Linking Africa and India - new media

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Linking Africa and India - new media

www.indoafricanbusiness.comEXIM BANKNEWS MAGAZINE FOR INDO-AFRICAN REGIONAugust-October 2004Rs.100/-REACHING OUTTO A VIBRANTCONTINENTNEWMEDIAISSU EINAUGURAL


Issuen ThisBILATERAL TRADE10Synergy between India & AfricaUnlimited Trade & InvestmentPotential Awaits TappingT.C. Venkat SubramanianChairman & Managing Director, Exim BankFINANCEExim Bank Paves Trade Routeto Africa with Credit- Prabhakar R. DalalAVIATIONFlying on the Wings of Museinto the Magical Land ofQueen ShebaAto Girma WakeCEO (world-wide), Ethiopian AirlinesAVIATIONLinking Africa and India- Kenya AirwaysTitus NaikuniManaging Director & CEOPERSPECTIVE-L.C. Singh,President & CEO of Nihilent TechnologiesBPOBPO IrreversibleBusiness Impact Analysis-An Effective Tool forBusiness Continuity Planning- Prabhuu SinhaSection française193236384052-61Distributed by:New Media Communication Pvt. Ltd.in association withExport Import Bank of IndiaChairman: R. K. PrasadManaging Editor: Satya SwaroopDirector: B.K.SinhaEditor: Dev VaramExecutive Editor: C.P. NambiarConsulting Editors:Prabhuu Sinha & Rajiv TewariArt Director: Santosh NawarVisualizer: Maya VichareEditorial Team: Tripti Chakravorty,Rojita Padhy, Shruti Sinha &R. Parameswaran (Kerala)Head-Busi. Dev. : Veerendra BhargavaAsst. Manager: Anand KumarAccountant: Sudhir KarishettyAccount Asst.: VrindaCirculation: Sudip SarkhelBRANCHES:Kolkata:Anurag Sinha, Branch Manager, A-7/1,Satyam Park, 2nd Lane, Near 3A Bus Stand,Thakurpukur Kolkata- 700 104Tel: 098300 15667, 033-24537708Email:anurag@newmediacomm.bizPune:Geeta Khaladkar, Regional Head, Sahyog Apartments508, Narayan Peth, Patrya Maruti ChowkPune 411 030. Telefax: 020 24454642Email: pune@newmediacomm.bizThiruvananthapuram:R. Rajeev, Branch Manager, TC-17/1141,Sastha Nagar, Pangode, ThiruvananthapuramTel: 09847027163, 0471-2352769Email: rajeev@newmediacomm.bizAustralia Office:Bandhana Kumari Prasad, 129 Camboon Road,Noranda, Perth, W.A. 6062 Tel: 0061 892757447Email: bandhana@newmediacomm.bizInternational Marketing:G. Biju KrishnanE-mail: biju@newmediacomm.bizNew Media Communication Pvt. Ltd.,B/302, Twin Arcade, Military Road, Marol,Andheri (E), Mumbai - 400 059 IndiaTel: +91-22-28516690 Telefax: +91-22-28515279E-mail: enquiry@newmediacomm.bizwww.newmediacomm.comPrinted & Published by Satya Swaroop and printed atM/s Young Printers, A-2/237,Shah & Nahar Industrial Estate, Lower Parel,Mumbai- 400 013 and published fromB -302, Twin Arcade, Military Road,Marol, Andheri (E), Mumbai - 400 059 IndiaThe news items and information published herein have beencollected from various sources, which are considered to be reliable.Readers are however requested to verify the facts before makingbusiness decisions using the same.INDO-AFRICAN BUSINESS 04August-October 2004


EDITORIALDear Readers,Greetings. What you're reading is the inaugural issue ofIndo-African Business, yet another trans-continentalmagazine, ink-fresh from our steadily-growing printstable.Yes, we have caught up with Africa, the vibrantcontinent of infinite promise. Exploited and plunderedby the West for centuries, this land of hope has woken uplike a lion from a long slumber - hungry, angry andunstoppable. Africa today is aware of its vast strengthand wants to regain its wealth and self-respect. Africannations have organized themselves as a powerful union,set up their own forum to carry out the much-neededeconomic development programme across the continent. The New Partnership forAfrica's Development (NEPAD) has vowed to eradicate poverty and diseases from theface of Africa. We whole-heartedly support the African efforts and contribute our mite tothe development of a mighty continent on the march towards prosperity, progress andpeace. Realizing the importance of Africa from the point of view of bilateral trade, theIndian Commerce Ministry has evolved a “Focus Africa” programme. In this context, wesalute the initiative taken by the Export-Import Bank of India, which has recognized therich potential of a continent sitting pretty on vast, untapped natural resources. Inessence, an economically developed Africa can dictate terms to the world at large. T. C.Venkat Subramanian, Chairman and Managing Director of Exim Bank, captures in detailthe untapped economic potential of a continent that has opened its doors to unlimitedinvestment. In the same vein, Prabhakar R Dalal talks about the trade route to Africa thatthe Exim Bank has paved with credit. Then we have delved deep into two inter-relatedareas -- tourism and aviation. We bring to you an exclusive interview with Ato GirmWake, CEO (world-wide) of Ethiopian Airlines. Yes, it's the national air-carrier ofEthiopia, once ruled by Queen Sheba, whose encounter with King Solomon, the Wise, isthe subject of Biblical folklore. While Wake's speaks of the airlines' expansion plans, hiscolleague, Ayenew Alemneh, who till recently looked after India and South East Asiabusiness, thinks the booming Indian economy will boost tourist flow into Africa. Thenwe have a report about how the sleek Tata Minibuses have rolled into Senegal, with awhole lot of other products slated to follow suit. As a pleasant diversion, we take you on aKenyan Safari, the mother of all such adventure tours in Africa.. We also present theHollywood's never-ending fascination for Africa. In the final analysis, Black is beautiful;the most luminescent and priceless; like the Black Pearl, prised out of the oyster from theazure waters, off the dream island of Mauritius. Or simply look into the eyes of anAfrican child, you'll understand. That's Africa for us. We're hooked to it. And so will yoube; from the very first issue onwards; forever.Wish you happy readingSatya SwaroopManaging Editorsatya@newmediacomm.bizINDO-AFRICAN BUSINESS 05August-October 2004


MESSAGEBilateral trade between India and the African region hasreceived a new impetus with several initiatives taken byGovernment of India and Exim Bank including extensionof new Lines of Credit, Exim Bank-IFC co-operationarrangements under Africa Project Development Facility,Government of India's Consultancy Trust Fund withAfrican Development Bank, Exim Bank's equity stake inAfrexim Bank and proposed stake in Development Bank ofZambia and West African Development Bank, Governmentof India's 'Focus Africa Programme' and the 'New Partnership forAfrican Development (NEPAD),' amongst others. India's oilexplorationcompany, ONGC has made significant investment inSudan and is looking for similar investments in Angola and otherAfrican countries. The region has significant potential for growth intrade and investment from India. 'Indo-African Business,' is aninitiative supported by Exim Bank, for promoting and facilitatingIndia's trade and investment with the African countries. This bilingual(English and French) magazine will be a facilitator in highlighting thepotential in the region and serve as a useful reference to the Indianbusiness enterprises seeking to expand trade with Africa.INDO-AFRICAN BUSINESS 06August-October 2004


MESSAGEI commend Mr Saya Swaroop for the initiative to launchthe Indo-African Business magazine. His otherpublication on Latin America has proved to be useful.These publications cover the areas which are emergingnew markets for India's exports. These regions have beenidentified by the Government of India for focused tradepromotion.These magazines will fill the information gap andencourage Indian exporters and business to explore theopportunities in these new marketsI wish success for both the magazines.R. ViswanathanJoint Secretary (Investment and Trade promotion)Ministry of External Affairs,Government of India"Congratulations again for yet another wonderfulinitiative in launching a bilingual trade magazine, thistime in order to boost trade with Africa. Importers andexporters in India and also from the African continentwould greatly benefit from it."Dr. V.S. GopalakrishnanDirector General, World Trade Centre, Mumbai.INDO-AFRICAN BUSINESS 07August-October 2004


MESSAGELaunching a timely and important Indo-African BusinessMagazine in association with the Export Import Bank ofIndia dedicated to enhancing India-Africa economicrelations is undoubtedly a well-thought of and significantinitiative. I am confident that this would stimulate theinterest of all concerned and would give momentum andfresh impetus to one of the basic ingredients in theframework of South-South Co-operation, namely aprosperous and all-round co-operation between India andthe continent of Africa.Relations between Africa and India are not relations offriendship. They are of kinship. Since the dawn of historythe peoples of the two regions came together and interacted.The Indian Ocean and Seas associated in the writings of historians,poets and voyagers with legends, wonders and beauty have never beenbarriers to such interaction between India and South, East, West andNorth Africa. These routes were and continue to be vehicles and carriersof trade, peoples and ideas.India and Africa share similar histories and legacies of colonialism aswell as struggle for independence. The fact that there is ample room forco-operation between Africa and India needs no elaboration. There existenormous opportunities in trade, investment, economic, scientific,technological, cultural and human resources development. Africa cangreatly benefit from the Indian experience in small and medium-scaleenterprises as well as in the area of food security and agro-processingalong with information technology and pharmaceuticals. Perhaps, thetime now is ripe for the establishment of necessary mechanisms for aprosperous Indian-African Union dialogue through which thispartnership both in private and public sectors, is expressed andchanneled. Towards the attainment of these objectives, I am sure that theIndo-African Business Magazine will greatly assist.Ambassador of the SudanINDO-AFRICAN BUSINESS 08August-October 2004


MESSAGEIt is a matter of pride and satisfaction that the historicalrelations between Ethiopia and India, marked by culturaland commercial links between the two ancient civilizations,have traversed a long path ushering into much closer bond offriendship in the 21 st century. Since the establishment ofdiplomatic relations in 1948, bilateral relations betweenthese sisterly countries have witnessed close andmultidimensional cooperation in trade, commerce, cultural,social and political fields. In the international arena also,whether in NAM or UN forums both countries havesupported and contributed to the causes of peace andharmony among nations of the world.These newly forged relations have opened up possibilities tostrengthen and expand cooperation in the areas of trade, human resourcedevelopment, agriculture, rural development and small-scale industries.Transformation of Ethiopian economy from centrally controlled to marketoriented, have brought wide opportunities for private foreignentrepreneurs to join hands with domestic entrepreneur for mutuallybeneficial joint ventures and projects. A few potential areas for investmentin Ethiopia are educational and technical training, water resourcesmanagement, pharmaceuticals and development of small-scale industries.Ethiopia is highly enriched country for the purposes of harnessing naturalresources and agro-industry development. Besides, one can also engage infruitful business activities in purchasing hides and skins, coffee, pulses andcotton, which are available in abundance and at competitive prices too inEthiopia.I am happy to note that New Media Communication Private Limited islaunching a quarterly magazine Indo-African Business in association withExport Import Bank of India. I hope that the magazine will provide muchneeded information for the Indian business community to take advantageof potential business opportunities in trade and investment especially inEthiopia and Africa in general. I extend my good wishes for the success ofthis venture.Dr. Teketel ForssidoAmbassador of the Federal Democratic Republicof Ethiopia to IndiaINDO-AFRICAN BUSINESS 09August-October 2004


BILATERAL TRADESynergy between India & AfricaUnlimited Trade &Investment PotentialAwaits TappingT.C. Venkat SubramanianChairman & Managing Director, Export-Import Bank of IndiaDespite the many challenges facing Africa,considerable progress has been achieved throughimproved macro-economic management and continuedstructural progress in many countries. This hasresulted from the strong commitments of many Africangovernments to prudent fiscal, monetary and exchangerate policies.Stimulus to sustained growth would emanate from thedeepening of reforms, structural transformation,rebuilding institutional capabilities and sound as well asefficiently managed macro-economic policies. The needfor African countries to redouble their efforts is firmlyarticulated in the New Partnership for Africa'sDevelopment (NEPAD). Reflecting the increasingresilience of the African countries to globaluncertainties, real GDP growth of Africa strengthened toan estimated 4.1 per cent in 2003, from that of 3.5 percent in 2002, and during 2004 is projected to increasefurther to 4.2 per cent. On the inflation front, improvedmacroeconomic policies have resulted in relatively lowinflation rate in most African economies.Since the commencement of operations of Export-ImportBank of India (Exim Bank) in 1982, the countries in theAfrican Continent have been a focus region, and thus acritical component of Exim Bank's strategy to promoteand support two-way trade and investment. Thiscommitment towards building relationships with theAfrican region is reflected in the various activities andprogrammes which Exim Bank has put in place with aview to create an enabling environment to facilitate andenhance bilateral commercial relations between Indiaand countries in Africa.Indo-African Trade RelationsSynergy that exists between India and Africa can begauged from the fact that bilateral trade has risen to asmuch as US$ 6.6 billion in 2002-03 from that of US$ 967million in 1990-91, due to rise in both exports to andimports from the African region. India's exports to Africahave reached US$ 3.1 billion in 2002-03 from a relativelylow figure of US$ 394 million in 1990-91. As a result, theshare of Africa in India's total exports has risen from amarginal 2.2 percent in 1990-91 to a healthy 6.0 percentin 2002-03. Concomitant rise in imports from Africaduring the comparable period attest to increased twowaytrade relations, wherein India's imports from Africahave risen from US$ 573 million in 1990-91 to US$ 3.4billion in 2002-03, with a resultant 5.6 percent share inIndia's total imports, up from 2.4 percent share in1990-91.“Focus Africa” ProgrammeThe “Focus Africa” programme launched by theGovernment of India from the year 2002-03, wasenhanced in April 2003 to cover, in effect, the entireAfrican continent. Besides identifying specificcountries, the programme has also identified specificproduct groups for focussed approach, and has alsocalled for an integrated approach involving allconcerned institutions and agencies for enhancingbilateral trade and investment relations.Exim Bank's InitiativesAs highlighted above, Exim Bank has committedresources and has in place a comprehensive range offacilities and programmes to facilitate and catalyseIndia's trade with the African region.Exim Bank has extended Lines of Credit (LOCs) to anumber of institutions/agencies in Africa with a view toboosting India's exports to the region particularly forSMEs. To add to these initiatives, Exim Bank also activelyfacilitates investment by Indian companies in Africa inthe form of joint ventures and wholly subsidiaries. Theseventures are in countries including Botswana, Egypt,Ghana, Kenya, Mauritius, Uganda, South Africa,Tanzania, Senegal and Zambia, and encompass diverseareas such as hotels, hygiene products, denim textiles,pharmaceuticals, dyes and fertilizers.Participation in projects in Africa funded by multilateralagencies is an important avenue to enhance presence inoverseas markets, and Exim Bank actively facilitatesINDO-AFRICAN BUSINESS 10August-October 2004


BILATERAL TRADEparticipation of Indian companies / consultants in suchprojects. As a partner institution to promote economicdevelopment in Africa, Exim Bank maintains stronginstitutional linkages with key institutions in Africawhich include the African Development Bank, the AfriExim Bank, the PTA Bank, the East African DevelopmentBank, the West African Development Bank (BOAD), theAssociation of African Development FinanceInstitutions and the World Bank. At the same time, EximBank has tie-ups with institutions such as theInternational Finance Corporation (under which theAfrica Project Development Facility is operated), the PTABank, and the African Management Services Company,to provide consultancy support services in the region.Exim Bank has also taken active participation in theinstitutional building process in a number of countries inAfrica. Besides being associated in the setting up of theAfri Exim Bank and taking equity stake, the Bank hasbeen involved in the design and implementation ofExport Finance Programmes of Industrial DevelopmentCorporation, South Africa, and in the establishment ofExport Credit Guarantee Company in Zimbabwe.Exim Bank has recently published a research paper on“Strategy for Quantum Jump in Exports: Focus on Africa,Latin America and China”, which outlines an analyticalapproach for achieving a significant increase in India'sexports, over the medium term, by focusing on Africa, asalso on Latin America and China. With regards to Africa,the study estimates that India could aim to achieve by2007, a target import share of 10per cent in Africa, whichwould translate into an export level valued at US$ 18billion. This, in turn, would give an added edge inachieving the overall export target set by the MediumTerm Export Strategy of the Government of India.Regional Combinations for Focussed ApproachStrategy to enhance bilateral trade and investmentrelations would need to encompass a regional approach,and this in turn could entail focussing on select regionaltrading arrangements in the region. With a view toboost intra-regional trade andinvestment flows,a number of countries in Africa have entered in tradingarrangements while existing ones have been renewed inrecent years. These arrangements envisage removal oftariffs and other impediments to intra-regional tradeflows, while some also aim at fostering commoneconomic and monetary union amongst membercountries, as also common currency.Major trading arrangements in Africa include theCommon Market for Eastern and Southern Africa(COMESA), Southern African Development Community(SADC), Southern African Customs Union (SACU), WestAfrican Economic and Monetary Union (UEMOA),Economic Community of West African States(ECOWAS), Central African Customs and EconomicUnion (UDEAC), Economic Community of CentralAfrican States (ECCAS), Indian Ocean Commission,among others. These trading arrangements representcountries in eastern, southern, and western as alsowestern Africa.Opportunities in the Services and IT-related SectorsOpportunities in the services sector could also beexplored, with many countries in the region activelypromoting business opportunities in recent years.Sectors such as tourism, healthcare, education, financialservices present opportunities for setting up relatedinfrastructure as also skilled manpower to renderservices in these sectors.With the global information and communicationtechnology (ICT) revolution increasing making inroadsin the African region, the strengths of countries like Indiain the IT, bio-tech and software development areas couldbe harnessed to facilitate and supplement the concretemeasures that have been effected in the region. Forinstance, in 1998, 15 African countries agreed to supportan Information and Communication Infrastructureknown as 'The Africa Connection', and developmentefforts are in progress in SADC, COMESA and ECOWAScountries. Further, members of the East AfricanCommunity, viz. Kenya, Tanzania and Uganda, have alsolaunched a telecommunication project to improve accessto advanced and reliable communications. Besidesthese, many African countries have also embarked ondeveloping and building up their ICT infrastructure.With IT set to play a key role in the economicdevelopment in the region, opportunities exist to takepart in developments in the sector, while supportingAfrican countries in formulating national IT policieswould serve to forge long-term relationships in theregion.INDO-AFRICAN BUSINESS 11August-October 2004


INITIATIVEFocus-AfricaIndia’s Campaign To BoostCommerce & TradeAcross A ContinentIndia has always sympathized with peoples'movements across Africa and maintained close andcordial relations with governments in that continent.However, commercial relations have not growncommensurately due to various reasons. Theses includedistance, language barriers, inadequacy of informationabout business opportunities, incidence of civil strife,macro-economic instability and the modest progressmade in liberalization and privatization. Taking intoconsideration all these issues, the Indian CommerceMinistry chalked out an ambitious “Focus-Africa-Programme” to boost commerce with that continent.Under the Programme, announced on March 31, 2002 bythe Commerce Minister along with the EXIM Policy forthe five-year period 2002-07, the focus will be laid onseven countries of the Sub-Saharan Region, namely,South Africa, Nigeria, Mauritius, Tanzania, Kenya,Ghana and EthiopiaExactly a year later, on April 1, 2003, the scope of theFocus-Africa-Programme was further extended to all theother countries of the Sub-Saharan African region, whereIndia has Diplomatic Missions. This covered Angola,Botswana, Ivory-Coast, Madagascar, Mozambique,Senegal, Seychelles, Uganda, Zambia, Namibia andZimbabwe, along-with the six countries of North Africaviz. Egypt, Libya, Tunisia, Sudan, Morocco and Algeria.Many Missions in Sub Saharan Africa are concurrentlyaccredited to other countries in the region. Thus, theProgramme in effect, covers the entire Africancontinent.Under the Programme, India extends assistance toexporters, Export Promotion Councils (EPCs), etc. to visitthese countries, organize trade fairs and invite Africantrade delegations to visit India. The initiatives taken sofar have received encouraging response from exporters. Itis likely to result in expanded bilateral trade in the nearfuture.AWARENESS SEMINARS ON AFRICAIn the period starting from the announcement of theProgramme till August 2003, a large number of seminarswere held across the country, involving the CommerceMinistry, the EPCs, a large number of exporters andrepresentatives of African Missions. These include sixawareness seminars organized by EPCs in the chemicalsector at Delhi, Mumbai, Kolkata, Chennai, Bangaloreand Hyderabad, four workshops organized by theFederation of Indian Chambers of Commerce andIndustry at Bangalore, Hyderabad, Chennai and Cochin,two seminars by Synthetic & Rayon Export PromotionCouncil at Surat & Coimbatore and two seminars byConfederation of Indian Industry at Chennai and NewDelhiSTUDIES ON AFRICA'S TRADE POTENTIALThe National Centre for Trade Information (NCTI)conducted a Study on trade potential in respect of Sub-Saharan African countries. Indian Institute of ForeignTrade (IIFT) made a study on warehousing requirementsin Southern African Countries. India signed a RevisedTrade Agreement with Zambia in April 2003. India alsoMounted high-level trade missions/official delegations toSouth Africa, Ethiopia, Tanzania and Uganda. INDIATECH in Addis Ababa was held in April 2003Exhibition/Fairs in Kenya & Tanzania held by SyntheticRayon & Textile EPC. Business delegation from PlasticsSector visited Tanzania, South Africa, Sudan, Kenyaetc.CAPEXIL participated in Dar-es-Salaam SpecialtyTrade Fair. Export Promotion Councils participated inSAITEX in S.Africa. MoUs signed with Ethiopia ontechnical assistance and cooperation in water resources.FUTURE PACTS WITH AFRICAN COUNTRIESTrade Agreements with members of the South AfricaCustoms Union (to lead to a Free Trade Arrangement byDecember 2004), Mauritania, Madagascar, Djibouti,Mozambique etc, under consideration. BilateralInvestment Promotion & Protection Agreement is underconsideration with some African countries.ONGOING SCHEMES AND ACTIVITIESThe existing Trade Agreements with 23 Sub-SaharanCountries through the institutional mechanisms likeJoint Trade Committee Meeting, Indo-South AfricaCommercial Alliance, etc, are being reviewed.Also underway are additional lines of credit provided byExim Bank to Sub-Saharan African Countries. So far 28Lines of Credit (LOC) of Rs. 414 crores have beenprovided. Also taken up is the process of upgrading thecredit rating of certain countries by ECGC.Other Ministries have also initiated several measures e.g.meeting with banking sector was organized by Ministryof External Affairs recently, issues relating to import ofpyrethrum from Kenya are being examined by Ministry ofAgriculture.DELEGATIONS FROM AFRICAINDO-AFRICAN BUSINESS 12August-October 2004


