AGOA Is Working in Africa, Export-Import Bank Official Says

John Richter speaks at close of Mauritius/AGOA Forum

Flic en flac, Mauritius -- After more than two years in operation, the African Growth and Opportunity Act (AGOA) is opening the continent up to greater investment, according to Export-Import [Ex-Im] Bank Africa Director John Richter.

Richter spoke to the Washington File on the closing day of the second U.S.-Sub-Saharan Trade and Cooperation [AGOA] Forum held at various locations on this verdant island from January 13 to 17. In addition to the meeting of ministers of trade, finance and economics from the 38 AGOA-eligible nations, the Forum also included, for the first time, a private sector component, featuring 1,000 firms, as well as a civil society session that drew hundreds of non-governmental organizations.

For the Ex-Im Bank, which issues loan guarantees for deals that match foreign buyers with U.S. suppliers of equipment, "the numbers are quite good," said Richter. "In 2002 we provided support [loan guarantees] for 127 transactions worth $475 million in 18 different countries. And that's an increase in every category from the year before.

"So, we're very pleased with our portfolio in Africa and we're looking to do more business on the continent."

At the Forum, Richter said, "We had the opportunity to talk about transportation issues and we met with the private sector participants as well on issues regarding public-sector financing available to African buyers."

He explained, "We are, of course, encouraging them to get their equipment, to increase their productive capacity, from the United States. This involves any industry where they want to produce at a higher level, whether that's transportation or textiles, or any other industry where they are manufacturing."

One of those U.S. companies -- Boeing [aircraft] Corporation -- was among 150 U.S. firms manning booths at a special AGOA exhibition held at the Mauritius Freeport business center. Altogether, 200 U.S. firms were among the 1,000 companies that sent representatives to the business portion of the Forum.

Richter said, "Boeing was actually part of the business we did in Africa last year. They are looking at other opportunities here in Africa and we will be happy to support them when they are in a competitive situation."

As for Mauritius, Richter said, "The economy seems to be booming. We haven't done anything specific here since we supported the $28 million installation of the fiber optic communication cable for Telecom Mauritius about two years ago. But we would be delighted to do so again."