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B I L A T E R A L S

Former President of Zambia Kenneth Kaunda calling on Prime Minister Manmohan Singh in New Delhi on March 14, 2005. After Zambia gained independence in 1964, President Kaunda, who visited India quite a few times, was instrumental in furthering India-Zambia ties. Then Prime Minister Indira Gandhi also visited Zambia to nurture friendly relations.

deep ties of friendship between India and the Republic of Zambia and their ever-growing trade ties fostered the formation of this joint venture. The bank, which was incorporated in Lusaka on October 19, 1984, opened its doors to the public for the first time on December 24, 1984. It started initially with a share capital of Kwacha 3 million. Its present share capital authorised, issued and fully subscribed is K5 billion (about, $1.063 million @ K4, 700 as on March 31, 2005) well above the required capital of K2 billion as per local requirements. The Bank of Baroda’s share in this share capital is K1 Billion ($212,766), as a 20 percent shareholder. The shareholding pattern is as follows: Bank of Baroda K1 billion (20% shareholding) Bank of India K1 billion (20% shareholding) Central Bank of India K1 billion (20% shareholding) The Government of the Republic of Zambia K2 billion (40% shareholding) Total K5 billion (100%) The bank presently has nine branches in Zambia (two branches opened in 2004).7 Another major Indian investor in Zambia is the Tata Group. It has invested in the renovation of a five-star hotel called Taj Pamodzi, which is being managed by the Taj Hotels chain. In 1979 and 1982, India extended government and Export Import (EXIM) Bank credit to Zambia totaling Rs. 250 million ($5.5 million approximately). In 1989, India provided railway wagons costing about $2 million to Zambia under the Africa Fund. Other instances of assistance include Maruti vehicles that were given to the Zambia News Agency. In 2005, Finance Minister Ng’andu Magande informed Parliament that the government has purchased 65-seater buses, one each

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for the University of Zambia, Evelyn Hone College and the Copperbelt University using part of the $10 million credit loan obtained from the Indian government.8 India and its Economic Diplomacy for Zambia After World War II, the world started integrating through the process of what is generally called globalisation. As a part of this phenomenon, different countries started coming together to form regional blocs. The basic purpose is to integrate within the region, take advantage of the comparative strength of each country and face the rest of the world as united blocs with the pooled strength of the given region. The need for integration was felt by the Indian and Zambian governments after attaining independence from the colonial rulers. We all know that for about 200 years, European powers established their empires in Africa and Asia and by subjugating the people of these continents, exploited them in all possible ways. After becoming independent, India and Zambia gradually started integrating their economies with other parts of the world and even with each other in order to become influential players in the region. This integration included regional grouping on the one hand and with individual countries on the other. In order to promote South-South cooperation, India is integrating with African blocs like SADC and COMESA. Since the African Union has come into existence, the Indian government is trying to promote linkages with it,9 with the regional blocs as well as individual countries in order to promote more tariff concessions so that it can promote trade and investment and create a better climate for South-South cooperation. At the initiative of President A.P.J. Abdul Kalam, the Government of India has taken up a project to provide a com-

February-April 2007

AQ-Feb-2007-Apr-2007  

February 2007-April 2007

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