The India Exim Bank has provided a $100 million loan to the Africa Finance Corporation (AFC) to bolster India’s project exports in Africa. This new loan supplements a previous $100 million facility granted in August 2021 and another $100 million credit line in March 2026, aimed at supporting Africa’s economic recovery post the Covid-19 pandemic.
India’s engagement with Africa has diversified into a multi-faceted partnership, with trade being a key driver of development. India has emerged as a significant trading partner for Africa, not only offering economic collaboration but also investing in infrastructure, capacity building, and technology transfer. In the fiscal year 2024-25, India’s total trade with Africa reached $81.90 billion, with exports amounting to $42.70 billion.
The Africa Finance Corporation (AFC) is a pan-African multilateral financial institution dedicated to infrastructure investments across the continent. The AFC comprises 48 sovereign member states, focusing on enhancing infrastructure development in Africa.
The loan announcement precedes the upcoming 4th India Africa Forum Summit scheduled for May 31 in New Delhi. The summit aims to enhance cooperation in various sectors such as economy, trade, defense, energy, agriculture, health, education, and climate action. The event will be attended by top African leaders, with preceding meetings of senior officials and foreign ministers.
India is Africa’s fourth-largest trading partner and ranks among the top five investors in the region. Trade between India and Africa for the fiscal year 2024-25 amounted to $81.99 billion, with India’s exports valued at $42.6 billion and imports at $39.2 billion. India has significantly expanded its diplomatic presence in Africa over the past decade, with numerous high-level visits and the establishment of new diplomatic missions across the continent.
