EXPORT-IMPORT BANK TO FINANCE EXPORT OF 144 AMERICAN-MADE BRIDGES TO AFRICA

FROM:  U.S. EXPORT-IMPORT BANK
Export-Import Bank Approves Financing for Export of 144 American-Made Bridges to Sub-Saharan Africa

Transaction will support jobs in Pennsylvania, Delaware, New Jersey, and several other states

Washington, D.C. – The Export-Import Bank of the United States (EXIM) Chairman and President Fred Hochberg announced today in New Castle, Delaware that the Bank will finance the sale of Acrow Corporation of America’s modular steel bridge components to the Road Development Agency in the Republic of Zambia (ROZ). EXIM will guarantee a $73 million commercial loan to facilitate the export of 144 steel bridges. This action is expected to support approximately 200 jobs at Acrow’s manufacturing facility in Milton, Pennsylvania along with thousands more in Delaware, New Jersey and several other states.

In pursuit of its congressional mandate to support the export of U.S.-made goods and services to the Sub-Saharan region, EXIM authorized more than $2 billion in financing to support such exports in 2014, the largest total in the Bank’s 81-year history.

"With this transaction, we’ve not only leveled the playing field for an American manufacturer in a highly competitive global market, but we’ve also empowered Acrow to hire more American workers,” said EXIM Chairman and President Fred P. Hochberg. "This deal is a great example of how EXIM financing equips American exporters to beat the competition overseas while supporting jobs at home."

Acrow’s competitive proposal was chosen over those developed by its European and Chinese counterparts in a market that has historically been the focus of substantial Chinese investment, thanks to the financing it applied for and received from the Bank. As a result, the company’s bridges will be used in ROZ’s repair and modernization plan to improve Zambia’s rural road infrastructure, connecting people to schools, hospitals and enhanced economic opportunities.

“These EXIM Bank-supported projects transform Acrow Bridge's international presence by offering clients financing alternatives that assist emerging markets in accessing immediate and profound upgrades to their bridging infrastructure, particularly in rural areas where agricultural development depends so heavily on quality road and bridge networks,” said Acrow President and CEO Bill Killeen.

“The Zambia project will build on Acrow Bridge’s decades-long commitment to providing high-quality bridge infrastructure solutions in Africa, with a special focus on local skills capacity building,” added Paul Sullivan, Acrow’s Vice President of International Business Development.

EXPORT-IMPORT BANK APPROVES RECORD FINANCING OF EXPORTS TO SUB-SAHARAN AFRICA

FROM:  U.S. EXPORT-IMPORT BANK 

Ex-Im Bank Approves Record $1.7 Billion in Financing of U.S. Exports to Sub-Saharan Africa

$3 Billion in Financing Support Pledged for U.S. Exports Over the Next 2 Years

Washington, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) announced today that it has authorized a record $1.7 billion in financing to support U.S. exports to sub-Saharan Africa over the past 10 months. This record-setting surge has not only empowered U.S. small businesses to sell their products in global markets, but has also supported more than 10,000 American jobs which contribute to strengthening the U.S. economy.

The announcement was made as Ex-Im Bank Chairman and President Fred P. Hochberg participated in the U.S.-Africa Leaders Summit convened by President Barack Obama this week in Washington D.C. The summit has drawn about 50 heads of state, ministers, and business leaders from across the African continent.

“Ex-Im Bank is firmly committed to equipping U.S. exporters to realize the vast economic opportunities emerging throughout sub-Saharan Africa, which is home to seven out of 10 of the world’s fastest-growing markets,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “Each transaction the Bank supports creates jobs for local U.S. businesses and strengthens our relationship with a region that has a strong prospect for long-term economic growth.”

Ex-Im also announced that it will pledge $3 billion in financing to support U.S exports to sub-Saharan Africa over the next two fiscal years. The Bank also recently signed a memorandum of understanding (MOU) with Angola to strengthen collaboration on the financing of American-made exports to Angola.

