New Delhi, Mar 21: Exim Bank of India on Thursday entered into an understanding with African Export-Import Bank (Afreximbank) for extending Line of Credit to the tune of USD 30 million (over Rs 121 crore) for financing exports to Africa.

The Memorandum of Understanding (MoU) was signed by Exim Bank of India Chairman and Managing Director T C Venkat Subramanian and Afreximbank President Jean-Louis Ekra at the 4th CII-Exim Bank Conclave on India-Africa Project Partnership 2008.

Finance Secretary D Subbarao, who was present at the event, said Line of Credits have provided soft landing to Indian companies in Africa and the funding has contributed to building up of local capacity in the continent.

Free trade would assist Africa in growth process and the need to strengthen their manufacturing and infrastructural sectors, he said.

Africa would need assistance in building infrastructure to power their agricultural and manufacturing sectors, he said.

He expressed satisfaction over 100% credit offtake through the LoC route but said procedural delays had affected the rate of credit utilisation by the African states.

Ekra said Exim Bank of India, which is a shareholder in Afreximbank, has gone beyond the role of a shareholder to deepen trade and economic links in Africa.

"We look for not just finance, but also technical and management expertise and market access support from India," Ekra added.