The Export-Import Bank of the United States and the Eastern and Southern African Trade and Development Bank signed a $100 million memorandum of understanding that promotes American businesses operating in the region.
Under the terms of the agreement, Eastern and Southern African Trade and Development Bank, also known as PTA Bank, will work with U.S. entrepreneurs and members of the African Diaspora in America who are interested in exporting U.S. goods and services to their home countries.
The goal is to stimulate American business growth in the region, and contribute to the development of sub-Saharan Africa, said Fred Hochberg, chairman and president of Ex-Im bank in a press release. Both banks will explore how to use up to $100 million in medium- and long-term loan guarantees and direct Ex-Im bank loans to finance U.S. exports to PTA Bank member states.
Previous projects include a $60 million loan provided by HSBC to PTA Bank to finance the sale of American aircraft to RwandAir Express, guaranteed by Ex-Im Bank in 2011.
In the past four years, Ex-Im Bank has authorized more than $4 billion in financing for U.S. exports to sub-Saharan Africa.