The Hindu Business Line : Ethiopia seeks early release of $100-m line of credit

THE visiting Finance and Economic Development Minister of Ethiopia, Mr Sufian Ahmad, will negotiate terms and conditions for early release of a $100-million line of credit from India to Ethiopia with the Union Finance Minister, Mr P. Chidambaram.

This would be done in a bid to attract Indian investments and help Indian companies set up manufacturing bases in segments such as sugar, power, roads, railways, agriculture, health, education, and material projects.

Participating in an interactive session on business opportunities in Ethiopia, organised by Assocham, Mr Ahmad said that 150 Indian companies have already set up manufacturing bases and a timely release of the line of credit would help another 100 Indian corporates set up business in the country.

Mr Ahmad also said that the Ethiopian Government will offer counter guarantees for credit extension undertaken by the Indian Government to ensure that all aid and grant going to Ethiopia are utilised to their optimal level.

In the meanwhile, the Ethiopian Government has asked its central bank to frame detailed guidelines and work out other procedural mechanisms so that joint venture deals are struck between corporates of both countries under India's focused African programme.