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Exim Bank: US companies waking up

Aug 08 2012 18:19 Sapa

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Johannesburg - American companies are starting to wake up to huge investment opportunities in Africa, the chairman of the US Export Import bank, Fred Hochberg said here on Wednesday.

Hochberg, in South African as part of a business delegation alongside US Secretary of State Hillary Clinton, said more US companies must invest in the "rich and deep market" in Africa.

"Many US companies didn't see the need to have an ambitious export profile for many years, but I think there's more of a waking up (to) opportunities here in sub-Saharan Africa," he told reporters.

Hochberg identified potential sectors of investment as energy, aircraft, mining, medical and small businesses.

This week, Exim Bank unveiled a loan worth $2bn to finance clean energy in South Africa.

South Africa is the leading US export market on the continent, taking in more than $7bn worth of goods and services in 2011, 30% more than the previous year.

Hochberg said that last year the Exim Bank signed a memorandum of understanding for the expansion of the energy and agriculture sectors in power-starved Nigeria.

"There has been some interest that is beginning to take some hold... high levels of interest there" in Nigeria, he told reporters.

The bank loans have more than doubled from $14bn in 2009 to $33bn last year, mainly in long term and expensive projects where local banks are uncomfortable.

Power is its critical target area, as well as mining and transport. It has provided finance to Ethiopia Airlines, Kenya Airways, Angola's TAAG and British Airways' South African outfit Comair.

Hochberg will be in Mozambique on Thursday, a country poised to become a major energy player with huge offshore gas finds over the past year.

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