The African Export-Import Bank (Afreximbank) and U.S. Eximbank have signed $500m Memorandum of Understanding (MoU) to boost trade and investment, especially to help revive and strengthen African airlines through re-fleeting.
President and Chairman of the Board of Directors of Afreximbank, Prof. Benedict Oramah said this in an interview with journalists 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 support 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.
“We will use our platform and relationship to promote the creation of regional supply chains by through 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 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 the opportunities for trade, Africa could have access to help pull billions of people out of poverty, as it did Asia.
“U.S. is the country 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 agriculture products.
“It will help us to push ahead as a trade destination hub for venturing in the U.S, given the fracturing of global supply chain that we are beginning to witness. Africa has a large diaspora in the U.S.,’’ he said.
Oramah said it was a good thing that President Joe Biden administration had issued an executive order to strengthen African diaspora engagement.
He said that diaspora sources of foreign direct investment, marginal remittances, and skills were also market for us, noting that the banks would fully leverage the benefits of a large pool of African diaspora here.
“Just as the Jews have done, just as the Indians have done; we are the only ones who have not used our diaspora in a way that it is a win-win for both parties,’’ the President 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 economy and create jobs, create technology transfer and support capacity building.
“Nigeria is the largest source of 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.’’
According to him, Nigeria stands the opportunity of gaining so much from the African Continental Free Trade Agreement.
“So, Nigeria can be industrial base that will attract manufacturing investments from the U.S. apart from also being a potential market for our goods.
“We see AFCFTA it 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 fight for.”
Reports that Oramah Ms Reta Lewis, President and Chair of the Board of Directors, U.S. Exim Bank, signed the MoU on behalf of the two banks.