India

Background

  • The partnership between India and the African Development Bank Group (AfDB) is marked by a long history of cooperation spanning over 30 years when India became a member of the African Development Fund (ADF) in 1982 and of the African Development Bank (AfDB) in 1983.
  • India’s collaboration with the Bank Group is articulated around three main pillars: ADF replenishment, bilateral trust fund, and co-financing arrangements, in addition to the provision of resources for the implementation of the Multilateral Debt Relief Initiative (MDRI).
  • In November 2016, India pledged UA 13.31 million (INR 1.25 billion) for ADF-14. India also responded favourably to the Bank’s innovative financial instruments by pledging a Bridge Loan of UA 10.66 million (USD 14.94 million). India’s ADF-14 contribution represents an increase of India’s burden share by 12.6% to 0.319% in ADF-14 from 0.283% in ADF-13. India’s share of the MDRI cost is 0.270%.
  • India is the world’s third largest economy with a 6.4% share of Global GDP. India’s economic growth is expected to be 7.5 % in 2015-2016, followed by further acceleration to 7.8 % in 2016-2017 and 7.9 % in 2017-2018.
  • India has a long tradition of South-South co-operation and is expanding its partnership with Africa. At the 3rd India-Africa Forum Summit 2015 held in New Delhi, India announced a concessional credit line of US $10 billion to Africa in the next five years, in addition to the ongoing credit programme and grant assistance of US $600 million. India will earmark at least 15-20% of these lines of credit (LOCs) over the next five years for solar energy projects to be implemented under the aegis of the International Solar Alliance (ISA) and has expressed its willingness to partner with the Bank in the area of renewable energy.
  • India-Africa trade is expected to reach US $100 billion by 2018 attributed largely to initiatives by India’s private sector.

Joint initiatives

  • To enhance the development of private sector in Africa, the Export-Import Bank of India has sponsored several AfDB business opportunity seminars in India.
  • In May 2015, India and the AfDB signed a new Trust Fund for INR 600 million (US $9.5 million). Priority areas include: the provision of technical assistance in infrastructure and railway development; information and communications technology; science, technology and non-conventional energy; and knowledge-sharing of India’s development experience. Under the Trust Fund, India is interested in sharing its expertise in the implementation of the public-private partnership (PPP) model in Africa.
  • In 2015, the India Exim Bank established the Mauritius-based Kukuza Project Development Company in 2015, in partnership with the African Development Bank, the State Bank of India and Infrastructure Leasing & Financial Services Ltd. The facility will help develop a pipeline of bankable infrastructure projects in Africa.
  • In 2017, AfDB participated in the India-Africa Project Partnership Conclave, which was held in New Delhi, hosted by the Export-Import Bank of India, the Confederation of Indian Industry (CII), and the Government of India.  


Contacts

Karine Elisabet Isaksson
Executive Director, India
Tel: (225) 2026 20 20

Belinda Chesire
Principal Resource Mobilisation
& Partnerships Officer
Tel: (225) 2026 3611