The African Export-Import Bank (Afreximbank) and U.S. Eximbank have signed a $500m Memorandum of Understanding (MoU) to boost trade and investment, especially to help revive and strengthen African airlines through re-fleeting.
Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank said this in an interview with the News Agency of Nigeria (NAN) on the sidelines of the ongoing U.S.-Africa Leaders’ Summit.
Oramah said through the renewed partnership, the two banks would support trade and economic integration in Africa by helping to provide other technical supports and facilitate strategic investments in healthcare.
He said that the MoU would also facilitate power and transportation infrastructure, including rail and road projects, as well as investments in renewable energy projects.
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“We will use our platform and relationship to promote the creation of regional supply chains by supporting transportation, rail and road infrastructure, healthcare, and renewable energy.
“We also support diaspora engagements, especially the creative industry, which is something we have as a priority and the U.S. 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.
He described the U.S. market as the largest in the world, saying that 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.
“By creating the environment to attract this capital, we are going to be able to support the kind of investments that will enable us to do value addition in our continent, especially solid minerals and agriculture products.
“It will help us to push ahead as a trade destination hub for venturing into the U.S., given the fracturing of the global supply chain that we are beginning to witness. Africa has a large diaspora in the U.S.,’’ he said.
Speaking on the benefits of the MoU to Nigeria, Oramah said Nigeria has a large market because of its huge population, noting that the youth population in Nigeria alone is a huge source of labour that could promote production for the U.S. market.
“The U.S. and Nigerian markets are not far apart. Nigeria can be a good destination for the U.S. and that can boost the economy and create jobs, create technology transfer and support capacity building.
“Nigeria is the largest source of the diaspora in the U.S. So, with this engagement, we are able to leverage the pool of the diaspora we have in the U.S and we are also going to attract more capital for the U.S. into Nigeria.’’
NAN reports that Oramah and Ms Reta Lewis, President and Chair of the Board of Directors, U.S. Exim Bank, signed the MoU on behalf of the two banks. (NAN)
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