Recent Ex-Im Bank success stories in sub-Saharan Africa:

Ex-Im approved a loan guarantee for $17 million to support long-term financing by the West African Development Bank (BOAD) for the Azito Power project in Cote D’Ivoire. Two-thirds of the population of Sub-Saharan Africa lacks electricity; by strengthening their power capacity, however, their economies will be well-positioned for growth. Financing for steam turbines used in the Azito Power project will support 40 manufacturing and engineering jobs in Schenectady, New York, and Bangor, Maine.
Three Louisana small businesses benefit from Ex-Im’s $43 million financing of a liftboat destined for Nigeria. The “Bellator” liftboat is a self-propelled vessel, 150-foot long by 118-foot wide, that lifts and suspends equipment and personnel up to the level of an offshore drilling platform. About 300 employees of C.S. Liftboats, Inc., of Abbeville, Louisiana, together with Gulf Island Fabrications of Houma, Louisiana, will construct the high-tech vessel. The Nigerian buyer also contracted for prefabricated liftboat-mounted modules for housing workers; these are built by Fiberglass Unlimited Inc. of Raceland, Louisiana. This is Nigeria’s first purchase of a new, American-made liftboat system.

Pennsylvania employees of GE Transportation will benefit from the Bank-supported export of GE’s locomotives with Pennsylvania-made engines and components to Transnet in South Africa. In its recent transaction, Ex-Im Bank authorized a $563.5 million loan guarantee to support financing for the sale of 293 locomotives being manufactured by GE Transportation, which will support an estimated 2,500 U.S. jobs.

SEC COMMISSIONER SPEAKS ON CONFLICT MINERAL SOURCING

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

　
Requiring Disclosure to Increase Transparency Regarding the Sourcing of Conflict Minerals
by Commissioner Luis A. Aguilar
U.S. Securities and Exchange Commission

SEC Open Meeting
Washington, D.C.
August 22, 2012

The Dodd-Frank Act requires that the Commission adopt rules to implement Section 1502 of the Act. Pursuant to this statutory mandate, these rules require companies covered by the rule to disclose whether certain minerals contained in their products – specifically, tin, tantalum, tungsten and gold, often referred to as "conflict minerals" – originated in the Democratic Republic of the Congo ("DRC") or an adjoining country.

　

The DRC is the largest country in sub-Saharan Africa, with a population of 74 million people and vast natural resources. The facts demonstrate that armed groups use force, violence and intimidation to exploit that country’s mineral wealth for revenue and power, particularly in the Eastern portion of the country. These armed groups are responsible for serious and widespread abuses of human rights, including murder, disappearances, torture, mutilation, rape and forced labor, as well as the recruitment and abduction of child soldiers. The United States government has determined that this humanitarian crisis profoundly affects our national interest.

　

To address these concerns, Section 1502 of the Dodd-Frank Act added Section 13(p) of the Exchange Act, which requires us to adopt the regulations we consider today.

　

Senator Richard J. Durbin of Illinois, a strong proponent of Section 1502, described the provision as follows:
Any US [reporting] company that uses minerals mined in Congo must publicly acknowledge the use of those minerals … and document what measures they are taking, if any, to ensure that they are not purchasing minerals from armed groups or military units and that their trade is not fueling the conflict….
Following the enactment of Dodd-Frank, the Commission began a rulemaking process characterized by extensive public outreach, thoughtful deliberation, and rigorous economic analysis. The Commission received a number of comment letters from corporations, industry and professional associations, human rights and public policy groups, institutional investors, investment firms, United States and foreign government officials, and other interested parties and stakeholders. In addition, the Commission also held a public roundtable, at which stakeholders discussed their views and provided input on issues related to our required rulemaking.

　

Moreover, SEC Commissioners and staff have held over 140 separate meetings with external stakeholders. This robust, public, and interactive debate has allowed the Commission to more fully consider how to develop our final rules. In that connection the Commission engaged in an extensive cost/benefit analysis with respect to this rulemaking. The Commission has sought to address concerns about compliance costs while implementing Congress’ objectives. The Commission also considered the effects of the rule on efficiency, competition and capital formation.

　

Today’s rulemaking is the culmination of a careful and comprehensive process and a clear Congressional directive. The Commission has faithfully administered its judgment and expertise, as the independent agency tasked by Congress to implement Section 13(p). The rule under consideration today is in the interest of investors and the public interest.

