Tell us a bit about ECIC South Africa’s history? ECIC was established in 2001 under the Export Credit and Foreign Investments Insurance Act, 1957 (as amended), to provide political and commercial risk insurance to South African exporters of capital goods and related services. ECIC is a self-sustained, state-owned national export credit agency. The company is a registered Financial Service Provider, regulated by the Financial Sector Conduct Authority (FSCA) and Prudential Authority (FSP No: 30656). Currently exempted in terms of Financial Advisory & Intermediary Services (FAIS) Notice 78 of 2019. 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 its major shareholder – the Department of Trade, Industry and Competition – the ECIC makes use of market research tools and specialised business development units to create new insurance products that support the government’s export and investment promotion objectives. The ECIC has recently developed new products including lines of credit and lease and return of plant and equipment. The revised performance bond insurance product which was launched in 2016 is another example. It also continues to be a catalyst for increased lending capacity by financial institutions by entering into agreements with other export credit agencies (ECAs). 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. In this way, it creates a framework for both re- and coinsurance. The ECIC is also able to price African risk more competitively, given its experience in underwriting African projects. The company has been involved in flagship projects such as Nacala Corridor in Malawi & Mozambique, Cenpower in Ghana, and Mozal Aluminium Smelter in Mozambique just to name a few. The ECIC addresses obstacles through facilitation and by aiding in the release of funding required for infrastructure, which is of particular importance to multinational organisations seeking a presence in Africa. The ECIC is committed to sustainable business through innovative solutions, operational and service excellence, business development and strategic partnerships. In enabling frontier markets to industrialise and diversify the economies, the ECIC is effectively contributing to a positive socio-economic impact. ECIC’s mandate further requires it to facilitate export trade and cross-border investments, and as part of a broader government policy in the context of industrial policy, trade and investment promotion. As the official Export Credit Agency of South Africa, ECIC provides insurance for export and cross-border investment transactions that would otherwise not have taken place, as a result of either exporters, lenders, investors being unable or unwilling to accept particular risks (political or commercial) associated with such export and investment transactions. To this end, the ECIC facilitates and encourages the production and export of capital goods and services out of South Africa by underwriting such export transactions and related export credit loans and investments taking place outside of the country. In doing so, ECIC lends support to the local industry to promote economic activity in the South African economy, through the export of South African capital goods and services, which in turn, contribute to, among others, job creation, national output and generation of fiscal revenues for the government. Hence, the rationale for the contribution of ECIC to local economic development is based on the assumption that without the involvement of ECIC, certain export transactions out of South Africa would not have taken place or could have been delayed or become costly and uncompetitive. To an extent, the same argument applies to the economic development in host countries unto which SA exports are sold or investments are made. The causality of ECIC impact is based on the fact that the Corporation reduces the risk faced by the local exporter through the receipt of contrapayment for the export of capital goods and services. By decreasing the export risk and, therefore, decreasing the risk of the project in general, it ultimately gives impetus to the decision that exportoriented projects will be undertaken. What are the company’s vision and mission? ECIC’s vision is to be a world-class export credit agency in facilitating South African export trade and investment globally. An Interview With Kutoane Kutoane - 10 - CEO Today Af r i ca Award s 2021 - South Af r i ca - “ The ECIC is committed to sustainable business through innovative solutions, operational and service excellence, business development and strategic partnerships.
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