The Export and Import Bank of India is to pick up about 20 per cent stake in Zambian Development Bank for $1.4 million in order to increase its presence in the African continent and boost Indian exports.

Zambian Development Bank, currently 100 per cent owned by the government, is being privatised and many international institutions, including GTZ of Germany would hold stake in the African Bank, Exim Bank chairman and managing director T C Venkatsubramaniam said in Mumbai on Monday.

The Zambian bank would repay credit of $9 million, out of which $1.4 million would be in the form of debt-equity swap and the balance would be paid over a two-year period, Venkatsubramaniam said, addressing a trade meet organised by Engineering and Export Promotion Council.

This investment would help to improve access to African market and support Indian exports to that continent. The details of investment would be worked out next month, he said.

This would be the second such investment by Exim Bank in Africa, the first one being a token stake it picked up in West African Development Bank for $1 million earlier this year.

Highlighting the scope for growth of Indian exports to Africa, Venkatsubramaniam said, "Our exports at $3 billion to Africa are just two per cent of total imports of the continent.

With a proper institutional coordination and marketing, it was possible to grow Indian exports to Africa to $15 billion level by 2007, he added.