- East Africa
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Ethiopia: Indian bank to open African office in Addis
The bank wants its Eastern African branch established in Ethiopia
The Export and Import Bank (EXIM) of India has been negotiating with officials of the Ethiopian government to open its East African branch in the Ethiopian capital, Addis Ababa.
In 2008, the board directors of the EXIM approved establishing their East African office in Addis Ababa as the ideal regional site, the first secretary of Indian Embassy to Ethiopia has said.
According to the secretary, the negotiations have so far yielded a positive feedback from the Ethiopian government, however, there are other issues to be resolved.
If the final negotiations favour the establisment of the bank in Addis Ababa, the Export and Import Bank will have its third office in Africa, thereby consolidating the growing investment interests of Indian companies on the continent.
The secretary also indicated that the opening of their Ethiopian branch would allow for a much easier process of scrutinizing loan requests of Indian companies.
Recently, the Indian Government accepted an Ethiopian project proposal while offering a 640 million dollar soft loan for two expansion projects at the Fincha and Wonji sugar factories as well as the construction of a new factory at Tendaho in Afar Regional State.
The loan is the largest single line of credit India has extended to a foreign country.
The two government’s agreement stipulates that Indian companies will be responsible for the construction of the project. It also states that all machineries should be procured from India.
Three Indian companies are currently working on the projects in line with the official agreement.