A Dialogue with Kimberly Reed, Chairman and President, U.S. Export-Import (EXIM) Bank

Photo:Kimberly Reed, Chairman and President, Export-Import (EXIM) BankOn Wednesday, April 8, 2020, CCA launched a Webinar Series on Navigating the Impact of COVID- 19. The series kicked off with a webinar discussion featuring Export-Import (EXIM) Bank Chairman and President, Kimberly Reed, on EXIM Bank's priorities and tools for continuing to support U.S. exports to Africa during the COVID-19 global pandemic.Reed assured her listeners that during these unprecedented times, EXIM stands firm in financially supporting U.S. businesses through providing export credit insurance, working capital guarantees, loan guarantees, and direct loans.She emphasized EXIM’s critical role in being a financing tool for the U.S. and African countries in contrast with China. Through the establishment of a program on China and transformational exports, EXIM reserves 20 percent of financing authority, equating to $27 billion, for exports to compete with exports from China. The program focuses on exports in areas including artificial intelligence, biotechnology, biomedical sciences, emerging financial technologies, high-performance and quantum computing, renewable energy, semiconductor and semiconductor machinery manufacturing, water treatment and sanitation, and wireless communication (5G)In posing the question “What has EXIM done since the pandemic?” Reed outlined the Bank’s initial COVID- 19 relief measures which include temporary bridge financing, temporary progress delivery payment financing, temporary supply chain finance guarantees, and temporary working capital loan guarantee expansion.EXIM’s capacity to support projects is $135 billion, with current exposure in Africa at $8.18 billion as of the end of 2019. EXIM looks at exposure by industry with oil, gas, and power projects being their biggest industries followed by aircrafts. The Bank approved $91.5 million project in Senegal which will support over 500 jobs in 14 states and has also approved for $5 billion to support an LNG project in Mozambique, the largest deal in EXIM’s history, which has created 16,400 U.S. jobs.In the Q&A Reed disclosed that infrastructure and energy are areas that some African Leaders are looking at for key projects. She also addressed the nature of her work as raising awareness of EXIM’s work and helping U.S. businesses think about exporting by identifying new sectors and industry-specific areas. She then outlined EXIMs relationship with other foreign export credit agencies (ECAs) and their ability to partner with them to share the risk yet maintain leadership of the transaction.Reed closed out the discussion by informing the audience that EXIM is currently welcoming applications for their program on China and transformational exports and reiterated the Bank’s dedication to small businesses through their financing tools and programs.