India-Africa strengthen trade ties; ATI receives US$ 10 mn
India has taken a long-term view of its engagement with African countries by participating in existing institutions, and it has recently added
Aug 17, 2018: India has taken a long-term view of its engagement with African countries by participating in existing institutions, and it has recently added more to Africa’s developmental plan by investing US $10 million in the African Trade Insurance Agency (ATI).
The Export Credit Guarantee Corporation of India (ECGC) will represent the government’s shareholding in ATI. ECGC’s most recent results show the company has US$ 99 billion in exposures and it insures 32 percent of India’s exports. ECGC has operated in Africa since the 1960s with plans to deepen its engagement in Africa.
“India’s membership in ATI is a landmark development for a symbiotic relationship between the two fastest growing regions in the world. It is indeed a proud moment to be the first non-African state shareholder of ATI. This partnership will not only give a fillip to the bilateral trade but also will contribute towards development of projects and enhance capacities and skills,” noted Geetha Muralidhar, chairman and MD, ECGC.
The partnership is expected to help ECGC leverage its capacity to support even greater volumes of Indian exports into Africa. For ATI, India’s investment enables it to provide much needed capacity to the continent.
“We are delighted to welcome the Government of India to the ATI family. This is a historic initiative that is also important because it underscores the possibilities of South-South cooperation and for developing regions to partner more with each other – drawing on natural synergies to further each other’s development objectives,” commented George Otieno, ATI’s Chief Executive Officer.
The ties between Africa and India were strengthened even more after independence as African countries and India both emerged from colonial rule with a determination to develop their regions through an equal partnership. As a result, India is seen as a trusted partner in Africa.
The shareholding positions India as the first non-African government to become a member of the pan-African and multilateral investment and credit insurer with the expected result of boosting India’s trade with Africa.
The current India-Africa partnership includes implementation of 180 lines of credit worth US$ 11 billion in over 40 Africa countries and US$ 600 million in grant assistance. Today, India’s trade with Africa is over US$ 62 billion with plans to increase this volume further.