　

Today’s rule will bring clarity to the various stakeholders that have already developed initiatives to conduct due diligence and trace supply chains.

　

I support the rule, and would like to take this opportunity to thank the staff for their work in connection with this rulemaking. In particular, I would like to recognize the Division of Corporation Finance; the Division of Risk, Strategy and Financial Innovation; and the Office of General Counsel. I appreciate your hard work and effort in support of this rulemaking.

　

Thank you.

U.S. AND NIGERIAN PARTNERSHIP

Map:  Nigeria.  Credit:  U.S.  CIA 1979 . 
FROM:  U.S. STATE DEPARTMENT
Remarks at U.S.-Nigeria Binational Commission "A Rising Partnership"
Remarks William J. Burns
Deputy Secretary Washington, DC
June 4, 2012
Thank you, George, for that kind introduction. We appreciate USIP co-hosting this event with us in your beautiful building. I want to extend a warm welcome to Foreign Minister Ashiru, to the Nigerian state governors, Cabinet officials, and National Assembly members who have made the long journey to join us today.

As Ambassador Moose has already mentioned, we meet today against a sad and tragic backdrop. Let me extend once again our deepest and sincerest sympathies to the families and friends of those who lost their lives in the terrible plane crash in Lagos yesterday.

Today’s gathering is both unique and historic, and I am honored to be a part of it. Never before have we brought such a diverse and senior group of Nigerian and U.S. officials together under the auspices of the Binational Commission. It is also a sign of our wide-ranging ambitions that we welcome such a diverse and distinguished group from the U.S. government, including representatives from the Department of Defense, USAID, Department of Energy and elsewhere.

The United States approaches this partnership from the fundamental premise that Nigeria is one of the most strategically important nations in sub-Saharan Africa. One out of every four Africans is Nigerian. Nigeria is Africa’s largest oil producer, home to its largest Muslim population, and its largest contributor of peacekeepers. Nigeria is also our largest trading partner in sub-Saharan Africa, with $35 billion in annual trade between our countries. A leader in the Economic Community of West African States (ECOWAS), Nigeria has led peacemaking efforts from Liberia to Cote d’Ivoire to Guinea-Bissau. On the UN Security Council, Nigeria has lent its voice to causes of conscience in Libya, Syria, and around the world.

We are invested in your success because we recognize Nigeria as a strategic center of gravity in its own right. But we also recognize a broader truth: across the continent, communities are struggling to find productive paths for growing youth populations; to defeat corruption; to turn a corner in improving governance, infrastructure and public health; to hold together different faiths and regions and to take on the drivers of extremism. In other words, Nigeria’s challenges are Africa’s challenges. And if we can help Nigeria chart a secure, prosperous and democratic course, then Nigeria’s successes can be Africa’s as well -- successes we can measure in improved lives, livelihoods, and leadership in the region.

That is what Secretary Clinton envisioned when she and then-Secretary to the Government of the Federation Mahmud Yayale Ahmed signed the framework for the Bi-National Commission in 2010. Two years later, we can proudly say that the BNC has grown into a forum for frank conversations to keep our bilateral relations on track; into a convening point for the many committed actors in both our governments; and into an expansive dialogue to turn common cause into creative thinking and coordinated action. And, as the four working groups that will meet over these two days reflect, our partnership is increasingly rooted in shared values, delivering results, and ready to take on the challenges ahead.

First, our working group on Good Governance, Transparency and Integrity (GTI) can already point to important successes. Last April’s elections were Nigeria’s most successful and credible since its return to democracy in 1999. This is due in no small part to our sustained engagement through the GTI working group and our shared commitment to a transparent and consultative preparation for the elections. The United States is proud to have supported the efforts of the Nigerian government and the Independent National Electoral Commission through a $31.3 million election assistance program in collaboration with the UK.

Today, we broaden our focus from elections to what comes after: in particular, transparent, effective governance. An old American newspaperman one said that “there is not a crime, there is not a dodge, there is not a trick, there is not a swindle, there is not a vice which does not live by secrecy.” Today we will discuss how freedom of information, accountability, and transparency can empower citizens to take on the difficult and deep-rooted challenge of corruption.We look forward to hearing your views on a challenge that is not unique to Nigeria and is a huge impediment to development and prosperity across the world.