INITIATIVESeveral trade delegations and important government UNCTAD's Trade Efficiency Programme and part of theleaders from African countries visited India. Notable Network of 150 Trade Points across the globe, 21 of whichamong these were the visit of John Kufuor, President of are located in African Countries.Ghana, and of Alistair Ruiters, Director General,Department of Trade and Investment from South AfricaINCENTIVESand of delegations from Cameroon, Tanzania, Besides these incentives admissible to all exporters to theMozambique, Rwanda, Djibout, Zambia, Ethiopia, Kenya Focus Africa countries, approved export/ trading houses,and Tanzania and Mozambique.recognized consortium of SSI Units and approvedOTHER MEASURES AIMED AT BOOSTING TRADEorganisations are entitled, subject to fulfillment of theconditions prescribed in the MDA guidelines, to theIndia and Egypt are presently examining the possibilities following additional incentives. A. Reimbursement ofof concluding a bilateral Preferential Trade Agreement. expenditure on opening and maintaining a warehouse inTwo rounds of talks have been held so far. African countries on a declining scale of 75 per cent, 50Similarly, India and SACU (Southern African Customs per cent and 25 per cent in three successive years.Union, consisting of South Africa, Namibia, Botswana, Reimbursement of 50 per cent of eligible expenditure (onLesotho and Swaziland) are in the process of negotiating rent up to a maximum of Rs. 2.00 Lakh and expenditurea Free Trade Agreement (FTA).on salary upto Rs. 4.00 Lakh) on opening andmaintaining foreign offices in African countries. BesidesENHANCED INTERACTION:individual exporters who are entitled to the aboveInteraction with important trading partners will be benefits, EPCs and other approved organizations areenhanced to act as a catalyst for the private sector to eligible to additional benefits as prescribed in the MDAexplore and tap full potential. Institutional arrangements guidelines from time to time.already exist with the countries of African region in the ECGC COVERform of Joint Trade Committees. These institutionalmechanisms have been activated. Steps will also be taken Some African Countries are placed in a low category forfor formation of Joint Trade Committees with the grant of ECGC cover. Because of the low grading,countries identified under "Focus-Africa-Programme.” exporters have to pay higher premium for gettingcommercial cover. The grading shall be reviewedJOINT BUSINESS COUNCILS:periodically so that the actual economic situation of theFICCI plans to have increased interaction with their countries is reflected in the grading of ECGC.counterparts and hold meetings of the Joint Business EXIM BANK LINES OF CREDITCouncils (JBCs) at regular intervals. Similarly CII/PHDChambers of Commerce & Industry also propose to have Lines of Credit enable Indian exporters, including Smallregular interaction with their counterparts in the Subproducts(industrial manufactures, consumer durablesand Medium Enterprises (SMEs), to export a variety ofSaharan African region with whom they have signedMOUs. Simultaneously, seminars and conferences are and capital and engineering goods) to importers in theseproposed to be organized within the country for creating countries without repayment risk. While 15 per cent toawareness on emerging markets in Africa.20 per cent of the contract value is paid as advance by theimporters, the balance 80 per cent to 85 per cent of theTRADE MISSIONS:contract value is disbursed by the EXIM Bank to theTrade/Economic Missions result in creating necessary Indian exporters on shipment of goods. The recovery ofawareness in the region regarding India's economic credit extended to the overseas buyer is taken care of byreforms, strength of Indian Industry and its export the Exim Bank, without recourse to Indian exporter.capabilities. These also provide impetus for EXPORT PROMOTION COUNCILS (EPCS)businessmen to explore new markets. High level trademissions shall be mounted to the African region.The success of "Focus: Africa" Programme requires theproactive role and involvement of Export PromotionTRADE PROMOTION MEASURES:Councils (EPCs), Apex Chambers and Indian MissionsThe Indian Trade Promotion Organisation (ITPO) shall located in African Region. The EPCs will carry out marketundertake various trade promotion measures, which surveys for items with export potential in Africa andwould include participation in specialized and disseminate information to their members throughcommodity specific fairs and exhibitions in the countries publications. They will bring out promotional literatureof Africa, special promotion and publicity in the African in local languages, hold commodity specific seminars incountries, India Promotion in Departmental Stores in selected industrial centers, prepare compendium ofrespect of consumer products, organizing buyer-seller main importers/associations in Africa and disseminatemeets, promotion by Indian Mission by organizing the same to their members and encourage members tocatalogue/brochure exhibitions.participate in specialized International Fairs,Jointly promoted by India Trade Promotion Organization APEX CHAMBERS OF COMMERCE & INDUSTRY(ITPO) and National Inforamtics Centre (NIC), NCTI hasApex Chambers of Commerce & Industry, on their part,carried out studies to map export potential for focuswill establish and strengthen ties with their counterpartsAfrican Countries at the specific 6 digit HS Code level ofin Africa and ensure more frequent exchange of tradeHS Classification. NCTI is also the Trade Point underdelegations. They will widely disseminate informationINDO-AFRICAN BUSINESS 13August-October 2004


INITIATIVEamongst Indian businessmen through their publications,bulletins and other periodicals regarding potentialIndian exports to Africa. They will also organizeseminars and workshops at regular intervals at variousindustrial centers to create awareness regarding theuntapped potential that exists in the region for exportinggoods.INDIAN DIPLOMATIC MISSIONS IN AFRICAPROFILES OFTHE SEVENF O C U SCOUNTRIESETHIOPIAEthiopia, witha population of65.8 million,accounted for aGDP of $ 6.2billion, growing at an impressive 7.7 per cent. India's worth $ 15.99bilateral trade with Ethiopia was $10.46 million in 2003million in 2003, upagainst $ 18.44 million in 2002. Ethiopian imports fromfrom $3.27 in 2002India consist mainly of steel and iron. It exports to Indiawhile its exportsraw hides and skins, cotton and pulses.touched $ 163.5,GHANAthe previous year's $32.02 million. Kenya imports drugsand pharmaceuticals, machinery and metals productsfrom India and exports inorganic chemicals, pulses andtea among other products.S O U T HAFRICAThe Indian missions located in African countries havebeen instructed to organize catalogue/brochureexhibitions, provide regular feedback on implementationof the programme, play a proactive role in coordinatingpromotional measures like organization of Buyer-Seller-Meets, visit of delegations and participation in tradefairs, carry out market surveys for the specified productsin collaboration with the ITPO and concerned EPCs andsend processed/usable information in bulletins to theEPCs on focus productsSouth Africa,w i t h apopulation of43.2 millionaccounted for aGDP of $ 113.3billion in 2001at an annualgrowth rate of1.2 per cent. Indian exports to South Africa accounted for$471.34 million at the end of March 2003 up 33.23 percent over the previous year's $353.77 million. Rice, worth$132.86 million, was the main commodity that wasimported.MARITIUSMauritius, with a population of 1.2 million (Year 2001)accounted for aGDP of $ 4.5 billionon an annualgrowth of 6.1 percent. Indiaimported productsslightly more thanthe previous year's $165 million. Mauritius importsmainly cotton from India and exports pearls, preciousGhana is acountry with a stones to this country..population of NIGERIA19.7 million, anda GDP of $ 5.3Nigeria, with a population of 129.9 million posted a GDPbillion, whichof $ 41.2 billion in 2001 at an annual growth rate of 1.5has been growingper cent. India's exports to Nigeria accounted for $445.7at an average 4.0million in 2003, down from $564.47 million in theper cent per year.previous year. India's imports from Nigeria in 2003India's bilateralamounted to $77.05 million against $ 87.million in thetrade with Ghanaprevious year. India exported to Nigeria machinery,stood at $ 18.4 million as on March 2003, down fromvehicles and electrical equipment and imported from$19.97 million in 2002. India imports wood and woodthat country wood and wood products and metal scrap.products and metal scrap from Ghana. Drugs and TANZANIApharmaceuticals, cotton yarn and fabrics, machinery andTanzania , with a population of 34.5 million accountedmetal productsfor a GDP of $9.3 billion, with an annual growth of 2.9 perKENYAcent in 2001. India's exports to Tanzania accounted forKenya, with a population of 30.8 million, posted a GDP of$114.5 million in 2003, up from $90.99 million in the$11.4 billion in 2001 (the latest available), whichprevious year. India's imports stood at $90.31 million inregistered a negative (minus) growth of 0.9 per cent 2003, up from $76.27 million in the previous year. Indiaduring the year. India's bilateral trade with Kenya stood atexported cotton fabrics, machinery and pharmaceuticals$33.13 million in March 2003, marginally higher thanwhile it imported cashew nuts and precious and semipreciousstones from Tanzania.INDO-AFRICAN BUSINESS 14August-October 2004


ECONOMYGhanaian economy grew by 4.7 per cent in 2003and is expected to rise to 5.0 per cent in 2004owing to the developments in the gold miningsector. Higher producer prices and good rains willboost the cocoa production further from thebumper crop harvested in 2002-03.In East and Central Africa, low investorconfidence, lack of donor support and a slump inthe tourism industry had kept economic activitylow in Kenya at 1.5 per cent in 2003. Prospects for2004 are brighter, given promised donor support,with about half the funds planned forinfrastructure projects for roads, airports,seaports, railways and electricity. Growth rate ofUganda came down to 4.9 per cent in 2003 fromthat of 6.7 per cent in 2002 following poor rains inthe first half of the year and continued poor pricesfor the key commodities, coffee and tea. The lowerfood crop production offset the strong growth incash crops production. However, in 2004, thegrowth rate is expected to go up to 5.5 per cent in2004 supported by higher exports, especially nonrisein cement sales and a 12 per cent increase intraditional exports such as fish, and by continued growthmortgage disbursements in 2003. A strong performancein manufacturing, transport and communications. Inin the agricultural sector, following good rains after threeSudan, real GDP growth, which registered a growth of 5.8years of drought, a recovery in tourism as well asper cent in 2003, is expected to remain strong, drivenincreased government consumption, has beenlargely by high levels of consumption and investment.responsible in boosting the real GDP growth rate ofReal GDP growth is expected to move further up to 6.2 perTunisia to 6.1 per cent in 2003 as compared to 1.7 per centcent in 2004 due to significant foreign investmentin 2002. However, growth is expected to slow down ininflows into large capital projects and by increasedMorocco and Tunisia in 2004, to 3.0 per cent and 5.6 perexport volumes on the back of expanded capacity in thecent respectively, as the impact of the strong rebound inoil sector. The Ethiopian economy, on the other hand,agricultural production that followed the ending of acontracted by 3.8 per cent in fiscal year 2003 (fiscal yearprolonged drought, fades.thending July 7 ) as compared to 1.2 per cent growth inIn West Africa, increased oil production underpinned an 2002, as the worst drought for years cut output in theexceptionally strong economic expansion in Nigeria, as agricultural sector, which accounts for about 40 per centthe economy grew by 10.6 per cent during 2003. But the of GDP. Good rains are expected to push the current 2003-growth is expected to slow down sharply in 2004 to as 04 harvest 60 per cent higher than last season, which willlow as 0.9 per cent as the boom in the oil sector wanes. cut the food aid requirement. Better rainfall willExpansionary fiscal and monetary policies have resulted encourage some increased private investment and thein a pickup in inflation and a decline ininternational reserves. The average consumerprice inflation stood at 14.4 per cent in 2003 ascompared to 13.7 per cent in 2002. Due topolitical uncertainty and the effective divisionof the country into two, with its associatedcosts, coupled with the lack of donor supportand difficulties in implementing economicpolicy the GDP of Cote d'Ivoire contracted by3.8 per cent in 2003. However, the country isexpected to grow at 1.8 per cent in 2004, withslow restoration of economic normality assome firms and businesses resume normaloperations throughout 2004. In contrast, theINDO-AFRICAN BUSINESS 17August-October 2004


ECONOMYeconomy is also expected to benefitfrom debt relief and donor support.Services (transport, financial andcommunications) will continue tobenefit from increased trade activitiesand rising investment over the forecastperiod. The real GDP growth is thusexpected to rebound to 6.7 per cent in2003-04.Real GDP Growth & Inflation in Select African CountriesReal GDP Growth (%) Consumer Prices (%)2002 2003 2004f 2005f 2002 2003 2004f 2005fAfrica 3.5 4.1 4.2 5.4 9.6 10.3 8.6 6.7Mahgreb 3.4 6.2 4.2 4.5 2.1 2.2 3.0 3.1Algeria 4.1 6.7 4.4 4.3 1.4 2.6 3.8 4.0Morocco 3.2 5.5 3.0 4.0 2.8 1.2 2.0 2.0Tunisia 1.7 6.1 5.6 6.0 2.8 2.7 2.7 2.5In Southern Africa, although oilproduction fell in Angola in 2003, owingto problems with the Kuito field, the Sub-Sahara 3.4 4.4 5.1 7.0 14.0 17.4 14.8 9.2steady increase in production in recent Ethiopia 1.2 -3.8 6.7 6.4 -7.2 15.1 5.5 3.0years is set to continue as new oilfields Sudan 6.0 5.8 6.2 6.5 8.3 7.7 6.5 6.0come on stream. This will help to boost Congo D.R. 3.5 5.0 6.0 7.0 27.7 9.1 6.0 5.0real GDP to 12.8 per cent in 2004 and Kenya 1.0 1.5 2.6 3.6 2.0 9.7 -0.2 3.411.2 per cent in 2005, although this Tanzania 6.3 5.5 6.3 6.5 4.6 5.0 4.7 3.8energy driven growth will be capitalintensiveUganda 6.7 4.9 5.5 6.2 5.7 5.9 3.5 3.5and import-dependent, with Angola 15.3 4.5 12.8 11.2 108.9 98.3 40.2 15.9few linkages to other sectors of the Zimbabwe -12.8 -13.2 -9.2 5.2 140.0 431.7 640.0 200.0economy. The average annual rate ofGhana 4.5 4.7 5.0 5.0 14.8 26.4 8.6 6.0Nigeria 1.5 10.6 0.9 5.9 13.7 14.4 16.5 10.1inflation fell to 98.3 per cent in 2003,Cameroon 6.5 4.2 4.7 5.1 6.3 1.2 2.0 2.0representing a drop into double digitsCote d'Ivoire -1.6 -3.8 1.8 4.4 3.1 3.8 3.2 2.7for the first time in over a decade. Thiswas supported by measures like costlyintervention in the foreign exchangeSouth Africa 3.6 1.9 2.6 3.2 8.9 6.0 3.2 5.6market to prop up the kwanza andf- forecastsdelays in increasing the prices of fuelSource, International Monetary Fundand utilities. Economic activity inZimbabwe is set to continue declining asNotwithstanding the important progress that is beingthe current political crisis and the lack of coherentmade, the challenge remains to achieve strong growtheconomic policy combined with the disruptions in theacross Africa on a sustained basis. Even during the recenteconomy caused by the rapid implementation of the landperiod of improved growth in the region, there have beenreform programme and the adverse impacts of droughtlarge cross-country differentials. Over the past threeand AIDS. In addition to this, the slump in commercialyears, real per capita GDP has declined in nearly oneagricultureis having adverse effects on industry andthird of the African countries, while only a small numberservices, purchasing power is falling and nearhaverealized real per capita GDP growth in excess of 4.0hyperinflation persists. GDP contracted by around 40 perper cent. For making significant inroads into poverty, thecent during 1999-2003, and the economic decline isperformances of the faster-growing countries need to beexpected to slow down to a rate of 9.2 per cent in 2004,replicated throughout the region. Of particularfrom that of 13.2 per cent in 2003, as the small-scaleimportance are steps to develop infrastructure andfarmers boost maize production in 2004-05. In SouthAfrica, the economy is estimated to have expanded bystrengthen institutions, promote private sectorjust 1.9 per cent in 2003, as the weak global economyinvestment, reduce government involvement in thecoupled with the strengthening of the rand during thedomestic economy, improved governance andyear, had an adverse effect on the export sector'stransparency. Some regional initiatives, including thecontribution to overall GDP. Although sluggish growth African Peer Review Mechanism for economic andwas also posted for agriculture, mining and political governance launched through the Newmanufacturing, tourism continued to grow strongly, Partnership or Africa's Development (NEPAD), and thebenefiting from the cricket World Cup. However, real African Union's adoption of a Convention on PreventingGDP growth is forecast to increase to 2.6 per cent in 2004 and Combating Corruption have already been put inand the main boost to growth will come from gross fixed place. The international community has a key role to playinvestment as privatisation gathers pace and inflows of in Africa's development, including higher aid flows, debtforeign direct investment increase.relief, and enhanced exchange of trade and technology.INDO-AFRICAN BUSINESS 18August-October 2004


FINANCEExim Bank PavesTrade Route toAfrica with CreditBy Prabhakar R. DalalAfrica has been a traditional market for India. Indiantechnology is considered appropriate, adaptable andaffordable, in Africa. However, India's share inAfrican continent's total imports is a meager 2.12 percent. Financial support structure is essential topromote trade and investment flows. Exim Bankseeks to play a pivotal role in this regard.Exim Bank has been extending Lines of Credit (LOC) toAfrican countries, to enable entrepreneurs and businesspeople in Africa to import Indian equipment, technologyand goods and services from India on deferred paymentterms. Exim Bank has so far extended 23 LOCs to Africancountries with credit commitments aggregating US$ 242million. Currently, Exim Bank has 10 LOCs operationalin the African region, covering 29 Africancountries involving credit commitmentsof US$ 130 million to support transfer ofIndian equipment, goods and technologyfrom India to the African region.Exim Bank extends LOCs to overseasgovernments, financial institutions,regional banks and other overseasentities, to enable them to import Indianmachinery, goods and services, on creditterms. Under the LOCs, importers in thehost countries make advance payment,which is normally 10 per cent of contractvalue and credit is provided by EximBank for the balance 90 per cent ofcontract value to borrowers in thosecountries. Exim Bank reimburses Indian exporters onshipment of goods. Thus, it is a safe mode of nonrecoursefinancing option to the Indian exporter,particularly small and medium enterprises (SMEs). EximBank also operates LOC on behalf of the Government ofIndia. These LOC are usually on softer terms.Exim Bank has been using the LOC mechanism forpromoting India's exports to markets in developingcountries, such as the African market, which needdeferred credit for buying Indian goods. LOC is a catalystfor export promotion and by virtue of being a nonrecourse,risk-free facility to Indian exporters, it helpsexporters to penetrate and develop new markets.Exporters receive cash payment for exports under LOCon shipment from Exim Bank and do not have to wait forthe importers to pay. It as an arrangement for financing anumber of export contracts under one-umbrella and it isparticularly relevant for SMEs. LOCs thus serve as amarket entry tool for India's exports.The eligible items for finance under the LOCs havetraditionally been capital and engineering goods,consumer durables and spares. However, Exim Bank cannow include other items such as raw materials andcommodities. Apart from machinery, capital goods,consumer durables, pharmaceuticals and chemicals, thescope for coverage of products has broad-based toinclude other items such as garments, yarn, coffee, tea,rice and other commodities /products.Exim Bank's Lines of Credit to Africa are as follows:S.N. Borrower Amount of Credit1 Offshore Development Company (Pty.), Namibia Rs. 20 Cr2 Eastern and Southern African Trade and US $ 10 mnDevelopment Bank (PTA Bank), Kenya3 Seychelles Marketing Board US $ 5 mn4 ABSA Bank, South Africa US $ 10 mn5 Central Bank of Djibouti US $ 10 mn6 Banque Ouest Africaine De Developpement US $ 10 mn(West African Development Bank)(Equivalent Euros)7 Government of Zambia US $ 10 mn8 Government of Angola US $ 5 mn9 Government of Sudan US $ 50 mn10 Government of Ghana US $ 15 mnSalient features of these LOCs are given below:Offshore Development Company (Pty.), NamibiaExim Bank and Offshore Development Company (Pty)Limited (ODC), a statutory entity in Namibia, signed anAgreement for an LOC of Rs.20 crores to ODC, Namibia.The ODC established under the Export Processing ZonesAct, 1995 of Namibia is a private sector company withminority government shareholding for monitoring,regulating and promoting the Namibian EPZ as a vehiclefor export-led industrialization of the economy.Government has allowed Exim Bank to extend LOCdenominated in Indian Rupees upto equivalent ofUS$100 mn with a view to enabling Exim Bank to offerexport credits on competitive terms. Exim Bank's LOC toNamibia is first such Rupee denominated LOC under thisINDO-AFRICAN BUSINESS 19August-October 2004


