ECIC IR 2023

ANNUAL Financial Statements for the year ended 31 March 2023

E

D

H

S

I

L I

N

B

2

0

A

0

T

S

1

E

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

Notes to the Financial Statements

4.1 Concentrations of insurance risk The total country sum insured of the insurance portfolios is as follows:

2023

2022

R’000 Country rating

R000 Country rating

Ghana

7 994 941

5

7 414 960 5 080 130 1 307 638 3 568 063

4 5 5 7 5 5 6 5 6 5 5 6 6 4 5 3 - -

Iran

-

-

Mozambique

1 225 816 4 448 708

5 7 5 5 5 5 6 5 5 5 6 6 4 5 3 -

Zimbabwe Malawi Lesotho Angola Uganda Zambia Ethiopia Tanzania Swaziland

425 623 288 192 532 699

337 046 974 977

-

-

373 069 60 561 959 828 82 675 121 611 247 028 48 304 117 000 37 027 29 260 -

46 193

1 444 585

68 813 52 119 252 677 11 881 59 465 117 000 45 582 17 506

Democratic Republic of Congo

Nigeria

Republic of Congo Brazaville

South Africa* Cote d' Ivoire

Botswana

17 031 800

20 759 177

* South Africa country exposure results from ECIC providing insurance cover for a working capital facility which represents the first transaction under the ECIC extended mandate to cover short term debt.

The Corporation uses an internal country rating method to assess country risks. The country rating method is benchmarked with that of other Export Credit Agencies, and where there is inadequate information, consultations are made with Department of International Relations and Cooperation (DIRCO) to ascertain the view on the political environment in countries where the Corporation carries, or plans to take risk. Below are the country rating definitions: 1: Highest credit quality. “1” rating denotes the lowest expectation of credit risk. Its assigned only in case of exceptionally strong capacity for timely payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events. 2: Very high credit quality. “2” rating denotes a very low expectation of credit risk. It indicates very strong capacity for timely payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. 3: High credit quality. “3” rating denotes a low expectation of credit risk. The capacity for timely payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings. 4: Good credit quality. “4” rating indicates that there is currently a low expectation of credit risk. The capacity for timely payment of financial commitments is considered adequate, but adverse changes in circumstances and in economic conditions are more likely to impair this capacity. 5: Speculative. “5” rating indicates that there is a possibility of credit risk developing, particularly as the result of adverse economic change over time; however, business or financial alternatives may be available to allow financial commitments to be met. 6: Highly speculative. “6” rating indicates that significant credit risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is contingent upon a sustained, favorable business and economic environment. 7: High default risk. “7” rating indicates that default is a real possibility. Capacity for meeting financial commitments is solely reliant upon sustained, favorable business or economic developments.

YOUR EXPORT RISK PARTNER

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