Energy and investment -- the subject of our second working group -- is also critical to Nigeria’s economic present and future. Our economic ties are strong: the United States accounts for some $5.4 billion in foreign direct investment in Nigeria annually, and Nigeria is the fifth largest foreign supplier of oil to the United States. Nigeria has taken significant steps on its “roadmap” to rehabilitate its energy infrastructure. Now we must work together to sustain progress and match it with increased international investment in Nigeria’s energy sector. In February, we sent a high-level U.S. energy trade mission, and several of the American participants have already made follow-up business trips to Nigeria -- laying the groundwork for future partnerships and growth. Today, we will discuss how we can advance these reform efforts that will increase private investment in power sector infrastructure, promote the use of clean energy sources and help Nigeria translate its tremendous natural riches into lasting and widespread prosperity for all of its people.

While oil currently provides more revenues, nearly seventy percent of Nigeria’s population is engaged in agriculture, which why the third working group, focused on Food Security and Agriculture, is so important. The United States is working to strengthen Nigeria’s agricultural sector through encouraging policy reforms, technology transfer, and strong private sector involvement. We are committed to help Nigeria meet its ambitious plans to invest in and improve its ability to feed its people and become a major agricultural exporter. We have done this through the integration of technical assistance programs like USAID’s “MARKETS” program which aims to add over $100 million in support through a twelve-year value chain-focused program to increase farmer yields through improved technology. We are also encouraging private investment, to help seal the promise of growth and opportunity for all Nigerians. For example, a recent agreement between Taraba State and Dominion Rice Integrated Farms will reduce Nigeria’s rice imports by 15% and create daily work for 15,000 Nigerians.

As we all know, economic prosperity alone does not create successful societies. Security is a prerequisite for successful development, for a successful Nigeria. We are all disturbed by the repeated scenes of violence in various parts of Nigeria that threaten to undercut the gains Nigeria has made. This is why discussions in the fourth working group -- on Regional Security Cooperation – are so critically important. Violent, extremist militants like those associated with Boko Haram offer no practical program to improve the lives of Nigerians. They depend on resentment and neglect. It is incumbent on the government of Nigeria – both at the Federal and state level – to provide not only basic services but a compelling narrative of constructive civic engagement that points Nigeria toward a better future.

To that end, we are ready to explore a potential partnership with the Nigerian army to build its civil affairs capacity which, in turn, will help Nigeria build trust between citizens and the security services charged with protecting them. In addition, building on our fruitful discussions last June, we are committed to helping Nigeria develop a comprehensive counterterrorism strategy -- one that includes citizen engagement and dialogue -- alongside more traditional security measures. The United States is determined to help Nigeria translate its comprehensive strategy into concrete action. We are also committed to help Nigeria coordinate its security responses through an intelligence fusion center.

As we address the complex issues that the BNC covers, we should expect no “silver bullet”, and no quick fixes. Meaningful reform is a difficult task for any government at any level. But you are not starting from scratch. A strong team of reformers and highly qualified ministers, many of whom are with us today, have already undertaken substantial reforms and mutually reinforcing initiatives.

To highlight just a few of your many success stories: Finance Minister Ngozi has pushed a strong reformist agenda, with support from Central Bank Governor Sanusi, Trade and Investment Minister Aganga, and Minister of Power Nnaji – all of whom have taken steps to promote sustained economic development, job creation, increased agricultural productivity and more foreign investment. Governors from states such as Kano, Rivers, Borno, and Taraba, who are with us today, have demonstrated that accountable and responsible leadership can achieve meaningful results.

When government commits itself to progress and meaningful reforms, the Nigerian people have shown time and time again that they are willing to rise to the occasion. When they see that the work of government at the national, state, and local levels is positively impacting their lives, I believe they will stand with those who have stood with them. And Nigeria will move forward.

