29–010 

Calendar No. 536 

112TH CONGRESS REPORT " ! SENATE 2d Session 112–231 

INCREASING AMERICAN JOBS THROUGH GREATER 

EXPORTS TO AFRICA ACT OF 2012 

NOVEMBER 13, 2012.—Ordered to be printed 

Mr. KERRY, from the Committee on Foreign Relations, 

submitted the following 

R E P O R T 

[To accompany S. 2215] 

The Committee on Foreign Relations, having had under consideration the bill (S. 2215) to create jobs in the United States by increasing United States exports to Africa by at least 200 percent in 

real dollar value within 10 years, and for other purposes, reports 

favorably thereon and recommends that the bill, as amended, pass. 

CONTENTS 

Page 

I. Purpose ........................................................................................................... 1 

II. Committee Action .......................................................................................... 1 

III. Discussion ....................................................................................................... 2 

IV. Cost Estimate ................................................................................................. 5 

V. Evaluation of Regulatory Impact .................................................................. 8 

VI. Changes in Existing Law .............................................................................. 8 

I. PURPOSE

The purpose of S. 2215 is to ‘‘to create jobs in the United States 

by expanding programs that will result in increasing United States 

exports to Africa by 200 percent in real dollar value within 10 

years.’’ To achieve this objective, the bill directs the administration 

to submit to Congress an interagency strategy, to improve United 

States Government staffing for U.S.-Africa trade, to expand the 

Export-Import Bank of the United States financing for projects in 

Africa, and to ensure adequate EXIM funding to counter foreign export credit finance that is noncompliant with agreements of the 

Organisation for Economic Co-Operation and Development (OECD). 

II. COMMITTEE ACTION

S. 2215 was introduced on March 21, 2012, by Senators Durbin, 

Boozman, and Coons. It was discussed at a committee hearing on 

July 25, 2012. On September 19, 2012, the committee ordered S. 


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1 In some trade and U.S. foreign policy contexts, the term ‘‘Africa’’ refers to sub-Saharan Africa (SSA), while North African countries are considered together with countries in the Middle 

East. AGOA preferences, for example, only apply to SSA countries. S. 2215/H.R. 4221, however, 

defines Africa as consisting of 54 countries (see Table A–1 in appendix). These 54 countries include 48 countries in sub-Saharan Africa, as well as South Sudan, and the North African countries of Algeria, Egypt, Libya, Morocco, and Tunisia. Within this memo, the term ‘‘Africa’’ refers 

to all 54 countries in the region, while SSA refers to all except those in North Africa. 2McKinsey Global Institute, ‘‘Africa at work: Job creation and inclusive growth’’ (August 

2012); ‘‘Lions on the move: The progress and potential of African economies’’ (June 2010). 3These are the U.S. Departments of Agriculture (USDA), Commerce, State, and the Treasury, 

as well as the Export-Import Bank (EXIM), the Overseas Private Investment Corporation 

(OPIC), the U.S. Trade and Development Agency (TDA), the Small Business Administration 

(SBA), and the U.S. Trade Representative (USTR). Export promotion activities include providing 

export financing and advocacy assistance to U.S. companies to overcome information and market 

entry barriers. 

2215, with an amendment in the nature of a substitute, reported 

favorably by voice vote. 

III. DISCUSSION

With a population of approximately 1 billion people, the African 

Continent 1 offers tremendous opportunities to U.S. companies and 

investors who are willing and able to overcome initial obstacles. 

According to the Office of the United States Trade Representative, 

between 2000 and 2010, six of the ten fastest-growing economies in 

the world were in sub-Saharan Africa. In addition, recent reports 

by the McKinsey Global Institute 2 indicate that: 

• Africa has been the second-fastest-growing region in the world 

over the past decade (after Emerging Asia), with gross domestic product (GDP) expected to expand by 4.8 percent in 2012. • Poverty is declining and the number of African households that 

joined the consuming classes rose roughly 50 percent in the 

past decade (to approximately 90 million). • African economies will profit from rising global demand for oil, 

natural gas, minerals, food, arable land, and other natural resources. However, less than one-quarter of Africa’s GDP 

growth from 2000 to 2008 came from natural resources, with 

the bulk of growth coming from wholesale and retail trade, 

transportation, telecommunications, and manufacturing. Thus 

there are opportunities in a number of sectors. • The African Continent is estimated to need $72 billion in infrastructure investment per year, presenting American businesses 

with significant openings for investment. 

