February 23, 2018

U.S. bank approves $1.5 billion for export financing to Nigeria

THE Export-Import Bank of the United States (Ex-Im Bank) has approved a $1.5 billion in financing to support U.S. exports to Nigeria and some other sub-Saharan African countries in the first three quarters of  2012, surpassing the previous record of $1.4 billion for the entire year in  2011.

According to a media note made available to journalists in New York by the media department of the bank on Sunday, the increase was driven by export growth in several sectors, including machinery, vehicles and parts, commodities and aircraft.

The media note further stated that two of the top markets for U.S. exports in the region are South Africa and Nigeria, which are among Ex-Im Bank’s nine key country markets.

Ex-Im Bank Chairman and President, Fred P. Hochberg stated: “Proportionately, Ex-Im Bank supports more U.S. exports to sub-Saharan Africa than it does to the world at large. Last year, we financed 6.7 per cent of U.S. exports to this region. With this new record in sub-Saharan authorisations already achieved in  2011, we are on target to increase that percentage.

“Sub-Saharan Africa is a priority region because many countries have strong prospects for long-term economic growth and infrastructure development. We want to help more U.S. exporters increase their sales to this emerging region.”

In 2012, Ex-Im Bank expanded its cover policies in four sub-Saharan African countries: Cameroon (opened for long-term in the public sector), Ethiopia (opened for short-term and medium-term in both the public and private sectors), Tanzania (opened for long-term in the public sector) and Angola (opened for long-term in the private sector).

Seal of the Export-Import Bank of the United S...

Seal of the Export-Import Bank of the United States. (Photo credit: Wikipedia)

The cover policies changes were approved by the Bank’s board of directors, following upon country-risk upgrades determined through an inter-agency country-risk review process.

However, Ex-Im Bank Chairman, Hochberg, Vice Chair, Wanda Felton and Bank staff had recently conducted a business-development mission in sub-Saharan Africa, visiting South Africa and Mozambique. The trip included participation in the just concluded U.S.-South Africa Strategic Dialogue with U.S. Secretary of StateHillary Rodham Clinton in Pretoria.

During the business visits, Exim Bank Chairman Hochberg signed a Declaration of Intent with the Industrial Development Corp. of South Africa Ltd. (IDC), indicating Ex-Im Bank’s interest in financing up to $2 billion of U.S. technologies, products and services to South Africa’s energy sector, with an emphasis on clean-energy technologies.


IMAGE: www.odt.co.nz

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