In every region of the world, from Southeast Asia to South America, nations are solving the challenges of economic development and clean, accountable governance. They are spreading prosperity to once neglected regions and groups. They are bridging old divides between religions, ethnicities and tribes within their borders. These new nations are stepping forward, propelled by a rising middle class, to claim their place as economic powers and regional leaders in the century ahead.

Nigeria can and should be among them. When Secretary Clinton visited Nigeria in 2009, she said: “The capacity for good governance exists in Africa and it exists in Nigeria. We have seen it in many places, and we have seen it in Nigeria.”

The challenges before us are great, but so too is the promise of the Nigerian people. So let us make the most of this moment and build on the strong foundations of our partnership to secure a better future -- for Nigeria, for America, for Africa and for the world.

Thank you.

EX-IM BANK RENEWS $100 MILLION AFRICA INSURANCE INITIATIVE

FROM:  EXPORT-IMPORT BANK
Cover Policy Expansions Coming in Three African Countries
WASHINGTON, D.C.: The Export-Import Bank of the United States (Ex-Im Bank) today announced a three-year renewal of the Bank’s Short-Term Africa Initiative (STAI) that provides export-credit insurance for U.S. exporters selling to 18 countries in sub-Saharan Africa, up to a program limit of $100 million. The initiative is renewed through March 31, 2015.

The Bank also anticipates expanding the availability of its export financing in three sub-Saharan African countries: Cameroon, Ethiopia and Tanzania. Ex-Im Bank’s board of directors is expected to authorize cover-policy expansions for each respective country in May. The changes will be made possible by risk-assessment upgrades that were recently approved through a federal interagency review.

“Sub-Saharan Africa offers great, untapped potential for U.S. companies looking to grow by increasing their foreign sales. Through Ex-Im’s initiative, the U.S. government is opening markets throughout this region,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “We encourage more exporters to enter these markets now to establish a presence that can lead to follow-on business for years to come.”

Hochberg added that the financing risks of many sub-Saharan markets have improved significantly and are lower than commonly perceived. He noted that the Bank has had an excellent experience of repayment in these markets in recent years.

“Since 2002, Ex-Im Bank has authorized $4 billion to support U.S. exports to sub-Saharan Africa, and we’ve netted more than $150 million in fees,” Chairman Hochberg said. “Ex-Im’s net loss rate in the region is 2 percent, with our fees earning 2.5 times more than the claims we’ve received. This is a very solid repayment record. We want more U.S. exporters to initiate or expand their business in Africa.”

In FY 2011, Ex-Im Bank surpassed the $1 billion authorizations mark for the first time in sub-Saharan Africa, with almost $1.4 billion approved to support U.S. exports to the region. The Bank anticipates another strong authorizations year in FY 2012.

Under STAI, Ex-Im Bank provides support for short-term transactions (repayment terms of up to 180 days, exceptionally up to 360 days) in markets where coverage would not be available under the Bank’s standard cover policy, which is normally based upon credit-risk analysis for medium-term transactions (repayment terms up to seven years).

Currently, Ex-Im’s insurance on all short-term STAI country transactions is available only under the Bank’s single-buyer insurance policy, which is a select-risk authorization. Existing Ex-Im multibuyer policyholders with a diverse spread of country and buyer risk are also eligible but must submit separate single-buyer policy applications for each STAI country buyer. However, under the initiative’s renewal, exporters having favorable experience with highly creditworthy STAI country buyers may have these buyers endorsed to their multibuyer policy.

Ex-Im’s insurance is available to support U.S. exports of a wide range of goods, including consumer items, spare parts, raw materials, agricultural commodities, and construction and mining equipment, among others. The insurance covers irrevocable letters of credit, promissory notes and open-account repayment terms that enable the exporter to extend short-term financing to the foreign buyer. Policies are also available for eligible U.S. banks.

About Ex-Im Bank:
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years, Ex-Im Bank has earned for U.S. taxpayers $1.9 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.

Ex-Im Bank approved $32.7 billion in total authorizations in FY 2011 -- an all-time Ex-Im record. This total includes more than $6 billion directly supporting small-business export sales -- also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $41 billion in U.S. export sales and approximately 290,000 American jobs in communities across the country.