Related News

Export-Import Bank of India has extended a line of credit of US$33.5mn to the government of the Democratic Republic of Congo (DRC). Out of this, US$13mn has been earmarked for setting up a cement factory, US$12.5mn for acquisition of buses, US$6mn for rehabilitation of the Idsenge manganese mine and US$2mn for acquisition of equipment for Miniere de Bakwanga (MIBA).
Under the New Partnership for Africa’s Development (Nepad) initiative, India contemplates providing credit lines to countries in Africa to finance setting up of various projects by Indian companies in those countries. As part of this initiative, India has asked India Exim to extend the line of credit to the DRC. Under the credit, India Exim will reimburse 100% of contract value to the Indian exporters, upfront upon the shipment of goods.
The DRC, situated in Central Africa, is a large producer of diamonds. All sectors of the economy are improving, with mining, construction and trade contributing significantly to growth. In the short term, the services sector is likely to be the main driver of economic expansion.
GDP is forecast to grow at 6.5% in 2005 and 8% in 2006, says India Ex-Im. India’s exports to the DRC rose substantially by 40% to US$86mn in 2004-05 from US$61mn in 2003-04, mainly on account of rise in the exports of man-made yarn fabrics made-ups and drugs, pharmaceuticals and fine chemicals. The credit line will pave the way for boosting India’s trade with DR Congo, substantially, hopes the bank.