RegionsAfricaExport-Import Bank Closure Would Hit US-Africa Trade, says GE Chief

Export-Import Bank Closure Would Hit US-Africa Trade, says GE Chief

General Electric’s (GE) co-chief executive Jeff Immelt has warned that trade ties between the US and Africa will be hit if the US Congress decides to close the Export-Import (Ex-Im) bank, the
Financial Times
reports.

Ex-Im provides loans, loan guarantees and credit insurance to help US private companies export goods overseas. Its main beneficiaries are companies such as Boeing and Caterpillar, but smaller exporters also receive financing.

Ex-Im faces closure if Congress does not renew its charter by the end of September.

According to the
FT
report, Immelt said the bank was crucial for US companies operating in Africa because it showed the government was prepared to have “some skin in the game”.

Closing Ex-Im down would mean that “we are basically making a statement as a country that we do not think that exports are important,” Immelt added.

GE also pledged to invest US$2bn in Africa by 2018, describing the continent as its “most promising growth region.” The group said that its investment would focus on developing the supply chain and training people, and infrastructure and sustainability initiatives.

Specific projects will include supplying gas turbines to help meet electricity demand in Algeria and in Nigeria’s state oil refinery, and a US$1bn rail investment in Angola.

Related Articles

Fintech disruption sees digitisation take centre stage in African banking strategy

Africa Fintech disruption sees digitisation take centre stage in African banking strategy

10m GTNews
South Africa’s economic recovery ‘could be a long haul’

Africa South Africa’s economic recovery ‘could be a long haul’

11m Graham Buck
Nigerian Stock Exchange adopts Nasdaq technology

Africa Nigerian Stock Exchange adopts Nasdaq technology

1y GTNews
Emerging markets: positives and pitfalls

Africa Emerging markets: positives and pitfalls

1y Graham Buck
The African currency rollercoaster ride

Africa The African currency rollercoaster ride

1y Theresa Henshaw
Leadership changes pose geopolitical risk, says Marsh

Africa Leadership changes pose geopolitical risk, says Marsh

1y Graham Buck
Survey finds leadership failings on business ethics

Africa Survey finds leadership failings on business ethics

1y Graham Buck
S&P downgrades South Africa’s credit rating to junk status

Africa S&P downgrades South Africa’s credit rating to junk status

1y Graham Buck