Afreximbank,U.S EXIM sign $500 million MoU to boost trade relations

By Chisom Nwatu

The African Export-Import Bank (Afreximbank) has signed a Memorandum of Understanding (MoU) with the Export-Import Bank of the United States (U.S. EXIM) to boost trade between Africa and the United States of America as well as expand commercial engagements of the African diaspora community in the U.S.

The move is expected to expand commercial engagements of the African diaspora community towards facilitating transactions critical to the economic growth of both the U.S. and Africa.

As part of the MoU, the two banks will support trade and economic integration in Africa and across a broad range of trade-enabling sectors, including helping to revive and strengthen the African aviation sector.

Both parties will also facilitate trade and investments in healthcare, power, digitisation, agriculture, and agro-processing, and transportation infrastructure, including rail and road projects, as well as investments in renewable energy projects, most importantly, scaling support for industrial development across the African continent.

The MoU was signed by Benedict Oramah, president and chairman of the board of directors of Afreximbank, and Reta Jo Lewis, president, and Chair of U.S. EXIM, on the sidelines of the U.S.-Africa Leaders Summit, in Washington DC.

Oramah, in his remarks at the signing ceremony, said that through the signing of the MoU, the institutions move from intentions to action and set the stage to serve as anchors for a renewed, vibrant U.S.-Africa trade and investment relationship.

“As the political actors from the U.S. and Africa renew their commitments to a stronger alliance in today’s fractured world, our two institutions must convert the political intentions into concrete business, trade, and economic gains for the expectant African and American people. The time to act is now! By entering this MoU with U.S. EXIM, Afreximbank is helping to widen that window of opportunity,” he added.

Commenting on the deal, Reta Jo Lewis, said the partnership between both parties  is very much part of the administration’s commitment to stimulating partnerships and collaboration with Africa.

He highlighted the goals of the MoU to include;  partnering with Afreximbank in an effort to create economic opportunity and job creation in Africa and the United States, to engage America’s African Diaspora,and a source of strength who maintain close familial, social, and economic connections to the continent.

Afreximbank and U.S. EXIM will also cooperate with other U.S. departments and agencies through the Prosper Africa initiative, a U.S. Trade and Investment Initiative which aims to increase trade and investment between the U.S. and African Countries.