Ex-Im Bank To Assist in Financing Up to $2 Billion of U.S. Exports to South Africa's Energy Sector
August 7, 2012
(Ex-Im Bank)
Ex-Im Bank Signs Agreement With Industrial
Development Corp. of South Africa
JOHANNESBURG, SOUTH AFRICA: The Export-Import
Bank of the United States (Ex-Im Bank) and the
Industrial Development Corp. of South Africa
Ltd. (IDC) today signed a Declaration of Intent
(DoI) to help advance the South African
government’s Integrated Resource Plan (IRP) and
the South African Renewable Initiative (SARi).
Under the agreement, Ex-Im Bank will assist in
financing up to $2 billion worth of U.S.
technologies, products and services to South
Africa’s energy sector, with an emphasis on
clean-energy development.
Fred P. Hochberg, chairman and president of
Ex-Im Bank, and Gert Gouws, chief financial
officer of the IDC, signed the DoI. The signing
took place during the South Africa-United
States Strategic Dialogue, which was hosted by
U.S. Secretary of State Hillary Clinton.
"South Africa is a dynamic market that offers
enormous opportunities for American companies,"
said Chairman Hochberg. "This agreement will
help ensure that Ex-Im Bank continues to
provide financing to South African buyers that
want to buy high-quality U.S. goods and
services. This partnership will help create
jobs and lasting economic opportunities for
both our countries."
Established in 1940, the IDC is a South African
national development finance institution set up
to promote economic growth and industrial
development. It is owned by the South African
government under the supervision of the
Economic Development department. The IDC's
primary objectives are to contribute to the
creation of balanced, sustainable economic
growth in South Africa and on the rest of the
continent.
Ex-Im Bank is open in over 180 countries and
has identified nine key markets that offer
great potential for U.S. exports. South Africa
was chosen as one of these markets due to the
size of its economy and close trading and
investment ties to the United States. South
Africa is the largest economy in Africa and the
29th largest economy in the world. Its GDP
growth rate is expected to be 2.2 percent in
2012 and 2.7 percent in 2013.
As the largest U.S. export market in
sub-Saharan Africa with $7.3 billion of exports
in 2011, South Africa is a key economic partner
for the United States. Additionally, South
Africa is seeking significant investments in
the following sectors: power, aviation,
transportation and mining, thus creating a
demand for high-quality American products and
services in these industries. Ex-Im Bank
authorized more than $930 million in financing
to support U.S. exports to South Africa in FY
2011.
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