Bridging Trade Finance Gaps: India Banks Support African Markets

The State Bank of India and India Exim Bank are bolstering trade finance in Africa by aiding businesses with financial tools and support. Their initiatives aim to ease complexities for smaller enterprises, while expanding India’s economic footprint in the region through strategic partnerships and trade programs.

The State Bank of India (SBI) and India Exim Bank are taking significant steps to assist businesses in African countries by addressing trade finance gaps, as explained at the India Entrepreneurs Forum (IEF). The event, led by Consul General of India Mahesh Kumar, emphasized the importance of these initiatives in simplifying trade complexities for smaller enterprises.

SBI's CEO Ashutosh Kumar highlighted the bank's role in supporting African trade through funding South African banks and establishing bilateral credit lines. By investing in multilateral institutions and offering trade loans, SBI indirectly benefits smaller corporates in the region, ensuring extensive reach across over 40 African nations.

Meanwhile, India Exim Bank, represented by Shyamashish Acharya, discussed their Trade Assistance Programme aimed at closing the trade finance gap post-Covid. Operating in 31 African nations, their approach includes credit enhancement to empower commercial banks in underdeveloped markets, further solidifying India's trade presence in Africa.

(With inputs from agencies.)