EXIM BANK: PARTNER IN AFRICA’S DEVELOPMENT

EXIM BANK: PARTNER IN AFRICA’S DEVELOPMENT

S.R. RaoChief General Manager

Export-Import Bank of India

Organisation for Economic Cooperation & Development

Paris, March 16-17, 2006

2

Exim India

India’s Foreign Trade & Indo-African Trade

Exim Bank of India : An Overview & Initiatives in Africa’s Development

Structure of PresentationStructure of Presentation

3

Exim India

India’s Foreign TradeIndia’s 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: Ministry of Commerce & Industry (MOCI), Government of India (GOI)

4

Exim IndiaIndia’s Services ExportsIndia’s Services Exports

51.3

16.3 17.120.8

25.0

36.7

18.414.6 13.8

17.1

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 India

5

Exim IndiaTrends in Software Trends in Software ExportsExports

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 2005-06P

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 Exports – Role of Exim BankSoftware Exports – Role of Exim Bank

Exim Bank associated with development of Indian software

industry 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)

Indo-African Trade RelationsIndo-African Trade Relations

8

Exim India

Indo-African Trade Indo-African Trade RelationsRelations

23602897 3140

3869

5382

20632616

34473208

3758

4424

5513

65867078

9140

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

2000-01 2001-02 2002-03 2003-04 2004-05

(US

$ m

n)

Exports Imports Total Trade

Source: Ministry of Commerce & Industry (MOCI), Govt. of India (GOI)

Note: Import data do not include oil imports

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Exim India

India’s Major Trade Partners in Africa, 2004-05India’s Major Trade Partners in Africa, 2004-05

South Africa17.8%

Nigeria11.4%

Egypt7.9%

Kenya7.7%

Sudan5.7%

Togo4.9%

Others29.4%

Libya3.2%

Ghana3.2%

Algeria4.2%

Mauritius4.6%

Exports (% share)

South Africa57.3%

Morocco6.8%

Cote d'Ivoire 4.2%

Others12.5%

Guinea-Bissau1.9%

Ghana1.3%

Tanzania3.4%

Senegal4.5%

Benin2.1%

Tunisia2.3%

Egypt3.6%

Imports (% share)

Source: MOCI, GOI

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Exim India

Major Items of Trade, 2004-05Major Items of Trade, 2004-05

Others20%

Raw Cotton3%

Metaliferrous ores6%

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 rice8.1%

Pharmaceuticals 8.4%

Mfgs. of metals9.6%

Petroleum prdts.13.0%

Manmade yarn & fabrics

3.8%

Others24.5%

Exports (% share) Imports (% share)

Source: MOCI, GOI

Exim Bank of India – Exim Bank of India – An Overview & Initiatives An Overview & Initiatives in Africa’s Developmentin Africa’s 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 country’s international trade…”

“… shall act on business principles with due regard to public interest”

(Export-Import Bank of India Act, 1981)

Exim Bank of IndiaExim Bank of India

13

Exim India

Leadership and Expertise in India’s Export Finance

Comprehensive Range of Products And Services

– All Stages of the Business Cycle –

1982-85

1986-94

ExportExportCreditsCredits

Exim Bank TODAY

Export Capability Creation

Product Centric Approach

Customer Centric Approach

“To develop commercially viable relationships with a target set of externally oriented companies by

offering them a comprehensive range of products and services, aimed at

enhancing their internationalisation efforts”

Evolving VisionEvolving Vision

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Exim India

Organisation: Network of OfficesOrganisation: Network of Offices

HEAD OFFICE

MUMBAI

Domestic Offices

9 MumbaiKolkata, Bangalore AhmedabadGuwahati

Delhi Chennai Hyderabad Pune

OFFICES IN INDIA

OFFICES OVERSEAS

Overseas Rep. Offices

5 Washington D.C.SingaporeJohannesburg

London Budapest

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Exim India

Range of Products & ServicesRange of Products & Services

Pre-Shipment

Export Marketing

Export Production

Export Product

Development

Import Finance

Advisory Services

Investment Abroad

Post-Shipment

Presence Across All Stages of Business Cycle

INFORMATION

Advisory Services

Knowledge Building

SUPPLEMENTS FINANCING PROGRAMMES

Value Based Services

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Exim India

Business StrategyBusiness Strategy

FINANCING PROGRAMME ADVISORY SERVICES RESEARCH & ANALYSIS

Export Finance for Projects/Products/ Services/

Finance for Export Oriented Units:

Manufacturing Facilities/ Product Development/ Export Marketing

Finance for Agri Export Business

Overseas Investment: Equity Loan/ Equity

Investment Overseas

Opportunities in Multilateral Funded Projects

Joint Venture Facilitation Service

Export Marketing Service for SMEs

Sector Studies on potential export sectors

Country Studies on potential markets

THREE-PRONGED APPROACH

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Exim IndiaMajor ProgrammesMajor Programmes