There are, however, a number of challenges that U.S. businesses 

face when considering investing or exporting to the region. The 

most recent available data suggest that U.S. exports and investment in Africa account for just 2 percent and 1 percent of the U.S. 

totals in these areas of activity. Lack of existing infrastructure, corruption, and capacity shortfalls can also inhibit investment. Increased assistance from the U.S. Government to help reduce barriers to American investment and facilitate entry into markets by 

U.S. businesses of all sizes would help companies navigate this 

process and create American jobs in the process. 

The United States has nine key agencies involved in promoting 

U.S. exports and investments in foreign countries,3 however, coordination of the activities of these agencies could be enhanced. 

This legislation (S. 2215) aims to create jobs in the United States 

by expanding programs that will result in increasing United States 

exports to Africa by 200 percent in real dollar value within 10 


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years. To achieve this objective, the bill directs the administration 

to submit to Congress a coordinated, interagency strategy, to improve U.S. Government staffing for U.S.-Africa trade, to expand 

EXIM financing for projects in Africa, and to seek to ensure adequate EXIM funding to counter foreign export credit finance that 

is noncompliant with OECD agreements. The bill is consistent with 

President Barack Obama’s Presidential Policy Directive, ‘‘U.S. 

Strategy Toward Sub-Saharan Africa,’’ which encourages U.S. companies to trade with and invest in Africa. 

A section-by-section discussion of the legislation follows. 

Section 2 

Section 2 includes the findings, noting the importance of exports 

to U.S. businesses and workers, the need for improved coordination 

among government agencies involved in export promotion, the support that competitors to U.S. firms receive from their governments, 

and the rapidly expanding opportunities in Africa available to foreign investors and exporters. 

Section 3 

Section 3 defines the terms used in the bill. 

Section 4 

Section 4 requires the administration to submit to Congress a coordinated, interagency strategy, not later than 180 days after the 

date of the enactment of this Act, to expand U.S. exports to Africa 

by 200 percent in real dollars over the next decade. A progress 

report is also required after 3 years to assess the success of the 

strategy. 

The administration is directed to focus the strategy on: (i) increasing exports of United States goods and services to Africa by 

200 percent in real dollar value within 10 years; (ii) promoting the 

alignment of United States commercial interests with development 

priorities in Africa; (iii) developing relationships between governments in Africa and U.S. businesses that possess expertise in such 

issues as infrastructure development, technology, telecommunications, energy, and agriculture; (iv) improving the competitiveness 

of U.S. businesses in Africa, including the role the African diaspora 

can play in enhancing such competitiveness; (v) exploring ways 

that African diaspora remittances can help communities in Africa 

tackle economic, development, and infrastructure financing needs; 

(vi) promoting economic integration in Africa; (vii) encouraging a 

greater understanding among U.S. business and financial communities of the opportunities Africa holds for U.S. exports; and (viii) 

monitoring the financing terms available to U.S. businesses relative to the terms made available to foreign firms by their governments. 

In developing the strategy, the President is required to consult 

with Congress, each U.S. agency that is involved in trade promotion or development, the World Bank Group and the African 

Development Bank, businesses, nongovernmental organizations, 

and African diaspora groups. 

Section 5 

To improve the coordination of the U.S. agencies involved in the 

promotion of U.S. exports and investment abroad, section 5 creates 


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a Special Africa Export Strategy Coordinator (i) to oversee the development and implementation of the strategy required by section 

4; and (ii) to coordinate with the trade promotion and development 

agencies with respect to developing and implementing the strategy. 

Section 6 

Section 6 states the sense of Congress that, not later than 1 year 

after the date of the enactment of this Act, the Secretary of Commerce and other high-level officials of the U.S. Government with 

responsibility for export promotion, financing, and development 

should conduct a joint trade mission to Africa. 

Section 7 

To offset the impact of past under-resourcing of commercial programs focused on Africa, and to help U.S. companies more effectively to seize new opportunities on the African Continent, section 

7 directs several agencies to allocate adequate personnel and to ensure adequate information technology systems to implement the 

strategy. 

The Secretary of Commerce is directed to ensure that not less 

than 12 Commercial Service officers are assigned to U.S. embassies 

in Africa for each of the 5 fiscal years beginning after enactment 

of this Act. The Secretary of Commerce is also directed, as soon as 

practicable after enactment of this Act, to assign not less than one 

full-time Commercial Service officer to the Office of the U.S. Executive Director at the World Bank and the African Development 

Bank. 

The Export-Import Bank of the United States (‘‘EXIM’’) is directed (i) to increase the number of staff who spend the majority 

of the year based in Africa and increase the number of business development trips it conducts in Africa; (ii) to increase, to not less 

than 30, the number of employees assigned to U.S. field offices to 

work in coordination with the related export efforts undertaken by 

the Small Business Administration regional field offices; and (iii) to 

upgrade its equipment and software to process and track applications for financing more expeditiously, effectively, and efficiently. 

