INTERNATIONAL TRADE FINANCE SEMINAR

PRESENTED BYINNOCENT ABIAKA

AMI CONSULTANTS, INC.February, 17, 2010

] [Map Source: Africa Guide]AMI ConsultantsPhoenix, Arizona USAPhone: [602] 279-7278Email: amiconsultants@msn.comWebsite: www.ami-consulting.com

U.S. EXPORTS, IMPORTS, AND TRADE BALANCE WITH AFRICA

T-1U.S. EXPORTS, IMPORTS, AND TRADE BALANCE WITH AFRICA

($Millions) TRADEYEAR EXPORTS IMPORTS BALANCE

2009 24,285.00 62,402.70 -38,117.702008 28,392.70 113,495.60 -85,102.902007 23,425.80 92,013.10 -68,587.202006 18,582.80 80,417.90 -61,835.102005 15,309.50 65,211.80 -49,902.202004 13,202.10 45,636.40 -32,434.302003 10,612.60 32,021.30 -21,408.702002 10,663.10 22,100.20 -11,437.202001 12,119.30 25,431.30 -13,312.002000 10,965.90 27,640.90 -16,675.001999 9,880.10 16,990.10 -7,110.001998 11,166.80 15,824.60 -4,657.801997 11,389.10 19,924.30 -8,535.20

Source: U.S. Census Bureau, Foreign Trade Division, Data Dissemination Branch,Washinton, D.C 20233

LEADING U.S. EXPORTS TO SUB-SAHARAN AFRICA

ITEM 2008 VALUE ($millions)• Motor Vehicles 2,204.4• Oilseeds & Grains 1,617.4• Petroleum & Coal Products 1,403.8• Aircraft, Engines & Parts 1,358.7• Oil & Gas Machinery 1,344.2• Construction Machinery 1,142.4• General Purpose Machinery 596.4• Industrial Chemicals 447.0• Navigational, Measuring, Control Instruments 427.7• Grain & Oilseed Milling Products 426.6• Communications Equipment 394.1Source: U.S. International Trade Commission DataWeb

LEADING U.S. IMPORTS FROM SUB-SAHARAN AFRICA

ITEM 2008 VALUE ($ Millions)

• Oil (Crude & non-crude) 71,208.2• Platinum 2,966.9• Motor Vehicles & Parts 1,932.7 • Diamonds 1,572.7• Iron & Steel 1,235.9• Woven &Knit Apparel 1,151.5• Ores, Slag, & Ash 896.8• Cocoa 695.0• Organic Chemicals 627.5• Petroleum & Other Gases 513.4Source: U.S. Department of Commerce, Bureau of Census

LEADING SUB-SAHARAN TRADING PARTNERS

EXPORTS SUB-SAHARAN AFRICA'S PRINCIPAL TRADING PARTNERS($Billions and Market Share)

2006 % Share 2007 % ShareUNITED STATES 61.5 29.5% 69.6 28.4%CHINA 26.3 12.6 32.9 13.4UNITED KINGDOM 13.0 6.2 13.7 5.6JAPAN 12.5 6.0 13.3 5.4SPAIN 10.9 5.2 12 4.9FRANCE 9.2 4.4 10.5 4.3GERMANY 8.9 4.3 9.4 3.8NETHERLANDS 6.8 3.2 9.1 3.7ITALY 7.4 3.6 9.1 3.7SOUTH AFRICA 3.3 1.6 5.3 2.2TOTAL EU 67.0 32.1 76.9 31.4

LEADING SUB-SAHARAN TRADING PARTNERS

IMPORTSSUB-SAHARAN AFRICA'S PRINCIPAL TRADING PARTNERS

($Billions and Market Share)2006 % Share 2007 % Share

CHINA $19.0 8.9% 26.5 9.8%GERMANY 13.0 6.1% 15 5.6UNITED STATES 12.1 5.6% 14.4 5.3FRANCE 11.3 5.3% 13.1 4.9UNITED KINGDOM 8.9 4.1% 9.8 3.6SOUTH AFRICA 7.3 3.4% 9 3.3JAPAN 7.2 3.3% 8.6 3.2NETHERLANDS 6.0 2.8% 8.6 3.2ITALY 5.5 2.6% 6.3 2.4SPAIN 2.8 1.3% 3.1 1.2TOTAL EU 62.0 28.9% 74.9 27.8

