Export-Import Bank of India (India Exim Bank) signed a $40 million commercial credit line agreement with the ECOWAS Bank for Investment and Development (EBID).
Key Highlights
- Agreement Purpose: To finance long-term projects across West Africa, boosting Indian exports and creating opportunities for Indian businesses.
- Sectors Covered:
- Energy Project in Sierra Leone
- Infrastructure, agriculture, transportation, health, and social development projects.
- Location of Agreement: London.
- Strategic Importance:
- Strengthens India–Africa economic ties.
- Promotes South-South cooperation (mutual growth of developing economies).
- Helps West Africa overcome financing gaps in energy, food security, transport, and healthcare.
India’s Role in Africa
- India Exim Bank has made Africa a key pillar of international operations.
- Since 2006, Exim Bank has extended 6 credit lines worth $1.14 billion to EBID.
- Indian contractors and exporters are actively engaged in power plants, road networks, and infrastructure projects in Africa.
- Indian goods and services are seen as cost-effective, adaptable, and resilient in African conditions.
Significance For
India:
- Opens new markets for Indian exporters.
- Expands India’s strategic influence in Africa.
- Enhances India’s reputation as a reliable development partner.
Africa/ECOWAS:
- Addresses infrastructure & energy deficits.
- Enhances food security & health systems.
- Builds resilience against global disruptions like energy price shocks & climate change.
Global Order:
- Strengthens South-South Cooperation (emerging economies supporting each other).
- Reduces reliance on traditional Western aid/donors
ECOWAS (Economic Community of West African States):
- Founded: 1975 (Treaty of Lagos).
- HQ: Abuja, Nigeria.
- Members: 15 countries → Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, Togo.
- Purpose: Promote economic integration and regional stability in West Africa.
ECOWAS Bank for Investment and Development (EBID):
- Development Finance Institution of ECOWAS.
- Established: 1975.
- HQ: Lomé, Togo.
- Owned entirely by the 15 ECOWAS Member States.
- Provides loans, equity participation, refinancing & credit lines for development projects.
About EXIM Bank of India
- Established: 1982 (under the Export-Import Bank of India Act, 1981).
- Headquarters: Mumbai.
- Ownership: 100% Government of India
- Role:
- Promotes India’s international trade & investments.
- Provides finance, advisory & capacity-building support.
- Coordinates with other export–import financing institutions.
Key Facts
- India–Africa Relations:
- India hosted the India–Africa Forum Summit (IAFS) III in 2015 (New Delhi).
- Africa is a major partner under India’s development diplomacy, with credit lines worth $12+ billion offered.
- India is among the top 5 trading partners of Africa.
- India Exim Bank Fact: It is India’s principal export finance institution, similar in function to the US Exim Bank or China Exim Bank.
- ECOWAS Fact:
- It is one of the largest regional blocs in Africa (population 400+ million).
- ECOWAS also has a peacekeeping arm – ECOMOG (ECOWAS Monitoring Group).