India will lend approximately R3 billion (US$300 million) to fund a railway line connecting Ethiopia and Djibouti as part of its programme to invest in Africa and use that avenue to boost exports of goods and services to the continent, reports the news site, InfodriveIndia.com. “All financing can be done only if there is export of Indian goods and services,” said a spokesman for the Export-Import (Exim) Bank of India. India has already invested a total of R54 billion (US$5.4 billion) in 39 African countries in sectors such as agriculture, manufacturing, textile, sugar, leather and steel. The 20-year loan will be given to Ethiopia at a concessional 1.75% interest rate as the country is classified as a highly indebted poor country (HIPC). The project will take an estimated 3.5 years to complete and will be the first railway development project in Northern Ethiopia.
