Af i
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Exim India
Representative Officein Johannesburg, South Africa
Equity Stake in Afreximbank, West African Development Bank,
Development Bank of Zambia
In-house research studieson Africa:
Studies on Indias Trade and Investment Potential - Select COMESA
Countr ies; Southern Afr ican Customs Union (SACU); SADC Countr ies;
South Afr ica
Snap Market Survey for Indian Pharmaceut icals Products in South Afr ica
Strategy for Quantum J ump in Exports: Focu s on Afr ica, LAC and China
Other Initiatives in Africa
Key partner institution in India-Africa Conclavesheld in March &
November 2005 in New Delhi
E i B k P t i D l
t
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Exim India
Exim Bank : Partner in Development
Technology
Capital
(Foreign Investment)
Raw Materials
Capital Goods
Final Products
Capital Goods
Capital
(Overseas Ventures)
Product
Development
Production
Marketing
Pre shipment
Post shipment
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Exim India
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