IMPORTS FROM SUB-SAHARAN AFRICA

Source: USITC Major U.S. Imports from Sub-Saharan Africa with share of at least 50%($ millions) TOTAL PERCENTDESCRIPTION SSA WORLD OF TOTALPlatinum, unwrought or in powder form 1,284.34 2,518.84 51.0%

Rhodium, unwroght or in powder form 1,272.77 2,458.47 51.8%

Nonindustrial diamonds, unworkedor simply sawn,cleaved or bruted 672.21 751.55 89.4%

Cocoa beans, whole broken, raw or roasted 589.31 878.34 67.1%

Ferromanganesecontaining by weightmore than 4% of carbon 369.18 687.33 53.7%

IMPORTS FROM SUB-SAHARAN AFRICASource: USITC Major U.S. Imports from Sub-Saharan Africa with share of at least 50%

($ millions) TOTAL PERCENTDESCRIPTION SSA WORLD OF TOTAL

Slag, contains over 40 percent titanium 140.81 186.5 75.5%

Natural rubber latex,whether or notprevulcanized 138.77 183.83 75.5%

Manganese ores and concentrates 109.22 154.45 70.7%

Chromiun ores and concentrates 44.76 44.76 100.0%

Cobalt ores andconcentrates 21.75 23.44 92.8%

EXPORT FINANCING AND GUARANTEE PROGRAMS

A. EXPORT-IMPORT BANK– Ex-Im Bank helps sub-African manufacturers

expand their businesses by financing U.S. exports of manufacturing equipment and services

– Export credit insurance supports the export of U.S. goods and services, including raw materials, semi-manufactured and finished goods

– Short-term insurance policies provide repayment terms of up to 100% of the U.S. contract value

EXPORT FINANCING AND GUARANTEE PROGRAMS

- Medium-term insurance policies provide repayment terms of up to seven years

and cover up to 85% of the U.S. contract value- Ex-Im Bank guarantees the repayment of

medium-and long-term loans extended by commercial lenders to African buyers to

finance the purchase of U.S. goods and services

EXPORT FINANCING AND GUARANTEE PROGRAMS

- Working Capital Guarantee provides a 90 percent guarantee to U.S. commercial

bank lenders and can cover multiple export sales or individual contracts- Ex-Im Bank would consider project financing in most African countries in industries such as private power, telecoms, and other infrastructural sectors

EXPORT FINANCING AND GUARANTEE PROGRAMS

- Ex-Im Bank has special programs that provide enhanced support for medical equipment exports, environmentally beneficial exports, and exports related to international transportation security

[Benefits include extended repayment terms and coverage of local costs for up to 15% of the U.S. contract value]

EXPORT FINANCING AND GUARANTEE PROGRAMS

- The Rand and the CFA have been added to the list of major pre-approved currencies for inclusion in Ex-Im Bank’s Foreign Currency Guarantee Program. West and Southern Africa companies can arrange Rand and CFA denominated loans guaranteed by Ex-Im Bank.

Ex-Im Bank Product Availability

Country S-Term M-Term L-Term [Sector(s) Open]_____

Angola Pu & Pr Pu & PrBenin Pu & Pr Pu & PrBotswana Pu & Pr Pu & Pr Pu & PrBurkina Faso Pu & Pr Private PrivateCameroon Pu & Pr Pu & Pr PrivateCape Verde Is. Pu & Pr Pu & Pr Pu & PrCote d’Ivoire Private PrivatePu = Public Pr = Private

Ex-Im Bank Product Availability

Country S-Term M-Term L-Term [Sector(s) Open]_____

Gabon Pu & Pr Pu & Pr Pu & PrGambia Pu & Pr PrivateGhana Pu & Pr Pu & Pr Pu & PrKenya Pu & Pr Pu & Pr Pu & PrLiberia Pu & PrMali Pu & Pr PrivateMauritius Pu & Pr Pu & Pr Pu & PrPu = Public Pr = Private

