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

The Export Credit Insurance Corporation of South Africa (ECIC) was established 20 years ago, in July 2001. The ECIC provides insurance that enables South African exporters to offer their services and products on the international markets, with particular focus on Africa and other emerging markets that are considered too risky by conventional insurers. Its overarching goal – and its mandate from the South African government as its sole shareholder – is to make South African exporters attractive to international buyers to earn foreign income, stimulate economic growth and create jobs. 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 government’s export promotion objectives. The revised performance bond insurance product, which was launched in 2016, is one such example. The ECIC is also able to price African risk more competitively, given its knowledge of the African market. The ECIC addresses obstacles through facilitation and by aiding in the release of funding required for infrastructure, which is of particular concern to global organisations seeking a presence in Africa. Export credit is imperative, considering capital exports are long-dated assets. It is customary for firms to finance such exports with bank debt for cash flow-management purposes. Export credit financing is therefore an important and key aspect of international trade.