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Africa Interest group set up to boost trade

Our Bureau

NEW DELHI, Jan. 18

THE Federation of Indian Chambers of Commerce & Industry (FICCI) and African Heads of Mission have set up an Africa Interest Group primarily to conceptualise ideas for promoting trade, investment, tourism and technology transfer between India and Africa.

This long-felt need for setting up of the Africa Interest Group stems from the realisation that commodity trade between India and Africa has been very low. The major reason for low quantum of trade are inadequate finance and banking infrastructure, accor ding to a FICCI release.

Four working groups have been set up. Each group has representatives from the African diplomatic missions, Government of India, Indian business and industry and academia in sectors such as agriculture and food processing, finance and trade, services and information exchange.

In order to improve the financial infrastructure, the working group on finance and trade which met here recently had suggested that the Indian financial institutions extend a line of credit which can catalyse the two-way trade. Flexibility also can be wo rked out into the arrangements by considering this credit in rupees instead of denominating it in dollars.

Apart from the line of credit, it was also felt that Exim Bank could consider extension of suppliers credit, pre and post-shipment finance, market development and advisory support services.

In order to create awareness about the various options in financing, it was also decided to hold a seminar for the benefit of African missions in India with the participation of financial institutions like Exim Bank, SIDBI, ECGC and some commercial banks .

It was proposed that the services of BISNET Africa, an

on-line service provided by FICCI, be further strengthened to disseminate timely information on tenders, creditworthiness of companies and various options on risk management.

The working group on agriculture and food processing, which met recently, had dwelt in detail on the possible tie-ups between the two countries in promoting small farming, land recovery, human resource development, research & development and also an exte nsion programme.

Stressing on human resource development for improving agriculture standards, it was felt that there is a need for improving agricultural standards through exchange of experts. It was also felt a few seats in agricultural universities in India can be rese rved for African students.