Growth potential in Africa-India trade route

India's exports to Africa have seen a remarkable increase, surging ahead by over 100 percent from 2008 to 2013, outpacing the United States. Despite benefiting from Africa's robust economic growth, exports to India remain lower than expected. At the Afreximbank Annual Meetings in Kigali, CNBC Africa's Arnold Segawa discussed the trade potential with Harsha Bangari from India's Exim Bank. Bangari highlighted the collaborative efforts between India's Exim Bank and Afreximbank in exploring various funding transactions in Africa. The partnership extends to working closely with regional development financial institutions like Afreximbank, AFTP, PTA Bank, and West African Development Bank. This strategic approach aims at facilitating lending operations and managing risks effectively in African countries. One key aspect emphasized by Bangari is India's Exim Bank's focus on export promotion and fostering two-way trade relationships, rather than solely profit-making. As a government-owned export credit agency, the bank operates with the goal of encouraging investment and trade without the pressure of profit targets. This approach allows for a self-sustaining model while ensuring financial soundness. Addressing the concerns of political risks in cross-border transactions, Bangari explained the risk mitigation strategies employed by India's Exim Bank. These include utilizing government guarantees for lending to countries, obtaining insurance cover through the National Export Insurance Account, and conducting thorough due diligence for commercial lending projects. By diversifying risk management tools, the bank aims to safeguard its balance sheets and enhance financial stability. With Africa's GDP projected to surpass 1.3 trillion, slightly ahead of India, Bangari highlighted the importance of adopting best practices for sustainable growth. He emphasized the mutual learning between India and Africa, with a focus on developing comprehensive programs to support the continent's growth requirements. The discussions at the Exim AGM 2017 in Kigali underscored the immense potential for trade collaboration between India and Africa, paving the way for strategic partnerships and innovative approaches to drive economic development across the region.