India Exim Bank’s facility for EBID targets long-term projects across Ecowas, with an initial focus on energy in Sierra Leone.
The Export-Import Bank of India (India Exim Bank – site) has approved a $40mn commercial credit line for the Ecowas Bank for Investment and Development (EBID – site), strengthening support for long-term development projects across West Africa. The agreement was signed on August 14.
Facility Scope and Purpose
According to India Exim Bank, the financing will be channeled through EBID for projects across member states of the Economic Community of West African States (Ecowas). EBID is expected to deploy the funds toward long-term initiatives across the region.
Expected Trade Impact
The facility is also anticipated to support trade flows from India to West Africa. As noted by Trupti Mhatre, a general manager within India Exim’s trade facilitation group, EBID will use the line for projects that include imports from India. “The credit line will be utilized for an energy project in Sierra Leone as well as other projects covering imports from India, supported by EBID,” Mhatre says.
Priority Sectors Outlined by EBID
In a related statement, EBID president George Agyekum Donkor underscored the institution’s sector priorities, citing a “need to expand investments in key sectors such as energy, health, transportation, agriculture and infrastructure, among others, to drive economic growth in West Africa while building resilience in an increasingly volatile global setting”.
Institutional Context
EBID is owned by the 15 Ecowas countries, Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo, and finances development projects through short-, medium- and long-term loans, equity participation, lines of credit, refinancing and other financial services.
Track Record of Collaboration
India Exim Bank first partnered with EBID in 2006 and has since provided over $1.1bn to the development bank for use in sectors including healthcare, electrification and infrastructure. The new $40mn line extends that relationship and adds targeted support for priority projects identified by EBID.
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