EXIM Bank signs MoU with UBA to expand trade between US, Africa

Chairman/president of the Export-Import Bank of the United States (EXIM Bank), Fred P. Hochberg, and Phillips Oduoza, CEO/group managing director, United Bank for Africa (UBA), have signed a memorandum of understanding (MoU) with the goal of expanding trade between the US and sub-Saharan Africa at the World Economic Forum Africa (WEF) in Kigali.

“EXIM Bank is proud to build on its decade’s long commitment to financing American exports to sub-Saharan Africa,” said Hochberg.  “This memorandum signals to American exporters and African businesses alike that there are many more promising opportunities to work together, and EXIM stands ready to provide the financing needed to turn more of those opportunities into realities.”

The two were joined by Uzoka Kennedy, deputy managing director/ group managing director designate, UBA, and Sola Yomi-Ajayi, group head, financial institutions and international organisations, UBA, who all participated in the signing ceremony.

The MoU is a statement of general intent between EXIM Bank and UBA to promote the availability of EXIM financing of up to $100 million in the region. EXIM Bank and UBA 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.

Under the MoU, both firm 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 EXIM.

Since 2009, EXIM has provided more than $6 billion in financing for transactions across sub-Saharan Africa. For the fiscal year ending in 2014, the bank supported $2.05 billion in transactions in more than 20 sub-Saharan African countries.