New Delhi, April 22 (IANS) India is expanding its financial footprint in Africa through strategic lending and trade partnerships and its Export‑Import Bank lent Africa Finance Corporation (AFC) a $100 million five‑year loan, a new report has said.
The report from Business Insider Africa said the loan underlined India’s expanding financial footprint in Africa, where New Delhi has been increasing trade, investment and export‑credit support competing with China, Europe, Gulf states and the United States for influence and commercial ties.
The loan to AFC will provide fresh medium‑term liquidity to support infrastructure and industrial projects across the continent amid higher borrowing costs for Africa due to tighter global capital markets.
“The facility, signed during AFC’s Investor Day in London, adds medium-term liquidity to the Lagos-based institution as many African borrowers continue to face elevated interest rates, weaker currencies and cautious international investors,” the report said.
The loan followed a similar $100 million arrangement from EXIM bank in 2021 and is intended to help close Africa’s large infrastructure financing gap.
The deal also highlighted India’s growing financial and commercial interest in Africa, where demand for roads, ports, power plants, rail lines, digital networks and industrial facilities continues to outpace available capital, according to the report.
“This facility is an important milestone in our long-standing partnership with India Exim Bank and reflects our shared commitment to advancing infrastructure development across Africa,” Banji Fehintola, AFC executive board member and head of financial services was quoted as saying.
Indian companies are already active across Africa in pharmaceuticals, agriculture, technology, manufacturing, mining and energy sectors with
African economies rely on India as an alternative pool of capital and expertise to fuel faster industrial growth.
The African Development Bank has previously estimated the continent requires $130 billion to $170 billion worth of funds annually for infrastructure, with a financing shortfall of up to $108 billion each year.
–IANS
aar/pk
