Washington, DC — The Corporate Council on Africa (CCA) chairman, James A. Harmon, called on the U.S. administration for greater support to the U.S. trade finance agencies in supporting exports to Africa.
In a letter dated July 24, 2002 to Vice President Richard Cheney, Mr. Harmon stated: "I wish to express my strong belief that the trade finance agencies - Ex-Im Bank [U.S. Export-Import Bank], OPIC [Overseas Private Investment Corporation] and TDA [U.S. Trade and Development Agency]-can play a critical role in both supporting American jobs and helping the developing countries to purchase the American goods and services they need to grow their economies. I am increasingly concerned, however, that the trade finance agencies currently lack the resources and political support to play such a role."
Mr. Harmon is Chairman and Chief Executive of Harmon and Co. and the immediate past chairman of the Ex-Im Bank.
Mr. Harmon pointed out the recent decline in exports supported by the Ex-Im Bank, particularly in Africa, while similar export credit agencies of the other G-7 countries are not experiencing the same decline. He also identified the potential benefits that could result from increasing leverage in the OPIC investment funds for private investors, given the current market conditions.
Mr. Harmon emphasized the importance of a coordinated effort towards strengthening the trade finance agencies, thus effectively encouraging trade and investment between the U.S. and Africa.
CCA deems the lack of adequate project financing in Africa to be a foremost impediment to the continent's economic and social development. The first-hand experiences and practical methods of the American business community is a unique and under-leveraged resource.
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In September 2002, CCA will convene an international "Commission on Financing and Capital Flows to Africa" whose goal will be to more closely integrate the mainstream financial world with the African continent. This commission will be the first of its kind. It will be chaired by Mr. Harmon and will be comprised primarily of high-level private sector decision makers from the United States, Europe and Africa.
The U.S. trade finance agencies are designed to support U.S. trade overseas. The Ex-Im Bank is an independent U.S. Government agency that helps finance the overseas sales of U.S. goods and services.
OPIC's goal is to mobilize and facilitate the participation of United States private capital and skills in the economic and social development of less developed countries and countries in transition to market economies.
TDA assists U.S. companies pursue overseas business opportunities, enabling American businesses to compete for infrastructure and industrial projects in middle-income and developing countries.
CCA, established in 1992, is a nonpartisan 501(c)(3) organization of nearly 170 American companies dedicated to strengthening trade and investment ties between the United States and Africa. CCA members represent nearly 85 percent of total U.S. private sector investments in Africa.
