ECIC IR 2023

Integrated Report 2023

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Governance Report

The Board is responsible for the governance and compliance framework of the ECIC.

and Competition, governs the ECIC’s business conduct, as required by the PFMA. The ECIC also subscribes to the King IV Report on Corporate Governance for South Africa, 2016 (King IV).

Compliance with laws, rules, codes, and standards The ECIC operates in a highly regulatory environment. The Board plays an oversight role in ensuring that the Corporation complies with applicable laws and considers adherence to non binding rules, codes, and standards. A dedicated Unit for the Compliance function identifies applicable legislation, regulatory requirements, and related amendments, and analyses their impact on the Corporation and facilitates compliance monitoring and control using a risk-based approach. The function collaborates with other risk assurance providers and internal functions, including Operations. Management committees through business processes and in line with the delegation of authority, escalate material regulatory issues to the Board and corrective action is taken to address any identified noncompliance. Legal and regulatory universe The ECIC is a Schedule 3B public entity in terms of the Public Finance Management Act, 1 of 1999, as amended (PFMA). The Corporation was reconstituted in terms of the Export Credit and Foreign Investment Insurance Act, 78 of 1957, as amended, and incorporated in terms of the Companies Act, 71 of 2008, as amended. South Africa’s legislative framework for corporate entities also applies to the ECIC although the PFMA supersedes all other legislation excluding the Constitution. The Corporation is also registered as a financial services provider and complies with applicable insurance regulations, such as the Short-Term Insurance Act, 53 of 1998, as amended by the Financial Services Laws General Amendment Act, 45 of 2013; Financial Advisory and Intermediary Services Act, 37 of 2002 and Insurance Act, 18 0f 2017, as amended. An Export Credit Insurance Agreement together with the Shareholder’s Compact (which is renewed annually), both with the Minister of Trade, Industry

Public Finance Management Act (PFMA)

Compliance with the PFMA drives transparency, accountability and sound management of revenue, expenditure, assets, and liabilities in all public entities. The ECIC Board, as the Accounting Authority, takes effective and appropriate oversight steps to prevent irregular, fruitless and wasteful expenditure. Further, the ECIC Materiality and Significance Framework is reviewed on an annual basis. Compliance with PFMA reporting, according to section 55(2)(b), is disclosed on page 93 of the Annual Financial Statements. Alignment with King IV The Board adopted and welcomed King IV, with its principles of openness, integrity and accountability as enshrined in the King Code on Corporate Governance. The extent of our compliance with applicable King IV governance principles and recommendations during the past year is available on the ECIC website @ www.ecic.co.za. Board of Directors and its composition The ECIC is governed by a unitary Board of Directors who, collectively, have the required knowledge, experience, and business acumen to guide the Corporation’s strategy and governance. The Board consisted of nine directors, being six independent non-executive directors, two non independent non-executive directors (government representatives, from the dtic and National Treasury) and the CEO as an executive director (Mr. K Kutoane’s appointment was effective up until 30 June 2022 and has been replaced by the late Mandisi Nkuhlu as the new executive director as from 9th May 2023). All directors jointly have a fiduciary duty to exercise due diligence, and skill in carrying out their responsibilities. The Board is accountable to the shareholder for the ECIC’s activities and performance.

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