Included in the continuing resolution passed this week by  Congress was a measure which extends the charter of the U.S. U.S. Export Import Bank (“Ex-Im Bank”) through June 30th of next year.  Renewing the charter of Ex-Im Bank (which was set to expire on October 1st) was a hot topic of conversation this past summer including  of the U.S.-Africa Leaders Summit.  Thus this short-term renewal is a welcome (albeit brief) reprieve to an institution that provides important assistance to U.S. businesses looking to compete in Sub-Saharan Africa and other emerging markets .

Similar to the nearly sixty export credit agencies around the world, Ex-Im Bank provides businesses with loans, guarantees, credit insurance and other financing tools to support the trade and export of goods and services from the U.S. into foreign markets.  Sub-Saharan Africa is a priority region for Ex-Im Bank and, since 1999, the institution has assisted over $5 billion in transactions across the region.  Ex-Im Bank is especially important to small- and medium-sized enterprises since  to bear the risks and complexities of doing business in these markets.  With trade and investment becoming an increasing priority of the U.S.-Africa relationship, Ex-Im Bank has seen an expanding presence on the continent and, last year, it supported a record 188 transactions across 35 countries in the region.

Seeking to capitalize on this momentum, over the next two years Ex-Im Bank is set to commit up to $3 billion in financing in Sub-Saharan Africa in addition to an existing $5 billion commitment for Power Africa and a planned commitment of $1 billion for infrastructure projects in Angola.  Ex-Im also has plans to work with the Small Business Administration to target and assist small- and medium-sized enterprises who are interested or invested in the continent.

The short-term renewal is a welcome breakthrough after months of wrangling over the reauthorization of Ex-Im Bank.  The next steps must be to guarantee long-term renewal of an institution which is essential to helping U.S. exports stay competitive in a world where other countries “have  and are offering national financing […] to support their companies’ deals in Africa.”