The US Export-Import Bank (US Exim) has signed a memorandum of understanding (MoU) with United Bank for Africa (UBA) that will back up to US$100mn-worth of American exports to Sub-Saharan Africa.
The agreement was signed by US Exim president and chairman Fred Hochberg and UBA CEO and group managing director Phillips Oduoza at the World Economic Forum Africa (WEF) in Kigali, Rwanda, last week.
“US Exim is proud to build on its decade-long commitment to financing American exports to Sub-Saharan Africa,” says Hochberg. “This memorandum signals to American exporters and African businesses alike that there are many more promising opportunities to work together, and US Exim stands ready to provide the financing needed to turn more of those opportunities into realities.”
The MoU is a statement of general intent between US Exim and UBA to promote the availability of US Exim financing of up to US$100mn in the region. “The two banks will work together to share information and develop export financing opportunities in key sectors including commodities, agriculture and food products, spare parts and large and small equipment purchases,” reads a statement issued by the US bank.
Under the agreement, the banks will explore options for offering a range of financing solutions for American exporters and African buyers, including short and medium-term financing programmes that allow for flexible repayment terms and competitive insurance policies guaranteed by US Exim.
US Exim signed a similar agreement with PTA Bank back in 2014 to finance US exports to the region, targeting both diaspora businesses in the US and PTA Bank’s member states.