FINANCE FORUM •
AMERICA’S FOCUS
ON AFRICA
This article was shared with African Mining by Africa Oil Week/Mining Indaba.
The US government’s trade finance arm, the Export-Import Bank of the
United States (EXIM), convened a joint meeting on April 14th with their
EXIM Advisory Committee and sub-Saharan Africa Advisory Committee
(SAAC) to discuss EXIM’s continued implementation of COVID-19 relief
measures for US businesses and workers, insurance brokers, foreign buyers
of U.S. exports, and financial institutions.
EXIM advisory committee chair, Stevan Pearce, and
SAAC chair Daniel Runde, co-chaired the virtual public
meeting, which was also attended by EXIM president
and chairman Kimberly A. Reed and more than 100 public
attendee registrants.
Reed said that EXIM remains fully open for its customers and
stakeholders during the COVID-19 crisis. EXIM chief banking
officer Stephen Renna, senior vice president in the office of
Board authorised finance David Sena, and senior vice president
of small business Jim Burrows provided the committee with an
update on EXIM’s COVID-19 relief measures.
“We greatly appreciate our EXIM advisory committee and
sub-Saharan Africa advisory committee members’ insights.
During today’s meeting, the committee members provided
a variety of suggestions – from simplifying and speeding up
small business processes to supporting our US supply chain,
to focusing on Africa now and for the long-term, especially
when it comes to China. These will be helpful as EXIM
focuses on helping our businesses and workers during this
very challenging time.”
“These are unprecedented times in this country, but also in
the world,” said Pearce during the meeting. “The market is
unstable. That does not lend itself to aggressive investments,
and it does not lend itself to expansion and reaching new
market shares. And that’s where EXIM comes in.”
“EXIM is going to play a key role in supporting our friends
and allies during the COVID-19 crisis,” said Runde. “Africa has
not felt the full extent of COVID yet and they will experience
an economic as well as global health emergency.”
At a March 25 open board meeting, which included ex officio
board members US secretary of commerce Wilbur Ross,
and US trade representative ambassador Robert Lighthizer,
the EXIM board of directors adopted a resolution affirming
its support of temporary relief measures including: bridge
financing, progress delivery payment financing, supply
chain finance guarantees, and working capital guarantee
expansions.
EXIM also expedited a change in the fee structure of delegated
authority and fast track loans to give small businesses better
transparency into the fee structure and to lower the fee rate by
an average of 10 basis points.
Earlier this month Reed addressed nearly 70 Corporate Council
on Africa (CCA) members, as well as US and African government
officials during the first webinar in a new CCA series entitled
‘Navigating the Impact of COVID-19.’
Reed emphasised how EXIM's historic seven-year
reauthorisation, which directs EXIM to establish a ‘Programme
on China and Transformational Exports’, uniquely positions EXIM
to support US companies as they compete with China to export
goods and services to Africa. The programme directs EXIM
to advance the comparative leadership of the United States
through direct exports to countries in Africa and around the
world in key areas.
Reed further highlighted action taken recently by the EXIM
board of directors to approve a USD91.5-million renewable
energy rural electrification project in Senegal. The project,
which will support an estimated 500 US jobs in 14 US states,
is expected to bring electricity to approximately 330 000
Senegalese in more than 400 villages, a win-win for an American
small business and its workers and the people of Senegal.
Established by Congress, the sub-Saharan Africa Advisory
Committee provides guidance and advice regarding EXIM Bank
policies and programs designed to support the expansion of
financing support for U.S. manufactured goods and services in
sub-Saharan Africa.
Committee members advise the Bank on the development
and implementation of policies and programmes designed to
support EXIM’s engagement in sub-Saharan Africa with a view
to boosting American exports and bolstering US jobs. •
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