NEW DELHI NOVEMBER 2004
REPUBLIC OF INDIA
Chairman and Managing Director of the Export and Import Bank of India
President of the Association of Indian Industries
Madame Executive Director of the African Development Bank Group
Ladies and Gentlemen
On behalf of the African Development Bank Group and my delegation, I wish to thank the Government of the Republic of India for the warm welcome ushered on us since we arrived in this beautiful and historic country. I would like to thank you Mr. Chairman, personally, for your initiative and efforts in bringing us together to undertake this Business Opportunities Seminar and for the excellent facilities that the Eximbank of India has made available to make this event successful. To you, the President of the Confederation of Indian Industries, I wish to commend for mobilizing such an impressive number of entrepreneurs to explore the prospects of enhancing their business ventures in Africa in partnership with the African Development Bank Group.
It is my fervent hope that by the end of these Seminars, the objective of attracting greater Indian business interest in Africa through the ADB, would have been met.
As most of you with business interests in Africa may know, there have been major positive changes on the African politico-economic scene in recent years. The overall effects of structural reforms and liberalization exercises have generated higher growth rates and better investment prospects in key sectors of agro-business and industry, mining and energy, infrastructure, as well as banking and financial services. Furthermore, the private sector has emerged as a viable alternative to state-led development, and privatization is being implemented in many countries of the region. New frontiers are therefore open for greater Indian trade and investment opportunities in Africa. More, of course remains to be done in establishing a conducive macroeconomic and business environment and the ADB together with its development partners including India, will continue to working on this endeavour.
I wish to seize the opportunity of this event to pay a special tribute to the Indian government for the leadership role that the country continues to play over the years to demonstrate political and human development in the Third World and the tremendous effort to lift a sizable number of its population from poverty. We in Africa are cognizant for the longstanding Indian contributions made to the development of the continent in spite of the country’s own development challenges. The various initiatives namely, a total of over US$110 million lines of credit to various African countries to facilitate the importation of goods and services from India; the writing off about US$20 million last year of debt owed by poorest countries in the world, a large number of which are African; the Afro-Indian Conference on the theme “India and NEPAD: Furthering India and Africa Economic Cooperation” in the year 2002; and the recent proposal by India to create a US$ 200 million Line of Credit in support of NEPAD projects, just to name a few, are indeed remarkable.
We are aware of the synergy that exists between Africa and India, a longstanding development partner, a provider of goods and services at prices that are more competitive than the Western world, and wish to explore through south-south collaboration some of its technological advances made to reduce the degree of poverty in Africa and attain some of the Millenium Development Goals.
Ladies and Gentlemen
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Permit me to say a few words on developments in the Bank Group. The African Development Bank (ADB) started its lending operations in 1967. Today, the Bank Group comprises the ADB, with an authorised capital base of US$ 32.5 billion; the concessional window, the African Development Fund (ADF), which has total contributions of over US$18.7 billion; and the Nigerian Trust Fund (NTF), with the contribution of the Nigerian Government to US$558 million. Over the years, the Bank Group has mobilized and deployed resources to finance projects and programmes; provide technical assistance; and support the establishment of development institutions. In these areas, our Institution has made tremendous strides from its modest beginning in 1967 when the first loan was approved. Today, its commitments are made to over 50 African countries and multinational institutions, to support projects and programmes in all sectors. The Bank Group has, so far, made available to its regional member countries nearly US$ 50 billion in loans, grants, and debt relief and mobilized a further US$ 70 billion from co-financiers, for a total of US$ 120 billion. Over the last three years, its approvals have averaged nearly US$ 3 billion a year from its own resources. About a half of these resources have been allocated to low-income countries. In addition, it has mobilized a further US$ US$ 3.5 to US$ 4 billion a year from its co-financing partners. It enjoys a Triple “A” rating from all the well-known rating agencies in the world.
The total African Development Bank (ADB) membership is now 77 countries, with India holding 0.247 percent of the voting power. In the African Development Fund (ADF), India has made contributions accounting for 0.232 percent of the total share holdings. The contributions have enabled India to work, in concert with other donors, in the provision of financial and technical assistance supporting development programmes in Africa. In this regard, I should in particular mention the Technical Cooperation Agreement concluded between the Republic of India and the African Development Bank in July 1998, which has made available to the Bank US$ 4 million to finance the services of Indian consultants engaged by the Bank to carry out studies or provide Technical Assistance to African countries. I wish to seize this opportunity to invite the Indian Business community to take advantage of this grant, which we expect will be replenished in the nearest future, as an opening window into the consulting market of the African continent.
Ladies and Gentlemen,
The African Development Bank has been re-orienting its operations and implementing various reforms -- that are aimed at enhancing operational quality and fostering overall development effectiveness. In terms of lending priorities, considerable emphasis is being placed on activities supportive of poverty reduction. A substantial share of concessional resources especially are being channeled to projects and programmes in agriculture and the social sectors; and some programmes are directed and targeted at poverty reduction. Another important area of emphasis is private-sector promotion -- where we are leveraging our financing by acting as catalyst and mobilizer of private capital, both domestic and international. In respect of institutional change, specific reforms have been implemented in the major areas of operational quality, financial management, institutional organization, and overall governance..
I would like to seize this occasion to once again, thank the Government of India for its wholehearted support for the Bank Group’s institutional reforms, and the recent temporary relocation of the Bank Group to Tunis. Within such a strengthened Institution, the development partners in the Bank Group -- amongst which is the Republic of India -- can reinforce international cooperation and pride themselves of truly fulfilling the institution's noble development mandate for the betterment of the peoples of Africa.
As I believe you would gather from the Seminar today that there is scope for the Indian Business community to compete for contracts for goods and services generated by the Bank Group financed projects. The trends of Indian procured goods and services, we have perceived, have been on the decline in recent years and we see the success of this forum co-hosted with Eximbank of India, as a means of improving the situation.
Ladies and Gentlemen,
Let me end my remarks by saying how much we in Africa value our relations with India, and its support to the African continent. My visit here testifies to our appreciation of past collaborative efforts, and to our hopes for future expansion of our relations.
I thank you for your kind attention.