Expanding Horizons for U.S. Businesses in Africa Africa Business - PowerPoint PPT Presentation

Expanding Horizons for U.S. Businesses in Africa Africa Business Portal Webinar August 25, 2016 The U.S. Government’s Development Finance Institution

Our Organization As the U.S. Government’s development finance institution, OPIC mobilizes U.S. private capital to help address critical development challenges and in doing so, advances U.S. foreign policy and national security priorities. “We’re changing how we define development…we need to harness all the tools at our disposal — from our diplomacy to our trade and investment policies. ” International Foreign Development — President Obama, 9/22/10 Policy Administration Priorities • Support broad-based, sustainable economic growth • Proactively target specific countries, regions, sectors, and technologies U.S. Business • Mobilize private sector investment • Elevate development as a central pillar of national security policy The U.S. Government’s Development Finance Institution

Our Portfolio OPIC currently manages a $20 billion portfolio of projects in more than 100 countries and operates on a self-sustaining basis at no net cost to the American taxpayer. The U.S. Government’s Development Finance Institution

OPIC in Africa OPIC is authorized to do business in 47 countries in Africa. Current Portfolio: $5 billion spanning 123 projects, representing nearly one- quarter of OPIC’s active portfolio globally. Historical Portfolio: Since 1974, OPIC has committed $11.8 billion across 537 projects. OPIC and Power Africa: OPIC committed $1.5 billion to President Obama’s initiative, announced in 2013, to double access to power in Sub- Saharan Africa. To date, OPIC has approved $1.6 billion in finance and insurance commitments, which will support the installation of ~1,500 MW of new power capacity. The U.S. Government’s Development Finance Institution

Our Solutions POLITICAL RISK INSURANCE Protects U.S. investors and contractors against political risks that their assets may face when deployed overseas DEBT FINANCING Provides loans and loan guaranties to overseas business ventures with U.S. participation SUPPORTING INVESTMENT FUNDS Supports privately-owned, privately-managed funds that make equity investments in overseas companies The U.S. Government’s Development Finance Institution

Our Solutions: Political Risk Insurance Protects U.S. investors and contractors against political risks that their assets may face when deployed overseas: • Protection against currency inconvertibility, expropriation, and political violence, as well as other specialized coverages • Up to 20 year terms, fixed premium • Provides advocacy for the insured The U.S. Government’s Development Finance Institution

Our Solutions: Debt Financing Provides loans and loan guaranties to overseas business ventures with U.S. participation: • Support when commercial financing is unavailable or inadequate • Offers flexible loan sizes, long tenors, and fixed-rate financing • Projects must involve significant U.S. private sector participation, such as: • Participation by U.S. citizens/permanent residents/non-profit equivalent to a minimum of 25% of the project equity, or • A long-term U.S. contract (e.g., operator, master franchisor). The U.S. Government’s Development Finance Institution

Our Solutions: Supporting Investment Funds Senior debt for private equity funds or other pooled investment vehicles making downstream investments into targeted emerging market countries. • Investment decisions made independently by selected fund managers • Large funds enter a periodic “Call” process initiated by OPIC, while smaller funds can apply for quarterly consideration The U.S. Government’s Development Finance Institution

Our Policy Standards Investors and project proposals must satisfy certain policy criteria to receive OPIC financing and insurance. Eligibility Criteria for Investors Policy Standards for Projects OPIC supported projects must: To be eligible for OPIC financing and insurance, applicants must:  Contribute to sustainable development  Have a commercially viable business plan  Be located in one of our approximately and successful track record 160 eligible countries  Involve the U.S. private sector in a  Comply with international best meaningful way in the project seeking practices regarding environmental and OPIC support social impact  Maintain private sector control  Support internationally recognized (<50% government ownership) worker rights  Cause no loss of U.S. jobs  Confirm that commercially viable private or adverse impact on the sector financing or insurance is not already U.S. economy available for the project The U.S. Government’s Development Finance Institution

Our Impact Since its establishment in 1971, OPIC has supported over $200 billion of investment in developing markets across more than 4,000 projects. Total Total Projects Investment Financed Supported 0 1,000 2,000 3,000 4,000 5,000 b $0 $50 $100 $150 $200 Angola: $9.8M loan to support Tanzania: $13M loan to NextGen the Luanda Medical and Solar to develop a 5 megawatt Diagnostic Clinic , providing solar plant in the Kigoma region. affordable treatment and Supports the U.S. Power Africa Initiative. outpatient services. Ghana: $150M in political risk Senegal: $3M loan to Aventura to insurance to Belstar for a project purchase more tractors, combine that will increase clean water harvesters, and other equipment access and make the country’s to provide farmers with a full water treatment plants more range of value chain services, efficient. helping improve yields and expand production. The U.S. Government’s Development Finance Institution

Alison Germak Director, Corporate Development Alison.Germak@opic.gov www.opic.gov Overseas Private Investment Corporation The U.S. Government’s Development Finance Institution