South African Business 2019 edition

FOCUS Billion-dollar

FOCUS Billion-dollar intra-African financing programme launched The ECIC proudly supports South African exporters and investors. A -billion financing programme The Export Credit Insurance Corporation of South Africa SOC Limited (ECIC) was formed as a dedicated export credit agency to cater for medium to long-term export transactions. The short-term transaction market was amply catered for, but medium to long-term export transactions still had a need for a dedicated export credit agency, hence the formation of the ECIC. Acting as a catalyst for private investment, the ECIC steps in where commercial lenders are either unwilling or unable to accept long-term risks. Along with the ECIC’s major shareholder, the Department of Trade and Industry, the ECIC makes use of market research tools and specialised business development units to create new insurance products that support the government’s export promotion objectives. The revised performance bond insurance product, which was launched in 2016, is one such example. “The ECIC has recently developed new products, including lines of credit, lease and return of plant equipment. It also continues to be a catalyst for an increased lending capacity by financial institutions by entering agreements with other export credit agencies (ECAs). In this way, it creates a framework for both re- and coinsurance,” explains the Chief Executive Officer, Kutoane Kutoane. To this end, it has adopted a comprehensive plan of action aimed at actualising cooperation programmes for mutual benefit in conjunction with, among others, BRICS ECAs, Afreximbank and African Trade Insurance. The ECIC is also able to price African risk more competitively, given its knowledge of the African market. In 2018 the ECIC, in partnership with the African Export- Import Bank (Afreximbank), launched the South African- Africa Trade and Investment Promotion Programme (SATIPP), a -billion financing programme to promote and expand trade and investments between South Africa and the rest of Africa. The financing institutions will work together to identify, prepare and appraise trade transactions and projects, explore co-financing and risk-sharing opportunities and share knowledge, with particular emphasis on intra- African trade matters, through technical cooperation, staff exchange, research and joint events. The joint initiative will support businesses through capacity building and market information initiatives. It will also provide advisory services and guarantees to South African investors seeking trade and investment opportunities in selected African countries. SOUTH AFRICAN BUSINESS 2019 46

SUCCESSFULLY GROWING OUR PORTFOLIO IN FRONTIER MARKETS Since 2001 we have continued to provide commercial and political risk insurance for cross-border transactions, offering risk mitigation solutions to South African exporters of capital goods and investors . We have partnered with credible financial institutions and believe through partnerships economic growth can be achieved. As Export Credit Insurance Corporation of South Africa (ECIC) we are committed to supporting our South African businesses who export and invest in capital projects beyond our borders. If youʼre planning on exporting to or investing in capital projects beyond our borders, contact ECIC for assistance +27 12 471 3800 | info@ecic.co.za | www.ecic.co.za ECIC is a registered service provider with the FSB No. 30656 In partnership with