The Overseas Private Investment Corporation (‘‘OPIC’’) is directed to increase, by not more than five, the staff needed to promote stable and sustainable economic growth and development in 

Africa, to strengthen and expand the private sector in Africa, and 

to facilitate the general economic development of Africa, with a 

particular focus on helping United States businesses expand into 

African markets. OPIC shall also report to Congress on whether recent technology upgrades have resulted in more effective and efficient processing and tracking of applications for OPIC financing. 

Section 7 also includes a rule of construction making clear that 

nothing in the section shall be construed as permitting the reduction of Department of Commerce, Department of State, EXIM, or 

OPIC personnel or the alteration of planned personnel increases in 

other regions, except where a personnel decrease was previously 

anticipated or where decreased export opportunities justify personnel reductions. 

Section 8 

Section 8 directs the President to develop a plan (i) to standardize the training received by Commercial Service officers, ecoVerDate Mar 15 2010 05:21 Nov 14, 2012 Jkt 029010 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\SR231.XXX SR231

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nomic officers of the Department of State, and economic officers of 

the U.S. Agency for International Development with respect to the 

programs and procedures of EXIM, OPIC, the Small Business 

Administration, and the U.S. Trade and Development Agency; and 

(ii) to ensure that, not later than 1 year after enactment of this Act 

all Commercial Service officers that are stationed overseas receive 

the training and, in foreign posts to which no Commercial Service 

officer is assigned, any economic officer of the Department of State 

stationed in that country receive that training. 

Section 9 

Section 9 provides more specific guidance to EXIM on the financing that it makes available to U.S. firms by expressing the sense 

of Congress that foreign export credit agencies are providing nonOECD arrangement compliant financing in Africa, and that in 

order to counter such actions and ensure U.S. jobs, EXIM should 

provide timely financing to meet such terms, as appropriate. 

Section 9 amends section 6(a) of the Export-Import Bank Act of 

1945 (12 U.S. C. 635e(a)) by requiring EXIM (i) to increase the 

amount it finances to Africa over the prior year’s financing for each 

of the first 5 fiscal years beginning after enactment of this Act; and 

(ii) not later than 1 year after enactment of this Act, and annually 

thereafter for 5 years, to report to Congress if EXIM has not used 

at least 10 percent of its lending capabilities for projects in Africa. 

Section 9 also directs EXIM to make available annually such 

amounts as are necessary for loans that counter trade distorting 

non-OECD arrangement compliant financing or preferential, tied 

aid, or other related nonmarket loans offered by other nations to 

their firms for projects in which U.S. companies are competing or 

interested in competing. 

Finally, section 9 requires, not later than 1 year after enactment 

of this Act, and annually thereafter for 5 years, EXIM to report to 

Congress if the Bank has not used at least $250,000,000 annually 

for loans that counter non-OECD arrangement compliant financing 

offered by other nations to their firms. 

Section 10 

Section 10 makes technical and conforming amendments to section 22(b) of the Small Business Act (15 U.S.C. 649(b)). 

Section 11 

Section 11 states that, where applicable, the President shall explore opportunities to negotiate bilateral, subregional, and regional 

agreements that encourage trade and eliminate nontariff barriers 

to trade between countries. It also states that with respect existing 

agreements between the United States and countries in Africa, the 

President shall ensure that the agreements are being implemented 

in a manner that maximizes the positive effects for U.S. trade, export, and labor interests as well as the economic development of 

the countries in Africa. 

IV. COST ESTIMATE

In accordance with Rule XXVI, paragraph 11(a) of the Standing 

Rules of the Senate, the committee provides this estimate of the 


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costs of this legislation prepared by the Congressional Budget 

Office. 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, October 26, 2012. 

Hon. JOHN F. KERRY, 

Chairman, Committee on Foreign Relations, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 2215, the Increasing American Jobs Through Greater Exports to Africa Act of 2012. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Sunita D’Monte. 

Sincerely, 

DOUGLAS W. ELMENDORF, 

Director. 

Enclosure. 

S. 2215—Increasing American Jobs Through Greater Exports to 

Africa Act of 2012 

Summary: S. 2215 would expand federal programs and initiatives to promote exports to Africa. CBO estimates that implementing the bill would have discretionary costs of $24 million over the 

2013–2017 period, assuming appropriation of the necessary 

amounts. 

Pay-as-you-go procedures do not apply to this legislation because 

it would not affect direct spending or revenues. 

