ECIC IR 2023

Integrated Report 2023

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the uptake for short-term transactions is still low and tentative. We are encouraged by the engagements between our business development team and the different teams within the banks and various exporters that this new line of business will gain momentum in the new financial year. The intra-Africa trade facility that has been signed between ECIC and IDC lays a strong basis for effective collaboration between these two sister institutions. 4. Five companies benefitting from the Export Passport Programme a. The process of getting all the parties comfortable with the execution version of the Cooperation Agreement on the Export Passport Programme took longer than anticipated. To date, ECIC, IDC and NEF have signed up to the Export Passport Programme. The process is underway to secure the signature of the agreement by the dtic . 5. Achieve a 5% increase in equity a. The significant increase in provisions raised for the Ghana exposure has resulted in an 8% decline in the equity capital of the Corporation in US Dollars when excluding foreign exchange movements and related taxes. This is mainly due to the IBNR raised for various Ghana projects and the Concentration Risk Reserve raised because of the downgrade of the internal credit risk rating of Ghana pursuant to the default by the Government of Ghana on its debt service obligations. 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.

requires a paradigm shift in our operating model and resource allocation. We have increased the number of our interns and started to embark on a recruitment drive for new graduates and other professionals that will bring fresh blood and new ideas that should boost innovation and enable us to grow our own timber. The intake of new people and infusion of new ideas dovetails with our efforts to nurture a people centred organisation and foster a customer centric culture of excellence and positive customer experience. Building a capable state is one of the key objectives that is central to the Joint Key Performance indicators of the dtic group. As a member of the dtic family, ECIC is committed to invest in the training of its staff and management through targeted Corporate-wide training programmes to tackle the knowledge and skills required in the pursuit of the short-term trade insurance line of business that forms part of the expanded ECIC mandate. The Corporation has achieved a Level 1 B-BBEE score for the third time, as well as another clean audit. This demonstrates the strong corporate governance environment within which the Corporation operates and the strong pursuit of the transformation agenda to build an inclusive economy. The Performance Section on page 80 details the achievements against the strategic objectives for the year. We achieved two-thirds of our strategic objectives which reflects a determined effort by the Corporation despite the tough economic and operating conditions. Five of the fifteen targets that were not achieved are: 1. $550 million worth of approved transactions – where the Corporation achieved $ 509 million value of approved transactions and came under this target by a close margin of less than 10%. 2. Four approved transactions – where the Corporation approved three transactions. 3. $60 million worth of approved transactions within expanded sectoral coverage a. We are in the early stages of the rollout of the short-term insurance strategy and thus far Highlights and significant developments

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