FINANCEarrangement. Namibia is a country rich in resources and South Africa, with total assets amounting to over US $ 25consequently has good economic potential with need for billion. The Bank, together with its subsidiaries andinvestment in areas such as agro-industries, associate companies, offers a comprehensive range oftransportation, construction, telecommunications, small financial products and services, ranging from wholesalescale and cottage industries. Good scope exists for banking, retail banking and asset management services.importation by Namibia of Indian equipment, goods and India's exports to South Africa amounted to US$ 476.9technology in sectors like agro-processing, leather, auto million during the year 2002-03, registering a growth ofcomponents, and machine tools.25.7 per cent over the previous year. Agriculture andprocessed food products, transport equipment, cottonEastern and Southern African Trade andyarn, fabrics, ready made apparels, madeups, machineryDevelopment Bank (PTA Bank)& instruments and manufactures of metal, were theExim Bank and Eastern and Southern African Trade and principal items in India's export basket to South Africa.Development Bank, also known as PTA Bank, signed an Potential areas that Indian exporters can focus on, areAgreement for an LOC of US$ 10 million from Exim Bank transport equipment, machinery, chemicals andto PTA Bank, to promote India's exports to 16 Eastern and pharmaceuticals, food items and spices, leatherSouthern African countries. PTA Bank is a Regional products, glass and ceramics, manufactures of metalsDevelopment Bank, established on November 6, 1985, and apparels. There also exists considerable potential forpursuant to the Treaty for the Common Market for setting up joint ventures between Indian and SouthEastern and Southern African States (COMESA). PTA African partners in sectors like textiles, pharmaceuticals,Bank's regional member countries are Burundi, information technology and hospitality services.Comoros, Djibouti, Egypt, Eritrea, Ethiopia, Kenya,Malawi, Mauritius, Rwanda, Somalia, Sudan, Tanzania,Uganda, Zambia and Zimbabwe. China became the onlyCentral Bank of Djibouti, DjiboutiExim Bank has extended an LOC of US$ 10 million tonon-regional member of PTA Bank recently. Besides Central Bank of Djibouti, to support India's exports tothese 17 member countries, African Development Bank Djibouti. Djibouti is strategically located in the horn ofis also member of PTA Bank. PTA Bank provides Africa, which gives it an advantage to serve as an entryfinancial and technical assistance to promote economic point to neighboring markets such as Ethiopia, Somalia,and social development in member countries. India's Eritrea and Sudan. India's exports to Djibouti were US$exports to African member countries of PTA Bank 37.53 million in 2002-03 registering a growth of 56.6 peramounted to US$ 1.17 billion, in 2002-03. Principal cent over the previous year. Manufactures of metals,items exported from India to the PTA Bank member primary and semi-finished iron and steel, manmade yarncountries include cotton yarn, fabrics and made ups, fabrics & made-ups, agriculture & allied products, plasticmeat and preparations, machinery and instruments, & linoleum products, drugs & pharmaceutical chemicalsplastic & linoleum products, and drugs & and cosmetics & toiletries are the principal commoditiespharmaceuticals.in India's export basket to Djibouti.Seychelles Marketing Board, SeychellesBanque Ouest Africaine De DeveloppementExim Bank and Seychelles Marketing Board (SMB),Seychelles, signed an Agreement for an LOC of US$ 5.0(West African Development Bank)Exim Bank has extended an LOC of USD 10 million tomillion from Exim Bank to SMB, to support India's West African Development Bank (Banque Ouestexports to Seychelles. SMB, established in 1984, is a Africaine De Developpement - BOAD), a regionalstatutory corporation wholly owned by the Government development bank, to support India's exports to memberof Seychelles. SMB's main objective is to ensure countries of BOAD in West Africa. This LOC will enableavailability of essential goods to the people of Seychelles Indian exporters to export equipment, goods andon a long-term basis at stable economic prices. India's services to the francophone West African market onexports to Seychelles amounted to US$ 6.19 million medium term credit. West Africa holds good potential forduring the year 2002-03. The main items exported from export of machinery, transport equipment, bulk drugs,India to Seychelles are rice, oil meals, transport pharmaceuticals and engineering and other items fromequipment, readymade garments, machinery and India. BOAD is a regional development bank for eightinstruments. Potential areas that Indian exporters can West African countries under the aegis of West Africanfocus on are agricultural products, textiles including Monetary Union (UMOA). BOAD's member countries aregarments, transport equipment, machinery, consumer Benin, Burkina Faso, Cote d'Ivoire, Guinea Bissau, Mali,durables and drugs and pharmaceuticalsNiger, Senegal and Togo. The region, which is wellintegrated with a common currency, FCFA and aABSA Bank, South Africacommon central bank, BCEAO, is working towardsExim Bank has extended an LOC of US$10 million to establishment of a common market for the West AfricanABSA Bank Limited (ABSA Bank), the largest region. Apart from Governments of eight membercommercial bank in South Africa, to support India's countries and the central bank BCEAO, theexports to that country. ABSA Bank (the Amalgamated Government of France, Deutsche Investitions undBanks of South Africa Ltd) was established in 1991, as a Entwicklungsgesellschaft (DEG) acting on behalf ofresult of the largest merger in South African banking Germany, European Investment Bank (EIB) acting onhistory between UBS Holdings Ltd., Volkskas Bank Ltd., behalf of the European Union, African DevelopmentAllied Bank Ltd. and Saga Financial Services Ltd. It is Bank and the Government of Belgium are members oftoday the largest private sector commercial bank in BOAD. India's exports to BOAD member countries inINDO-AFRICAN BUSINESS 20August-October 2004


FINANCE2002-03 were US$ 334.34 million. India's main exports items from India to Ghana, like transport vehicles,to member countries of BOAD have been cotton yarn and automobile spares and batteries, material handlingfabrics, manufactures of metals, drugs and equipment and its spares, power transmission plant andpharmaceuticals, manmade yarn and fabrics and machinery. India recorded exports of US$ 105.83 milliontransport equipment.to Ghana during the year 2002-03, as compared to theGovernment of Zambia, Zambiaprevious year's exports of US$ 68.65 million, which is anincrease of 35 per cent over the previous year. Drugs,Exim Bank and Government of Zambia have signed an pharmaceuticals and fine chemicals, cotton yarn fabricsAgreement for an LOC of US$ 10 million to finance and made-ups, machinery and instruments,exports from India to Zambia. This is the third LOC being manufacture of metals and primary & semi-finished ironextended to Zambia. The first two LOCs of Rs.10 crores & steel were the principal items in India's export basket toand Rs. 5.0 crores were extended in 1979 and 1982. The Ghana during 2002-03. As per Exim Bank's study titledLOC can be utilised for export of capital goods, plant and "Strategy for Quantum Jump in Exports: Focus on Africa,machinery, industrial manufactures, consumer Latin America and China", items like transport vehicles,durables. India's exports to Zambia are in the region of plant and machinery, pharmaceuticals, cement, textiles,US$ 31.1 million in 2002-03. The main items in India's metals and metal parts and automobile parts hold goodexport basket to Zambia are machinery & instruments, potential for export from India to Ghana.transport equipment, drugs, pharmaceuticals and finechemicals, cotton yarn fabrics and made-ups.A number of Lines of Credit to countries in Africaare under negotiation. Interested companiesGovernment of Angola, Angolamay do well to visit Exim Bank's websiteExim Bank has extended an LOC of US$ 5.0 million to the www.eximbankindia.com/loc.htmlGovernment of Angola (GOA), to finance India's exports It is advisable for Indian exporters to consult Exim Bankto Angola. India's exports to Angola amounted to US$ 37 regarding insurance and other service charges, wherevermillion during the year 2002-2003, registering a growth payable, before finalising the terms of the contract withof 32.9 per cent over the previous year's exports of US$ 25 the overseas importer. Indian exporters are encouragedmillion. Meat & its preparations, drugs, pharmaceuticals to approach Exim Bank for information on buyers,& fine chemicals, cotton yarn fabrics & madeups, market conditions. Exim Bank facilitates exportmachinery & instruments, transport equipments and transactions for coverage under LOCs. If an LOC to aready made apparels were the principal items in India's particular market is not in place, Exim Bank considersexport basket to Angola. Potential areas that Indian the possibility of extending a fresh LOC, if the creditexporters can focus on are export of Indian capital goods proposition is otherwise considered support-worthy andand services for sectors like railways, engineering, acceptable.fishing as well as products like drugs andpharmaceuticals, to Angola. There also existsInstitutional Linkagesconsiderable potential for setting up joint ventures in Exim Bank maintains strong institutional linkages withAngola in sectors like pharmaceuticals and engineering key institutions in Africa which include the AfricangoodsDevelopment Bank (AfDB), the Afrexim Bank, the PTABank, the East African Development Bank (EADB), theGovernment of Sudan, SudanWest African Development Bank (BOAD), theExim Bank has extended an LOC of US$ 50 million to the Association of African Development FinanceGovernment of Sudan, to support India's export of Institutions (AADFI) and the World Bank. At the sameequipment, goods and services to that country. India's time, Exim Bank has tie-ups with institutions such as theexports to Sudan amounted to US$ 105.20 million International Finance Corporation (under which theduring the year 2002-2003. Machinery and instruments, Africa Project Development Facility is operated), the PTAtransport equipment, drugs, pharmaceuticals and fine Bank, and the African Management Services Company,chemicals, manufactures of metals and primary and to provide consultancy support services in the region.semi finished iron and steel were the principal items inExim Bank has also taken active participation in theIndia's export basket to Sudan in the year 2002-03.institutional building process in a number of countries inPotential areas that Indian exporters can focus on areAfrica. Besides being associated in the setting up of theequipment for rural electrification and railways,transportation vehicles and equipments, drugs andAfrexim bank and taking equity stake, the Bank has beenpharmaceuticals, machinery and instruments, textilesinvolved in the design and implementation of Exportand related items. There also exists considerableFinance Programmes of Industrial Developmentpotential for setting up joint ventures between IndianCorporation, South Africa, and in establishment ofand Sudanese partners in sectors like textiles,Export Credit Guarantee Company in Zimbabwe.pharmaceuticals and chemicals, information technology Exim Bank has a Representative office in Johannesburg,and small scale industries sector.South Africa which functions as a nodal point forGovernment of Ghana, Ghanafacilitating trade and investment flows between Indiaand Africa.Exim Bank has extended an LOC of US$ 15 million toFor further information, please contact: Mr. P. R. Dalal,Government of Ghana, to finance India's exports to thatGeneral Manager, Export-Import Bank of India, Centre One Building,country. Exim Bank has so far extended three LOCs to Floor 21, World Trade Centre Complex, Cuffe Parade,Ghana in the past, which have been fully utilised and Mumbai 400 005 Telephone: (022) 22185272 Extn. 2112/22162073.repaid. These LOCs have resulted in export of various Fax:(022)22182460. E-mail: eximloc@eximbankindia.comINDO-AFRICAN BUSINESS 21August-October 2004


EXPORTSENEGAL- Gateway to West AfricaTATA MinibusesDrive in Other Indian Products to FollowTata Buses, which one can already spot plying on theroads of Dakar, capital of Senegal, would soon be anessential part of the street scenery of Dakar. This has beenpossible through a contract secured by M/s Tata Motorsfor supply of 3000 mini buses under the US $ 19 millionUrban Transport Improvement project in Dakar (Senegal)funded by the World Bank. The project also envisagesimprovement of roads, flyovers, setting up of a RoadTransport Corporation to reunite the independent busoperators in Dakar who transport the citizens of Dakar inramshackle 20/30 year old minibuses. These 3000 busesare being replaced by Tata buses. The Road TransportCorporation has been set up and it is in the process ofreuniting the operators, setting tariffs and laying downthe routes. Senbus Industries was set up by SenegaleseInvestors with Technical Support from Tata Motors. Anassembly plant for production capacity of 1000 Tatabuses per year was inaugurated in September 2003 atThies around 80 kms from Dakar.The entry of Tata Buses in Senegal could pave the way forentry of other Indian products and services to Senegal.Senelec, the state-owned electricity company of Senegalis in the process of expanding its network and has US $350 million worth of network expansion projects at hand.Indian companies in the power sector can tap into theseopportunities. There is huge potential for developmentof food processing industries such as maize processing,edible oils, bakery products, fruit and vegetableprocessing, juices, mineral water etc. Also, there is gooddemand for machinery and instruments, technology,goods and services in the pharmaceuticals and textilessectors.Endowed with quality infrastructure, Senegal has apreferential access to West African, European andAmerican markets. In fact Senegal could be used as agateway for Indian products to penetrate FrancophoneWest African markets. Its Investment Code is veryattractive and offers various incentives. The Senegaleseeconomy is opened to the world, Europe, America andAsia. It has major assets and real investmentopportunities. These includeA BOOMING ECONOMY• A stable growth: A real GDP growth rate of over 5.0 percent since 1995 except for 2002.• A low inflation rate: less than 2.0 per cent inflation ratesince 1997 except for 2001.• A fixed exchange rate: the CFA franc is pegged to theFrench franc at the rate of 1FF:100FCFA and to the Euro atthe rate of 1Euro = 655.957CFAF.• Reduced customs duties: A unique tariff system(referred to as the Common External Tariff (TEC) is inforce within the West African Economic and MonetaryUnion (UEMOA) since 1999. Due to this measure,customs duty decreased on average from 24 to 12 percent, goods circulate freely within the UEMOA space andare essentially exempted from customs duty, if they arecommunity products.A PREFERENTIAL ACCESS TO MARKETS• Senegal is committed to regional integration: It is amember of the UEMOA, an economic union of eight (8)West African countries: Benin, Burkina Faso, Coted'Ivoire, Guinea Bissau, Mali, Togo, Niger, Senegal.• The economic Union has a market of 60 millionconsumers.• Senegal is also a member of the Economic CommunityINDO-AFRICAN BUSINESS 22August-October 2004


EXPORTof West African States (ECOWAS), which has a market of200 million consumers for 16 member States.• Senegal offers an exceptional geographical locationwith preferential access to European (EU/ACPAgreement) and American (African Growth andOpportunities Act, AGOA) markets.AN ATTRACTIVE, INCENTIVE POLICYThe Senegalese Government has created institutionalinfrastructure for encouraging trade and investment.Overseas Companies seeking to set up trade or industrialrelations with Senegalese operators can contact:NATIONAL AGENCY FOR INVESTMENTPROMOTION AND MAJOR PROJECTS (APIX)APIX is an autonomous agency of the Office of thePresident. To improve the management of investmentprojects, a modern One-Stop-Shop, was opened at APIX,to deal with Processing all the administrative formalitiesfor the establishment or modification of companies, jointventures using a single registration form.In addition to the " traditional " conditions offered toinvestors (free repatriation of capital and dividends, nodiscrimination between nationals and foreigners, nolimits in the employment of expatriates), the incentiveseffectively offer:• Customs duty exoneration for equipment needed to Contact:implement investment programmes and tax benefits 52-54 Rue Mohamed V, BP 430, Dakar, Senegalduring the execution phase. Tel: (221) 849 05 55. Fax: (221) 823 94 89.• Additional Tax benefits for SMEs active in the Email: apix@apix.snpromotion of local resources, or established outsideDakar.• Additional benefitsfor industrial andagricultural firmsexporting over 80% oftheir production;these include :• Waiver of Customsduty and stamp dutyfor equipment;• Income tax exoneration, duty waiver on trade licence,land tax and al other taxes relative to registrationand stamps.A HOST OF INVESTMENT OPPORTUNITIES• Agriculture, Fisheries• Pharmaceuticals• Mining Sector• Manufacturing Industries• Energy and Water Sectors• Transport & Tourism• TelecommunicationsA STATE-BACKED INSTITUTIONAL ASSISTANCEINFRASTRUCTUREAgence de Developpement et d'Encadrement desPetites et Moyennes Entreprises (ADEPME) Senegal(Small and MediumEnterprisesDevelopment andPromotion Agency)The mission ofADEPME is toprovide advisoryservices toSenegalese as well asforeign entrepreneursto set up theirbusinesses in Senegal. Its activities includeproject feasibility studies, business plans,capacity building, facilitating access to credit,information on foreign markets, businessopportunities, statistics, trade fairs, seminars.Contact :9, Fenetre Mermoz, Av. Cheikh Anta DiopBP 333 Dakar Senegal, Tel: (221) 869 70 71Fax: (221) 860 13 63. Email: adepme@sentoo.snFonds de Promotion Economique FPE(Economic Promotion Fund of Senegal)Govt. of Senegal set up FPE in 1991 with the objective ofpromoting investment in the private sector especially toSMEs. FPE plays the role of a conduit between fundproviders, the state, local financial institutions and theSenegalese private sector.Contact:15, Allees Robert Delmas, BP 6481 Dakar SenegalTel: (221) 849 64 64, Fax: (221) 821 80 57Email: kgueye@fpe.snINDO-AFRICAN BUSINESS 23August-October 2004


DEVELOPMENTAfrican UnionA Quest for NewIdentity & ProsperityThe advent of the African African countries and the peoples of Africa;Union (AU) can bedescribed as an event of • To defend the sovereignty, territorial integrity andgreat magnitude in theindependence of its Member States;institutional evolution of • To accelerate the political and socio-economicthe continent. On integration of the continent;September 9, 1999, the Heads of State and Governmentof the Organisation of African Unity issued a Declaration• To promote and defend African common positions oncalling for the establishment of an African Union, with aissues of interest to the continent and its peoples;view, inter alia, to accelerating the process of integration • To encourage international cooperation, taking duein the continent to enable it play its rightful role in the account of the Charter of the United Nations and theglobal economy while addressing multifaceted social, Universal Declaration of Human Rights;economic and political problems compounded as theyare by certain negative aspects of globalisation.• To promote peace, security, and stability on thecontinent;The main objectives of the OAU were, inter alia, to rid thecontinent of the remaining vestiges of colonization and • To promote democratic principles and institutions,apartheid; to promote unity and solidarity among popular participation and good governance;African States; to coordinate and intensify cooperation • To promote and protect human and peoples' rights infor development; to safeguard the sovereignty and accordance with the African Charter on Human andterritorial integrity of Member States and to promote Peoples' Rights and other relevant human rightsinternational cooperation within the framework of the instruments;United Nations.To establish the necessary conditions which enable theIndeed, as a continental organization the OAU provided continent to play its rightful role in the global economyan effective forum that enabled all Member States to and in international negotiations;adopt coordinated positions on matters of commonconcern to the continent in international fora and defend The Vision of the AUthe interests of Africa effectively.• The AU is Africa's premier institution and principalThrough the OAU Coordinating Committee for the organization for the promotion of accelerated socio-Liberation of Africa, the Continent worked and spoke as economic integration of the continent, which will lead toone with undivided determination in forging an greater unity and solidarity between African countriesinternational consensus in support of the liberation and peoples.struggle and the fight against apartheid.Quest for Unity• The AU is based on the common vision of a united andstrong Africa and on the need to build a partnershipbetween governments and all segments of civil society, inAfrican countries, in their quest for unity, economic and particular women & youth;social development under the banner of the OAU, havetaken various initiatives since 1980 and made • To promote sustainable development at the economic,substantial progress in many areas which paved the wayfor the establishment of the AU.The OAU initiatives paved the way for the birth of AU. InJuly 1999, the Assembly decided to convene anextraordinary session to expedite the process ofeconomic and political integration in the continent.Since then, four Summits have been held leading to theofficial launching of the African Union:The Objectives of the AU• To achieve greater unity and solidarity between theINDO-AFRICAN BUSINESS 24August-October 2004


DEVELOPMENTsocial and cultural levels as well as the integration ofAfrican economies;• To promote co-operation in all fields of human activityto raise the living standards of African peoples;• To coordinate and harmonize the policies between theexisting and future Regional Economic Communities forthe gradual attainment of the objectives of the Union;• To advance the development of the continent bypromoting research in all fields, in particular in scienceand technology;To work with relevant international partners in theeradication of preventable diseases and the promotion ofgood health on the continent.Technical CommitteesThe African Union has set up Specialized Technicalstrategic plans and studies for the consideration of theExecutive Council; elaborates, promotes, coordinatesCommittees to address sectoral issues and are at and harmonizes the programmes and policies of theMinisterial Level:Union with those of the RECs; ensures themainstreaming of gender in all programmes and• The Committee on Rural Economy and Agriculturalactivities of the Union.Matters;• The Committee on Monetary and Financial Affairs;• The Committee on Trade, Customs and ImmigrationMembers of the Commission• Chairperson;Matters;• Deputy Chairperson;• The Committee on Industry, Science and Technology, • Eight (8) Commissioners.Energy, Natural Resources and Environment;• Staff members• The Committee on Transport, Communications andTourism;Portfolios of the Commission• The Committee on Health, Labour and Social Affairs; 1. PEACE AND SECURITY (Conflict Prevention,andManagement and Resolution, and CombatingTerrorism...)• The Committee on Education, Culture and HumanResources.2. POLITICAL AFFAIRS (Human Rights, Democracy,Good Governance, Electoral Institutions, Civil SocietyThe Financial Institutions• The African Central bankOrganizations, Humanitarian Affairs, Refugees,Returnees and Internally Displaced Persons)• The African Monetary Fund3. INFRASTRUCTURE AND ENERGY (Energy,Transport, Communications, Infrastructure and• The African Investment Bank Tourism…)The AU Commission 4. SOCIAL AFFAIRS (Health, Children, Drug Control,Population, Migration, Labour and Employment, SportsThe Commission is the and Culture…)key organ playing acentral role in5. HUMAN RESOURCES, SCIENCE ANDthe day-to-dayTECHNOLOGY (Education, Information TechnologymanagementCommunication, Youth, Human Resources, Science andof the AfricanTechnology…)Union. Among 6. TRADE AND INDUSTRY (Trade, Industry, Customsothers, it and Immigration Matters…)represents the7. RURAL ECONOMY AND AGRICULTURE (RuralUnion andEconomy, Agriculture and Food Security, Livestock,defends its Environment, Water and Natural Resources andinterests;Desertification…)elaboratesdraft common 8. ECONOMIC AFFAIRS (Economic Integration,positions of the Monetary Affairs, Private Sector Development,Union; prepares Investment and Resource Mobilization…).INDO-AFRICAN BUSINESS 25August-October 2004


DEVELOPMENTNEPADAVision&FrameworkFor African RenewalThe Organization of African Unity (OAU) gave a historic mandate to five countries, namely,Algeria, Egypt, Nigeria, Senegal and South Africa, to develop an integrated socio-economicdevelopment framework for Africa. Thus, the New Partnership for Africa's Developmentth(NEPAD) was unveiled in July 2001, at the 37 OAU Summit, where it was formally adoptedthe strategic framework document to eradicate poverty across the continent. In a nutshell,NEPAD is a vision and strategic framework for Africa's renewal.The New Partnership for Africa's Development(NEPAD) is a pledge by African leaders, based ona common vision and a firm and sharedconviction, that they have a pressing duty toeradicate poverty and to place their countries,both individually and collectively, on a path ofsustainable growth and development and, at thesame time, to participate actively in the worldeconomy and body politic. NEPAD is anchoredon the determination of Africans to extricate themselvesand the continent from the malaise of underdevelopmentand exclusion in a globalised world.The poverty and backwardness of Africa stand in starkcontrast to the prosperity of the developed world. Thecontinued marginalisation of Africa from theglobalisation process and the social exclusion of the vastmajority of its peoples constitute a serious threat toglobal stability.Historically accession to the institutions of theinternational community, the credit and aid binomialhas underlined the logic of African development. Credithas led to the debt deadlock in the form of installments torescheduling, still existsand hinders the growth ofAfrican countries. Thelimits of this option havebeen reached. Concerningthe other element of thebinomial aid we can alsonote the reduction ofprivate aid and the upperlimit of public aid, whichis below the target set inthe 1970s.In Africa, 340 millionpeople, or half thepopulation, live on lessthan US $1 per day. Themortality rate of childrenunder five years of age is 140 per 1000, and lifeexpectancy at birth is only 54 years. Only 58 percent of the population has access to safe water.The rate of illiteracy for people over 15 is 41 percent. There are only 18 mainline telephones per1000 people in Africa, compared with 146 forthe world as a whole and 567 for high-incomecountries.NEPAD calls for the reversal of this abnormal situation bychanging the relationship that underpins it. Africans areappealing neither for the further entrenchment ofdependency through aid, nor for marginal concessions.At the time of unveiling NEPAD, the leaders said:” We areconvinced that an historic opportunity presents itself toend the scourge of underdevelopment that afflicts Africa.The resources, including capital, technology and humanskills, that are required to launch a global war on povertyand underdevelopment exist in abundance and arewithin our reach. What is required to mobilize theseresources and to use them properly, is bold andimaginative leadership that is genuinely committed to asustained humandevelopment effort and theeradication of poverty, aswell as a new globalpartnership based onshared responsibility andmutual interest.”“Across the continent,Africans declare that wewill no longer allowourselves to beconditioned bycircumstance. We willdetermine our own destinyand call on the rest of theworld to complement ourINDO-AFRICAN BUSINESS 26August-October 2004


