The U.S. Export-Import Bank’s Sub-Saharan African Advisory Committee is crafting a pilot project aimed at boosting U.S. exports to the region by offering more competitive financing in line with what is being provided by China and other countries.
The U.S. Export-Import Bank’s Sub-Saharan African Advisory Committee is crafting a pilot project aimed at boosting US exports to the region by offering more competitive financing in line with what is being provided by China and other countries (WTD, 5/29/09).
The advisory panel outlined the new initiative at a meeting yesterday. It hopes to have a final proposal ready to take to Ex-Im’s board of directors for approval - and present it to Congressional lawmakers - in September.
The initiative calls on the Bank to provide more financing for projects involving products containing up to 49 percent foreign content and match support being provided by non-Organization for Economic Cooperation and Development countries - primarily China.
The initiative is aimed at both boosting U.S. exports to Sub-Saharan Africa and making Ex-Im more competitive in the region.
Specifically the proposal outlined yesterday would focus on four areas -
• Competitive Foreign Content Rules - allow 85 percent Ex-Im support for projects as long as there is at least 51 percent US content;
• Enhanced Financing Terms - use the Bank’s “war chest” to match support being offered by the export credit agencies of non-OECD countries and offer extended 20-year repayment terms for more types of projects;
• Credit Underwriting - expand the Bank’s Special Delegated Authority program for Nigeria to other countries - like Kenya, Senegal and possibly Ghana - and create the position of senior underwriter for Sub-Saharan Africa and
• Program Champion - designate either an Ex-Im board member or representative of the chairman’s office to oversee the program and lobby Congress.
Boosting U.S. exports to sub-Saharan Africa is one of the biggest priorities for the Bank, new Chairman Fred Hochberg told the advisory panel. U.S. trade with Sub-Saharan Africa fell by 50 percent in the first quarter of 2009 compared to the same period last year - a victim of the global economic crisis, according to Commerce Department data presented to the committee.
However, the Bank expects to do about $800 million in financing to Africa this year, up from $575 million last year.
http://usexportcouncil.com/
