Export Credit Insurance Corporation of South Africa Soc Ltd (ECIC)

In July 2022, ECIC established the Short-Term Insurance Business Unit to primarily focus on short-term insurance transactions as part of its expanded mandate. The Corporation now offers a range of short-term insurance products designed to support Black Industrialists (BIs) and SMMEs involved in export trade: * Working Capital Facility * Bonds * Trade Credit Insurance * Suppliers Credit * Buyers Credit If you are a BI or SMME looking to expand your business into Africa through export trade, visit https://bit.ly/33AMjlD to find out more about these and other products. #ECIC #exportfinance #creditinsurance #blackempowerment #blackindustrialists #smallbusiness #SMMEs #Africanbusiness #export #SouthAfricanBusiness

The Export Passport Programme (EPP) forms part of the implementation phase of the Short-Term Insurance Business Unit Strategy and fulfilment of the ECIC’s mandate and business objectives. The EPP was established to deepen the collaboration between the ECIC, Industrial Development Corporation (IDC), National Empowerment Fund (NEF) and the dti (Department of Trade and Industry: Republic of South Africa) through a Corporation agreement which was signed off in November 2023, to support the Black Industrialists (BIs) and Small, Medium and Micro Enterprises (SMMEs). The Export Passport Insurance Facility is available to support Bis and SMMEs to the tune of US$80 million or R1,5 billion and as part of the corporate targets that need to be achieved by the Corporation in the year 2024/25 in respect of the value of approved short-term insurance transactions. Over the next five (5) years this facility will increase and will cumulatively amount to US$500 million or R9 billion. Through this intervention the BIs, SMMEs and exporters will be able to grow their business and production facilities, access to markets, prosperity and creating much needed jobs, and contributing to the fiscus. The main objective of this programme is to increase the number of BIs, SMMEs and exporters to participate in the mainstream of economic production in pursuit of the transformation agenda. #ECIC #dtic #transformation #blackindustrialists #blackempowerment #smmes #exporttrade #exportfinance #creditinsurance #smallbusinessdevelopment

Over the last 10 financial years, ECIC has grown considerably supporting 46 export-led, investment and short-term trade-related transactions across the African continent and other emerging economies. This accumulated to approximately US$2.5 billion (R32.8 billion) worth of loans supported by ECIC in various sectors among them power, mining, rail, construction, manufacturing and telecommunications and adding an estimated R11.72 billion to the South African GDP. At yesterday’s CFO Engagement Session, ECIC CFO, Noluthando Mkhathazo, provided an overview of ECIC’s outlook coming out of what has been a challenging economic environment in 2024. Looking ahead, she explained that the focus will be on engaging with the shareholder to amend our founding legislation which will authorise ECIC to provide insurance cover for non-South African financing institutions. The Corporation also aims to expand insurance coverage to include the Euro currency, focus on the implementation of the long-anticipated Export Passport Programme and ultimately, generate profits from the 2025 financial year. #ECIC #exportcredit #creditinsurance #exportfinance #financialresults #africanbusiness #africantrade #southafricanbusiness

Thank you to everyone who joined us for this morning’s online interactive engagement session with ECIC CFO, Noluthando Mkhathazo and Acting CEO, Ntshengedzeni Maphula. Noluthando took participants through a comprehensive presentation of the Corporation’s financial results for 2024. The results reflected the tough macro-economic operating environment we experienced over the past 12 months, with total assets reduced by R576 million (5,13%) due to payment of claims in Ghana amounting to R2 billion which were netted off by net investment income generated. The results were also testament to the resilience and sustainability of ECIC, as the Corporation was able to withstand these significant claims. As our Acting CEO pointed out, important lessons were learnt this past year and the major takeaways were that going forward ECIC aims to spread its portfolio across different jurisdictions and with a healthy deal pipeline, the focus over the next couple years will be on rebuilding its balance sheet. Noluthando highlighted that to retain the financial sustainability of the Corporation, the emphasis will be on working on: * Converting pipeline protects to earn premiums while underwriting with prudence to minimize future claims; * Strengthen the salvage recovery process; * Strengthen restructuring process to avoid further claims; * Generated higher investment returns in excess of the benchmarks; * Managing the liquidity, solvency and risk. #ECIC #exportcredit #africanbusiness #southafricanbusiness #creditinsurance