DEVELOPMENTstrategy for nurturing these resources and using them forthe development of the African continent while, at thesame time preserving them for all humanity.It is obvious that, unless the communities in the vicinityof the tropical forests are given alternative means ofearning a living, they will cooperate in the destruction ofthe forests. As the preservation of these environmentalassets is in the interests of humanity, it is imperative thatAfrica be placed on a development path that does not putthem in danger.efforts. There are already signs of progress and hope.Democratic regimes that are committed to the protectionof human rights, people-centred development andmarket-oriented economies are on the increase. Africanpeoples have begun to demonstrate their refusal toaccept poor economic and political leadership. Thesedevelopments are, however, uneven and inadequate andneed to be further expedited.”NEPAD is about consolidating and accelerating thesegains. It is a call for a new relationship of partnershipbetween Africa and the international community,especially the highly industrialised countries, toovercome the development chasm that has widened overcenturies of unequal relations.Africa's place in the global community is defined by thefact that the continent is an indispensable resource basethat has served all humanity for so many centuries.These resources can be broken down into the followingcomponents:The rich complex of mineral, oil and gas deposits, theflora and fauna, and the wide unspoiled natural habitat,which provide the basis for mining, agriculture, tourismand industrial development.The ecological lung provided by the continent.srainforests, and the minimal presence of emissions andeffluents that are harmful to the environment . a globalpublic good that benefits all humankind.The palaeontological and archaeological sites containingevidence of the origins of the earth, life and the humanrace, and the natural habitats containing a wide varietyof flora and fauna, unique animal species and the openuninhabited spaces that are a feature of the continent.The richness of Africa.s culture and its contribution tothe variety of the cultures of the global community.Africa has a very important role to play with regard to thecritical issue of protecting the environment. Africanresources include rainforests, the virtually carbondioxide-free atmosphere above the continent and theminimal presence of toxic effluents in the rivers and soilsthat interact with the Atlantic and Indian Oceans and theMediterranean and Red Seas. NAPED will contain aModern science recognises Africa as the cradle ofhumankind. As part of the process of reconstructing theidentity and self-confidence of the peoples of Africa, it isnecessary that this contribution to human existence beunderstood and valued by Africans themselves. Africa'sstatus as the birthplace of humanity should be cherishedby the whole world as the origin of all its peoples.Accordingly, NEPAD must preserve this commonheritage and use it to build a universal understanding ofthe historic need to end the underdevelopment andmarginalisation of the continent.Africa also has a major role to play in maintaining thestrong link between human beings and the naturalworld. Technological developments tend to emphasizethe role of human beings as a factor of production,competing for their place in the production process withtheir contemporary or future tools. The openuninhabited spaces, the flora and fauna, and the diverseanimal species unique to Africa offer an opportunity forhumanity to maintain its link with nature.Africa has already made a significant contribution toworld culture through literature, music, visual arts andother cultural forms, but its real potential remainsuntapped because of its limited integration into theglobal economy. NEPAD will enable Africa to increase itscontribution to science, culture and technology.In this new millennium, when humanity is searching fora new way in which to build a better world, it is criticalthat we bring to bear the combination of these attributesand the forces of human will to place the continent on apedestal of equal partnership in advancing humancivilization.INDO-AFRICAN BUSINESS 27August-October 2004


BANKINGPTA Bank ReportsHigherProfit,AssetsThe Eastern and Southern African Trade andDevelopment (PTA) Bank has reported higher profits andincreased assets for 2003.thAnnouncing the results at the Bank's 20 annual generalmeeting held in the Tanzanian capital of Dar-es-Salaamon July 5, 2004, the PTA Bank President, Dr MichaelGondwe said the Bank had made a profit of US$1.78million in 2003 while the assets rose to US$183 millionfrom US$144 million, a rise of 27 per cent.Dr. Gondwe said the Bank had made impressive strides inits resource mobilization resulting in the signing of aUS$31 million line of credit with the AfricanDevelopment Bank, a new US$10 million agreementwith the Export Import Bank of India, and other facilitiesfrom the Overseas Private Investment Corporation(OPIC) of the USA, Standard Bank of South Africa,Merchant and Trade Bank of the USA and KBC Bank ofBrussels among others.“The resource mobilization efforts have been successfulbecause of the positive image the Bank has carefullynurtured and the professionalism of its staff,” he said.The AGM was opened by the Tanzania's Vice President,Dr. Ali Mohamed Shein, and was attended by Ministersof Finance, Planning and Trade from majority of thesixteen PTA Bank member states. The AfricanDevelopment Bank and China also sent representativesto the meeting.Addressing delegates and invited guests, Dr Shein saidthat the presence of the PTA Bank in Tanzania has helpedboost business activity in the country.“A growing nation needs capital to fund growth and thatis where the PTA Bank has come in handy,” he said. Hegave the example of the recent listing of a Tshs15 billionbond which was oversubscribed as a positive step forTanzania's capital markets.“I also understand that Tanzania is among the top threebeneficiaries of the Bank's financing and I am proud thatour entrepreneurs have been quite active in utilizing thefunds availed in the Bank,” Dr Shein added.The intervention has been in various projects in tourism,infrastructure, manufacturing, mining and agri-business.The outgoing Chairman of the Board of Governors,Sudan's Finance Minister El Zubeir Ahmed Hassan saidthat even under difficult operating conditions, the Bankwas able to excel by posting good profits. He said theBank's Five Year Corporate Plan was meant to improve itsperformance and enable it to attain an internationalrating.“The Plan serves as a driving force for the institution andwill undoubtedly consolidate the gains the Bank hasmade since it was established two decades ago,” Hassansaid.The Board of Governors is the Bank's highest decisionmakingorgan of the Bank and guides the Bank'soperations. The members of the Bank are: Burundi,Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Malawi,Mauritius, Rwanda, Somalia, Sudan, Tanzania, Uganda,Zambia and Zimbabwe. The African Development Bank(AfDB) and China are non-regional members of the Bank.PTA Bank provides financial and technical assistance topromote economic and social development in membercountriesThe PTA Bank is a regional development bank covering16 countries in Eastern and Southern Africa, set up inNovember 1985 under the provisions of the Treaty of1981 establishing the Preferential Trade Area (PTA). TheEastern and Southern African Trade and DevelopmentBank or popularly known as PTA Bank, has since beentransformed into the Common Market for Eastern andSouthern African States (COMESA), as a financial arm ofthe integration arrangement.The PTA Bank's aim is to become a world class financialinstitution, run by professionals, deliver quality serviceto clients and contribute to the economic growth andprosperity of the Eastern and Southern African region.Tanzania is currently among the top three beneficiaries ofthe Bank's project and trade financing. Cumulatively, theBank has intervened in Tanzania to the tune of US$200million.INDO-AFRICAN BUSINESS 28August-October 2004


NEWSPMCL's product gets Europeanapproval for use in foodpackagingPRABHAS SANGHAIDirectorParawhite VSP-AF Liquid, a product of Paramount Minerals and Chemicals Limited(PMCL), has received approval in Europe for safe use as an Optical Brightener in themanufacture of Paper & Boards for Food Packaging as well as of Sanitary Paper &Sanitary Tissue.PMCL, a leader in optical brighteners' production, said the approval has beenreceived in accordance with the strict recommendations and requirements adheredto for their use in Europe.These cover the following:• The German Recommendation XXXVI (Tissue, hygiene paper and food packaging)for the health related evaluation of plastic materials according to the Foodstuffs andthConsumer Goods Act, 34 memorandum, Bundesgesundheitsblatt 10 14 (1967),thincluding the 207 memorandum, Bundesgesundheitsblatt 47, 602 (2004), state of 1April 2004;• The German Recommendation IX for the health related evaluation of plastic materials according tordthe Foodstuffs and Consumer Goods Act, 3 memorandum, Bundesgesundheitsblatt 3, 235 (1960),thincluding the 190 memorandum, Bundesgesundheitsblatt 37, 363 (1994), state of 1 April 2004.• The product does not contain any azo dyes that could release amines forbidden according to the(Decree on Consumer Goods, representing the conversion of the directives 89/109/EEC, 90/128/EECand 2002/72/EC and their consecutive amendments in to national law, Bundesgesetzblatt no. 20, dateof issue: 15 April 1992, in the version of the communication of 23 December 1997, last modification of7 January 2004, state of 8 March 2004.• Rules of the Verkpakkingen- en gebruiksartikelenbeslult (Warenwet), Staatsblad 558 of October 1,th1979, including the 16 Supplement of May 2003, State of October 2003.• Requirements of the French Materiaux au contact des denrees alimentaires, Brochure no 1227,Journal Officiel de la Republique Francaise, issued on 15 July 2002 in the version of 2 January 2003.• The demands of the European Standard DIN EN 71, part 3 “Safety of toys, migration of certainelements”, state of May 2003, and met regarding the content and release of heavy metals.• Nordic Eco-labelling for Printing Paper, tissue paper and paper envelopes as per January 2000. EUeco-label for copying paper (96/467/EU) and hygiene paper (98/94/EU).Paramount Optical Brighteners'output up 50 pcParamount Minerals and Chemicals Limited (PMCL) has stepped up its productioncapacity of optical brighteners by 50 per cent to 9,000 MT per annum from 6,000 MTwith effect from August 2004 to meet the growing demand for the product.According to PMCL, a pioneer in the production of optical brighteners, the need foreffecting a steep increase in capacity is driven by the excellent response to itsproducts by global customers and positive sales growth over the past several months.“The additional capacity from the Ambarnath plant would be utilized primarily toservice our international customers in the Paper and Detergent segments,” thecompany said in a statement, adding: “Over the next few years we foresee our capacityincreasing by more than 250 per cent to 24,000 MT per annum.”RAHUL SANGHAIDirectorINDO-AFRICAN BUSINESS 30August-October 2004


AVIATIONFlying on the wings of muse into the magical land of Queen ShebaAfrica's Link to the World,all set to expand further- Ethiopian Airlines CEO (world-wide) Ato Girma WakeAfrica. The vibrant continent of a mysterious past.Where the nature's bounty is spread among thevast wilds of mind-blowing beauty. Where thecontinent is sitting pretty on unimaginable wealth.This Africa is emerging gradually from the days ofthe civil wars and with democratically electedgovernments coming into power; the future seemsto be holding promise hope. Nothing symbolizesthis change of fortune better than Ethiopia, theland of Queen Sheba. Ethiopian Airlines havebeen in India for the past thirty-seven years. In aninterview with Satya Swaroop, Ethiopian AirlinesCEO (world-wide) Ato Girma Wake talk about hiscompany’s future plans.How long have you been with the aviation industry ingeneral and with Ethiopian in particular?I have had a total of 37 years in the aviation industry ingeneral and out of this 27 years of experience wasacquired in Ethiopian Airlines, the organization in whichI grew up to maturity gaining valuable experience alongthe line. I served in various managerial positions, which Ibelieve has contributed immensely to my development.The remaining years were spent with Gulf Air and twoyears with DHL.How do you visualize the inroad and growth ofEthiopian Airlines in India?Ethiopian Airlines has been operating to India since May1966. India is one of our major markets and an area ofvery vast potential. We have plans to increase frequencyand we are also considering operating to additional citiesin India. The economy of India is dynamic and is growingat a rapid pace as is evidenced by the very significantgrowth so far achieved as well as the promising andpositive forecast. It is with this in mind, coupled withpositive trends of growth of the as yet untouchedpotential of Africa that we are looking into opportunitiesto increase our services to India. Currently we have atotal of six passenger and two cargo flights to/from India.Indo-Ethiopian relationship is of long standing and istoday very strong and there are a number of areas wherewe are forging closer ties in order to benefit from thesuccess story of the Indian experience. The liberalizedBilateral Air Service Agreement recently concluded isone evidence of the ties that exist between the twonations.What are the opportunities for cooperation betweenIndia and Africa in the aviation sector?The annual traffic between India and Africa is more than300,000 and is expected to grow by more than 5.0 percent annually. Currently significant share of the market isbeing carried by non-African and non-Indian airlines. IfAfrican and Indian carriers work together by integratingtheir resources and marketing capabilities they coulddominate the market.Both India and Africa have links that go way back inhistory and as can already be acknowledged the linksbetween Africa and the subcontinent will grow as moreand more links are forged in both the economic andcultural arena. Both have a huge opportunity forINDO-AFRICAN BUSINESS 32August-October 2004


AVIATIONeconomic development and commercial networking. It isa known factor the significant role that is played by airtransport in facilitating economic growth and vice versa.We are confident we will be a beneficiary of thisopportunity.Indian Economy is abuzz with good feel factor. How doyou feel this could propel Ethiopian Airlines intofurther expansion?The growing Indian economy, technological andindustrial advancement will accelerate growth of exportsof finished products to Africa. Exports of raw materials toIndia from Africa, tourism flow to Africa, Indianinvestment in Africa and Indian expatriates in Africa willcreate huge opportunities for Ethiopian Airlines as wellas any airline that operates in this market. As mentionedearlier the role that is played by air transport is vital andby the same token economic growth of a nation propelsthe growth of air transport, for with economic strengthcomes the need to expand ones horizon to wherever theopportunity is available.Tell us something about the latest ventures your airwayhas entered into internationally?Further building on its reputation as a respectable andforward looking airline, Ethiopian Airline has embarkedon a series of activities such as fleet renewal, imageupgrading and service improvements aimed atrepositioning itself as a modern and world-class airline.We have recently opened new routes to Amsterdam,Stockholm, Paris, Hong Kong and Gouangzhou (Canton).We have a major facility expansion underway, buildingan independent cargo terminal and an additionalmaintenance hangar.What components do you feel go to make an airlinecustomer oriented? How do you rate Ethiopian Airlinesin this regard?Ethiopian Airlines has been serving the Indian-Africanmarket for the last four decades. Ethiopian has helped topromote economic, social and technological relationsbetween the Indian sub-continent and Africa. EthiopianAirlines is committed to further develop the Indian-African market and is currently investing further toexpand its operation and enhance the quality of itsservices to its esteemed customers.Safety, on-time performance, convenient schedule, and aservice that targets the comfort of its customers are themost important components that go to make a customeroriented airline. Complacency is a danger that will leadany business entity downwards and this is especiallytrue of the airline business. This is an ever changingindustry where competition is very tough and with thesophistication of the needs of our customers and thechoice that are available, airlines have to keep testingthemselves constantly, not only to keep up with thecompetition but to be at the forefront in anticipating theneeds of their customers. And so my answer to this is thatwe are happy with what we have achieved, but believethat we have to keep improving our services constantly.What are some of the strong points of Africa as acontinent that could hold good for the aviationindustry?Africa is the last frontier for aviation development. Witha population of more than 700 million, the potential isimmense. Globalization and privatization will driveeconomic development of Africa and with the hugeresources and a growing economy it is easy to forecastthat the aviation sector will immensely benefit. Thepositive trends towards democratization, stability andeconomic integration coupled with the huge potential forforeign investment will certainly boost the aviationindustry.Africa has a number of strong points that are conducivefor the growth of the aviation industry. It has as yet anuntapped mineral wealth.We have set ourselves a vision, which is to be a worldclass African Airline. As an African carrier we havealways taken our commitment to Africa as the numberone objective and began with the motto “bringing Africatogether” realizing successfully our aim in inter-connecting 26 African cities. Being in line with ourvision, we now have crafted a new motto for ourselves,which is “Africa's Link to the World”.Not only is Africa a land of great potential economicallywith its untapped riches of mineral wealth but it is also aland where its unique and varied cultural diversity andnatural beauty attracts visitors in millions. Ethiopia istruly a tourist paradise, with a culture and tradition thatdates back more than 3000 years, a variety of wildlifeincluding some endemic and awe inspiring naturalbeauty. Ethiopia is in addition a land of paleontologicalwonder as it is the birthplace of “Lucy”, the world'searliest known hominid who lived more than threemillion years ago. Her bones are now at rest at theEthiopian National Museum. The even more dramaticdiscoveries recently made, have now placed Ethiopia inthe forefronts of Paleo-tourism.What are some of the community developmentprograms that the Airline has entered into as acorporate entity?Ethiopian Airlines takes social obligation as part of itsduty very seriously. As a result it engages itself in variousdevelopment programs that it believes will benefit thesociety. To mention a few of the activities, EthiopianAirlines assists the Children's Heart Fund of Ethiopia byfacilitating young children with heart problems to travelabroad for life saving heart surgeries, HIV related causesand also plays a significant contributing role in thedevelopment of Ethiopian sports, etc.Any message you would like to give for the businesscommunity that frequently travel to Africa and India?INDO-AFRICAN BUSINESS 33August-October 2004


AVIATIONBooming Indian Economywill boost Tourist flowinto Africa - Ayenew AlemnehWith the Indian economy moving along the path of enviablegrowth, Ayenew Alemneh, the outgoing Regional Director,India & S.E Asia, tells Satya Swaroop in an interview aboutthe growth prospects of Ethiopian Airlines, which couldtrigger great enthusiasm among Indian to visit Africa.What are the initiatives the Ethiopian Airlines hastaken recently?We have embarked on fresh initiatives to expand ourservices. We have now changed our logo. And our mottois now linking Africa to the world. This is our majorinitiative. In fact it's a reality. We have been operating forthe last 58 years and we have been serving a large portionof Africa…expanding network into Africa, like Ethiopia.We operate from East, West, and North to South of Africa.We have a large extensive network in Africa and now thesecond initiative is that we have embarkedupon upgrading our aircraft. We are buying12 new aircraft. We have already receivedthree of our aircrafts and are going toreceive the rest in the next few months.This will help us increase our services.We have a very extensive wellsynchronizednetworking from Beijing inthe East to Washington in the West. Weare also connecting from Stockholm inSweden in the north to Johannesburg inthe south. So we have several extensivenetworks vis-à-vis capacity. Along withthis, we have opened a new destinationin Sweden and added one moredestination in China. We have beenoperating to China for a very long time.In fact we are one of the first Asians orAfricans to start operations in China.We started it in 1974. We havedestinations in Beijing, Hong Kongand now in Canton. We have restartedour operationsinto Cameroonthat we hadsuspendedearlier. Sogradually weare expandingby taking thehelp of newaircraft. So anew state-of-the-art airportterminal has been completed in Addis Ababa and its nowin operation. It is very modern and it makes Addis Ababaa very beautiful hub for our destination. It will give ourpassengers better services in transit. Another importantdevelopment has been the construction of a very modernand expensive cargo terminal in Addis Ababa. It will beable to take care of the cargo business that we have. InIndia we have a very big cargo business. Many Africancountries have business relations with India and thatgives us tremendous opportunities. The situation now isthat African countries prefer to do business with India.The technology that Africans need is available in India.So this will provide us with better opportunities.How many flights are there from India to Addis?Actually we have four passenger flights a week intoMumbai and three cargo flights. We have two flights intoDelhi. The government of India and the government ofEthiopia have had bilateral discussions on this and theyhave agreed on providing more opportunities toEthiopian airlines to operate. So we are studyingopportunities that we can exploit and expand. There aremany destinations within the country from where we canoperate.So how do you feel has been the policy of thegovernment of India?Yes, it has been very helpful. History proves that we havealways shared very good relations with the governmentof India. So it's not a new thing. The Prime Minister ofEthiopia visited this country some years back andmeetings were held which helped the opportunity forexpansion.So how has been traffic from India to Ethiopia? Has itbeen only Ethiopia or Africa?See, we are targeting not just Ethiopia but Africa. We arean African carrier. There has been a very significantimprovement in the movement of people and cargobetween India and Africa. The potential is great. The onlything is that we have to explore the potential. It is a goodmarket and it is up to us to exploit the situation. We alsohave the support from the government. The traffic hasbeen on the increase and the future seems to be bright.INDO-AFRICAN BUSINESS 34August-October 2004


AVIATIONThe business relationship between India and Africa will about. Not only the travel agent fraternity but we alsodefinitely increase and India is also giving Africa priority. take people from the media. They are taken to differentAnd as Indians are not new to Africa, doing business with parts and then they see for themselves, meet the peopleAfrica is very much in the offing.and talk to them and then come back and write about it.There is a feel good factor about the Indian economy We also have arranged for one team of journalists fromwith the growth of GDP projected at 8.5 per cent and India to go to Beijing utilizing our services. So we haverising Forex reserves. What prospects do you feel been through a big publicity campaign and this is whatdoes this hold for cooperation in the aviation sector? we do. We also advertise in major publications like traveland tourism publications. We also believe certainThe feel good factor isorganizations willalso there in Africa, ingive us place tothe past few yearsdisplay ourwith regard to theTadesse - new India & S.E Asia headproducts on thepolitical andInternet, througheconomic situation.Mr. Tadesse Adane has taken over asThat is a very positivethe websites.Ethiopian Airlines' Regional Director India &development.S.E Asia with effect from July 1, 2004. Mr. So how will youCountries areTadesse, who has had rich exposure in s e e t h eembarking oncountries such as France and Zanzibar and performance ofdemocratic processes,Israel, is now based in Mumbai.the Ethiopianincluding the politicalAirline this year?life of the people.Countries are now properly setting up their priorities, The result is good. When you create awareness naturallyincluding improving the lives of the common man. In the people will notice it and their mindset will change.past Africa was engulfed in many civil wars and famine. People who have as yet not availed of our services willThe situation is changing now for the better. Investmentin Africa is now increasing. More governments areengaged in rural development. Whatever they are doingis achieving positive results. And India is playing a majorrole in this. India is transferring technology that will helpthese countries achieve their target. So the feel goodfactor in India is also reflecting in Africa. The problem isthat due to the media, especially the western media,people have a very wrong impression of Africa. Ofcourse, you cannot blame the people for that. It is themedia that has been pumping ideas into their head. Butthe scene is now changing. As more and more people arevisiting Africa they are realizing this.How does your airline compare with otherairlines, fare wise?It is not the fares that are the only factor forcompetition. The main factor is service. Peopleare less sensitive to prices. More and more peoplewant service. They are ready to pay for betterservice. So what we want to concentrate on is theservice and not prices. It is not difficult to givediscounts but then what suffer are the service. Sowe will not indulge in that .We will try to give thebest of the service at reasonable prices.What are the marketing initiatives that youhave taken to promote the airlines in India?We undertake a lot of initiatives regarding promoting theairline. We interact with the travel trade frequently. Wehave discussions and seminars. We go out into differentparts of the country and promote our products andservices. We also arrange for the members of travel tradeand tourism office to travel to Africa and see what it islike. So they are able to understand what Africa is allstart asking for it.What will be your message for the businesscommunity?It is high time to invest in Africa. It is rich withopportunities. The entire environment has changed andis changing especially with governments committed todemocracy, coming to power. One added reason for Indiaturning to Africa more in comparison to other Europeancountries could be the rich cultural similarity anddiversity shared by both the continents.What are your hobbies?That's a luxury to be enjoyed by the western countriesonly. Here there is no time. As the competition isincreasing and getting tougher you have to keep yourselfupdated with the latest. There is no time to relax. Youhave so much to work upon. Especially for us from smallcountries, we really have no time but to keep workinghard trying to match up with the rest.INDO-AFRICAN BUSINESS 35August-October 2004