Su p plie r 's & Bu yer 's Cred it

P re -Sh ip m en t Cred it

G u aran tees & L /Cs

PR O JEC TS

L in es of C red it

P re -Sh ip m en t Cred it

Po st-Sh ip m en t Cred it

PR O D U C TS

Su p plie r's Cred it

B u yer 's Cred it

SER VIC ES

EXPORT CREDIT

TER M LO AN S

W O R K IN G C APITAL

EXPO R T M AR K ET/EXPO R T PR O D U C T D EVELO PM EN T

EXPO R TFAC ILITATIO N

O VER SEAS IN VESTM EN TFIN AN C E

D IR EC T EQ U ITY PAR TIC IPATIO NIN IN D IAN EXPO R TIN G C O s

D IR EC T EQ U ITY PAR TIC IPATIO NIN IN D IAN O VER SEAS VEN TU R ES

IM PO R T FIN AN C EC APITAL G O O D S, R AW M ATER IALS

FINANCE FOR EXPORTING COS

EXPO R T M AR K ETIN GSER VIC ES

M U LTILATER AL FU N D EDPR O JEC TS

JO IN T VEN TU R EFAC ILITATIO N

C O N SU LTAN C Y SU PPO R T

W O R K SH O PS & SEM IN AR S

IN FO R M ATIO N SER VIC ES

VALUE-ADDED SERVICES

… encompass all sectors of the economy

… Agriculture, Industry and Services.

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Exim India

Support for Execution of Support for Execution of ProjectsProjects

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 ContractsNo. of Contracts :: 190190

Value of ContractsValue of Contracts :: US$ 6 bnUS$ 6 bn

No. of CountriesNo. of Countries :: 4242

Projects currently under execution with Exim Bank support

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Exim India

Exim Bank: Facilitator in Project Exim Bank: Facilitator in Project

Execution 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

20

Exim India

Support for Sourcing Equipment / Support for Sourcing Equipment / ProjectsProjects

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 Lines of Credit Extended to AfricaAfrica

33 LOCs currently in operation in Africa amounting to US$ 1 billion

Countries covered include Angola, Burkina Faso, Burundi, Chad, Comoros,

Congo, Cote d’Ivoire, 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.

Institutions include:

- 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

22

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 promoter’s loans 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 supplier’s credit or buyer’s credit / 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 Overseas Investment FinanceFinance

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Exim India

Exim Bank: Facilitating Indian Exim Bank: Facilitating Indian Investment in AfricaInvestment 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 IndiaSupport ActivitiesSupport 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 & Country Studies (Occasional Paper/Working Paper

series)

Export Advantage (Quarterly)

Agri-Export Advantage (Bimonthly in 10 regional languages)

Indo-Africa Business (Quarterly)

Multilateral Funded Projects – tracks opportunities and offers value

added information, advisory & support services to Indian companies to

enable their participation

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Exim India

Exim Bank - A Partner Institution to Exim Bank - A Partner Institution to Promote Economic Development in AfricaPromote Economic Development in Africa

Provides Information, Advisory & Support Services to facilitate

participation of Indian companies in Africa in projects, supply & services

contracts funded by multilateral agencies such as African Development Bank, Afrexim Bank,PTA Bank, East

African Development Bank, World Bank.

Examples of Funded Projects in Africa executed by Indian companies:

Supply of Pharmaceuticals; Ghana Sewerage Study; Ethiopia Transmission Lines; Kenya Telecom Project; Malawi Supply of Earth Moving Equipment; Tunisia Sugar Plant; Nigeria Railway Restructuring Project; Tanzania

26

Exim India

International Finance Corporation, Washington under

the following arrangements:

Consultancy Support Services: Tie ups in AfricaConsultancy Support Services: Tie ups in Africa

Africa Project Development Facility (APDF)

Africa Enterprise Fund (AEF)

Technical Assistance & Trust Fund (TATF)

Eastern & Southern African Trade & Development Bank (PTA Bank)

African Management Services Company (AMSCO)

Under Government of India-African Development Bank Cooperation Agreement

Tie-up with

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Exim IndiaIndian Consultancy Assignments in AfricaIndian 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 Investment Promotion

Mauritius Software

Gambia Paper

Zimbabwe Printing Press

Indicates assignments completed by Indian Consultants in Africa Contributes towards private sector development in host countries

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Exim India

Design and implementation of Export Finance Programmes of Industrial Development Corporation, South Africa

Exim Bank: Partner in Institution BuildingExim Bank: Partner in Institution Building

Consultancy assignment for the Government of Mauritius on “Mauritius as an Investment Hub for Indian Firms”

Establishing the Afreximbank

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Exim India

Other Initiatives in AfricaOther 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

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Exim India

Representative Office in Johannesburg, South Africa

Equity Stake in Afreximbank, West African Development Bank,

Development Bank of Zambia

In-house research studies on Africa:

Studies on India’s Trade and Investment Potential - Select COMESA

Countries; Southern African Customs Union (SACU); SADC Countries;

South Africa

Snap Market Survey for Indian Pharmaceuticals Products in South Africa

Strategy for Quantum Jump in Exports: Focus on Africa, LAC and China

Other Initiatives in AfricaOther Initiatives in Africa

Key partner institution in India-Africa Conclaves held in March &

November 2005 in New Delhi

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Exim India

Exim Bank : Partner in Exim Bank : Partner in DevelopmentDevelopment

Technology

Capital

(Foreign Investment)

Raw Materials

Capital Goods

Final Products

Capital Goods

Capital

(Overseas Ventures)

Product

Development

Production

Marketing

Pre shipment

Post shipmentVALUEVALUE ADDIT

ION

ADDITIO

N

EXPORT

EXPORT

MMII

TTRR

OOPP

32

Exim India

THANK YOUTHANK YOUTHANK YOUTHANK YOU

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