Foreign Affairs CS Amina Mohammed petitions India to review credit terms

Foreign Affairs Cabinet Secretary Amina Mohammed has urged the India government to review its terms for extending a credit line to Kenya through the Indian Exim Bank, in a deal that includes other countries in Africa.

Under the framework of the India-Africa cooperation, India has offered Africa a line of credit for agricultural mechanisation.

Speaking on Friday during the India-Africa Business Council meeting in New Delhi, Amb Mohamed urged captains of business in Africa to jointly engage with the India government with a view to bringing down the costs of borrowing.

“The cost of borrowing is presently high and is a major constraint to business,” said the Cabinet secretary.

Under the arrangement, Kenya has been offered a credit line of Sh10.2 billion ($100 million) but the conditions for access, she reckons, are not favourable to the country.

At the same time, the CS called for establishment of a comprehensive monitoring and evaluation mechanism to facilitate tracking and mutual review of India-Africa commitments.

“This should be done as soon as possible to ensure implementation and accountability of commitments under India-Africa cooperation for the benefit of both regions,” explained Amina. Citing the East African Community, the CS said Africa was undertaking major reforms in trade and investment with a view to creating a conducive environment for private sector business activities.

The CS further said infrastructure, energy and SMEs development offer great opportunities for cooperation between India and Africa adding that Africa appreciates the investments that Indian companies have brought to the continent.

“We invite more investors to form partnerships and transfer skills and technology in infrastructure and industrialisation,” said the CS.

“We urge more investors to visit our countries and explore the available opportunities,” added Amina. During the Round Table on 10th WTO Ministerial Conference (MC10) that will be held in Nairobi in December, the CS called on Africa and India to work together to ensure continuity of the Doha Development Agenda post-MC10 in Nairobi.

Speaking during the meeting, Nirmala Sitharaman, Indian Minister of State for Commerce and Industry said her government is committed to strengthening India-Africa cooperation adding that India will work with Africa during the MC10. “India will work closely with Africa towards ensuring success of MC10 and in pursuing favourable outcomes,” said Nirmala.