According to a Reuters report, diversified conglomerate
General Electric Company
) is entrusted with the responsibility of building the critical
infrastructure related to the railway and energy sectors in Angola
by the Export-Import Bank (Ex-Im) of the U.S. The strategic effort
is likely to enable the second-biggest oil producer of Africa to
rebuild the transport, electricity and communications networks
ravaged by the 27-year civil war that ended in 2002.
The deal financed by Ex-Im entails General Electric to supply $650
million of energy equipment and $350 million worth of railway
machinery to Angola. This is likely to facilitate the African
country to diversify its economy, which until now was dependant on
crude oil production for over 95% of its export revenues.
Earlier, Ex-Im had financed a $600 million deal for TAAG Angola
Airlines, the state-owned flag carrier of the country, to buy
The Boeing Company
). With such big-ticket investments by blue-chip companies, the
bank expects other firms will follow suit to infuse capital in
major sectors like infrastructure, transport, mining and small
businesses. This will further enable the U.S. to widen its economic
ties with Angola beyond the oil sector, where leading U.S. firms
Exxon Mobil Corporation
) have already established their footprint.
The Ex-Im contract supports General Electric's recent focus on its
industrial business as it aims to reduce credit risks by divesting
its Retail Finance business. General Electric has also filed an
initial public offering (IPO) of its North American consumer
lending unit. The IPO is expected to be closed by late 2014.
Subsequently, GE Capital Retail Finance will operate under the name
"Synchrony Financial" and will trade on the New York Stock Exchange
under the symbol SYF.
General Electric is one of the largest and the most diversified
technology and financial services corporations in the world. With
products and services ranging from aircraft engines, power
generation, water processing, and security technology to medical
imaging, business and consumer financing, media content, and
industrial products, the company serves over 100 million customers
worldwide. The segments of this Zacks Rank #3 (Hold) company
include Power & Water, Oil & Gas, Energy Management,
Aviation, Healthcare, Transportation, Home & Business
Solutions, and GE Capital.
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