S. 2215 contains no intergovernmental or private sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would not affect the budgets of state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of S. 2215 is shown in the following table. The costs 

of this legislation fall within budget functions 150 (international 

affairs) and 370 (commerce and housing credit). 

By fiscal year, in millions of dollars 

2013 2014 2015 2016 2017 2013- 

2017 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Trade Financing Agencies: 

Estimated Authorization Level ............................................. 2 2 3 3 3 13 

Estimated Outlays ............................................................... 2 2 3 3 3 11 

International Trade Administration: 

Estimated Authorization Level ............................................. 3 2 2 2 2 12 

Estimated Outlays ............................................................... 2 2 2 2 2 11 

Trade Promotion Strategy: 

Estimated Authorization Level ............................................. * * * * * 2 

Estimated Outlays ............................................................... * * * * * 2 

Total Changes: 

Estimated Authorization Level ............................................. 5 4 5 5 5 27 

Estimated Outlays ............................................................... 4 4 5 5 5 24 

Notes: Components may not sum to totals because of rounding. 

* = less than $500,000. 


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Basis of estimate: For this estimate, CBO assumes that S. 2215 

will be enacted early in fiscal year 2013, that the necessary 

amounts will be appropriated each year, and that outlays will follow historical spending patterns for existing programs. 

Trade Financing Agencies 

Section 7 of the bill would require the Export-Import Bank of the 

United States (Ex-Im) and the Overseas Private Investment Corporation (OPIC) to increase their staffing levels to promote trade 

and investment in Africa. Based on information from those agencies, CBO estimates that Ex-Im would hire three additional employees to serve overseas at an annual cost of about $350,000 per 

person and two additional employees to serve in the United States 

at an annual cost of about $200,000 per person, and that OPIC 

would require five additional employees at an annual cost of about 

$200,000 per person. In total, those additional personnel would require annual appropriations of $2 million to $3 million a year, and 

would cost $11 million over the 2013–2017 period, assuming appropriation of the necessary amounts. Section 9 would require Ex-Im 

to increase its activity in Africa or to report annually to the Congress if it cannot provide at least 10 percent of its financing to that 

region. Ex-Im currently provides about 5.5 percent of its financing 

to Africa. Because the bill would not increase the overall cap on ExIm’s financing, implementing that provision would require the 

bank to reduce its financing to other regions of the world. New 

financing provided to Africa could be more or less risky than 

financing in other regions and could therefore increase or decrease 

the appropriations needed to cover Ex-Im’s subsidy costs; however, 

CBO has no basis for estimating the net effect of such changes in 

the bank’s financing. 

Finally, section 10 would require Ex-Im to increase its tied aid 

to Africa or to report annually to the Congress if it cannot provide 

at least $250 million each year in such loans to Africa. Tied aid is 

a form of concessional lending that requires the recipient to buy 

goods or services from the donor. Ex-Im has $178 million in funding for tied aid, but over the last five years Ex-Im has made only 

one such loan worth $23 million (of which $8 million was concessional financing). 

Under long-standing guidelines jointly developed and implemented by Ex-Im and the Department of the Treasury, Ex-Im does 

not unilaterally initiate such loans; instead, it can counter offers 

made by other countries. There are evidentiary requirements and 

other thresholds that have resulted in very few loans being made. 

The bill does not alter those conditions and based on information 

from Ex-Im, CBO estimates that Ex-Im is unlikely to increase its 

tied aid or meet the bill’s goal of $250 million each year in tied aid. 

CBO further estimates that the annual report to the Congress 

would cost less than $500,000 over the 2013–2017 period, assuming 

the availability of appropriated funds. 

International Trade Administration 

Sections 7 and 8 would increase costs to the International Trade 

Administration (ITA) by raising the number of foreign commercial 

service officers that are assigned to Africa, requiring additional 

staff to be placed at the African Development Bank, and requiring 


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the agency to develop a training program for foreign commercial 

service and economic officers with respect to programs of the ExIm, OPIC, the Small Business Administration, and the United 

States Trade and Development Agency. 

Based on information from the ITA, CBO estimates that the 

agency would open a new post in Africa and hire two additional 

foreign commercial service officers to serve in Africa at a cost of 

about $2 million per year, and hire one additional officer to serve 

at the African Development Bank at a cost of about $400,000 per 

year for salaries and administrative support. In addition, CBO estimates that providing training for foreign commercial service and 

economic officers would cost about $400,000 to develop the curriculum and to cover the costs incurred by attendees to travel to 

a central location to receive the training. Taken together, CBO estimates that implementing those provisions would cost $11 million 

over the 2013–2017 period, assuming appropriation of the necessary amounts. 

