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Integrated Report 2024

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MESSAGE FROM THE INDEPENDENT CHAIRPERSON

Mr Dheven Dharmalingam

This past year has been a time of tremendous change for both the ECIC and the South African economy alike and one in which, in many respects, had the eyes of the world focused on survival of a turbulent economy. ECIC has undergone a remarkable evolution over the past 23 years as we’ve pursued our vision to be a world class export credit agency in facilitating South African export trade and investment globally. One of the most profound changes over this time have been the richer understanding of the challenges facing us, and deeper commitment to the economic development of the country. Contrary to the progress made within ECIC, the external environment remains challenging. Economic uncertainty continues globally, and South Africa’s economic performance and prospects have dimmed over the past year. This is mostly due to a decline in investor confidence, largely because of the unstable labour environment in the country. Global liquidity tightened significantly due to the slowdown in global growth with concerns arising around overall corporate profitability and excessive gearing at both the corporate and sovereign level. Notwithstanding the relatively low levels of interest

rates, the scope of monetary policy to mitigate the impending economic downturn remains limited. While the financial results and strategic achievements reflect the impact of these events, however, the Corporation’s annual Own Risk and Solvency Assessment (ORSA) Report indicates healthy capital cover ratios over the medium-term as reflected in the Management of Financial Capital Section on page 117. Ghana Ghana remains the highest country concentration within the insurance portfolio at R5,8 billion (48%), with the largest single sum insured being Cenpower at R4,6 billion (38%). As shown in Table 7 on page 34, the total sum insured in Ghana has reduced by R2,2 billion due to claims paid as a result of Ghana ‘s sovereign default, and a further claim amounting to $54 million being paid after year-end. The payment of the Ghana related claims, resulting from the sovereign loans underwritten by ECIC, has saved several South African commercial banks from

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