India to finance Ethiopian sugar sector revamp

India has agreed to chip in for revamping the sugar industry in Ethiopia. Export-Import Bank of India has extended line of credit (LOC) of $91 million to the government of Ethiopia, which is the fourth tranche of the total credit commitment of $640 million for financing sugar industry rehabilitation in Ethiopia.

The agreement to this effect was signed recently. Exim Bank has earlier extended three LOCs, aggregating $ 501.54 million to finance sugar industry rehabilitation in Ethiopia.

Exim Bank will reimburse 100 per cent of contract value to the Indian exporters, linked to the progress of the projects. The LOC will be used for financing at least 75 per cent of total contract value through sourcing of goods and services from India. Ethiopia, located in Eastern Africa, has also been the recipient of an earlier LOC of $65 million extended for setting up an Electricity Transmission and Distribution Project in Ethiopia.

source: indianexpress