| Date: |
27-06-2015 |
| Subject: |
Tanzania signs a $268 million agreement with Exim Bank |
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MUMBAI: Exim Bank ( Export-Import Bank of India) has extended a line of credit with the government of Tanzania for $268 mn.
The funds would be used by the Tanzania government for financing the extension of Lake Victoria pipeline to Tabora, Igunga and Nzega in Tanzania, a statement from Exim Bank said.
"Vehicles from India along with spares and Training in operation and maintenance to the Department of Police Force, Ministry of Home Affairs, Government of the United Republic of Tanzania," a statement from Exim Bank said. Till date the bank has sanctioned about $2.33 billion for 19 projects in Tanzania. The total cost of these projects is anywhere around $3.75 billion.
This is the fourth line of credit (LOC) extended by the Exim Bank to Tanzania. The LOC is extended to the African nation on the behest of the government of India. The first LOC of $40 million was extended, for financing supply of tractors, pumps and equipment to Tanzania. The second $36.56 million was extended, for financing the purchase of vehicles. The third LOC of $178 million was extended for financing augmentation of water supply schemes of Dar-es-Salaam and Chalinze regions in Tanzania, the Exim Bank said.
India exports petroleum products, pharmaceutical products, transport equipments and fabrics. While India imports cashew nuts, pulses, metal ferrous ores, wooden products and pearls from Tanzania. Currently the total trade between the two nation stands at around $ 31 billion in favour of India according to the latest figures obtained from the government.
Many Indian companies have been looking at Africa as a huge opportunity due to the growth prospects of countries like South Africa, Kenya and Nigeria. However, Indian companies, mainly driven by entrepreneurs, have not been able to make a mark when compared to their Chinese counterparts, most of them being public entities.
Source : economictimes.indiatimes.com
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