A reminder to join us on Tuesday, 10 December 2024 from 10h00-11h00 CAT for an interactive CFO Engagement Session with #ECIC CFO, Noluthando Mkhathazo, on the Corporation’s annual financial results. You can join this important discussion here: https://bit.ly/3B92ckj

ECIC CFO Engagement Session 10 December 2024 Since 2001 ECIC has been actively supporting South African exports and related services in winning export contracts across Africa. Over the past 23 years we have progressively been building up our balance sheet in anticipation of the underwriting storms that may lie ahead. Our ability and capacity to negotiate and manage workout situations will place us in good stead as we set out to navigate the debt restructurings, claims and salvages linked to certain exposures. Join us for an interactive virtual discussion on the Corporation’s annual financial results with ECIC CFO, Noluthando Mkhathazo, on Tuesday, 10 December 2024 from 10h00-11h00 CAT. Noluthando will be joined by ECIC Acting CEO, Ntshengedzeni Maphula and Chief: Actuarial and Investments, Sias Esterhuizen. Click here https://lnkd.in/dc5yX3uT to be a part of this important conversation. #ecic #financialresults #exportfinance #creditinsurance #africanbusiness

In a strategic move to widen our service range, #ECIC now accommodates #SMMEs under an expanded mandate which includes consideration for smaller projects with durations of less than two years, through its Trade Credit Insurance. This product allows SMMEs to engage in credit terms directly with foreign buyers, thereby enhancing trade opportunities. Ntombifuthi Priscilla Mdluli, ECIC Senior Underwriter explains that “it is especially relevant for business-to-business trade in high-risk regions.” Visit https://lnkd.in/duWffzSN to find out more. #creditinsurance #tradecreditinsurance #exportfinance #africanbusiness

Short-Term Insurance Since the inauguration of ECIC’s Short-Term Insurance business in July 2022, the Corporation has successfully concluded several transactions within the manufacturing sector. Notable among these is the approval of cover for a specialist steel pipe manufacturer for R50-million with an eight-month tenor for exports to Zambia. ECIC has also supported a mineral processing plant supplier with coverage of R42-million for a six-month tenor for exports to Australia; and an office furniture manufacturer was granted a cover of R13-million for a six-month subcontract, with Nigeria as the destination country. Looking ahead to 2025, ECIC’s Short-Term Insurance business unit is in the process of implementing its strategic goals, including system enhancements to handle the volume of short-term transactions and the procurement of insurance brokers. #ecic #shortterminsurance #creditinsurance #exportfinance #africanbusiness #nigeria #zambia #southafrica #manufacturingsector

ECIC Senior Economist, Daniel Thwala, will be participating in a panel titled ‘Rising Public Debt in Emerging Markets’ at the Berne Union Country Risk Specialist Meeting in Riyadh, Saudi Arabia on Thursday, 21 November 2024 at 08h40 CAT. The panel will be moderated by Patrick Chileshe PhD, CFA, FRM, Country Risk Analyst, ATIDI - African Trade & Investment Development Insurance and panelists include Mohammed Azzam, Senior Executive Advisor, Saudi EXIM Bank, Bilal Bassiouni, Head of Risk Forecasting PANGEA-RISK and Hocheol Chung, Director, Country Research Team, Research Department, Korea Trade Insurance Corporation (Ksure). This important session will set the stage for the rest of the discussions which will take place throughout the day, as it will provide an overview of the sovereign debt scenario. Some of the key topics the panel will address are as follows: Ø  Key Topics: o   Accessibility issues to global capital markets for sovereigns o   Higher exposure towards China, India and emerging lenders o   Decline in official development assistance moving to debt financing o   Issues with IMF programmes being revised and extended o   Outlook for inflation and Interest Rates, easing of global monetary policy o   Debt service to GDP and liquidity flows #ecic #berneunion #creditinsurance #ECA #exportfinance #creditriskinsurance #saudiarabia #riyadh