Home   »   SBI and EXIM Bank - Trade...

SBI and India Exim Bank Bridge Trade Financing Gaps in Africa

The State Bank of India (SBI) and India Exim Bank are actively supporting businesses in African countries by addressing the trade finance gap, as highlighted by the South African heads of the two organizations during the India Entrepreneurs Forum (IEF).

Event Overview

  • The State Bank of India (SBI) and India Exim Bank are actively supporting African businesses by addressing the trade finance gap
  • This initiative was highlighted during the India Entrepreneurs Forum (IEF), initiated by Consul General of India, Mahesh Kumar.

Purpose of the Forum

  • To assist companies engaged in trade with India by enhancing their capacity.
  • Focus on helping smaller businesses navigate the complexities of trade finance.

Key Leadership Statements

  • Ashutosh Kumar (CEO, SBI): Emphasized SBI’s commitment to facilitating trade by funding local banks in Africa through syndications.
  • Shyamashish Acharya (Resident Representative, India Exim Bank): Discussed the Trade Assistance Programme (TAP) aimed at enhancing commercial banks’ capacity to support cross-border trade.

SBI’s Contributions

  • Offers bilateral credit lines to major multi-lateral institutions (e.g., Afri-Exim, Africa Finance Corporation).
  • Supports over 40 African nations to help Indian corporates with bank guarantee requirements.
  • Direct funding indirectly reaches smaller corporations, enhancing overall trade.

India Exim Bank’s Role

  • Active in 31 African countries, focusing on integrating India’s economic engagements.
  • Projects supported include IT solutions for national identity documents in Ethiopia and electrical network construction in Burundi.

Strategic Initiatives

  • The Trade Assistance Programme (TAP) aims to reduce trade finance gaps by enhancing credit instruments and enabling transactions in untapped markets.
  • Exploration of credit lines for South African banks for projects in neighboring countries like Zambia and Zimbabwe.

Collaboration Between SBI and India Exim Bank

  • Highlighted as complementary institutions rather than competitors.
  • Both banks adapt to changes in global trade practices, including potential shifts towards local currency transactions among BRICS nations.

Future Outlook

  • Continued support for African businesses to enhance their trade capabilities.
  • Ongoing commitment to building stronger financial connections between India and African nations.

State Bank of India

  • Chairman – Challa Sreenivasulu Setty
  • Headoffice – Mumbai, Maharashtra

EXIM Bank

  • Chairman – Ms. Harsha Bangari
  • Headoffice – Mumbai, Maharashtra
Summary/Static Details
Why in the news? The State Bank of India (SBI) and India Exim Bank are actively supporting businesses in African countries by addressing the trade finance gap
Purpose of the Forum – Assist companies engaged in trade with India by enhancing capacity.

– Focus on helping smaller businesses navigate trade finance complexities.

SBI’s Contributions – Offers bilateral credit lines to multi-lateral institutions (Afri-Exim, Africa Finance Corporation).

– Supports over 40 African nations for Indian corporates’ bank guarantees.

– Direct funding reaches smaller African corporations, boosting overall trade.

Strategic Initiatives – Trade Assistance Programme (TAP) aims to reduce trade finance gaps and enhance credit instruments.

– Exploring credit lines for South African banks for projects in Zambia and Zimbabwe.

State Bank of India – Chairman: Challa Sreenivasulu Setty

– Head office: Mumbai, Maharashtra

India Exim Bank – Chairman: Ms. Harsha Bangari

– Head office: Mumbai, Maharashtra

SBI and India Exim Bank Bridge Trade Financing Gaps in Africa_4.1

TOPICS: