TAP supports cross-border trade transaction
The India Exim Bank has onboarded Absa Bank Ltd into its new trade facilitation initiative, Trade Assistance Programme (TAP), to increase trade with South Africa.
“The conclusion of Issuing Bank Agreement with ABSA opens up opportunities to facilitate incremental trade between India and Africa. Such support towards trade facilitation would complement and strengthen the growing economic engagement between India and Africa,” the Indian bank said in a release.
India Exim Bank has recently developed a new trade facilitation initiative Trade Assistance Programme (TAP) to provide support through credit enhancement to trade instrument(s), thereby enhancing the capacity of commercial banks/financial institutions in India to support cross-border trade transactions involving markets where trade lines are constrained or where the potential has not been harnessed.
India Exim Bank, through its global network of offices and wide range of financial, advisory and capacity building activities, has strived to play a catalytic role, as a key player, in promoting India’s international trade and investment relations with partner countries, while contributing to the internationalisation endeavours of Indian business.
The agreement was signed by N Ramesh, Deputy Managing Director of India Exim Bank and Anand Naidoo, ABSA Managing Executive in Mumbai, on 10 Nov 2022.
Ramesh highlighted that over the last few months, India Exim Bank has supported multiple trade transactions with several countries in South Asia, Africa and Latin America under the programme covering a wide range of sectors including agriculture, automotive parts, capital and engineering goods, food, iron & steel and textiles.
With the increasing diversification of India’s global trade towards developing countries, African countries have emerged as significant trade partners for India.
India Exim Bank was set up in 1982 by an Act of Parliament for coordinating the working of institutions engaged in financing exports and imports.
India Exim Bank, has over the years, played a catalytic role in facilitating India’s integration with the global economy by promoting, financing and facilitating India’s international trade and investment. The Bank’s range of programmes have helped Indian enterprises become competitive and develop a global footprint.
ABSA, a wholly owned subsidiary of the Absa Group, offers a range of retail, business, wealth management, corporate and investment solutions to customers and clients across South Africa. Absa Group is listed on the Johannesburg Stock Exchange and is one of Africa’s largest diversified financial services groups with a presence in 15 countries across the African continent, as well as offices in the United Kingdom and the United States. fiinews.com
