New Delhi: India is expanding its financial footprint in Africa through strategic lending and trade partnerships, with the Export-Import Bank extending a $100 million five-year loan to the Africa Finance Corporation (AFC), a move that signals a deeper and more deliberate economic engagement with the continent. The report from Business Insider Africa underlined that the development comes at a time when New Delhi is steadily scaling trade, investment and export-credit support, positioning itself alongside China, Europe, Gulf states and the United States in a competitive landscape for influence and commercial ties.

The loan to AFC will provide fresh medium-term liquidity to support infrastructure and industrial projects across Africa, where borrowing costs remain elevated due to tighter global capital markets. Signed during AFC’s Investor Day in London, the facility strengthens the Lagos-based institution’s ability to navigate weaker currencies and cautious international investors, reinforcing its role in financing critical sectors. This follows a similar $100 million arrangement from EXIM Bank in 2021 and is aimed at narrowing Africa’s large infrastructure financing gap.

The agreement also highlights India’s growing financial and commercial interest in a region where demand for roads, ports, power plants, rail lines, digital networks and industrial facilities continues to outpace available capital. “This facility is an important milestone in our long-standing partnership with India Exim Bank and reflects our shared commitment to advancing infrastructure development across Africa,” said Banji Fehintola, AFC executive board member and head of financial services.

Indian companies are already active across Africa in pharmaceuticals, agriculture, technology, manufacturing, mining and energy sectors, while African economies increasingly rely on India as an alternative pool of capital and expertise to fuel faster industrial growth. The African Development Bank estimates the continent requires $130 billion to $170 billion annually for infrastructure, with a financing shortfall of up to $108 billion each year.