African populations are young, growing, and increasingly urban. Given Africa’s growing infrastructure capacity, the continent is primed for mass industrialization. U.S. businesses are well positioned to meet the increasing demand for goods and services. The Export-Import Bank of the United States (EXIM) has proposed the signing of a bilateral Memorandum of Understanding (MOU) with Afreximbank. This MOU will better facilitate the export of U.S. goods and services to African markets and support diaspora engagement. The deal is part of EXIM’s goal to support American job creation, prosperity, and security through exports. It also stimulates the expansion, diversification, and development of African trade in line with Afreximbank’s mission.
It will support up to $500 million in exports of U.S. goods and services in sectors, including power generation, renewable energy, agriculture, aviation, and water and sanitation. Additionally, the MOU will foster economic opportunity and support jobs throughout Africa and the U.S.
PARTNERSHIPS
The Export-Import Bank of the United States (EXIM), the official export credit agency of the U.S., will partner with its counterpart, the African Export-Import Bank (Afreximbank). Afreximbank is a pan-African multilateral trade finance institution created in 1993 under the auspices of the African Development Bank.
IMPACT
Advancing trade, investment, and technology in Africa offers enormous economic growth and increased prosperity for both regions. The MOU empowers U.S. businesses to export to African markets by offering financing, loan guarantees, and market intelligence. The initiative brings together the full suite of U.S. financial services to guide businesses as they identify partners, advance opportunities, and close deals. This MOU will strengthen EXIM’s commercial ties to Afreximbank by increasing access and raising awareness of financial products, as well as support diaspora commercial engagement across Africa.