The US Export-Import Bank (Exim Bank) has authorised US$1.1bn to finance exports to sub-Saharan Africa in the first seven months of 2014. The Bank’s President Fred P. Hochberg made the announcement at the US-Africa Energy ministerial summit in Addis Ababa, Ethiopia.
The event, attended by 350 business leaders and government officials, including more than 30 African Energy ministers is to build upon President Barack Obama’s Power Africa Initiative unveiled during his African tour last year and will explore strategies to accelerate the development of clean energy sources and the adoption of efficient technologies.
It will also review best practices in the development of oil and gas resources, policy and regulatory issues, investment opportunities and financing. Mr Hochberg participated in a panel that discussed government and multilateral tools for encouraging energy financing.
Mr Hochberg said US exporters are eager to realise the tremendous opportunities in Africa adding that adding that the bank looks forward to increasing financing for American-produced exports to Africa’s energy sector.
In the past five years, Exim Bank has authorised more than US$5bn for financing US exports to sub-Saharan Africa, exceeding it’s authorisations of US$ bn for the region approved over the previous decade.
The Bank provides a variety of financing mechanisms, including working capital guarantees, export credit insurance and money to help foreign buyers purchase US goods and services.