African Development Bank (AfDB) would like to accelerate engagement with Indian government in terms of doing business in Africa, AfDB President Akinwumi Adesina said during his first official visit to India.
AfDB has asked Indian companies to invest in African power, infrastructure and farming sectors as it wants strong engagement with the country in terms of doing business in Africa. African Development Bank (AfDB) would like to accelerate engagement with Indian government in terms of doing business in Africa, AfDB President Akinwumi Adesina said during his first official visit to India. “Rapid urbanisation and rapid growth of middle class will lead consumption demand, which is going to make Africa the place to be. The most important area for investment is power. Electricity, infrastructure and agriculture are other key areas,” he told reporters on sidelines of Exim Bank (India) interactive session with a visiting African delegation.
Almost 645 million people in Africa need to have access to electricity, suggesting huge business opportunity to investors from India, Adesina said. AfDB annual general meeting is going to be held next month in Ahmedabad where the funding agency is expected to invite business community in order to attract private sector funding. He said AfDB is working to minimise investment risks of overseas investors to pull-in more foreign direct investment. For African continent, India is the fifth largest in terms of foreign direct investment.
India’s exports to Africa grew from USD 7 billion during 2005 and 2006 to about USD 25 billion today. While Indian imports from Africa during the same time expanded from USD 5 billion to USD 31 billion, he added. Exim Bank MD David Rasquinha said out of its line of credit of about USD 2.5-3 billion every year, almost half goes for development projects in Africa. About USD 2.5 billion worth project developments are under pipeline for the continent, Rasquinha said. “We have also formed a joint venture with AfDB for project development growth that works with companies to come up with projects so that Indian companies can finance those. Africa gets around USD 1.2 billion line of credit from Exim Bank every year,” he further said.