ExIm Bank in Africa

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Ex-Im Bank in Africa

• Bankers Association for Finance and Trade
• October 25, 2007

John Richter, Regional Director Africa
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How Does Export-Import Bank Fit In?
State Department gives foreign policy guidance
U.S. Embassies Commerce Department provides
information, counseling and expertise - FCS U.S.
Trade Development Agencyprovides project
planning funding and assistance OPIC provides
project finance and investment insurance Export-I
mport Bank finances exports through varied term
programs and insurance
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Ex-Im Bank Introduction

• Export-Import Bank (Ex-Im Bank) is an
  independent agency of the United States
  Government
• Established in 1934
• Headquartered in Washington, DC
• 7 regional offices

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Ex-Im Bank Introduction (cont.)

• Official export credit agency of the United
  States
• Mission assist finance the export of U.S. goods
  and services to international markets
• Does not compete with private sector lenders, but
  provides export financing products that fill gaps
  in trade financing
• Assumes credit and country risks that the private
  sector is unable or unwilling to accept
• With more than 70 years of experience, Ex-Im Bank
  has supported more than 400 billion in exports

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Why Does Ex-Im Bank Do This?

• Large US trade deficits
• Trade deficit in 2006 764 billion

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2006 Authorizations by Economic Sectors
( in billions)
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U.S. Trade with Sub-Saharan Africa
(In USD Billions)
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Number of Transactions in Sub-Saharan Africa
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Ex-Im Banks Commitment to Supporting
Transactions in Africa

• Since 1999, Ex-Im Bank has supported over 4.3
  billion in transactions throughout Sub-Saharan
  Africa
• For fiscal year ended September 30, 2007, Ex-Im
  Bank has supported 127 transactions totaling 442
  million in 18 Sub-Saharan countries

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Specifics of Charter

• Must cover U.S. goods and services
• Does not compete with private sector
• Reasonable assurance of repayment
• Debt service ability
• Adequate capitalization

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Where is Ex-Im Bank Available

• Short-Term 44 Sub-Saharan African (SSA)
  countries
• Medium-Term 28 SSA countries
• Long-Term 15 SSA countries

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What Ex-Im Bank Does

• Export Finance Solutions
• Short- and Medium-Term Insurance
• Medium- and Long-Term Loan Guarantees
• Structured/Project Finance

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Positive News Re Africa

• International Monetary Fund Projection
• Increase in Foreign Direct Investment
• Lowering Levels of Indebtedness
• Ex-Im Bank Upgrades African Countries

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Increase in Foreign Direct Investment
Foreign Direct Investment Flows into Africa
2002-2006
U.S. Billion
39
31
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17
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Lowering Levels of Indebtedness

• Falling External Debt

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Ex-Im Bank Upgrades African Countries

• Djibouti open for medium-term private sector
• Mozambique open for long-term public sector
• Nigeria open for long-term public and private
  sector
• Rwanda open for medium-term private sector

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Ex-Im Sub-Saharan Africa Initiative

• Sub-Saharan Africa is a priority region, as
  outlined by Ex-Ims Charter
• Establishment of SSA Advisory Committee
• Africa Business Development Group
• Africa Newsletter to for U.S. exporters and
  African buyers

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Ex-Im Sub-Saharan Africa Initiative
(cont.)

• Short-Term Insurance Pilot Program (STIPP) makes
  insurance available to exports to 19 SSA
  countries that would otherwise be ineligible for
  Ex-Im support
• Foreign Currency Guarantees
• CFA Franc , South African Rand

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Additional Ex-Im Sub-Saharan Africa Initiative

• 405 Million Nigeria Banking Facility
• Oil Services Contract Securitization
• Regional Bank Guarantees

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International Business Development

• John Richter, Regional Director Africa
• E-mail John.Richter_at_exim.gov
• Tel [phone] / Fax [phone]
• Ricardo Michel, Business Dev. Officer
• E-mail Ricardo.Michel_at_exim.gov
• Tel [phone] / Fax [phone]
• Web Site www.exim.gov
• E-mail eximafrica_at_exim.gov