India has increased its investment into East Africa with a US$13mn credit line to the government of Mozambique to fund a solar power equipment manufacturing plant.

The Export-Import Bank of India (India Exim) provided the loan, which sees the bank agree to reimburse 100% of contract values between Mozambique and Indian exporters.

This is the latest in a string of credit lines between India Exim and Mozambique, and the total now sits at US$173mn.

The bulk of loans have gone towards energy and agricultural infrastructure projects.

Furthermore, the state-run bank also has a significant portfolio in Ethiopia after a US$640mn loan was completed in March 2011 to help build the East African country’s sugar industry.

“Besides promoting India’s exports, India Exim’s [credit lines] enable demonstration of Indian expertise and project execution capabilities in emerging markets,” the bank says.