Ex-Im Bank Product Availability

Country S-Term M-Term L-Term [Sector(s) Open]_____

Mozambique Pu & Pr Pu & Pr Pu & PrNamibia Pu & Pr Pu & Pr Pu & PrNigeria Pu & Pr Pu & Pr Pu & PrSenegalPu & Pr Pu & Pr PrivateSouth Africa Pu & Pr Pu & Pr Pu&PrSwaziland Pu & Pr Pu & Pr Pu & PrUganda Pu & Pr Pu & Pr Pu & PrPu = Public Pr = Private

Ex-Im Bank Product Availability

DEFINITIONS:Short-term: Consumables, raw materials, small

capital goods – up to 360 daysMedium-term: Capital goods, and/or services –

repayment terms up to 7 years (maximum 2 years disbursement

plus 5 years repayment)

Ex-Im Bank Product Availability

DEFINITIONS:Long-term: Capital goods and/or services –

repayment terms over 5 yearsPublic Sector: Entities at least 50% owned by the

governmentPrivate sector: Privately-owned companies,

financial institutions, and entities less than 50% owned by the government

RECENT EX-IM BANK AFRICAN AUTHORIZATIONS:

• Ex-Im authorized a Multi-Buyer Working Capital Loan Guarantee for Kazar International of San Francisco for $877,500. This authorization allows Kazar International to facilitate its machinery and equipment export operations to many countries, including Senegal and Mauritania.

• Jacaranda Plant and Machinery Hire Company of Zambia imported an STX 480 horsepower tractor supplied by CNH America LLC of Racine, Wisconsin. Ex-Im Bank guaranteed the $285,332 transaction through its Medium-Term Loan Guarantee product.

RECENT EX-IM BANK AFRICAN AUTHORIZATIONS:

• The Pioneer Equipment Company of Jacksonville, Florida exported $3,030,762 worth of new and refurbished rock crushing equipment to Japaul Oil & Maritime Services, PLC in Nigeria. Assured through Ex-Im Bank’s Medium-Term Loan Guarantee policy, Sovereign Bank lent the money to Japaul Oil & Maritime Services’ bank, Intercontinental Bank PLC of Nigeria, the guarantor.

RECENT EX-IM BANK AFRICAN AUTHORIZATIONS:

• Ex-Im Bank guaranteed a medium-term loan for $321,499 to purchase communication broadcasting equipment. Electronics Research, Inc of Chandler, Indiana and BSW of Washington, DC exported the equipment to Megalectrics, LTD of Nigeria. M&T Bank lent the money to Megalectrics with Diamond Bank, PLC of Nigeria as the guarantor.

RECENT EX-IM BANK AFRICAN AUTHORIZATIONS:

• Ex-Im Bank guaranteed a long-term loan that involved over sixteen suppliers. The $19,634,327 transaction allowed the suppliers to export an aluminum can manufacturing facility to GZ Industries of Nigeria. Fidelity Bank, Nigeria, provided a local bank guarantee to HSBC’s loan.

Source: EX-IM Bank In Africa Update; May 2008

SUCCESS STORIES

• GHANASovereign Bank of Boston, Massachusetts, used an Ex-Im Bank 3 year, medium-term guarantee in the amount of $830,334 to support the sale of used construction equipment, from Target Shipping Company of Cranford, New Jersey to Tatop Company Ltd., of Ghana, for its civil engineering projects

SUCCESS STORIES

• NIGERIA Under the new Nigerian Bank Facility, Ex-Im Bank approved a request from M&T Bank, Baltimore, Maryland for a 5 year, medium-term guarantee in the amount of $3,954,132 to support the sale of a thermal oil recovery system to Specialty Drilling Fluids Ltd. in Nigeria by Brandt, of Houston, Texas. A local bank guarantee was be provided by Access Bank Plc.

SUCCESS STORIES

• NIGERIAHSBC Bank PLC of Houston, Texas, used Ex-Im Bank’s guarantee to support a loan of $11.5 million to Drillog Petro Dynamics Ltd. of Rivers State, Nigeria, for the purchase of Well Logging Equipment from Halliburton Energy Services of Houston, Texas. Diamond Bank Ltd., of Nigeria, provided a local bank guarantee for this transaction

SUCCESS STORIES

• SOUTH AFRICALegacy Medical of South Africa was able to purchase $50,000 of nonvascular stents from Alveolus Inc. of Charlotte, North Carolina. Alveolus used an Ex-Im Bank multi-buyer, small business insurance policy to support this sale.

