U.S.-Africa Business Success Stories: A Kodak Moment: How the Department of Commerce Brokered a Deal between Eastman Kodak and an Egyptian Bank
Ed. Note: This post is part of the U.S.-Africa Business Success Stories series highlighting the work of the Department of Commerce to strengthen the economic relationship between U.S. and African businesses. This series will lead up to the U.S. Africa Business Forum on August 5th, which will convene African heads of state and government to meet with President Obama, Secretary Pritzker, and former Mayor Michael Bloomberg to discuss trade and investment opportunities for African heads of government and American business leaders.
When the Department of Commerce helped Eastman Kodak broker an exporting deal with one of Egypt’s largest state-owned banks, it was a true Kodak moment. American businesses like Kodak are becoming increasingly engaged in exporting to Africa, and the reasons why are clear:
- Africa has made great strides towards achieving sustainable economic growth and widespread poverty alleviation.
- Gross domestic product (GDP) in Africa is expected to rise 6 percent per year over the next decade.
- Africa is set to have a larger workforce than India or China by the year 2040.
- According to the World Bank, almost half of Africa’s countries have attained middle-income status.
Africa’s potential as the world’s next major economic story is why businesses in the United States, like Kodak, want to offer their products, services, and expertise to help unlock even more of Africa’s potential – and the Obama Administration and Department of Commerce are committed to helping these exporting businesses each step of the way.
Kodak, the company best known for pioneering photographic film products, has been an active client of the nearby Rochester U.S. Export Assistance Center (USEAC) for decades. This long-standing relationship connected Kodak with one of the largest state-owned banks in Egypt, Banque Misr. When the bank was about to place an order to purchase Kodak Scanners, Banque Misr was told that Kodak had encountered a financial problem not familiar to many outside the U.S.: Chapter 11 bankruptcy.
To better understand Kodak’s financial situation, Banque Misr contacted the U.S. Commercial Service in Egypt, which then contacted the Rochester USEAC. The Rochester USEAC was able to confirm that Kodak was still operational and headquartered in Rochester. With the help of Tim McCall, a trade specialist in Rochester, and the U.S. Commercial Service, the bank received the proper paperwork and placed an order to Kodak which amounted to roughly $185,000 in export sales.
The Obama Administration and the Department of Commerce believe that Kodak’s and Banque Misr’s example can encourage other U.S. companies to do business in Africa. That is why, last year, President Obama announced the launch of Trade Africa, a partnership between the United States and East African Community (EAC) – Burundi, Kenya, Rwanda, Tanzania, and Uganda. Trade Africa aims to increase exports from the EAC to the U.S. by 40 percent, reduce the average time needed to import or export a container from African ports by 15 percent, and decrease by 30 percent the average time a truck takes to transit certain borders, making it easier for businesses on both side of the Atlantic to trade.
Businesses interested in learning more about exporting should contact their local U.S. Export Assistance Center.