AVIATIONLinking Africa and India- Kenya AirwaysKenyaAirways is among the fast-growing airlines of the world today. Group ManagingDirector & CEO Titus Naikuni, who was in Mumbai recently, talks to VeerendraBhargava and Shruti Sinha during a luncheon interview at Hilton Towers about theopportunities in the aviation sector that could be tapped by both Kenya and India.How do you visualise the growth and inroads made byKenya Airways in India?I am very positive about the growth of this airways. As Ihave said earlier, the links between this country andKenya are fairly strong and they lead back to the 1900s.The proximity between the two countries is veryremarkable. It is only a matter of five to six days of sailingand Kenya is there within reach. The other thing is thetechnological advancements in India. There are changesin infrastructure going on in Kenya also. Look ateducation here. It is of good quality. And also there can becooperation as long as the air sector is liberalised.Please elaborate on the opportunities that exist in theaviation sector between India and Kenya.Here one thing that I would like to say is that KenyaAirways offers a very good example of transition from agovernment-owned enterprise to a private sectorenterprise. And it is being successfully run. It thereforehas certain good lessons to offer regarding similartransitions and I think that India can learn from this. Idon't mean to say that India does not know how to goabout with similar transitions or that India does not knowhow to run a government-owned airlines but I think thatthis is a very good field for cooperation between the twoAre you looking for some sort of in-house technologyfrom India?Actually I don't know much about the aviation industryhere and so I amsorry but I amunable to answerthis question.Well, I also thinkthat this is am a t t e r o fchallenge forIndia. You cancome and show usyour expertise andwe can then see!Please tell usabout some ofyour latestventures.Some of the latestventures that we have entered into are that we have a new777, We have a fleet modernisation programme that westarted a few years ago. We have three Boeing 777s, ofwhich one has arrived and two are scheduled to arrive inJune. Our current largest aircraft is a Boeing 767 with acapacity of carrying 216 persons with about 10 tonnes ofcargo. This 777 is a 50% increase over the 767. The otherthing we are looking at is revamping our cargo division.We want to increase our cargo capacity tremendously. Wehave also opened up our new route, which connects verywell to India. We have also opened up new servicestations and for the first time we are flying into Bangkok,INDO-AFRICAN BUSINESS 36August-October 2004


AVIATIONdepending upon the different markets our promotionaloffers also differ. You can go through our website and youcan find out about that in detail. And we are working intandem with different bodies like the South AfricaTourism Promotion Board to promote the AfricanContinent.What are some of the strong points about Africa as acontinent?It is huge, diverse and the infrastructure or roads andrailways is not very well developed and so if you have tomove there then the best connectivity is provided by theaviation industry.Do you have any kind of tie-ups with other airlines inAfrica to promote certain towns?Yes, we have a lot. Like we have one with Air Malawi andso on and so forth. We also have certain programmes.And with regard to India we have a certain arrangementwith the Jet Airways. So you see our relationship withIndia is one of cooperation and competition and henceone of co-ompetition.Hong Kong. We are doing it three times a week and wewant to increase it to seven times a week.How do you see the cargo market in India?Excellent. I see the cargo market developing dependingupon the currency situation and the taxation regime. Onething India must remember is competing now withothers. Because of the improvement in communication,people know how to look for very competitive markets.One such market is Indonesia. So I think India will haveto sharpen its pace.Do you have any message for the business community?Yes. Have confidence in Africa. Do not listen to the wrongreports of the media, especially the West and come anddiscover its vastness, resourcefulness and its potential. What is the potential you see for the cargo from India?I see a lot of potential.Which components do you feel make the aircraft verycustomer oriented?How would you rate your airways in this regard?Well, customers are different. You can never have anyone formula that will satisfy all the customers. Some willbe interested in the cargo capacity and the rates that areoffered to them. Some will be more interested in thecomfort levels provided in the aircraft. One thing whichall want is swiftness. Whichever class you may belong toyou will always want the flight to be on time and nodelays and by that standard our airways is doing well.More than 90% of our flights run on time. This is the rateof our on time performance.Is there any USP or strength that you offer?Yes, we do offer that. It depends upon the market andINDO-AFRICAN BUSINESS 37August-October 2004


PERSPECTIVEBPOIrreversible-L.C. Singh,President & CEO of Nihilent TechnologiesL C Singh has rich and varied experience indevelopment, marketing and general management ofover 30 years in the IT industry. His career includesstints with State Bank of India, Tata ConsultancyServices (TCS) and Zensar Technologies. At TCS, hespent 18 years. As Senior Vice President, he wasresponsible for its business in the UK, South Africa andMiddle East. As President and CEO of ZensarTechnologies, he was responsible for restructuring ofthe company and getting it assessed at CMM Level 5.At present, Singh heads Nihilent Technologies PrivateLimited (Nihilent), a global Solutions Integrationcompany, headquartered in Pune. Today Nihilent ispositioned as an organization that undertakesStrategic Responsibility Management (SRM) anddelivers value to its customers through a SymbioticPartnership Approach (SPA).Following are some of Nihilent's products.• Technology Level 5 or TL5 is an eBusinessarchitectural framework developed by Nihilent. Itsupports the technical implementation of unifiedbusiness processes that allow exploitation of theavailable corporate intellectual capital.TM• ProgramHUB is a product that Nihilent isdeveloping in partnership with an overseas company.This product is a high-end solution for strategicplanning for IT companies, with a proactivecollaboration model to manage change throughpeople as key competitive differentiators.• Nihilent is introducing Business Excellence SoftwareSeries under an umbrella brand ThirdDream. Thesoftware is targeted at the small and medium sizebusinesses.• Nihilent's SFA is a strategy to identify, attract andretain customers leveraging maximum out of directsales force activities. Internet enabled SFA lets salespeople connect to central information from anywhere.------••------Indo-African Business presents you the observationsof L.C. Singh on the controversial issue of BusinessProcess Outsourcing (BPO) and its impact on jobmarkets in the US and elsewhere. Singh stresses onthe need for communicating to the US public on thetrue benefits of BPO.Before responding to all the traumatic responses wehear from all over the globe are on Business ProcessOutsourcing (BPO), let us understand as to what is aProcess? You receive a signal; you add something; thenpass that new signal on to somebody else. That is aProcess. Now, if you outsource the entire chunk ofprocesses elsewhere, it does mean that you eliminate acertain number of players, who are part of thoseprocesses. Roles and a combination of roles make up aprocess. It is not different from outsourcing inmanufacturing. Lots of US jobs have moved to Mexicoand other locations worldwide.Now, India has moved to a stage where the debate onoutsourcing and whether or not this country deliversvalues, is all over. It has been proved that India deliverswell and does well in quality terms.In a knowledge economy, where the world has becomesmall, we have our own trauma. This also very natural.Fundamentally something is changing. Some people aregoing to be affected, whether you like it or not. Whenpeople are affected, they get traumatized. On the face ofit, some of the businesses conducted there, which meanjobs essentially, are moving to some other place.Suppose, US doesn't outsource and a competitor inINDO-AFRICAN BUSINESS 38August-October 2004


PERSPECTIVEEurope does, that European company will becomemore competitive. So in the longer term, outsourcinghas to be done. There is no alternative. The problemhas to be managed and there are no two opinionsabout it. But what has happened is not changeable. Itis an irreversible process. Blocking outsourcing isakin to India's old regime of controls which blockedthings artificially.The same vulnerability you can see in America. Thereaction in the US is very similar and the philosophyis no different. Every change moves in a helix. Itmoves back and forward. Therefore, something thatyou see as the backlash is also part of the helix. It isbound to go back a little. All this H1B is basically abacklash. And it is very natural to a change. No changegoes through straight. The Internet came, went downtotally, and is spurting again. That's how changehappens. When change takes place it affects a lot ofpeople. As professionals, we should not be worryingtoo much about it. We should know how to manage,how not to add fuel to the fire, to lie low, to putinfluence, put forth our point of view, educate people,and tell them as to what can happen if they don'toutsource.We should have keynote speakers who should allaythese fears, but not aggressively. If someone pushes achange in a day, which actually takes three years …well, those are the guys who are called terrorists. Let'snot try and make the change in one day, so that all jobsland here tomorrow... It is neither feasible nor is itpossible. It is not the right way of doing things. It mustbe allowed to take its course.Some rational data should be presented to the criticsof outsourcing. What is it that you are talking about? Isit emotional or factual? And once you tell them it isemotional rather than factual and that it is hardlyaffecting the jobs and is a negligible percentage of thewhole business, the situation will change. We mustask them, then why are you shouting so much? Thenthe public generally starts taking it in properperspective.But right now, what is news? Change is news. The jobgoing away is news but the job remaining there is not.The 0.1 to 0.5 per cent that is affected is news. Theadverse media publicity cannot be stopped. A mediacampaign has to be designed to counter it, if required,by the slots on TV channels. Put forth your point ofview so that the masses are also aware of the realsituation.Mauritius to host AfricanCyber Summit ACT 2004 in Sept.This year's African Computing and TelecommunicationsSummit, ACT 2004, is to be held at the Mauritius CyberTower from September 7 to 9.ACT 2004 will focus on the theme "building partnershipsto mainstream Africa's ICT sector". It will feature a numberof forums, including one on business process outsourcing(BPO), which is particularly important for Mauritius, as thegovernment hopes to develop the island as a BPOdestination.The island nation will host the event at its new CyberTower, which has been designed to provide BPO facilitiesand forms a key element of the Mauritian BPO strategy.Other specialised forums at ACT 2004 include the AfricanTelecom Operators Forum, the African Open SourceForum, a Forum on GSM Applications for Development,and the African eGovernment Forum.The African ISP Association (AfrISPA) will hold its annualgeneral meeting at the event, and according to MauritiusISP Association chairman, Viv Padyatchy, it is hoped thatall ISP associations across Africa will send at least onerepresentative to the meeting.Sean Moroney, group chairman of event organiser AITECAfrica, says ACT 2004 is gaining momentum as a truepartnership event."ACT 2004 has a wide range of private sector,government and developmental organisations supportingit as a platform to share knowledge and experience acrosssectors and countries, to develop partnerships, and toseek best practice solutions to drive forward the rapid rolloutof computing and communications developmentacross the continent."Moroney says that among the organisations supportingthe forum are the UN Economic Commission for Africa,the Global VSAT Forum, the Free and Open SourceFoundation for Africa, the Canadian Government'sConnectivity Africa Programme, and the InternationalFederation for Information Processing.Issues that will be raised at the forum include: ICT forpublic sector modernisation in developing countries,entrepreneurship as the bedrock for Africa's expandingICT sector, ingredients for successful partnerships inAfrica, and the impact of new economy business modelson traditional business practices.On the telecommunications side of the forum, discussionswill focus on telecommunication monopolies beingincompatible with the rapid roll-out of the Internet,surviving regulatory uncertainty in a tough telecomsmarket, VSAT technologies to bridge the digital divide,and rolling out end-to-end VOIP networks in Africa.INDO-AFRICAN BUSINESS 39August-October 2004


BPOBUSINESS IMPACT ANALYSIS-An Effective Tool forBusiness Continuity Planning“Two out of five enterprises thatexperience a disaster go out ofbusiness within five years.Prabhuu SinhaBusiness continuity plans anddisaster recovery services ensurecontinuing viability” - GartnerIt is therefore quite evident that organizations won't be able tooperate at the same level during a disaster, and are seldom able tocompletely recover post a disaster. With the increased numberand intensity of threats faced by organizations (some of thedisasters and their impacts are shown in Table 1), and the risk ofgeographical concentration of key offices and back up facilities,organizations are being required to ensure that they survive adisaster and ensure continuity of their business. Henceorganizations need to identify the critical operations that shouldbe up and running even when the organization is struck by adisaster. Organizations need to identify the critical processesand ensure that those processes are running at “acceptablelevels” during a disaster. Business Impact Analysis is theprocess that helps organizations to identify their criticalprocesses. Therefore, a key requirement for successful businesscontinuity planning is conducting an effective business impactanalysis.What is Business Impact Analysis?Business Impact Analysis (BIA) as the name defines, isanalyzing the impact of threats on the business. The businesscontinuity institute defines BIA as, “The management levelanalysis by which an organization assesses theTable 1quantitative (financial) and qualitative (non-financial) impacts,effects and loss that might result, if the organization were tosuffer a Business Continuity Emergency, Event, Incident and/orCrisis”.The BIA identifies who and what are vital to the business'ssurvival. The BIA is the foundation for all business continuityplanning programs. A BIA helps define the ramifications of theloss of the individual locations, business units, and processes.The Business Impacts fall into two major categories financialand operational. Financial impacts like lost sales, contractpenalties and the extra expense incurred go straight to thebottom line in a relatively short period of time. Operationalimpacts like loss of customer confidence; loss of market sharetakes relatively slower time to take effect, but will be moredevastating.FIGURE 1 below shows some of the outage costs that will beSource: DRI InternationalSource: www.BusinessContinuity.infoincurred by organizations due tointerruptions.BIA identifies these potential impacts, andhelps management to take informeddecisions about business continuity andinstitutionalize risk management programsto take preventive measures. This enablesOrganizations to have a clear idea of whattheir risk appetite is, and how much they canafford.Organizations that fail to conduct aneffective BIA risks over committing orunder-investing resources in BusinessContinuity Plans.What are the objectives of a BIA?The objectives of the BIA are to:1. Assess Impact(s) of Disruption tobusiness over time.2. Determine time criticality of individualINDO-AFRICAN BUSINESS 40August-October 2004


BPObusiness functions as related to organization function.3. Determine required available time (Recovery TimeObjective) for functional departments.4. Determine the sequence of recovering critical functions in theevent of a disaster.A BIA provides• Financial impacts by business unit, location, and the overallorganization.• Operational impacts by business unit, location and the overallorganization.• Current state of preparedness.• Extra expenses necessary to continue operations after adisruption.• Technology requirements for recovery.• Special recovery resources.BIA results are used to decide• What are the critical business functions that are essential to thesurvival of the organization?• How quickly critical business functions have to be back inbefore the impacts are catastrophic.• What are the different strategies to adopt to meet the recoverywindow?• What resources are needed to resume operations at anacceptable level?• What elements must be pre-positioned in order to meet therecovery window?Phases of Business Impact Analysisorganization culture.Care should be taken when developing the questionnaires. Thequestionnaire should be basic and short; should have a logicalflow, and should be close-ended questions. Also, the topicalquestions should be grouped together and easier questionsshould build to complex questions within groups.For data collection by interview, develop interview guide, traininterviewers and have a proper schedule. While conductinginterviews, the interviewer needs to be consistent andconversational and stay focused and maintain control. Also, thedata provided by the interviewee needs to be validated. Theadvantage of data collection through interviews is that one canexplore ideas that might be missed with questionnaire approach.a. Business Impact: The purpose is to determine the potentialimpact to the organization in the event of an outage affecting adepartment. Information on what would be the business impacton the organization if this department could not function andmeet its business obligations over a period of time 4 hours, 8hours, 24 hours, 3 days etc. The impact can be quantitative(financial) or qualitative (non-financial). Each organization willhave a different measure for the impact.b. Business Processes: What are the different businessprocesses performed by the department? For each process,provide its name and a brief description and rate its level ofimportance to the organization based upon the impact of itsTypically a BIA is composed of five phases.unavailability. For the critical business processes identified in1. Project Planning the department, get the details like average volume of business2. Data Collection transactions, processing time frames, workflow relationships3. Data Analysis and dependencies.4. Reporting Findings5. Presenting to Senior Management1. Project Planning: The initial step in a BIA is to define theobjectives and determine the scope of BIA. The preferredapproach is to have all business functions in the scope and not tohave preconceived assumptions on the criticality of businessfunctions until the analysis is completed. Having defined theobjectives and scope, the same should be presented to the SeniorManagement to obtain their commitment. Once these items areagreed upon, a project team should be formed. The project teamshould have employees with appropriate knowledge about thebusiness processes (Business Experts), Technology Experts,Financial experts, third party staff or a combination. Next adetailed project schedule needs to be developed. Theannouncement about the project needs to be made to theparticipants by the Senior Management. The announcementshould typically include a memo from Senior Managementstressing the importance of the project and the need for fullparticipation and co-operation. The Senior Managementcommitment can typically be demonstrated by having a policyfor Business Continuity.2. Data Collection: Data should be collected from variousorganizational units and from relevant business partners.Information systems can be complex, with a wide range ofcomponents, interfaces and processes. The BIA team shouldidentify all interdependencies among these items, and identifythe personnel from whom the information needs to be obtained.3. Data Analysis The data obtained in the previous phase needsto be clearly examined and analyzed by the BIA team to identifycritical information systems and processes, as well as potentialdisaster impacts. The analysis method to be used should be pre-defined and the criteria on which analysis will be done needs tobe determined. The criteria vary from organization toData collection is the most critical part of BIA. Data collectioncan be done using a structured set of questionnaires or havinginterviews with the concerned people or having a combinationof questionnaire and interviews. The best approach to datagathering depends on the circumstances of the project and theThough each organization's need of data is different, some ofthe aspects that can be considered during data collectionare:c. Recovery Strategies: Obtain the recommended businesscontinuity strategy for the department over the various timeframes.d. Resource required: Obtain the resources required by thedepartment if the business process needs to be conducted at abusiness recovery/alternate site. Also, get the vital records andcritical files needed for recovery purposes and where the recordsare kept/stored.ChallengesThe primary difficulty that the BIA project team typically facesis in identifying the “Critical” business functions. Since theemployees feel intimidated if their functions are not identified as“Critical” business functions. To overcome this, the BIA projectteam may end up identifying all the functions as “Critical”,which does not serve the purpose. To avoid this situation, theBIA team can try to clearly define the objectives of the BIA andthe associated deliverables and communicate the same to therelevant stakeholders. Then, the team can educate stakeholderson the context in which 'criticality' is being determined and seekstakeholder inputs to identify 'critical' business functions.Another difficulty arises in establishing appropriate measures toassess the impact of non-availability of a business function.Establishing consensus among stakeholders on the measures,especially for non-quantitative impacts can be an uphill task.INDO-AFRICAN BUSINESS 41August-October 2004


BPOorganization and this largely depends on the “Risk Appetite” of new interface between which information and resource flows.the Organization.Anything that hinders accurate information exchange such assystem or network downtime can have a dramatic effect onA proper Data analysis will help in achieving the objectives set.operational performance. Successful organizations generallyFigure 2 gives a pictorial representation of the tolerable limitsfocus on delivering benefits continuously to their stakeholders.(Recovery Time Objective and Recovery Point Objective) ofWhen these win-win criteria are not met, relationships mayfailure or loss of functions, which is one of the deliverable of abreak down and one or both parties suffer in various ways.BIA. The different strategies that can be adopted depend on thetolerable limits. Many customers in the Banking and Financial Organizations pay a heavy price for lost production and mansectorsare bound legally to ensure that zero data is lost and hours, yet relatively few are putting measures in place to preparehence may opt for Synchronous replication for many for similar crises in the future. Organizations need to carry out aapplications. If the organization can tolerate at least a day of lost comprehensive BIAin order to put in place an effective businessdata and a few days of downtime after a disaster, the continuity plan. While doing so, they also need to consider theirorganization can rely on “tape backup”. Similarly different key business relationships, including those with outsourcingstrategies are developed for the different functions, based on the service providers, in order to accurately reflect their highlyrisk appetite.FIGURE 2inter-connected nature. A well-developed business continuityplan gives comfort and confidence to the organization that isoutsourcing. A service provider establishes confidence and trustwith the client if the organization demonstrates that a detailedBIA was done and the critical processes and the recoverystrategies have been developed, tested and maintained. Theother benefits of a good BIA are:• Identifying critical business functions that are essential to theorganization• Determining the time criticality of individual businessfunctions as related to the organization function• Finding different ways by which the business function can beperformed and eliminating any redundant activities• Identifying different strategies to adopt to meet recoverywindow• Rationalization of continuity and recovery investments• Peace of mind knowing they can respond quickly andminimize disruption of service they provide to their clients.The analyzed data needs to be validated with the participants inthe Data collection for accuracy and relevance. A BIA based oninaccurate or incomplete data can lead to development of a poorBusiness Continuity Plan.4. Reporting Findings: The BIA findings should bedocumented in a formal report. The typical contents in a BIAreport are:• Overview• Project Scope, Objectives• Approach taken• Assumptions• Summary of Business Impacts Quantitative and Qualitative• Detailed findings (by department or functional area)• RecommendationsPresenting to Senior Management: The BIA report ispresented to the Senior Management. The BIA team needs to beready with explanations for not only the findings, but also for therecommendations. This presentation is the critical presentationfor the BIA team to show the Senior Management why BusinessContinuity Planning is important and why it should besupported.A well written and presented BIA report will increaseSenior Management's awareness about disasters and theirimpact and in turn increases the likelihood that SeniorManagement will approve the next stage of the project.With the rapid growth in outsourcing, the benefits ofoutsourcing may be diluted if the organizations do not carefullyconsider how the existing business continuity plan could beaffected by outsourcing strategies. Outsourcing operations canactually add to the risks the company is exposed to in a numberof ways, since outsourcing a business operation introduces aABOUT THE AUTHORSPrabhuu Sinha is the Senior Vice President (Quality & ProcessSolutions) at Satyam Computer Services Ltd. (India). Prabhuuhas over 30 years of experience in the field of IT and Quality. Heis a member on the technical advisory board for the eSourcingCapability Model (eSCM) at Carnegie Mellon University.Satyam is the Founding partner of the consortium at CarnegieMellon University that has developed the eSCM.Madhu. K is currently working as a Lead Consultant in SatyamComputer Services Ltd. Madhu has morethan 9 years of industry experience in ProductDevelopment, Project Management, QualitySystem Assessments and Quality Modeldevelopment. Madhu is an ISO 9000Registered Lead Auditor and has carried outmore than 300 assessments in various sectors.Madhu was also involved in the developmentof the eSourcing Capability Model (eSCM) atCarnegie Mellon University.Bennet Suresh Kumar is a Process Consultant in Satyam'sOutsourcing Process Consulting Practice,enabling the implementation of the eSourcingCapability Model (eSCM) in leading globalorganizations. He is a Visiting Scholar atCarnegie Mellon University, and is a coauthorof the eSCM. Bennet was involved as akey team member throughout the eSCMinitiative, from initial modelconceptualization to final publication. He hasalso published articles / papers and delivered lectures in leadinginternational conferences on Information Technology andProcess Improvement.INDO-AFRICAN BUSINESS 42August-October 2004


