ECIC IR 2023

ANNUAL Financial Statements for the year ended 31 March 2023

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1

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Directors’ Report

taxable profits from the 2024 financial year onwards. The deferred tax asset is expected to be utilised within the next financial year. This is demonstrated in the Corporation’s strategic plan for 2023/2024 to 2027/28 financial years. Refer to note 8 for the detailed disclosure in this regard. Despite raising these provisions, the Corporation continues to be solvent as indicated in the solvency assessment. The Corporation continues to monitor the developments regarding the engagements between Ghana and IMF on Ghana’s request for a bailout package, this will inform the level of the claims provision and the prospects, timing and quantum of potential salvages. Given that these are sovereign loans, the salvage prospects are high as the Corporation is able to restructure the loans over longer tenures.

Events after the reporting period Untimely passing away of Ecic’s Chief Executive Officer : Mr Mandisi Nkhuhlu

Mr Nkuhlu was appointed as Chief Executive Officer of ECIC with effect from 1 December 2022 and he passed away on 23 July 2023. Prior to being appointed as the Chief Executive Officer, Mr Nkuhlu had occupied the position of Chief Operations Officer and had served ECIC for a combined period of 22 years. Under his visionary guidance, ECIC flourished and became a significant player in the export trade financing and insurance landscape. Through strategic partnerships and innovative approaches, Mr Nkuhlu expanded ECIC’s global presence, opening new doors of opportunities for South Africa on the world stage. His foresight and determination enabled ECIC to overcome challenges and embrace change, making ECIC a symbol of resilience and adaptability. Mr Nkuhlu has played a prominent role in the international arena, co-chairing the Credit Insurance Committee, and representing the ECIC at the Organisation for Economic Co-operation and Development (OECD) semi-annual meetings in Paris. He represented the Corporation at the Berne Union, the international association of Export Credit Agencies, and served as the Vice President of the Berne Union from 2016 to 2019. Most recently, he led South Africa’s participation in the BRICS Export Credit Agencies platform, under South Africa’s chairship. Our sincere condolences to his family and may his soul rest in eternal peace. Claim and notices of the lender’s intention to accelerate debt repayment After year end, the Corporation has received a claim and notices of the lender’s intention to accelerate the debt for the two remaining projects mentioned under the significant events section. At reporting date, the provision for IBNR was raised for these projects. Going concern The Board of Directors believes that the Corporation will continue to be a going concern in the foreseeable future. For this reason, the directors have adopted a going concern basis in preparing the annual financial statements, refer to note 38 for a detailed assessment.

Audit Committee information The names of the Audit Committee members and attendance records are reflected below:

25-Apr-22 26-May-22

26-Jul-22 27-Oct-22 12-Dec-22 25-Jan-23

Members V Matsiliza S O Mahony S Mayekiso

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L Mothae (Chair)

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dtic Representative **Mr S Khan

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 in attendance x did not attend @ no longer employed by the dtic

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