EXPORT WEEK 2015 SUMMARY: PROFESSOR D SONI REGENT BUSINESS SCHOOL

EXPORT WEEK SUMMARY – MASTER CLASS: EXIM BANK EXIM BANK DEFINED AND WHY IS IT NEEDED? The purpose of the EXIM Bank is to create and sustain export jobs through the provision of financial and other support activities. Provision of finance to the EXIM bank is from a government approved charter. EXIM bank facilitates and supports development of SMME’s which might not other wise gain access to credit. As well as providing advice on operations and IT related issues. Provide workshops and trade expos to assist businesses in exporting activities

EXPORT WEEK SUMMARY – EXPORT ESSENTIALS: EXIM bank can help reduce the balance of payments deficit through assisting with exporting activities. EXIM bank is not in competition with corporate banks but provides support to businesses that are too risky too be financed by private sector banks. The establishment of an EXIM bank is key to the SA Government long term goal of sustainable job creation and the beneficiation of local South African goods for export. Although there exists many government agencies ECIC, DTI, DFI that assist businesses with finance and development support, there is however no single dedicated government agency that deals solely with export related issues. Private sector is risk averse towards developing countries that show signs of political instability therefore there is no avenue of finance for exporters engaged in trade with these countries.

South Africa is failing to take a leadership role in facilitating trade in Africa which can be changed with the establishment of an EXIM bank. EXIM bank can empower the youth to become successful entrepreneurs. Private and Public Sectors should come together to facilitate development of EXIM bank. EXIM bank can be an excellent creator of job creation and of foreign exchange. EXIM bank will be a comprehensive bank for the export industry. It is an important debate that needs to be taken further.