CINEMAomancing Africa,HOLLYWOOD STYLEHollywood finds Africa fascinating. MGM (Metro Goldwyn Myer) has immortalized theKing of the African jungle on its banner, with its legendary roar echoing through movietheatres across the globe. In fact, Hollywood has been visiting Africa time and again. Thoughthe viewers around the world have been offered glimpses of historic insights, but oftenmisleading information is mixed in these fictitious films. Generally, the story often told isthat of a white man or woman in Africa. The continent and its people are mostly used as anexotic backdrop. Nevertheless a few of the films have been regarded as masterpieces in craftand the art of story-telling.OUT OF AFRICATHE AFRICAN QUEENThe best picture to come out of Africais 'Out of Africa' and no pun isintended here. Winner of sevenOscar awards, including the BestPicture in 1985, Out of Africa starsMeryl Streep as Baroness KarenBlixen, who comes to Africa with herhusband, but finds love with anotherman (played by Robert Redford).Absolutely stunning cinematographyby David Watkin is a highlight, alongwith great performances from bothRedford and StreepKING SOLOMON'S MINESOne movie- King Solomon's Mines was made thrice since1937, when the first version was released. It was the classicstory of white hunter AllanQuartermain who helps ayoung woman to find herlost husband somewheredeep inside Africa. Thesecond was the best of theSolomon movies made in1957. Story is the same:Quartermain falling in lovewith the woman he isguiding through the wildand dangerous Africa.Starring Deboarh Kerr andStewart Granger. Goodadventure entertainmentand quite impressiveaction sequences. Filmedspectaculary on location inKenya, Tanzania, Uganda,Congo and the US. The third was the worst version (1985)shot on location in ZimbabweJohn Houston, master of story telling, takesthe viewers on a great adventure navigating asmall boat through Africa during World War 1in his 1951 film, the African Queen.. HumphreyBogart as the ever drunk captain has to suffer apuritanical missionary, Katharine Hepburn. Theopposite poles, they eventually fall in love. Simply,great filmmaking!SHEENAAlso released in the same year (1984) is the femaleversion of Tarzan. It was first put on the screen in1955 and like Tarzan, Sheena was created as acomic book figure. Directed by John Guillerminand starring Tanya Roberts as the orphaned blondgirl growing up with an African tribe. Someaudience (mostly male) will enjoy watching ahalf-naked Queen of the jungle riding on thezebras and fighting bandits. The story takes placein a fictitious African state, but was filmed onlocation in Kenya.INDO-AFRICAN BUSINESS 44August-October 2004


CINEMAHATARI!Made in 1962, Hatari, anadventure film features JohnWayne and is directed byHoward Hawks. A group of menmake their living from trappinganimals and selling them to zoo'sin Europe and America. Awoman shows up. She is awildlife photographer andquestions the men's methods.Exiting, entertaining and goodaction scenes. Filmed mainly inthe national parks of Tanzania."Hatari" is the swahili word for danger.THE GHOST AND THE DARKNESSThis action drama, made in 1996, is based on a truestory from 1898, whenthe British wereconstructing therailroad throughKenya (view photosfrom Kenya). Maneatinglions killedseveral workers andBritish engineers. Themovie describes theAfricans with the sameignorance as commonhundred years ago, but it isstill good old-fashionedaction. Val Kilmer andMichael Douglas stars inthe movie, which is shot onlocation in South Africaand Kenya.THE SNOWS OF KILIMANJAROA wounded writer rethinks his life while waitingfor relief. Gregory Peck stars in this movie basedon the short story by Ernest Hemingway andmade in 1952. Not much is actually shot onlocation in Africa.GREYSTOKE: THE LEGEND OFTARZAN, LORD OF THE APESAFRICA GOES HOLLYWOODIt is not that always Hollywood comes to Africa. These days itis the other way round. Three African films get theirAmerican television premieres on Robert Redford´sSundance Channel. There are retellings of bible stories,Carmen with a bi-sexual twist, and touching takes onboyhood.Genesis is being shown for the first time on TV along withtwo other African feature films -- Karmen Geï , from Senegal,and Our Father , from Chad -- as part of the SundanceChannel's "Voices From Africa" series.The story of Tarzan has been told since theearliest days of filmmaking. Greystoke(1984), is at least a little different and it has itsgreat moments also. Hugh Hudson directed acast of Ralph Richardson, Ian Holm, JamesFox, Andie MacDowell and of courseChristopher Lambert as Greystoke/Tarzan. Itis beautifully shot on location in Cameroon.INDO-AFRICAN BUSINESS 45August-October 2004


TOURISMAfrican SafariAn EndlessAdventureTraveling in Africa is an endless Safari with boundaries stretchingbeyond the horizons. Africa has everything to offer a tourist - the plains,the hills, the valleys and the rain forests with exotic wildlife, anadventure of a life time. Add to this the mystery of man's evolutionthrough the millennia. Africa provides the solution. Skip the mindblowingissues and set out on a thrill-a-minute safari, starting withKenya, the first and the last word in such tours.Kenya is the most popular destination for safaris in theworld. It is famous for its 'Out of Africa' scenic beauty,diverse cultures and abundant wildlife. The coastlineand tropical beaches are equally inviting.A Kenya Safari usually starts in Nairobi. From Nairobione takes a private charter to Mount Nyiru in the heartof the Northern Frontier District for a camel packadventure led by the local nomadic tribes in this wild,rugged territory. Or fly to Koobi Fora, the Cradle ofMankind, archeological hotspot and home to the proudGabra tribe before heading off again for the shores ofKENYAMASAI MARA SAFARIwww.divyatourism.comLake Turkana - frequently dubbed the 'Jade Sea' -where the ancient Turkana tribe has adapted to theharsh conditions of this capricious inland sea.The wildlife is the prime attraction of Kenya safaris, thattake place in some of Africa's most popular nationalparks including the Masai Mara, Tsavo, Amboseli, andLake Nakuru.A Kenya safari contains a mosaic of different culturesand traditions. The people have the natural ability tomake every traveller feel at home - 'Karibu' a Swahiliword meaning welcome is often heardWhy go on a Masai Mara Safari? Put simply it is the best destination in Kenya for viewing wildlife… lots of it! TheMasai Mara is home to a great wildlife spectacle. It is sometime between August and November that over two millionwild beast migrate from the Serengeti in search of water and grazing.For many people timing their Masai Mara Safari to coincide with the migration seems vital - but with a very abundantand healthy resident population of animals, a holiday to the Masai Mara is great at any time of the year. With itsrolling grasslands and wide-open savannah - the Masai Mara is the kind of African landscape that you see in themovies!The Wildebeest Migration is adramatic story. It takes placewithin Kenya and Tanzania and isthe greatest wildlife show onearth. Between the open plains ofthe Serengeti and the Masai Mara,thousands of wildebeest andzebra's migrate to greener pasturesas the seasons change and thecircle of life and death continues.Predators closely follow theWildebeest Migration waiting foran opportunity to strike weak preyas they make their way intodifferent territories.The precise timing of theINDO-AFRICAN BUSINESS 46August-October 2004


TOURISMWildebeest Migration changesannually and it is a veryunpredictable and spontaneousnatural event The calving www.divyatourism.comseason takes place in theSerengeti between the months of January and mid-March before the Wildebeest Migration begins headingtowards the Western Serengeti in June. The best time to seethe migration is usually between June and August when thewildebeest congregate and prepare to cross the famousGrumeti River. There are a few excellent camps in this areawhere you can stay to witness this natural phenomenon. Ifyou are in the Masai Mara you can expect the wildebeest tomake their arrival as early as July, but they generally arrivebetween August & September and remain in the Marabetween October & November. Between December andJanuary the wildebeest gradually begin their migrationback towards the Serengeti.SERENGETI SAFARIGo on a Serengeti Safari and experience a soul-stirring feeling of space. Serengeti comes from the Masai wordmeaning ' Endless Plains'. It is these grasslands and savannahs that ensure that the area is jam-packed full ofgame. The Serengeti is well known for the wildebeest migration and annually 2 million animals moveclockwise around this 14, 763 square km ecosystem in search of grazing and water.The predators follow the wildebeest and zebra closely - and a Serengeti Safari is an ideal opportunityto view lions and other big cats. Pinpointing and predicting the location of thew i l d e b e e s t m i g r a t i o n i s challenging - but with a healthy residentpopulation of animals, safariand game viewing withinthe SerengetiGame Reserve isgreat allyear round.Zanzibar holidays are one of the most relaxing experiences that money canZANZIBAR buy. After an East Africa safari the best way to unwind is just to relax on anisland paradise. Zanzibar holidays offer comfortable accommodation, withocean views that will effortlessly invite you to explore the coral reefs. Zanzibaris also the ideal romantic retreat, whereromance steals the evening bycandlelight dinners, or on privateromantic walks. Beach barbequestantalize your taste buds with cuisinefresh from the sea.Explore Zanzibar and leave refreshed,with a wonderful story to tell. Endingyour safari holidays with an island styleexperience on Zanzibar will definitelyleave you wanting to come back formore.This 10-day beach-safari combination is ideal for couples wishing to celebrate their romance in Africa. VisitingNgorongoro & Serengeti you are guaranteed extra special attention & awesome wildlife opportunities beforeheading to Zanzibar to enjoy lovely white sandy beaches to laze away the last few days of your holiday.INDO-AFRICAN BUSINESS 47August-October 2004


TOURISMVICTORIA FALLSVictoria Falls is one of the most impressive natural www.divyatourism.comwonders of the world - you'll be swept away by itsmagnificence. You can enjoy a walking trail through the rainforest taking inthe Vic Falls beauty.Don't just go to see Victoria Falls but also play in and around it! Victoria Falls isAfrica's adventure capital. Test your fear of heights by bungi jumping off therailway bridge. If that doesn't get your adrenalin pumping then strap on a lifejacket and board a rubber dingy for some exciting white water river rafting! Forthe extra brave you can go it alone on a body board!Declared a World Heritage Site, Vic Falls borders Zimbabwe and Zambia and isa gateway to some excellent game viewing. No matter what you hear - VictoriaFalls is an outstanding place to visit and gets our vote every time.THE OKAVANGO DELTA, CHOBE -BOTSWANASituated in the Northern part of Botswana is ChobeNational Park and the Okavango Delta. Botswana is wellknown for being the place to go for up-market and luxurysafaris and these two destinations make the perfectcombination for your safari to Botswana.Chobe National Park is famous for its huge herds ofelephants and the combination of seasonal floodplainsand grasslands means you can enjoy a game drive in themorning and a river cruise in the afternoon.The Okavango Delta gives you a chance to have a realAfrican experience - you really are in the middle of nowhere. Activities can include game drives, dug out canoesand nature walks. Virtually untouched and wild, the marshy wetland is home to over 450 species of birds. Fearnot - you'll not be 'roughing it' - Botswana's accommodation is elegant and includes some of the best lodges andtented camps in Africa!Kruger Park Safaris offer a huge variety anddensity of wildlife. Adjacent to the Kruger onits Western Boundary are a number of PrivateGame Reserves, including Sabi Sands,Timbavati and Manyeleti.It's at these Private Game Reserves that youcan enjoy Fly In Safaris. Go on safari in openvehicles these allow you to go 'off road' and togo on nighttime safaris. It is commonlyaccepted that there is no better place than theKruger Area to photograph the big cats suchlions and leopards.The Kruger Park also offers the best Self DriveSafaris in Africa. These are less expensive andbest suited to families and those travelling on aslightly tighter budget. In this section wedetail our Kruger Park Safaris.INDO-AFRICAN BUSINESS 48August-October 2004


TOURISMBOTSWANA SAFARIBotswana is a land-locked country, dominated in geographical terms by the KalahariDesert, however it is probably more famous for its safari tours in the spectacular inlandOkavango Delta.www.divyatourism.comBotswana safaris offer travellers truly amazing and diverse experiences in pristineenvironments. Explore the fascinating deserts, wetlands, savannahs, the delta and wildlife-packed game reservesof one of the wildest regions in Africa.Botswana is a sparsely populated country and is backed by a stable, democratic government. It is often describedas 'Africa 's success story' since its independence in 1966, and it continues to achieve growth and economicdevelopment today.CAPE TOWNCape Town has been rated one of the top destinations in theworld. Imagine yourself on holiday in Cape Town sippingcocktails on Camps Bay Beach as the sun sets in thedistance. Cape Town holidays are relaxed - butsophisticated. Holidays here bring out the cool in everyoneand give you a new lease on life, leaving you feelingrefreshed, relaxed and vowing to return.Day cruises on luxury yachts are a stylish way forsightseeing, and going up Table Mountain gives you theperfect view of Cape Town. There is plenty to do in CapeTown, from wine tasting to water sports - there is somethingto keep every body happily occupied while enjoying yourholidays.The Cape Town beaches are legendary - you can spendhours on the beach soaking up the sun (or the bodies!),washed down with a bottle or two of South Africa's finestwines. Restaurants, bars and clubs essentially make upCape Town's nightlife and are establishing themselvesexclusively. Do holidays get better than this?SUN CITYSun City is internationally renowned as South Africa's premierholiday resort offering a multitude of attractions and activities to keepeveryone occupied. With its combination of golf, game and gambling,as well as world class hotels. Sun City is the perfect choice for anyholiday in South Africa. Sun City is conveniently located about twohours' drive outside Johannesburg. Sun City in South Africa has somuch to offer…INDO-AFRICAN BUSINESS 49August-October 2004


TOURISMBook Via Divya & Travel SmartDivya Tourism Pvt. Ltd, a Since Divya dealsleading travel agency d i r e c tly withc e r t i f i e d b y t h e airlines/hotels it doesInternational Air Travel n o t i n c u r a n yAssociation (IATA), was expenses like thirdformed in 2003. An party agencies. Due tooffshoot of Shree Divya its large volumes with most of the airlines and hotels,Travels, incorporated in Divya is in a position to bargain for fares which are much1993. Divya is the largest lower than those of its nearest competitors and hence theintegrated travel agency of benefits are directly passed on to its customers. DivyaGujarat with offices in has been servicing various corporates across all itsNailesh MashruCMD A h e m d a b a d , B a r o d a , branch offices and is also operating travel desks at clientRajkot and Surat in Gujarat locations for coordinating the in house needs of suchbesides Mumbai and Udaipur in other parts of India. clients.New branch offices are slated to open in Pune andBeing affiliated to various trade organizations such asChennai glore in the country and Dubai and LondonTAFI & TAAI, Divya is at the forefront of various industryglobally.related issues which directly or indirectly benefit itsBesides IATA, Divya is also affiliated to Travel Agents customers.Federation of India (TAFI) and Travel Agents AssociationDivya's turnover in such a short span of operations forof India (TAAI). Divya offers a one stop shop solution forthe year ended March 2004 exceeded Rs.100 crore, thethe entire travel needs of the individuals as well asbulk of it coming from its ticketing operations. Divya iscorporates.also in process of achieving ISO certification for all itsDivya has a tie-up with all major international carriers of branch offices.Europe and Far East. It has also been honoured withDivya employs the best talent in the industry and theawards by Lufthansa, KLM, Gulf Air, Singapore Airlines,entire team of 100 plus travel consultants across its sixThai Airways and Air India for its outstandingbranch offices have a collective experience of more thanperformance.500 years which ensures that each and every customerDivya is an authorized agent for submitting the passports travels smart, first time, and every time.to most of the European and Far Eastern consulates andembassies. The travel agency has its own fleet of luxuryas well as budget cars with chauffeurs at all its offices. Italso operates coaches and mini vans for large groups.Customers can also avail of self-driven options as well.Other facilities that Divya offers include Forex service.Currently Divya sources foreign exchange from leadingforex agencies. A proposal for acquiring its own forexlicence is awaiting clearance by the Reserve Bank ofIndia (RBI).Divya is also the first agencyfrom Gujarat to start a fullfledgedtrade fairs andexhibitions division. In fact,Divya is organizing its firsttrade fair in association withCPHI in Brussels, Belgiumin December, 2004 andplans to conduct such fairsacross different parts of theworld, targeting variousbusiness segments.INDO-AFRICAN BUSINESS 50August-October 2004


COMMERCE BILATERALSynergie entre Inde & AfriqueLe Potentiel IllimitéDu CommerceEt D'InvestissementQui Attend d'Etre ExploitéT.C. Venkat SubramanianPrésident-Directeur Général, Export-Import Bank of IndiaMalgré des nombreux défies faisant face à l'Afrique, des 2,2 pourcent en 1990-91 jusqu'à 6,0 pourcent en 2002-03.progrès considérables ont été réalisés par la gestion L'élévation concomitante dans des importationsmacro-économique améliorée et le progrès structural d'Afrique pendant la période comparable certifient auxcontinu dans beaucoup de pays. Ceci est le résultat des relations commerciales bidirectionnelles accrues, où lesengagements intenses de beaucoup de gouvernements importations de l'Inde d'Afrique ont monté de US$ 573africains au politique prudent fiscal, monétaire et de millions en 1990-91 jusqu'à US$ 3,4 milliards en 2002-taux de change. Le stimulus à l'accroissement soutenu 03, avec une part résultante de 5,6 pourcent dans desémanerait de l'approfondissement des réformes, de la importations totales de l'Inde, plus élevé par 2,4transformation structurale, de la reconstruction des pourcent en 1990-91.capacités et des politiques macro-économiques solidesaussi bien que efficacement contrôlées. Le besoin desProgramme “Focus Africa”pays africains de redoubler leurs efforts est fermement Le programme "Focus Africa " lancé par le gouvernementexprimé dans l'Association Neuve du Développement de de l'Inde dans l'année 2002-03, a accru en avril 2003 pourl'Afrique (NEPAD). Reflétant la résilience croissante des couvrir, en effet, le continent africain en entier. En pluspays africains aux incertitudes globales, l'accroissement de la identification des pays spécifiques, le programme aréel de PIB de l'Afrique a renforcé à un approximative 4,1 également identifié les groupes de produit spécifiquespourcent en 2003, par rapport au cela de 3,5 pourcent en pour une approche focalisée, et a également réclamé une2002, et pendant 2004, il est projeté de grimper approche intégrée impliquant tous les établissements etdavantage jusqu'à 4,2 pourcent. Pour autant que agences intéressés pour augmenter des relationsl'inflation est concernée, les politiques macroéconomiquesbilatérales de commerce et d'investissement.améliorées ont eu comme conséquence Les Initiatives de la Banque Eximune inflation relativement basse dans la plupart deséconomies africaines.Comme mentionné ci-dessus, la banque Exim a affectédes ressources et a mis en place une gamme complète desDepuis le commencement des opérations Export-Import équipements et des programmes pour faciliter etBank of India (Exim Bank) en 1982, les pays dans le catalyser le commerce de l'Inde avec la région africaine.Continent Africain ont été le centre, et donc uncomposant critique de la stratégie de la banque Exim La banque Exim a avancé des lignes de crédit (LOCs) à unpour favoriser et soutenir ainsi le commerce et certain nombre d'établissements/agences en Afrique enl'investissement bidirectionnels. Cet engagement vers vue d'amplifier les exportations de l'Inde vers la région endévelopper les relations avec la région africaine est particulier pour des SME. Pour s'ajouter à ces initiatives,reflété dans les diverses activités et programmes que la La banque Exim facilite également activementbanque Exim a mis en place avec une vue pour créer un l'investissement des compagnies indiennes en Afriqueenvironnement permettant pour faciliter et augmenter en tant que société en participation et complètement dedes relations commerciales bilatérales entre l'Inde et les filiales. Ces entreprises sont dans les pays suivants : lepays en Afrique.Botswana, L'Egypte, Le Ghana, Le Kenya, Les îlesMaurice, L'Ouganda, L'Afrique du Sud, La Tanzanie, LeLes Relations Commerciale Indo-AfricannesSénégal et la Zambie, et ils incluent les secteurs diversLa synergie qui existe entre l'Inde et l'Afrique peut être tels que les hôtels, les produits d'hygiène, le textilesmesurée du fait que le commerce bilatéral a monté à denim, les pharmaceutiques, les colorants et les engrais.partir de US$ 967 millions en 1990-91 jusqu'à US$6,6 La participation aux projets en Afrique financée par lesmilliards en 2002-03, qui est dû à l'élévation des agences multilatérales est une avenue importante pourexportations et des importations à la fois depuis la région augmenter la présence sur les marchés d'outre-mer, et laafricaine. D'un chiffre relativement bas de US$ 394 banque Exim facilite activement la participation desmillions en 1990-91, les exportations de l'Inde vers compagnies indiennes/ des conseillers dans de telsl'Afrique ont atteint US$ 3,1 milliards en 2002-03. En projets. En tant qu'établissement en partenariat pourconséquence, la part de l'Afrique dans les exportations favoriser le développement économique en Afrique, latotales de l'Inde a monté d'un pourcentage marginal de banque Exim maintient des liens institutionnels fortsINDO-AFRICAN BUSINESS 52August-October 2004


