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Integrated Report 2024

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Value adding highlights for 2023/24

PROJECTS SUPPORTED Aligned to the ECIC mandate of making SA exporters attractive to international buyers, the Corporation approved three transactions related to the expanded mandate which commenced on 31 May 2021. Worldwide Rail and Mining (Pty) Ltd – US$3,3 million The transaction relates to cover of an Advanced Payment Guarantee to the value of US$ 3,3 million issued by Access Bank to Worldwide Rail and Mining Solutions (Pty) Ltd for the supply of eight (8) refurbished second hand locomotives and the provision of spare parts to Société Nationale des Chemins de Fer du Congo (“SNCC”), a state owned entity in DRC. A total of 70 job opportunities (man-hours) are estimated to be created/sustained in South Africa during the construction phase only, with 46 job opportunities in the manufacturing sector and the balance in financial and business services. Bond Equipment (Pty) Limited (“Exporter”), a South African company specialising in the design and manufacturing of processing plants, has been awarded a trial contract with FMG Solomon (Pty) Ltd (“Beneficiary”), a Western Australian company, for an iron ore processing plant. FMG Solomon (Pty) Ltd is a wholly-owned subsidiary of Fortescue Metals Group (FMG) Limited. The group is the fourth largest iron ore producer in the world. ECIC is providing cover to Absa Bank Limited (“Issuer”) for a Performance Guarantee of AUD3,7 million for the following risks: • Calling of the guarantee by the buyer due to failure by the builder to fulfil contractual obligations due to financial constraints (e.g., insolvency of the exporter); and Bond Equipment (Australia) – US$2,37 million

• Calling of the guarantee by the buyer due to failure by the builder to fulfil its contractual obligations due to poor/non-performance as per contract specifications. Hall Longmore (Zambia) – US$2,65 million Hall Longmore Holdings (Pty) Ltd is a manufacturer of steel pipes, exporting to more than 30 countries around the globe. The company was established in 1924 and is owned by the Doron Barnes Holdings Group of companies. Hall Longmore Holdings (Pty) Ltd has entered into an agreement with Wah Kong Enterprises Ltd in Zambia to supply steel pipes and fittings. The exporter is looking to procure raw materials to manufacture the steel pipes utilising Absa Bank Limited’s working capital facility. ECIC is providing cover on 31,6% of the working capital. Therefore, ECIC’s exposure is limited to R50 million. The working capital is a renewable facility with ABSA, enabling ECIC to renew the insurance cover on an annual basis thus ensuring recurring revenue for the Corporation. The exporter expects to retain and sustain 30 jobs in South Africa. In addition, the fittings that come with this order will create four to six new job opportunities. To support the ECIC’s Short-Term Insurance product launched in Q3, the R1,5 billion Export Passport Insurance Facility was launched during Q4. The Export Passport Insurance Facility will provide insurance support to any financing facility (i.e., Working Capital Facility, Bond products or Trade Credit Insurance) provided by any of the South African commercial banks, IDC, DBSA or NEF, or vendor financing from the exporter.

YOUR EXPORT RISK PARTNER

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