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Integrated Report 2024

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Foreword by the Minister of Trade, Industry and Competition

Minister Parks Tau

It is my pleasure to table the annual report of the Export Credit Insurance Corporation (ECIC) for the 2023/24 financial year. In the year under review, the ECIC has had to navigate multiple complexities and uncertainties presented largely by local and global developments in the economic and political landscape. In particular, the persistent geopolitical tensions had a far-reaching impact on declining trade and demand levels, as well as high inflation and interest rates experienced during most of 2023. As such, most businesses encountered challenges in generating revenues, which affected their ability to service debts, increase investments, and expand operations to create more jobs. Economic growth is expected to pick-up at a pace below what is required to address poverty. However, South Africa is in the fortunate position of having negotiated significant trade preferences with key trading partners such as the EU, SADC, BRICS+, US, UK and Africa. The dtic will therefore strengthen its export promotion and exporter development activities to substantially increase manufactured

exports including from SMMEs, black- and women owned firms. In addition, we continue to work with our African counterparts to fully operationalise the AfCFTA and its economic benefits. South Africa has reached a pivotal milestone in its engagement with the African Continental Free Trade Agreement (AfCFTA) by officially launching its implementation on January 31, 2024. By connecting South Africa with regional production networks, the AfCFTA facilitates collaborative growth and unlocks new export opportunities in a rapidly expanding region. During the financial year the ECIC continued to implement the expanded mandate with $8,3 million worth of short-term transactions underwritten. The Export Passport Programme was also initiated this year, which is a collaboration between the dtic , ECIC, IDC and NEF to benefit potential exporters, emerging exporters and the specific needs of established exporters. These initiatives will play an important role in the export-led industrialization goal of the seventh Administration.

YOUR EXPORT RISK PARTNER

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