COMMERCE BILATERALavec les établissements principaux en Afrique qui empêchements aux courants commerciaux intraincluent la Banque de Développement Africaine, la régionaux, tandis que certains visent également àBanque Afri Exim, la Banque PTA, la Banque de stimuler l'union économique et monétaire parmi les paysDéveloppement de l'Afrique d'est, la Banque de membres comme le devise commune.Développement de l'Afrique occidentale (BOAD),Les arrangements de commerce principaux en Afriquel'Association des Etablissements Africains de Financesincluent le Marché Commun pour l'Afrique de l'Est et dude Développement et de la Banque Mondiale. En mêmeSud (COMESA), La Communauté Africaine Méridionaletemps, la banque Exim a des connexions avec desDe Développement (SADC), Union Douanière Africaineétablissements tels que la Société de FinanceMéridionale (SACU), Union Economique et MonétaireInternationale (le service de développement de projet deAfricaine Occidentale (UEMOA), La Communautél'Afrique est actionné sous ce projet), la banque PTA, etEconomique des Etats Africains Occidentauxles Compagnies Africaines de Services de Gestion, pour(ECOWAS), Coutumes Africaines Centrales et Unionfournir des services de support et de consultation dans laEconomique (UDEAC), La Communauté Economiquerégion.des Etats Africains Centraux (ECCAS), La CommissionLa banque Exim a également pris une participation De l'Océan Indien, entre autres. Ces arrangementsactive au processus de construction institutionnel dans marchands représentent des pays oriental, méridional, etun certain nombre de pays en Afrique. En plus d'être occidental aussi bien que l'Afrique occidentale.associée dans l'établissement de la banque Afri Exim etOpportunités dans les Secteurs de Services et lesprenant la participation au capital, la banque a étéSecteurs concernant ITimpliquée dans la conception et l'exécution desProgrammes de Finances d'Exportation de la Société de Opportunités dans le secteur de service peut êtreDéveloppement Industriel, L'Afrique du Sud, et dans également explorées, avec l'arrivé de plusieurs pays,l'établissement ; Société de Garantie de Crédit pour dans des derniers années, dans la région avec le but del'Exportation au Zimbabwe.promouvoir le commerce. Secteurs tels que le tourisme,services médicaux, éducation, les services financiersLa banque Exim a récemment édité un papier deprésentent les occasions pour construire infrastructurerecherches sur la "Stratégie pour le saut Quantum dansreliée en tant que main d'oeuvre aussi habile pour fournirles exportations : Focalisation sur l'Afrique, L'Amériquedes services dans ces secteurs.latine et la Chine", qui souligne une approche analytiquepour réaliser une augmentation significative des La révolution dans les technologies globales deexportations de l'Inde, au-dessus du terme moyen, en se l'information et de communication (ICT) augmente desconcentrant sur l'Afrique, aussi bien que sur l'Amérique incursions dans la région africaine, les forces des payslatine et la Chine. Quant à l'Afrique, l'étude estime que comme l'Inde dans l'IT, des secteurs de développementl'Inde pourrait viser à réaliser d'ici 2007, une part de biotechnologie et de logiciel pourraient être armésd'importation de cible du 10% en Afrique, ce qui pour faciliter et compléter les mesures concrets qui onttraduirait en niveau d'exportation évalué à US$ 18 été effectuées dans la région. Par exemple, en 1998, 15milliards. Ceci, alternativement, donnerait un bord pays africains ont accepté de soutenir une Infrastructuresupplémentaire en réalisant l'ensemble global de cible d'Information et de Communication connues sous led'exportation visée par la Stratégie Moyenne d' nom de ` The African Connection', et les efforts deExportation du Gouvernement de l'Inde.développement sont en marche dans SADC, Pays deCOMESA et d'ECOWAS. De plus, membres de laCombinaison Régionale pour une Approche FocaliséeCommunauté Africaine Est, à savoir. Le Kenya, LaLa stratégie pour augmenter des relations bilatérales du Tanzanie et l'Ouganda, ont également lancé un projet decommerce et d'investissement devrait entourer une télécommunication pour améliorer l'accès avancées etapproche régionale, et ceci alternativement a pu fiables aux communications. En plus de cela, beaucoupnécessiter de se concentrer sur des arrangements de de pays africains se sont également embarqués pourcommerce régionaldévelopper et accumulersélectif dans la région. Enleur infrastructure d'ICT.vue d'encourager duAvec l'IT jouant le rôlec o m m e r c e e tmajeur dans led'investissement intradéveloppementrégionaux, un certain économique dans la région,nombre de pays enles occasions existent pourAfrique sont entrés dans participer auxdes arrangements dedéveloppements dans lecommerce cependant secteur, tout en soutenantceux qui existent ont été les pays africains en larenouvelés ces dernièresformulation des politiquesa n n é e s . C e s nationales de IT quiarrangements envisagentserviront à forger desle déplacement des tarifsrapports à long terme danse t d ' a u t r e s la région.INDO-AFRICAN BUSINESS 53August-October 2004


ECONOMIEL'Afrique résiliente prêt à signalerla croissance économique forteAfrique a montré une résilience dans l'activitééconomique ces dernières années, en reflétant unestabilité macro-économique renforcée. La croissance del'Afrique a accéléré de 3,5 pourcent en 2002 jusqu'à 4,1pourcent en 2003. C'était principalement à cause du faitde renforcement du cadre politique macro-économiquepar beaucoup de pays dans ces dernières années -l'inflation généralement a été rapportée aux niveauxrelativement bas et aux déficits fiscaux réduitsréduction en endettements externes par l'initiative deFortement Endettée des Pays Pauvres14(HIPC), et les mesures prises pour13améliorer le gouvernance.12L'activité économique en Afrique 10Subsaharien a été tout à fait résilienteau cours des trois dernières années en 8dépit de l'incertitude économiqueglobale, et on projette que maintenantla croissance reprend fortement à 5,1pourcent en 2004 et ensuite à 7,0pourcent en 2005. C'est dû à unepolitique d'environnement améliorée,le rétablissement global, des coûtsplus élevés de matières premières (en2004), des conditions atmosphériques%plus favorables dans quelques pays, et grande expansiondans la production de pétrole (en Angola, Le Tchad et laGuinée équatoriale).Les politiques macroéconomiques améliorées en Afriqueont été également reflétées dans l'inflation simple dechiffre dans beaucoup de pays, facilité par réduction desdéficits fiscaux depuis les années mi 90. Les exceptionsnotables sont l'Angola et le Zimbabwe, là où le tauxd'inflation s'est élevé à 98,3 pourcent et à 431,7 pourcent,respectivement, pendant 2003, et à un moindre degré auGhana, Le Nigeria et l'Ethiopie. Pour la région dansl'ensemble, l'inflation s'est élevée à 10 ,3 pourcentpendant 2003, plus élevé par 9,6 pourcent en 2002, et estestimé à descendre à 8,6 pour cent en 2004.Les exportations totales d'Afrique a augmenté de US$ 96milliards en 1980 à US$ 139 milliards en 2002, tandisque les importations de l'Afrique montaient également deUS$ 80 milliards à US$ 133 milliards pendant la mêmepériode. En l'année 2003, les exportations de l'Afrique sesont développées de manière significative par 22pourcent pour s'élever à US$ 173 milliards, tandis que lesimportations se développaient à un taux de 17 pourcentpour s'élever à US$ 165 milliards. En dépit de l'élévationdu commerce, la part de l'Afrique dans le commerceglobal a enregistré un déclin - de 5,0 pourcent en 1980 à2,4 pourcent en 2003 dans le cas des exportations, et de4,0 pour cent à 2,2 pourcent dans le cas des importations.Le défi central en Afrique demeure pour mettre en place64203.6 3.5les conditions nécessaires pour réaliser les Buts deDéveloppement du Millénium - notamment uneréduction soutenue de la pauvreté. Les efforts del'Afrique doivent être accompagnés d'aide additionnellede la communauté internationale, y compris une aideplus élevée, réduction de créance, et, le plus important,accès amélioré du marché.Afrique: Croissance de PIB et le Taux d'InflationRéelle9.610.34.1 4.22001 2002 2003 2004f 2005fReal GDP GrowthDéveloppement Récent Selon les RégionsEn Afrique du Nord, l'économie Algérienne s'estdéveloppée par des 6,7 pourcent en 2003, après unecroissance de 4,1 pourcent réalisée en 2002. Ceci peutêtre attribué aux conditions atmosphériques favorables,stimulus fiscal (en partie lié à la besoin de reconstructionaprès le tremblement de terre de mai 2003) et rendementd'huile accru. Cependant, on s'attend à ce que le taux decroissance descende à 4.4 pour cent dans 2004 suivis dela détérioration récente en position fiscale du pays,comme le gouvernement est forcé d'adresser les niveauxaigus du chômage en créant des emplois de publicsecteur et en augmentant des salaires de public secteur.L'activité économique s'est également développée auMaroc dû à une bonne moisson et à une croissanceimpressionnante du secteur de construction. On estimeque le secteur agricole s'est développéapproximativement par plus de 20 pourcent avec uneexpansion de 55 pourcent de rendement de céréale,croissance pleine des secteurs horticoles et de bétail etd'une montée subite dans la production olive. Le secteurde construction a également augmenté fortement, qui estreflété dans une élévation de 9,7 pourcent des ventes deciment et une augmentation de 12 pourcent sur desdéboursements d'hypothèque en 2003. Une exécutionforte dans le secteur agricole, après de bonnes pluiesaprès trois ans de sécheresse, un rétablissement en8.6Inflation Rate6.75.4INDO-AFRICAN BUSINESS 54August-October 2004


ECONOMIEtourisme aussi bien que la consommation accrue de de PIB s'accroisse plus pour atteindre 6,2 pourcent engouvernement, a été responsable en amplifiant le vrai 2004 dus aux apports significatifs d'investissementtaux de croissance de PIB de la Tunisie à 6,1 pourcent en étranger dans de grands projets capitaux et par les2003 par rapport à 1,7 pourcent en 2002. Cependant, on volumes accrus d'exportation sur la capacité augmentées'attend à ce que la croissance ralentisse au Maroc et en dans le secteur pétrolier. D'autre part l'économieTunisie en 2004, à 3,0 pourcent et à 5,6 pourcent Ethiopienne, s'est resserré par 3,8 pourcent en exercicerespectivement, comme impact du rebond fort dans la budgétaire 2003 (exercice budgétaire finissant le 7production agricole qui a suivi la fin d'une période de juillet) par rapport à 1,2 pourcent de croissance en 2002,sécheresse prolongée.à cause de la plus mauvaise sécheresse pendant lesEn Afrique Occidentale, la production de pétrole accrueannées a coupé le rendement dans le secteur agricole, cea soutenu une expansion économique particulièrementqui compte pour environ 40 pourcent de PIB. On s'attendforte au Nigeria, comme l'économie s'est développée parà ce que de bonnes pluies poussent la moisson en 2003-10,6 pourcent pendant 2003. Mais on s'attend à ce que la04 par 60 pourcent plus haut que la saison précédente, cecroissance ralentisse brusquement en 2004 à aussi basqui coupera la condition d'aide alimentaire. Deque 0,9 pourcent comme le boom dans le secteurmeilleures pluies encourageront un certainpétrolier s'affaiblit. Les politiques expansionnistesinvestissement privé accru et on s'attend à ce quemonétaires et fiscales ont eu comme conséquence unel'économie également tire bénéfice de la réduction decollecte dans l'inflation et un déclin dans les réservationscréance et de l'appui de donateur. Les services (transport,internationales. L'inflation moyenne de prix definancier et des communications) continueront à tirerconsommation s'est élevée à 14,4 pourcent en 2003 parbénéfice des activités commerciales accrues et desrapport à 13,7 pourcent en 2002. En raison deinvestissements élevés sous la période prévue. Onl'incertitude politique et la division efficace du pays ens'attend à ce qu'ainsi la vraie croissance de PIBdeux, avec ses coûts associés, couplé au manque d'appuirebondisse à 6,7 pourcent en 2003-04.et de difficultés de mis en place d'une politique En Afrique australe, bien que la production de pétroleéconomique le PIB de Côte d'Ivoire s'est contracté par 3,8 soit tombée en Angola en 2003, en raison des problèmespourcent en 2003. Cependant, on s'attend à ce que le pays avec le champ de Kuito, l'augmentation régulière de lase développe à 1,8 pourcent en 2004, avec une production dans des dernières années continuerarestauration lente de la normalité économique comme pendant que les nouveaux gisements de pétrolequelques sociétés et entreprises reprennent les commencent la production. Ceci aidera à amplifier leopérations normales tout au long de 2004. En revanche, vrai PIB à 12,8 pourcent en 2004 et 11,2 pourcent enl'économie Ghanéenne s'est développée par 4,7 pourcent 2005, bien que cette croissance conduite par énergie soiten 2003 et on espère atteindre 5,0 pourcent en 2004 dû capitalistique et dépendante de l'importation, avec peuaux développements dans le secteur d'extraction d'or. de liens à d'autres secteurs de l'économie. Le tauxDes prix plus élevés aux producteurs et de bonnes pluies d'inflation annuel moyen est tombé à 98,3 pour cent enamplifieront la production de cacao plus que la moisson 2003, représentant une baisse dans de doubles chiffresexceptionnelle récoltée en 2002-03.pour la première fois dans plus d'une décennie. Ceci a étéEn Afrique Centrale et Afrique de l'Est, basse confiancesoutenu par des mesures comme - l'interpositiondes épargnants, le manque d'appui de distributeur et unecoûteuse sur le marché des changes pour étayer lerécession dans l'industrie de tourisme avaient maintenukwanza et les retards à augmenter les prix du carburant etl'activité économique basse à 1,5 pourcent en 2003 endes utilités. L'activité économique au Zimbabwe estKenya. Les perspectives pour 2004 sont plus sûres, enplacée pour continuer de diminuer pendant que la crisetenant compte l'appui de distributeur promis, avecpolitique courante et le manque de politique économiqueenviron la moitié des fonds projetés pour les projetslogique combinait avec les ruptures dans l'économied'infrastructure des routes, des aéroports, des portsprovoquée par l'exécution rapide du programme demaritimes, des chemins de fer et d'électricité. Le taux deréforme de terre et des impacts défavorables de lacroissance de l'Ouganda est descendu de 6,7 pourcent ensécheresse et de SIDA. En plus de ceci, la récession dans2002 jusqu'à 4,9 pourcent en 2003 à cause de mauvaisesl'agriculture commerciale a des effets nuisibles surpluies dans la première moitié de l'année et de lal'industrie et les services, le pouvoir d'achat tombe et unecontinuité des prix faibles des produits clés, café et thé.presque hyper-inflation persiste. Le PIB s'est resserré parLa production inférieure de récolte vivrière a excentré laenviron 40 pourcent pendant 1999-2003, et on s'attend àcroissance forte de la production de la culture de rente.ce que le déclin économique ralentisse de -13,2 pourcentCependant, en 2004, on s'attend à ce que le taux deen 2003 à un taux de -9,2 pourcent en 2004, comme lescroissance aille jusqu'à 5,5 pourcent soutenus par despetits exploitants amplifient la production de maïs enexportations plus élevées, particulièrement exportations2004-05. En Afrique du Sud, l'économie est estimée pournon traditionnelles telles que des poissons, et paravoir augmenté par juste 1,9 pour cent en 2003, commecroissance continue de la fabrication, transport etl'économie globale faible a couplée au renforcement ducommunications. Au Soudan, vraie croissance de PIB, rand pendant l'année, a eu un effet nuisible sur laqui a enregistré une croissance de 5,8 pourcent en 2003,contribution du secteur d'exportation au PIB global. Bienest prévu à rester fort, conduit en grande partie par lesque la croissance lente a été également signalée pourniveaux élevés de la consommation et del'agriculture, extraction et fabrication, le tourisme, ils ontl'investissement. On s'attend à ce que la vraie croissance continué à se développer fortement, en tirant bénéfice deINDO-AFRICAN BUSINESS 55August-October 2004


ECONOMIEla Coupe du monde de cricket. Cependant, la vraiecroissance de PIB est prévue pour grimper jusqu'à 2,6pourcent en 2004 et la poussée principale à la croissanceviendra du investissement brute de capital fixe comme laprivatisation arpentent et les apports de l'investissementdirect étranger augmentent.Table: Croissance de PIB et le Taux d’Inflation Réelle dans les payssélectionnés d’AfriquePrix des ConsommateursCroissance de PIB (%)(%)2002 2003 2004f 2005f 2002 2003 2004f 2005fAfrique 3.5 4.1 4.2 5.4 9.6 10.3 8.6 6.7Maghreb 3.4 6.2 4.2 4.5 2.1 2.2 3.0 3.1Algérie 4.1 6.7 4.4 4.3 1.4 2.6 3.8 4.0Maroc 3.2 5.5 3.0 4.0 2.8 1.2 2.0 2.0Tunisie 1.7 6.1 5.6 6.0 2.8 2.7 2.7 2.5Subsaharien 3.4 4.4 5.1 7.0 14.0 17.4 14.8 9.2Ethiopie 1.2 -3.8 6.7 6.4 -7.2 15.1 5.5 3.0Soudan 6.0 5.8 6.2 6.5 8.3 7.7 6.5 6.0Congo D.R. 3.5 5.0 6.0 7.0 27.7 9.1 6.0 5.0Kenya 1.0 1.5 2.6 3.6 2.0 9.7 -0.2 3.4Tanzanie 6.3 5.5 6.3 6.5 4.6 5.0 4.7 3.8Uganda 6.7 4.9 5.5 6.2 5.7 5.9 3.5 3.5Angola 15.3 4.5 12.8 11.2 108.9 98.3 40.2 15.9Zimbabwe -12.8 -13.2 -9.2 5.2 140.0 431.7 640.0 200.0Ghana 4.5 4.7 5.0 5.0 14.8 26.4 8.6 6.0Nigeria 1.5 10.6 0.9 5.9 13.7 14.4 16.5 10.1Cameron 6.5 4.2 4.7 5.1 6.3 1.2 2.0 2.0Cote d'Ivoire -1.6 -3.8 1.8 4.4 3.1 3.8 3.2 2.7Afrique de Sud 3.6 1.9 2.6 3.2 8.9 6.0 3.2 5.6f -prévisionSource, International Monetary FundProgramme “Focus Africa”Malgré le progrès important qui est accompli, le défidemeure pour réaliser la croissance forte à traversl'Afrique sur une base soutenue. Même pendant lapériode récente de la croissance améliorée de la région, ily a eu de grands différentiels transnationaux. Au coursdes trois dernières années, le vrai PIB par personne adiminué dans presque un tiers des paysafricains, tandis que seulement un petitnombre a réalisé la vraie croissance dePIB par personne au-dessus de 4,0 pourcent. Pour transformer des incursionssignificatives dans la pauvreté, lesperformances des pays dont lacroissance est plus rapide doivent êtrerepliées dans toute la région.Particulièrement les étapes pourdévelopper l'infrastructure et pourrenforcer des établissements, favorisezl'investissement de secteur privé,réduisez la participation degouvernement dans l'économiedomestique, gouvernement amélioré ettransparent. Quelques initiativesrégionales, y compris le mécanismeafricain d'examen par les pairs pour legouvernement économique et politiquea été lancé par la Nouvelle Associationou le Développement de l'Afrique(NEPAD), et l'adoption d'uneConvention par des syndicats africainssur l'Empêchement et le Combat contrela Corruption ont été déjà mises enplace. La communauté internationale aun rôle principal à jouer dans ledéveloppement de l'Afrique, y comprisdes écoulements plus élevés d'aide,réduction de créance, et échangeaugmenté du commerce et detechnologie.En vue du commerce augmentant de l'Inde de une manière significative avec l'Afrique, un programme intégré"Focus Africa " a été lancé de l'année 2002-03 par le Gouvernement de l'Inde. L'objectif principal du programme estd'augmenter des interactions entre les deux régions en identifiant les secteurs du commerce et de l'investissementbilatéraux. Le programme "Focus Africa" se concentrerait sur la région Africaine Subsaharien avec l'emphasesupplémentaire sur sept partenaires commerciaux principaux de la région, à savoir, L'Ethiopie, Le Ghana, LeKenya, Les îles Maurice, Le Nigeria, L'Afrique du Sud, La Tanzanie et qui expliquent ensemble autour de 69pourcent du commerce bilatéral total de l'Inde avec la région Africaine Subsaharien. Avril 1, 2003, le programme"Focus Africa " a été augmenté pour couvrir, en effet, le continent africain en entier. Des produits spécifiques pourdes exportations vers ces pays ont été identifiés, ce qui alternativement peut être largement classifié dans lesgroupes de produit principaux suivants : fil de coton, tissus et d'autres articles de textile ; drogues etpharmaceutiques ; machines et instruments ; équipements de transport ; et technologie de télécommunication etd'information. En même temps le programme "Focus Africa" envisage d'augmenter les exportations de l'Inde dansla région par des efforts intégrés du Gouvernement de l'Inde, Organisation De Promotion Commerciale De l'Inde,Les Conseils De Promotion d'Exportation, Apex Chambres de commerce et de l'Industrie, Missions etétablissements indiens tels que la banque Exim de l'Inde, ECGC.INDO-AFRICAN BUSINESS 56August-October 2004


FINANCELa Banque Exim Fournitl'Itinéraire de Créditpour Promulguerle Commerce en AfriquePar Prabhakar R. DalalL'Afrique a été un marché traditionnel pour l'Inde. La des importateurs. Il est un arrangement pour financer un certaintechnologie indienne est considérée appropriée, adaptable et nombre de contract d'exportation sous un parapluie et il estaccessible, en Afrique. Cependant, la part de l'Inde dans des particulièrement approprié pour des PME. Les LOCs serventimportations totales du continent africain est d'un maigre 2,12 ainsi d'outil d'entrée dans le marché pour les exportations depuispourcent. La structure d'aide financière est essentielle pour l'Inde.favoriser le écoulement de commerce et de l'investissement. La Les articles éligibles pour des finances sous les LOCs ont étébanque Exim cherche à jouer un rôle important à cet égard. La traditionnellement les marchandises capitales et de biensbanque Exim avait prolongé des lignes de crédit (LOC) aux paystechnologiques, pièces de rechange et des produits deafricains, pour permettre à des entrepreneurs et à des personnesconsommations. Cependant, la banque Exim peut maintenantd'affaires en Afrique à importer l'équipement, technologie etinclure d'autres articles tels que les matières premières et lesmarchandises et services de l'Inde aux conditions de paiementproduits. En plus des machines, des biens capitaux, des biens dudifféré. La banque Exim a jusqu'ici prolongé 23 LOCs aux paysconsommateur, des produits pharmaceutiques et chimiques, uneafricains avec des engagements de crédit agrégeant US$ 242place pour inclure d'autres articles tels que des vêtements, filé,millions. Actuellement, La banque Exim a 10 LOCs café, thé, riz et d'autres produits/commodités est envisagé.opérationnels dans la région africaine,couvrant 29 pays africains impliquant des Les lignes de Crédit de la Banque Exim à Afrique sont les suivantes:engagements de crédit d'US$ 130 millions S.No.EmprunteurMontant du Créditpour soutenir le transfert d'équipement,marchandises et technologie de l'Inde à la 1 Offshore Development Company (Pty.), Namibia Rs. 20 Crrégion africaine.La banque Exim prolonge des LOCs auxgouvernements d'outre-mer, institutions23Eastern and Southern African Trade andDevelopment Bank (Banque PTA), KenyaSeychelles Marketing BoardUS $ 10 mnUS $ 5 mnfinancières, banques régionales et d'autres 4 ABSA Banque, Afrique du SudUS $ 10 mnentités d'outre-mer, pour leur permettre 5 Banque Centrale de DjiboutiUS$10mnd'importer les machines, marchandises et6 Banque Ouest Africaine De DeveloppementUS$10mnservices indiennes aux conditions de crédit.(West African Development Bank)(Equivalent en Euro)Sous les LOCs, les importateurs dans lespays d'accueil effectuent le paiement7 Gouvernement de ZambieUS$10mnanticipé, ce qui est normalement 10 pourcent 8 Gouvernement de AngolaUS$5mnde valeur et la banque Exim fournit le reste de 9 Gouvernement de SoudanUS$50mn90 pourcent de valeur de contrat aux 10 Gouvernement de GhanaUS$15mnemprunteurs dans ces pays. La banque Eximrembourse les exportateurs indiens surl'expédition des marchandises. Ainsi, c'est un mode sûr de Des caractéristiques saillantes de ces LOCs sont données ci-l'option non-retour de financement à l'exportateur indien, dessous:particulièrement pour les entreprises petites et moyennes(PME). La banque Exim actionne également le LOC au nom duOFFSHORE DEVELOPMENT COMPANY (PTY.),NAMIBIAGouvernement de l'Inde. Ces LOC sont habituellement sur des Exim Bank and Offshore Development Company (Pty) Limitedconditions plus avantageuses.(ODC), une entité statutaire en Namibie, a signé un accord pourLa banque Exim avait employé le mécanisme de LOC pour un LOC de Rs 200 million pour ODC, de la Namibie. Les ODCfavoriser les exportations depuis l'Inde aux marchés des pays en établis sous l'Acte des Zones de Procédés de l'Exportation, 1995voie de développement, comme le marché africain, ce qui ont de la Namibie est une compagnie de secteur privé avec la part dubesoin du crédit reporté pour acheter les marchandises Gouvernement en minorité pour la surveillance, régulation etindiennes. Le LOC est un catalyseur pour la promotion promotion du EPZ Namibien comme un véhicule pour uned'exportation et en vertu d'être un non-retour, non risque service industrialisation de l'économie menée par l'exportation. Lepour les exportateurs indiens, il aide des exportateurs à pénétrer Gouvernement a permis à la banque Exim de prolonger le LOCet développer les marchés. Les exportateurs reçoivent de la établi en roupies indiennes jusqu'à un équivalent de US$100 enbanque Exim le paiement en espèces pour des exportations sous vue de permettre à la banque Exim d'offrir des crédits dele LOC après l'expédition et ne doivent pas attendre le paiement exportation aux conditions concurrentielles. Le LOC de laINDO-AFRICAN BUSINESS 57August-October 2004


