ECIC AR 2024 9TH

E

D

H

S

I

L I

N

B

2

0

A

0

T

S

1

E

Integrated Report 2024

E X P O R T C R E

L T D

O C

A S

C

R I

D I

F

T

A

I

N

H

S

T

U

U

R

O

A

S

N

F

C

O

E

N

C

O

O

I

R

T

P

A

O

R

ESG Matters and Climate Change ECIC has appointed an Environmental Social Governance Specialist during the financial year. The ESG Policy has been revised to comply with the Equator Principles IV. The policy, amongst others, provides for the categorisation of projects in relation to the ESG impacts, deals with the due diligence process for Category A, B and C projects and outlines the ECIC stance on climate change related issues. This development is quite significant, as ECIC is well poised to support renewable energy projects and foster a just transition to clean energy sources and a greener economy. Opportunities to Enhance the Export Credit Scheme We are engaging with the shareholder to amend our founding legislation to authorise ECIC to provide insurance cover for non-South African financing institutions. ECIC’s ability to provide insurance cover for non-South African financing institutions would unlock additional funding capacity for South African exporters from these non-South African financial institutions. In addition, ECIC is pursuing the opportunity to expand the insurance coverage to Euro currency and enhance ECIC’s capacity to unlock opportunities for exporters and investors in regions where transactions are denominated in Euro currency. Stakeholder Engagement Understanding stakeholder expectations is vital to the effective execution of the ECIC mandate. The results of the two surveys conducted this year highlight positive stakeholder feedback and provide the Corporation with recommendations to further improve on this. The Stakeholders section on page 77 details the results of the surveys as well as the stakeholder engagements and marketing initiatives that have bolstered our brand profile and the advocacy work carried out by the Corporation.

4. At least six companies benefitting from the Export Passport Programme a. The Export Passport Agreement was concluded and signed by all Parties on 13 November 2023. Initial meetings and identification of possible beneficiaries commenced in Q4. b. The official launch is anticipated for the 2024/25 financial year, with the beneficiaries being announced in 2024. 5. Maintain a B-BBEE Score of Level 1 a. A priority element for disbursements on enterprise development initiatives was not implemented. This results in a discount on the achieved B-BBEE level and therefore the maximum level that could be achieved is Level 2. 6. Clean audit with no repeat findings and no more than three new findings on the BAC Report (judgemental differences not taken into account) a. The draft AFS had not been submitted before the 31 May 2024 deadline, resulting in a material non-compliance. b. This was due to additional adjustments required for future salvages following the receipt of the report from a service provider who was appointed by ECIC to review the reasonability of the assumptions applied in the financial forecast and debt repayment model prepared by the project. c. The audited AFS had not been submitted before the 31 July 2024 deadline, resulting in a material non-compliance. This was due to the late commencement of the audit. The procurement process for the appointment of external auditors commenced in 2022, however there were delays as the previous two tenders had to be canceled as none of the bidders met all the pre-qualification requirements. The third tender was issued on 27 October 2023. The appointment of the new auditors was also confirmed by the Shareholder at the Annual General Meeting held on 31 January 2024 while the PA approval was received on 10 June 2024. d. As a result, an unqualified audit opinion with a non-compliance paragraph was achieved.

YOUR EXPORT RISK PARTNER

27