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The U.S. Government’s Development Finance Institution

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.

Foreign Policy

International Development

U.S. Business

Administration Priorities

• Support broad-based, sustainable

economic growth

• Proactively target specific countries,

regions, sectors, and technologies

• Mobilize private sector investment
• Elevate development as a central pillar of

national security policy

“We’re changing how we define development…we need to harness all the tools at our disposal—from

• ur diplomacy to our trade and

investment policies.”

— President Obama, 9/22/10

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

• f 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,

• r
• 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:

 Contribute to sustainable development  Be located in one of our approximately

160 eligible countries

 Comply with international best

practices regarding environmental and social impact

 Support internationally recognized

worker rights

 Cause no loss of U.S. jobs

• r adverse impact on the

U.S. economy To be eligible for OPIC financing and insurance, applicants must:

 Have a commercially viable business plan

and successful track record

 Involve the U.S. private sector in a

meaningful way in the project seeking OPIC support

 Maintain private sector control

(<50% government ownership)

 Confirm that commercially viable private

sector financing or insurance is not already 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.

Tanzania: $13M loan to NextGen Solar to develop a 5 megawatt solar plant in the Kigoma region. Supports the U.S. Power Africa Initiative. Ghana: $150M in political risk insurance to Belstar for a project that will increase clean water access and make the country’s water treatment plants more efficient.

$0 $50 $100 $150 $200

Total Investment Supported

1,000 2,000 3,000 4,000 5,000

Total Projects Financed

Angola: $9.8M loan to support the Luanda Medical and Diagnostic Clinic, providing affordable treatment and

• utpatient services.

Senegal: $3M loan to Aventura to purchase more tractors, combine harvesters, and other equipment to provide farmers with a full range of value chain services, helping improve yields and expand production.

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The U.S. Government’s Development Finance Institution

Overseas Private Investment Corporation Alison Germak Director, Corporate Development Alison.Germak@opic.gov www.opic.gov