The India Exim bank will set its East Africa Representative office in Nairobi starting next month.
In a Cabinet meeting held on Monday, the Government acceded to the India EXIM banks’ request and approved it, paving way for legal processes for it to commence operations in Kenya.
According to a statement from the Office of the Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Press Service dated Tuesday, November 28 2023, the establishment of the banks’ operations in Nairobi is a confirmation of the confidence Kenya has in the global business environment and the competitive edge of Nairobi as a regional financial hub.
“In the short-term, the Bank will create employment opportunities for Kenyans and deepen their skills in the sector.
In the long-term, collaboration between Kenya and the Bank will support national development priorities.”
The bank has previously provided financial support to Kenya in respect to development projects in the energy, textile and apparel and agricultural sectors and also in the small and medium scale enterprises.
India Exim Bank is a financial institution fully owned by the Government of India purposely to provide and disburse concessional lines of credit to developing countries, including Kenya.
The dominant viewpoint for its inception was that in India’s case, expansion in domestic demand alone could realistically serve as the engine for economic growth, since export expansion opportunities were limited and there were fundamental constraints like inadequate infrastructure to export growth.
“Therefore, its physical presence in Nairobi will greatly enhance interaction with Kenya and other regional countries.
In addition, it will enhance financial cooperation between India and African countries, especially Kenya,” read the statement.
The process of industrial development in India promoted through the import substitution strategy provided an impetus to the growth of a large and diversified industrial base, and a number of emerging industrial sub-sectors proved to be internationally competitive thus giving the financial institution the muscle to spread its wings globally.
By identifying their business goals, and inspiring them to compete internationally, India Exim Bank products have largely helped the financial institution to expand their boundaries thus Kenya becomes its new destination.
“We aim to help exporters to evaluate international risks and tap opportunities with the right insight.
Our in-depth country and sectoral studies provide exporters the necessary tools to tackle international business challenges and tap newer markets,” states part of the banks’ core service goal.