Ex-Im Bank Approves Record $1.5 Billion in Financing of U.S. Exports to Sub-Saharan Africa in First Three Quarters of FY 2012
August 9, 2012
(Ex-Im Bank)
Ex-Im Bank Expands Cover Policy in Cameroon, Ethiopia, Tanzania and Angola
WASHINGTON, D.C. – In the first three quarters of FY 2012, the Export-Import
Bank of the United States (Ex-Im Bank) approved a historic $1.5 billion in
financing to support U.S. exports to sub-Saharan Africa, surpassing the previous
record of $1.4 billion for the entire year in FY 2011.
The increase was driven by export growth in several sectors, including
machinery, vehicles and parts, commodities and aircraft. 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.
"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 percent of U.S.
exports to this region. With this new record in sub-Saharan authorizations
already achieved in FY 2011, we are on target to increase that percentage," said
Ex-Im Bank Chairman and President Fred P. Hochberg.
"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," he
added.
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). The cover policies changes were approved by
the Bank’s board of directors, following upon country-risk upgrades determined
through an interagency country-risk review process.
Ex-Im Bank Chairman Hochberg, Vice Chair Wanda Felton and Bank staff conducted a
business-development mission in sub-Saharan Africa from August 6 – 10, visiting
South Africa and Mozambique. The trip included participation in the U.S.-South
Africa Strategic Dialogue with U.S. Secretary of State Hillary Rodham Clinton in
Pretoria on August 7.
On August 7, 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.
Recent Ex-Im Bank success stories in sub-Saharan Africa:
In April, Ex-Im Bank authorized a $37.2 million loan guarantee to support the
export of U.S. road-construction equipment and related services by Hoffman
International Inc. in Piscataway, N.J., to the Republic of Cameroon. Ex-Im Bank
is guaranteeing a medium-term loan from Societe Generale in New York, N.Y., to
Cameroon’s Ministry of Economy, Planning and Regional Development. The financing
will support the purchase of 150 new and used machines produced by U.S.
manufacturers that include Mack Trucks Inc., Terex Corp., Caterpillar Inc. and
Grove US LLC.
In June, Ex-Im Bank approved a $7 million loan guarantee supporting the export
of dredging equipment and spare parts from Dredging Supply Co., in Reserve. La.,
to Japaul Oil and Maritime Services PLC in Port Harcourt, Nigeria. Ex-Im Bank is
guaranteeing a medium-term loan from RB International Finance (USA) LLC in
Bethel, Conn., to Japaul Oil and Maritime Services for the purchase of the
equipment. The foreign buyer’s primary business is oil and maritime services in
the upstream segment of Nigeria’s oil and gas industry.
The U.S. exporter, Dredging Supply Co., specializes in manufacturing
custom-designed, portable dredges for a variety of uses. The company has a total
of approximately 125 employees at its facilities in Reserve, La.; Poplarville,
Miss.; Greenbush, Mich.; and Stoneboro, Pa.
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