Businesses in India and East Africa are set to collaborate in sectors such as cotton and textiles, IT, leather, oil meal, spices, medical equipment and coffee under a programme rolled out by the International Trade Centre (ITC).

“We are mapping the business opportunities with entrepreneurs in both countries following which other details, including financing of projects, will be worked out,” Arancha Gonzalvez, Executive Director, ITC, told BusinessLine in an interview.

The Export Import (EXIM) Bank of India and industry body CII have partnered with ITC — a joint agency of the World Trade Organisation and the United Nations for enhancing trading capacities of developing countries — to identify potential trade partners from India and finance the ventures.

Gonzalvez is in New Delhi with a delegation of 200 business people from Rwanda, Uganda, Kenya, Tanzania and Ethiopia to launch the programme funded by UK’s Department for International Development (DFID).

“It (the programme) is not only about African countries exporting to India. It is also about Indian companies investing in Africa,” she said.

While ITC’s effort is to help African countries improve scale, technology and productivity, Indian investors too stand to gain a stronger foothold in the African market, which has been growing at 6-7 per cent over the last decade. “It makes sense for Indian companies to help African companies build these markets,” she said. Indian businesses, especially mid-size ones, have shown a lot of interest in the five East African countries ever since discussions on the programme began six months ago.

Key sectors

“Businesses in both countries and the EXIM Bank have identified sectors with potential such as cotton & textiles, IT, pulses, leather and medical equipment for possible cooperation. I expect deals in various sectors very soon. We will track the trade and investment generated under the programme so that we can expand it to other countries as well,” Gonzalvez said.

ITC and the Central government are helping to explain to the East African countries the export opportunities in India under the Duty Free Quota Free programme of the WTO for Least Developed Countries.

Financing investments of Indian companies in Africa will also not be a problem, as the EXIM Bank has existing lines of credit that could be tapped.

India’s exports to East African countries in 2013-14 were $10 billion, over 3 per cent of its total exports, while imports were stood at only $1 billion (0.23 per cent of total imports).

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