Trade Promotion Strategy 

Section 4 would require the President to designate a special coordinator to develop a strategy and implement a strategy to promote 

exports to Africa. Based on information from the ITA, CBO estimates that implementing those provisions would cost less than 

$500,000 a year over the 2013–2017 period, assuming the availability of appropriated funds. 

Pay-as-you-go considerations: None. 

Intergovernmental and private sector impact: S. 2215 contains no 

intergovernmental or private-sector mandates as defined in UMRA 

and would not affect the budgets of state, local, or tribal governments. 

Estimate prepared by: Federal Costs: Sunita D’Monte and Susan 

Willie; Impact on State, Local, and Tribal Governments: J’nell L. 

Blanco; Impact on the Private Sector: Marin Randall. 

Estimate approved by: Peter H. Fontaine, Assistant Director for 

Budget Analysis. 

V. EVALUATION OF REGULATORY IMPACT

Pursuant to Rule XXVI, paragraph 11(b) of the Standing Rules 

of the Senate, the committee has determined that there is no regulatory impact as a result of this legislation. 

VI. CHANGES IN EXISTING LAW

In compliance with Rule XXVI, paragraph 12 of the Standing 

Rules of the Senate, changes in existing law made by the bill, as 

reported, are shown as follows (existing law proposed to be omitted 

is enclosed in black brackets, new matter is printed in italic, existing law in which no changes are proposed is shown in roman). 

TITLE 12—BANKS AND BANKING 

CHAPTER 6A—EXPORT-IMPORT BANK OF THE UNITED STATES

SUBCHAPTER I—GENERAL PROVISIONS

* * * * * * * 


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SECTION 635e. AGGREGATE LOAN, GUARANTEE, AND INSURANCE AUTHORITY 

(a) LIMITATION ON OUTSTANDING AMOUNTS.—(1) IN GENERAL.— 

The Export-Import Bank of the United States shall not have outstanding at any one time loans, guarantees, and insurance in an 

aggregate amount in excess of the applicable amount. 

(2) APPLICABLE AMOUNT.—* * * 

* * * * * * * 

(3) SUBJECT TO APPROPRIATIONS.—* * * 

(4) PERCENT OF FINANCING TO BE USED FOR PROJECTS IN AFRICA.—The Bank shall increase the amount it finances to Africa over 

the prior year’s financing for each of the first five fiscal years beginning after the date of the enactment of the Increasing American 

Jobs Through Greater Exports to Africa Act of 2012. 

* * * * * * * 

TITLE 15—COMMERCE AND TRADE 

The Small Business Act 

* * * * * * * 

CHAPTER 14A—AID TO SMALL BUSINESS

* * * * * * * 

SECTION 649. OFFICE OF INTERNATIONAL TRADE 

(a) ESTABLISHMENT.— (1) OFFICE.—There is established within the Administration 

an Office of International Trade which shall implement the 

programs pursuant to this section for the primary purposes of 

increasing.— 

(A) the number of small business concerns that export; 

and 

(B) the volume of exports by small business concerns. 

(2) ASSOCIATE ADMINISTRATOR.—The head of the Office shall 

be the Associate Administrator for International Trade, who 

shall be responsible to the Administrator. 

(b) TRADE DISTRIBUTION NETWORK.—The Associate Administrator, working in close cooperation with the Secretary of Commerce, the United States Trade Representative, the Secretary of 

Agriculture, the Secretary of State, the President of the Export-Import Bank of the United States, the President of the Overseas Private Investment Corporation, Director of the United States Trade 

and Development Agency, the Trade Promotion Coordinating Committee, and other relevant Federal agencies, small business development centers engaged in export promotion efforts, Export Assistance Centers, regional and district offices of the Administration, 

the small business community, and relevant State and local export 

promotion programs, shall— 

(1) maintain a distribution network, using regional and district offices of the Administration, the small business development center network, networks of women’s business centers, 

the Service Corps of Retired Executives authorized by section 

637 (b)(1) of this title, and Export Assistance Centers, for programs relating to— 


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(A) trade promotion; 

(B) trade finance; 

(C) trade adjustment assistance; 

(D) trade remedy assistance; and 

(E) trade data collection; 

(2) aggressively market the programs described in paragraph 

(1) and disseminate information, including computerized marketing data, to small business concerns on exporting trends, 

market-specific growth, industry trends, and international 

prospects for exports; 

(3) promote export assistance programs through the district 

and regional offices of the Administration, the small business 

development center network, Export Assistance Centers, the 

network of women’s business centers, chapters of the Service 

Corps of Retired Executives, regional offices of the Export-Import Bank, State and local export promotion programs, and 

partners in the private sector; and 

* * * * * * * 

Æ 


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