Posted at 5:45 PM
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, the first of its kind event, which will convene African heads of state and government, U.S. government officials and business leaders to discuss trade and investment opportunities on the continent.
The geographic distance between Texas-based Arnold Oil Company and Sub-Saharan Africa may be thousands of miles, but their economic relationship has never been closer. U.S. businesses like the Arnold Oil Company are increasingly finding economic opportunity in Sub-Saharan Africa: between 2001 to 2012, U.S. trade to sub-Saharan Africa tripled from $6.9 billion to $22.5 billion dollars. Africa is now home to six of the top ten fastest growing economies in the world, leading President Obama to call sub-Saharan Africa the “world’s next major economic success story.” That is why the Department of Commerce is working to facilitate and advocate for American businesses in this growing region, and U.S. firms are eager to help unlock even more of Africa’s economic potential.
A family-owned supplier of automotive and oil lubricant products, the Arnold Oil Company became interested in expanding its business abroad. They met with the U.S. Export Assistance Center (USEAC) in Austin to request assistance in developing an exporting and marketing plan for their products. After creating a plan that satisfied the company, the USEAC arranged for a meeting with a representative from the U.S. Export-Import Bank to assist the Arnold Oil Company with financing its exports.
But the USEAC took its assistance one step further, introducing the Arnold Oil Company to a buyer in Cameroon, who eventually was signed as a distributer. As a result of this relationship, the Arnold Oil Company was able to ship their first exports of oil lubricants to Morocco, generating revenue of more than $24,000 in 2013. With assistance from the USEAC, the Arnold Oil Company was able to expand its business into one of the most economically dynamic regions in the world.
In 2012, the Commerce Department launched the Doing Business in Africa Campaign to help U.S. businesses, like the Arnold Oil Company, take advantage of the many export and investment opportunities in sub-Saharan Africa. As part of the campaign, Commerce has expanded trade promotion programs tailored toward Africa and dedicated an online Africa business portal to direct businesses to federal resources. In addition, on August 5, the Department of Commerce and Bloomberg Philanthropies will co-host the U.S.-Africa Business Forum, a day focused on strengthening trade and financial ties between the United States and Africa. The Forum will be attended by President Obama, Secretary Pritzker, Mayor Bloomberg, and other senior U.S. government officials. The U.S.-Africa Business Forum will intensify efforts to strengthen trade and financial ties between the United States and Africa and seek to create partnerships that will promote trade, accelerate job growth, and encourage investment. These efforts are helping American businesses expand and enter the global market for the first time, and the Department of Commerce remains committed to helping create more exporting success stories.
Businesses interested in learning more about the benefits of exporting should contact their local U.S. Export Assistance Center.
Please check back regularly for moresuccess stories about companies doing business in Africa.