EXIM President on fostering partnerships to grow Africa’s mining sector

As the Mining Indaba in Cape Town comes to a close, discussions around financing options for important mineral transactions have taken center stage. Reta Jo Lewis, President of the Export-Import Bank of the United States, sat down with CNBC Africa's Fifi Peters to delve into the importance of fostering partnerships to drive growth in Africa's mining sector. The conversation revolved around the role of financial institutions in bridging the infrastructure gap, promoting collaboration, and unlocking opportunities for American companies in the region. Lewis highlighted the significance of the United States' engagement in Africa, emphasizing the level of cooperation and partnership evident in the continent's mining industry. She noted the presence of investors, financial executives, and government officials at the Indaba as a platform to strengthen relationships and explore potential collaborations. The focus areas for EXIM Bank currently revolve around making financing more accessible for infrastructure projects, particularly in Sub-Saharan Africa, renewable energy, energy efficiency, and energy storage. When discussing the challenges posed by the multi-billion dollar infrastructure gap in Africa, Lewis shed light on EXIM's commitment to facilitating exports and supporting U.S. jobs through various financing solutions. The agency offers a range of financial instruments, including direct loans, working capital guarantees, and export credit insurance. Following a reauthorization by Congress in 2019, EXIM has also ventured into transformational export initiatives aimed at driving the green transition. In evaluating the bankability of projects, Lewis underscored EXIM's demand-driven portfolio and its expertise in assessing transactions from legal, financial, technical, and environmental standpoints. Collaboration with partners across the continent is crucial in identifying viable projects for funding. This collaborative approach extends to working with co-financing partners and engaging with project developers to understand their financing needs. The conversation then shifted to the evolving geopolitical dynamics influencing the mining sector, particularly the increased funding from entities like the United Arab Emirates and China. Lewis reiterated the importance of partnerships and collaboration with allies and export credit agencies to maximize investment opportunities. She emphasized the role of EXIM in fostering relationships with central governments, sovereigns, and commercial partners to support priority projects in various sectors beyond critical minerals. Despite the abundant opportunities in Africa, Lewis expressed the desire to see more American companies actively participating in the region. Collaboration with U.S. embassies, the Department of Commerce, and foreign commercial service offices plays a crucial role in facilitating American business engagement in Africa. By leveraging these partnerships, EXIM aims to enhance the competitiveness of U.S. firms and encourage their involvement in diverse projects across the continent. Looking ahead, Lewis hinted at forthcoming deals in the mining sector, citing a recent successful authorization of a $900 million renewable energy transaction in Angola. She reassured that EXIM, without a funding cap, remains open for business and is committed to expanding its presence in Africa. In alignment with the U.S. government's economic agenda, EXIM continues to prioritize bilateral, multilateral, and trilateral partnerships to drive economic growth and strengthen ties with African nations. As the mining industry in Africa evolves, the discourse around financing, collaboration, and sustainable development remains pivotal. Lewis's insights underscore the significance of financial institutions in catalyzing growth and driving investment in Africa's mining sector, setting the stage for increased participation and partnerships in the years to come.