ECIC AR 2024 9TH

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Integrated Report 2024

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ECIC Insurance Portfolio

• 31 March 2022 at 1 US Dollar equivalent to R14,4705 • 31 March 2023 at 1 US Dollar equivalent to R17,8139 • 31 March 2024 at 1 US Dollar equivalent to R18,9926 The sum insured for the next five years are converted at forecasted US Dollar/ZAR exchange rates as follows (rates applicable for the budget plan as of July 2022): • 31 March 2025 to 31 March 2028 at 1 US Dollar equivalent to R17.50

ECIC’s sum insured is accounted for in both ZAR and largely in US Dollars. However, for reporting purposes, the US Dollar exposure is converted into ZAR at the relevant US Dollar/ZAR exchange rate. For historic periods, exposures were converted at the prevailing US Dollar/ZAR exchange rate as at year end (31 March) and the relevant US Dollar/ ZAR exchange rates were: - • 31 March 2020 at 1 US Dollar equivalent to R17,9822 • 31 March 2021 at 1 US Dollar equivalent to R14,8369

Insurance Portfolio for Existing Book

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ZAR'Millions

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Mar-19

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Investment Insurance Export Credit (MLT)

Short Term Insurance

Figure 16: Insurance portfolio (existing book)

• The reduction in export credit insurance was largely due to the expiry of exposure following the Ghana claims paid by ECIC ca. US$101 million during the last quarter of 2024FY. The balance is a net-off of loans repayments and new loans / loans still drawing. • Short-term insurance has a lifespan of up to 12 months. The sum insured including pipeline is presented below in Figure 16 which depicts ECIC extended mandate to cover short-term transactions. Pipeline represents projects on offer of cover and projects where ECIC has made an in-principle commitment.

The ECIC insurance portfolio is made up of export credit loans, short-term (under extended mandate), and investment (including equity and shareholder loans). The sum insured excluding any pipeline projects, is presented in Figure 15 above, which reflects a sharp reduction in the insurance portfolio: • The reduction in the investment insurance follows the expiry and/or non-renewal of policies for Habesha Ethiopia, Vodacom Ethiopia, and PAIDF Malawi. Following the debt restructuring of Infralink in March 2023, the borrower continues to service the debt in advance, contributing to the significantly reduction of the investment insurance by March 2024. There was no new investment policy added.

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