SUCCESS STORIES

• LIBERIAThe United Nations Mission of Liberia purchased $55,800 of sorbents (pads, brooms, and rolls) from Applied Fabric Technologies of Orchard Park, New York. Using an Ex-Im Bank short-term, single-buyer insurance policy, Applied Fabric Technologies was able to provide financing to its customer.

HOW TO APPLY FOR EX-IM BANK FINANCING

• Ex-Im Bank Application Process: • Export Credit Insurance (Eligible Applicants: U.S Exporters and

Financial Institutions) The following are the required steps to obtain an Export Credit Insurance policy: 1) U.S. exporter and international buyer negotiate a sales contract;

• 2) International buyer supplies the U.S. exporter with financial information, as required by Ex-Im Bank’s credit standards);

• 3) U.S. exporter submits insurance application to Ex-Im Bank, which includes requisite financial information received from the buyer.

HOW TO APPLY FOR EX-IM BANK FINANCING

• The Export-Import Bank encourages the use of a specialist insurance broker for exporters who are interested in export credit insurance. Brokers provide a number of valuable services to existing and prospective policyholders. Brokers receive their compensation from commissions paid by Ex-Im Bank -- there is no additional charge to the U.S. exporter. To find a specialty broker in your region, use Ex-Im Active Brokers List.

HOW TO APPLY FOR EX-IM BANK FINANCING

• Working Capital Guarantees (Eligible Applicants: U.S. Exporters)An exporter may apply through a lender participating in Ex-Im Bank’s Working Capital guarantee program. Most lenders that have established a working relationship with Ex-Im Bank have been granted discretionary pre-approved credit authority known as delegated authority. A delegated authority lender may process your working capital loan under established criteria without pre-approval from Ex-Im Bank. No waiting, no red tape! To find a lender that will finance your export sales, download the Delegated Authority Lenders list.

HOW TO APPLY FOR EX-IM BANK FINANCING

• Commercial Loan Guarantees (Eligible Applicants: Financial Institutions)There are three simple steps to approaching Ex-Im Bank:  1)  U.S. exporter and international buyer negotiate a sales contract; 2)  International buyer and/or U.S. exporter identify a financing institution to provide the loan (commonly a U.S. bank, but foreign banks willing to lend U.S. dollars can also apply);3)  Lending institution submits final application to Ex-Im Bank for review and approval

HOW TO APPLY FOR EX-IM BANK FINANCING

• . See list of African Banks with an Ex-Im Bank Master Guarantee Agreement (MGA) (pdf).

• Website: http://www.exim.gov/products/special/africa/

afr_exim-in.cfm

HOW TO APPLY FOR EX-IM BANK FINANCING

• Letter of Interest (Eligible Applicants: Anyone)To initiate financing discussions with lending institutions or to complement financing proposals for competitive bids, U.S exporters and importers can obtain an Ex-Im Bank Letter of Interest (LI) to assist in negotiations for medium- and long-term transactions. The LI indicates the Bank's willingness to consider a financing offer if sale is completed. An LI can be issued within seven days of a request for financing and remains in effect for six months.

HOW TO APPLY FOR EX-IM BANK FINANCING

• How do I find a bank that offers in Ex-Im Bank products?Ex-Im Bank will provide you with a list of commercial institutions active under Ex-Im Bank's guarantee and insurance products. Get the Lender Referral List (pdf).

• There are a limited number of banks that have expressed interest or are experienced in working with Ex-Im Bank in Africa. Download the contact information for U.S. Lenders Experienced in Africa (pdf).

COUNTERTRADE• Operate in non-cash market areas• Increased buying power • Conservation of cash flow • Alternative financing • Convert slow moving inventory into current receivables • Put surplus production capacity to use • Increase market share with low cash investment • Access new markets • Upgrade manufacturing capabilities • Preserve hard currency • Develop infrastructure projects

Types of Countertrade:

• Barter• Counter-purchase• Compensation

• (buy-back)

• Clearings