December 15, (THEWILL) – The African Export-Import Bank (Afreximbank) and US Eximbank have signed a $500m Memorandum of Understanding (MoU) to boost trade and investment in Africa.
President and Chairman of the Board of Directors, Afreximbank, Prof. Benedict Oramah, disclosed this in an interview with the News Agency of Nigeria (NAN), on the sidelines of the ongoing US-Africa Leaders’ Summit.
While Oramah signed the MoU for Afreximbank, Ms Reta Lewis, President and Chair of the Board of Directors, US Exim Bank, signed on its behalf.
Oramah said through the renewed partnership, the two banks would support trade and economic integration in Africa by helping to support other technical supports and facilitate strategic investments in healthcare.
He said the MoU would also facilitate power and transportation infrastructure, including rail and road projects as well as investments in renewable energy projects.
“We will use our platform and relationship to promote the creation of regional supply chains by supporting transportation, rail and road infrastructure, healthcare, renewable energy.
“We also support diaspora engagements, especially the creative industry, which is something we have as a priority and the US Government, also has as a priority.
“We expect that this engagement we have had will promote the work we are doing to support the African Continental Free Trade Agreement (AFCFTA).
“It will make it possible for us to support industries to bring in heavy equipment and capital goods needed to create manufacturing capacity.
“It will also enable us to have access to the kind of infrastructure goods that are required to create capacities for production on the continent,” he said.
Oramah, who described the US market as the largest in the world, said by improving relations and creating opportunities for trade, Africa could have access to help pull billions of people out of poverty, as it did Asia.
“US is the country’s largest pool of capital. By creating the environment to attract this capital, we are going to be able to support the kind of investments that will enable us do value addition in our continent, especially solid minerals and agricultural products.
“It will help us to push ahead as a trade destination hub for venturing in the US, given the fracturing of global supply chain that we are beginning to witness. Africa has a large diaspora in the US,” he said.
Speaking on the benefits of the MoU, Oramah said, Nigeria has a large market because of its huge population, noting that the youth population in the country is a huge source of labour that could promote products for the US market.
“The US and Nigerian markets are not far apart. Nigeria can be a good destination for the US and that can boost economy and create jobs, create technology transfer and support capacity building.
“Nigeria is the largest source of diaspora in the US. So, with this engagement, we are able to leverage the pool of the diaspora we have in the US and we are also going to attract more capital for the US, into Nigeria.
“So, Nigeria can be industrial base that will attract manufacturing investments from the US apart from also being a potential market for our goods
“We see AFCFTA as a source of foreign direct investment and diaspora remittances.
“Moreover, AFCFTA is a source of skills and also to help us use raw materials efficiently, in terms of adding value, and building strong manufacturing capacity which is what we are fighting for.”
