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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