SUVA – U.S. Ambassador Joseph Cella hosted Nauruan High Commissioner Michael Aroi at the U.S. Embassy on December 3 to sign the Nauru-United States Investment Incentive Agreement. This new agreement is anticipated to provide access to the full range of investment support offered by the U.S. International Development Finance Corporation (DFC), formerly known as the Overseas Private Investment Corporation (OPIC).
U.S. Ambassador Joseph Cella said, “It was my honor to sign the Nauru-United States Investment Incentive Agreement to build an economic bridge between our nations. In Nauru, there is significant infrastructure activity with the help of the multilateral development banks and donor community in climate change resilience, port upgrades, ICT connectivity, renewable energy, and health care. Trade between Nauru and the United States grew to US$5 million in 2019 and hit US$3.5 million at the end of the third quarter this year. In 2015 two-way trade totaled just $2.2 million. Momentum will continue grow for trade and investment between our countries, especially with this agreement in place.”
The investment incentive agreement signed today between the U.S. International Development Finance Corporation (DFC) and Nauru establishes a framework through which DFC, America’s development bank, can mobilize private investment to support development of the country’s economic resources and advance its economic goals. Under the agreement, DFC can make available all its investment tools–including debt and equity financing, insurance, and technical support–to advance efficient and effective development. The agreement outlines regulatory, tax, and legal details that typically cover agreements between multilateral development banks and foreign governments.
The DFC invests across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights. DFC makes America a stronger and more competitive leader on the global development stage with greater ability to partner with allies on transformative projects. Further, DFC provides the developing world with financially sound alternatives to unsustainable and irresponsible state-directed initiatives.
DFC can be instrumental in helping countries achieve their development objectives through debt and equity investments, investment guaranties, investment insurance, reinsurance and coinsurance, feasibility studies for potential projects, and other assistance.