FINANCEbanque Exim à la Namibie est le premier LOC dénommé en Banque, avec ses filiales et compagnies associé, offre uneroupie dans le cadre de cet arrangement. La Namibie est un pays gamme complète des produits financiers et des services, d'ordreriche en ressources et a par conséquent a un bon potentiel opérations bancaires en gros, services de banque de détail et deéconomique avec le besoin d'investissement dans les secteurs gestion de capitaux. Les exportations de l'Inde vers l'Afrique dutels que agro-industries, transport, construction, Sud se sont élevées à US$ 476,9 millions pendant l'année 2002-télécommunications, industrie de petite échelle et industries 03, enregistrant une croissance de 25,7 pourcent au cours defamiliales. Une bonne portée existe pour l'importation de l'année précédente. Agriculture et produits alimentaires traités,l'équipement indien, les marchandises et la technologie dans les équipement de transport, fil de coton, tissus, prêt à porter, lessecteurs tel que agroalimentaire, cuir, composants machines et les instruments et fabrication de métal, étaient lesautomatiques, et machines-outils, pas la Namibie.principaux articles dans le panier d'exportation de l'Inde versEASTERN AND SOUTHERN AFRICAN TRADE AND l'Afrique du Sud. Les secteurs potentiels sur lesquels lesDEVELOPMENT BANK (BANQUE PTA)exportateurs indiens peuvent focaliser sont l'équipement detransport, machines, produits chimiques et pharmaceutiques,Exim Bank and Eastern and Southern African Trade andarticles et épices de nourriture, produits en cuir, verre etDevelopment Bank, aussi connu en tant que la Banque PTA, acéramique, fabrique des métaux et des habits. Il existesigné un Accord pour un LOC de US$ 10 million de la Banqueégalement un potentiel considérable pour l'établissement desExim à la Banque PTA, pour promouvoir l'exportation indiennecoentreprises entre les associés indiens et sud-africains dans lesà 16 pays Orientaux et Méridionaux de l'Afrique. La banque desecteurs comme textiles, pharmaceutiques, services dePTA est une Banque de Développement Régionale, établi entechnologie de l'information et d'hospitalité.novembre 6, 1985, conformément au Traité pour un MarchéCommun pour les Etats Africains Orientaux et Méridionaux Banque Centrale de Djibouti, Djibouti(COMESA). Les pays membres régionaux de la banque PTA La banque Exim a donné un LOC de US$ 10 millions à lasont le Burundi, Les Comores, Djibouti, L'Egypte, Eretria, Banque Centrale de Djibouti, pour soutenir les exportationsL'Ethiopie, Le Kenya, Le Malawi, Les îles Maurice, Le depuis l'Inde vers Djibouti. Djibouti est stratégiquement placéRwanda, La Somalie, Le Soudan, La Tanzanie, L'Ouganda, La dans le klaxon de l'Afrique, ce qui lui donne un avantage auZambie et le Zimbabwe. La Chine est devenue récemment le servir de point d'entrée aux marchés voisins tels que l'Ethiopie,seul membre non régional de la banque PTA. En plus de ces 17 La Somalie, Eretria et le Soudan. L'exportation indienne vers lepays membres, la Banque de Développement Africaine est Djibouti était de US$ 37,53 million en 2002-03 ce qui est 56,6également membre de Banque PTA. La banque PTA fournit pourcent plus que l'an dernier. Fabrique des métaux, fer et acierl'assistance technique financière et favorise le développement primaires et demi complets, les tissus et autres produitséconomique et social dans les pays membres. Les exportations agriculturals font à la main et produits alliés, produits dede l'Inde dans les pays membres africains de la banque PTA se plastique et de linoléum, les drogues et les produits chimiques etsont élevées à US$ 1,17 milliard, en 2002-03. Les principaux les produits de beauté et les articles de toilette, les produitsarticles exportés depuis l'Inde vers les pays membres de la pharmaceutiques sont les principaux produits dans le panier debanque PTA incluent le fil de coton, les tissus, viande et l'exportation de l'Inde à Djibouti.préparations, machines et instruments, produits de plastique etde linoléum, et drogues et pharmaceutiques.Banque Ouest Africaine De Développement (West AfricanDevelopment Bank)Seychelles Marketing Board, SeychellesLa banque d'Exim a donné un LOC de US$ 10 millions à laBanque Exim et Marketing Board des Seychelles (SMB), Banque Ouest Africaine De Développement - BOAD, uneSeychelles, a signé un accord pour un LOC de US$ 5,0 millions banque de développement régionale, pour soutenir lesde la banque Exim à SMB, pour soutenir les exportations de exportations de l'Inde aux pays membres de BOAD en Afriquel'Inde vers les Seychelles. SMB, établi en 1984, est une société occidentale. Ce LOC permettra aux exportateurs indiensstatutaire complètement possédée par le Gouvernement des d'exporter l'équipement, marchandises et services au marchéSeychelles. L'objectif principal de SMB est d'assurer la africain occidental francophone sur un crédit moyen. L'Afriquedisponibilité des marchandises essentielles au peuple des occidentale tient le bon potentiel pour l'exportation desSeychelles sur une base à long terme aux prix économiques machines, équipement de transport, drogues en bloc,stables. Les exportations de l'Inde vers les Seychelles se sont pharmaceutiques et technologie et d'autres articles d'Inde.élevées à US$ 6,19 millions pendant l'année 2002-03. Les BOAD est une banque de développement régionale pour huitarticles principaux exportés depuis l'Inde vers les Seychelles pays africains occidentaux sous l'égide de l'Union Monétairesont riz, repas d'huile, équipement de transport, prêt-à-porter, Africaine Occidentale (UMOA). Les pays membres de BOADmachines et instruments. Les secteurs potentiels sur lesquels les sont le Bénin, Burkina Faso, Côte d'Ivoire, Guinée Bissau, Leexportateurs indiens peuvent focaliser sont les produits Mali, Le Niger, Le Sénégal et le Togo. La région, qui est bienagricoles, textiles comprenant des vêtements, équipement de intégrée avec une devise commune, FCFA et une banquetransport, machines, bien de consommation et drogues etpharmaceutiquesABSA Banque, Afrique du SudLa banque Exim a prolongé un LOC de US$10 million à labanque ABSA (Banque ABSA), la plus grande banque decommerce en Afrique du Sud, pour soutenir les exportationsdepuis l'Inde à ce pays. La banque ABSA (les banquesamalgamées d'Afrique du Sud) a été établie en 1991, à cause dela plus grande fusion dans l'histoire sud-africaine d'opérationsbancaires entre USB Holdings Ltd., Volkskas Bank Ltd., AlliedBank Ltd. et Saga Financial Services Ltd. C'est aujourd'hui laplus grande banque de commerce de secteur privé en Afrique duSud, avec les capitaux totaux s'élevant au US$ 25 milliards. Lacentrale commune, BCEAO, travaille vers l'établissement d'unmarché commun pour la région africaine occidentale. En plusdes gouvernements de huit pays membres et de la banquecentrale BCEAO, le gouvernement de la France, DeutscheInvestitions und Entwicklungsgesellschaft (DEG) agissant aunom de l'Allemagne, Banque Européenne d'Investissement (laEIB) agissant au nom de l'Union Européenne, la Banque deDéveloppement Africaine et le Gouvernement de la Belgiquesont des membres de BOAD. Les exportations de l'Inde vers lespays membres de BOAD dans 2002-03 étaient de US$ 334,34millions. Les exportations principales de l'Inde vers les paysmembres de BOAD ont été fil de coton et tissus, fabrication desmétaux, drogues et pharmaceutiques, filé et tissus fabriqué à laINDO-AFRICAN BUSINESS 58August-October 2004


FINANCEmain et équipement de transport.Gouvernement de Zambie, ZambieLa Banque Exim et le Gouvernement de Zambie ont signé unaccord pour un LOC de US$ 10 millions pour financer desexportations depuis l'Inde en Zambie. C'est le troisième LOCdonné à Zambie. Les deux premiers LOCs étaient de Rs.100million et de Rs. 5 million ont été prolongés en 1979 et en 1982.Le LOC peut être utilisé pour l'exportation des biens capitaux,l'équipement technique, industriel fabrication, bien deconsommation. Les exportations de l'Inde vers la Zambie sontde l'ordre de US$ 31,1 millions en 2002-03. Les articlesprincipaux dans le panier d'exportation de l'Inde vers la Zambiesont des machines et des instruments, équipement de transport,drogues, produits pharmaceutiques et chimiques fins, les tissusde fil de coton et d'autres choses.Gouvernement de Angola, Angola105,83 millions vers Ghana pendant l'année 2002-03, parrapport aux exportations d'année précédente de US$ 68,65millions, qui est une augmentation de 35 pourcent au cours del'année précédente. Drogues, produits pharmaceutiques etchimiques fins, les tissus de fil de coton et prêt à porter,machines et instruments, la fabrication des métaux et de fer etd'acier primaire et demi complet étaient les principaux articlesdans le panier de l'exportation de l'Inde au Ghana pendant 2002-03. Selon l'étude de la banque Exim intitulé « l'stratégie pour lesaut de Quantum dans les exportations : Focalisation surl'Afrique, l'Amérique latine et la Chine ", articles tels que desvéhicules de transport, l'équipement technique,pharmaceutiques, ciment, textiles, les métaux et les pièces enmétal et les pièces d'automobile ont la possibilité d'être exporterde l'Inde sur le Ghana.Un certain nombre de lignes de crédit aux pays en Afrique sonten train d'être négocié. Les compagnies intéressées peuventvisiter le site web www.eximbankindia.com/loc.html de labanque Exim.La banque Exim a donné un LOC de US$ 5 millions auGouvernement de Angola (GOA), pour financer lesexportations de l'Inde vers l'Angola. Les exportations de l'Indevers l'Angola se sont élevées à US$ 37 millions pendant l'année Il est recommandé aux exportateurs indiens de consulter la2002-2003, enregistrant une croissance de 32,9 pourcent plus banque Exim concernant l'assurance et d'autres fraisdes exportations d'année précédente de US$ 25 millions. Viande administratifs, payable n'importe où, avant de mener les clauseset ses préparations, drogues, produits pharmaceutiques et contractuelles avec l'importateur d'outre-mer. Des exportateurschimiques fins, prêt à porter et le fil de coton, machines et indiens sont encouragés à contacter la banque Exim pourinstruments, les équipements de transport et habits étaient les l'information sur des acheteurs, états du marché. La banqueprincipaux articles dans le panier de l'exportation de l'Inde en Exim facilite des transactions d'exportation pour l'assuranceAngola. Les secteurs potentiels sur lesquels les exportateurssous des LOCs. Si un LOC à un marché particulier n'est pas enindiens peuvent focaliser sont l'exportation des biens capitaux etplace, la banque Exim considère la possibilité de prolonger unles services pour des secteurs comme les chemins de fer,LOC frais, si la proposition de crédit est autrement considéréeengineering, pêche aussi bien que des produits comme lessoutenable et acceptable.drogues et pharmaceutiques, à Angola. Il existe également unpotentiel considérable pour l'établissement des coentreprises en Les liens institutionnelsAngola dans les secteurs tels que pharmaceutiques et des La banque Exim maintient les liens institutionnels forts avec lesmarchandises de technologieGovernement de Sudan, SudanLa banque Exim a donné un LOC de US$ 50 millions auGouvernement de Soudan, pour financier l'exportation indiennedes equipments, biens et services à ce pays. Les exportations del'Inde vers Soudan était de US$ 105,20 million pendant l'an2002-2003. Machines et instruments, équipement de transport,drogues, produits pharmaceutiques et chimiques fins,fabrication des métaux et fer et acier primaires et semi finisétaient les principaux articles dans le panier de l'exportation del'Inde au Soudan en l'année 2002-03. Les secteurs potentiels surlesquels les exportateurs indiens peuvent focaliser sont leséquipements d'électrification rurale et de chemin de fer, lesvéhicules de transportation et les équipements, drogues etpharmaceutiques, machinerie et instruments, textiles et d'autresarticles reliés. Il existe également un potentiel considérable pourl'établissement des coentreprises entre les partenaires indiens etsoudanais dans les secteurs tels que textiles, pharmaceutiques etchimique, technologies de l'information et industries à petiteséchelles.Governement de Ghana, GhanaLa banque Exim a donné un LOC de US$ 15 million auGouvernement de Ghana, pour financer les exportations del'Inde vers ce pays. La banque d'Exim a jusqu'ici prolongé troisLOCs au Ghana dans le passé, qui ont été entièrement utilisés etremboursés. Ces LOCs ont aidé l'exportation de divers articlesde l'Inde au Ghana, comme des véhicules de transport, pièces derechange et batteries d'automobile, appareils de manutentionmatériels et ses pièces de rechange, l'équipement technique detransport d'énergie. L'Inde a enregistré des exportations de US$établissements principaux en Afrique qui incluent la Banque deDéveloppement Africaine (AfDB), la Banque d'Afrexim, laBanque PTA, la Banque de Développement Africaine Est(EADB), la Banque de Développement Africaine Occidentale(BOAD), l'Association des Etablissements Africains deDéveloppement de Finances (AADFI) et la Banque Mondiale.En même temps, La Banque Exim a des connexions avec desétablissements tels que la Société de Finance Internationale (leservice de développement de projet de l'Afrique est actionnésous ce projet), la Banque PTA, et African ManagementServices Company, pour fournir des services de consultationdans la région.La banque Exim a également participé activement au processusde la construction institutionnel dans un certain nombre de paysen Afrique. En plus d'être associée dans l'établissement de labanque d'Afrexim et prenant la participation au capital, labanque a été impliquée dans la conception et l'exécution deExport Finance Programmes of Industrial DevelopmentCorporation de l'Afrique du Sud, et dans l'établissement deExport Credit Guarantee Company au Zimbabwe.La banque d'Exim a un bureau représentatif à Johannesburg,Afrique du Sud qui fonctionne en tant qu'un point nodal pourfaciliter l'écoulement du commerce et de l'investissement entrel'Inde et l'Afrique.Pour plus d'information,contactez: Mr. P. R. Dalal, DirecteurGénéral, Export-Import Bank of India, Centre One Building,Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai400 005. Téléphone: (022) 22185272 Extn.-2112/22162073Fax:(022)22182460 Mèl: eximloc@eximbankindia.comINDO-AFRICAN BUSINESS 59August-October 2004


EXPORTATIONSENEGAL- La Porte à l'Afrique OccidentalLes Minibus TATA trouvent un marché enSénégal, d'autres produits Indien à suivreLes autobus de Tata, qu'on peut déjà repérer sur les routes Marchés Européens et Américains. En fait le Sénégalde Dakar, capital du Sénégal, vont bientôt faire une partie peut être employé comme passage pour les produitsessentielle des rues de Dakar. Cela a été possible par un indiens pour pénétrer les marchés francophones decontrat fixé par M/s Tata Motors pour l'Afrique occidental. Son code d'investissement est trèsl'approvisionnement de 3000 mini autobus sous le $ US attrayant et offre de diverses incitations. L'économie de19 millions projet urbain d'amélioration de transport à Sénégal est ouverte au monde, L'Europe, L'Amérique etDakar (Sénégal) financé par la banque mondiale. Le l'Asie. Il a les capitaux principaux et les occasionsprojet envisage également l'amélioration des routes, des d'investissement productif. Ceux-ci incluentponts auto routiers, l'établissement d'une société detransports routiers pour réunir les opérateursUne économie éclatanteindépendants d'autobus à Dakar qui transportent les • Une croissance stable : Un vrai taux de croissance decitoyens de Dakar dans des minibus délabrés datant de PIB de plus de 5 pourcent depuis 1995 à l'exception de20/30 an. Ces 3000 autobus sont remplacés par des 2002.autobus de Tata. Une Société de Transports Routiers est• Un taux d'inflation bas : taux d'inflation de moins de 2mis en place et elle est en train de réunir les opérateurs,pour cent depuis 1997 à l'exception de 2001.de placer les tarifs et fixer les itinéraires. L'industrieSenbus a été installée par les investisseurs Sénégalaises • Un taux d'échange fixe: la valeur du franc CFA paravec l'appui technique de Tata Motors. Une usine rapport au franc français est 1FF:100FCFA et à l'Euro estd'assemblée pour la capacité de production de 1000 1Euro = 655,957CFAF.autobus Tata par an a été inaugurée en septembre 2003 à • Droits de douane réduits : Un système de tarif uniqueThies autour de 80 kms de Dakar.(appelé Tarif Externe Commun (TEC) est en vigueur dansL'entrée des autobus de Tata au Sénégal a pu préparer un l'Union Economique et Monétaire de l'Afriqueterrain pour l'entrée d'autres produits et services indiens Occidentale (UEMOA) depuis 1999. En raison de cetteau Sénégal. Senelec, la compagnie d'Etat de l'électricité mesure, les droits de douane ont diminué en moyenne dedu Sénégal est en cours d'augmenter son réseau et elle a 24 à 12 pour cent, les marchandises circulent librementun projet d'expansion de réseaux actuels de l'ordre US $ dans l'espace d'UEMOA et sont essentiellement350 millions. Les compagnies indiennes dans le secteur exemptées des droits de douane, s'ils sont des produits dede puissance peuvent brancher sur ces occasions. Il y a la communauté.un potentiel énorme pour le développement desindustries agro-alimentaire telles que le traitement demaïs, huiles de table, produits boulanger, transformationUn accès préférentiel aux marchés• Le Sénégal est commis à l'intégration régionale : C'estde fruit et de légumes, jus, l'eau minérale etc... En outre, il un membre de l'UEMOA, une union économique de huity a bonne demande des machines et des instruments, (8) pays africains occidentaux : Le Bénin, Burkina Faso,technologie, marchandises et services dans les secteurs Côte d'Ivoire, Guinée Bissau, Le Mali, Le Togo, Le Niger,de pharmaceutiques et de textiles.Le Sénégal.Doté de une infrastructure de qualité, le Sénégal a un • L'union économique a un marché de 60 millions deaccès préférentiel à l'Afrique d'Ouest ainsi qu'aux consommateurs.INDO-AFRICAN BUSINESS 60August-October 2004


EXPORTATION• Le Sénégal est également un membre de laCommunauté Economique des Etats AfricainsOccidentaux (ECOWAS), qui a un marché de 200millions de consommateurs pour 16 Etats membres.• Le Sénégal offre un endroit géographiquementexceptionnel avec l'accès préférentiel aux marchésEuropéen (EU/ACP Accord) et Américain (Acte deCroissance et d'Occasions en Afrique, AGOA).Une politique encourageante et attrianteLe Gouvernement de Sénégal a créé une infrastructureinstitutionnelle pour encourager le commerce etl'investissement. Les compagnies d'outre-mer cherchantà installer les relations industrielles commerciales avecdes opérateurs de Sénégalais peuvent entrer en contact :L'Agence Nationale pour la Promotiond'Investissement et les Projets Principaux (APIX)APIX est une agence autonome du Bureau de Président.Pour améliorer la gestion des projets d'investissement, unmoderne Un-Arrêter-Marché, a été ouvert à APIX, pourtraiter toutes les formalités administratives pourl'établissement ou la modification des compagnies,coentreprises en participation en utilisant une fichesimple.En plus des conditions "traditionnelles" offerts auxinvestisseurs (rapatriement libre de capital et dedividendes, aucune discrimination entre lesressortissants et les Étrangers, l'emploi des expatriésillimité), les incitations offrent efficacement :Contactez:• L'exonération de droits de douane pour l'équipement adû mettre en application des programmes52-54 Rue Mohamed V, BP 430, Dakar, Senegald'investissement et des avantages fiscaux pendant la Tél: (221) 849 05 55, Fax: (221) 823 94 89Mèl: apix@apix.snphase d'exécution.• La taxe supplémentaire bénéficie pour des SME activesdans la promotion des ressources locales, ou établi enextérieur de Dakar.• Avantagesadditionnels pour lessociétés industrielleset agricoles exportantplus de 80% de leurproduction ; ceux-ciincluent :Levée des droits dedouane et de droit detimbre pour l'équipement ;Exonération d'impôt sur le revenu, levée de devoir surle permis commercial, impôt foncier et tous les autresimpôts concernant l'enregistrement et les timbres.Une foule d'Investissements intéressants• Agriculture, Pêche• Pharmaceutiques• Secteur d'exploitation minière• Industries de Production• Secteurs de l'Energie et de l'Eau• Transport & Tourisme• TélécommunicationsUne Infrastructure Institutionnelle d'Aide Soutenue parl'EtatAgence de Développement et d'Encadrement desPetites et Moyennes Entreprises (ADEPME) Sénégal(Small andM e d i u mEnterprisesDevelopmentand PromotionAgency)La missiond'ADEPME doitfournir dess e r v i c e sconsultatifs auxSénégalais aussibien que lesentrepreneursétrangers pour installer leursentreprises auSénégal. Ses activités incluent des étudesde faisabilité de projet, plans d'affaires,bâtiment de capacité, faciliter l'accès aucrédit, l'information sur les marchésétrangers, débouchés, statistiques, foirescommerciales, conférences.Contactez :9, Fenetre Mermoz, Av. Cheikh Anta Diop,BP 333 Dakar Senegal, Tél: (221) 869 70 71Fax: (221) 860 13 63, Mèl: adepme@sentoo.snFonds de Promotion Economique FPE(Economic Promotion Fund of Senegal)Govt. de Sénégal a installé FPE en 1991 avec l'objectif defavoriser l'investissement dans le secteur privéparticulièrement aux SME. FPE joue le rôle d'un conduitentre les fournisseurs de fonds, l'état, institutionsfinancières locales et le secteur privé de Sénégal.Contactez:15, Allees Robert Delmas, BP 6481 Dakar SenegalTél: (221) 849 64 64, Fax: (221) 821 80 57Mèl: kgueye@fpe.snINDO-AFRICAN BUSINESS 61August-October 2004

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