Reflecting growing awareness and use of US Ex-Im Bank programmes in Africa, Ex-Im has renewed its short-term insurance pilot programme for Africa (STIPP) for three years beginning March 31, 2006, with an authorisation limit of US$100mn.
After reviewing the eligibility status of all sub-Saharan African nations, the bank has added five countries to the programme – Burundi, Comoros, Congo DR, Liberia and Sierra Leone – for public and private sector financing.
At the same time, improvements in country conditions enabled three nations – Chad, Equatorial Guinea and Ghana – to graduate from the programme and become eligible under Ex-Im’s routine cover policies for medium-term financing in both the public and private sector. Ghana also is eligible for Ex-Im long-term financing. With these changes, 28 African countries now are eligible for financing under the STIPP programme, bringing to 44 the total number of African countries in which Ex-Im programmes are available.
The Africa Pilot Program provides short-term cover in countries where Ex-Im is otherwise not open. It helps businesses in participating countries buy US-made goods and services, including spare parts, raw materials and agricultural commodities. Under the program Ex-Im Bank can insure short-term export credit transactions involving various payment terms, including open account terms.