ECIC IR 2023

ANNUAL Financial Statements for the year ended 31 March 2023

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D

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2

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1

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E X P O R T C R E

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C

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F

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Notes to the Financial Statements

34. Contingent asset and liability The Corporation has a probable salvage relating to the claims settled in the previous years. A portion of the probable salvage did not meet the recognition criteria as at the reporting date. The total amount which may be recognised in future is R 325 million. Included in this amount is the salvage of R 11 million that did not meet the recognition criteria as at 31 March 2023 as a result of the challenges encountered on the operations.

35. Capital management

2023 R’000

2022 R’000

Total equity

6 607 022 6 646 714

Adjustment to regulatory basis

635 311

344 037

Available capital

7 242 333 6 990 751 2 709 784 2 328 541 2 488 472 2 856 089 267% 300% 291% 245%

Required Capital (Regulatory) Required Capital (Economic) Regulatory capital cover ratio Economic capital cover ratio

Capital management policy The Board ensures that the quantity and quality of capital maintained is adequate and, at a minimum, will meet applicable regulatory capital requirements. The Corporation also monitors economic required capital as an internal view of required capital as part of its risk appetite. The capital philosophy is to use available capital optimally to fulfil the Corporation’s mandate and increase its capital base to extend its business underwriting capacity. Sufficient capital should be available to absorb potential losses from accepted risks and tested to ensure post a loss event sufficient capital remain to cover the remaining exposure equivalent to 110% of economic required capital. The Own Risk and Solvency Assessment (ORSA) serves as the Corporation’s capital management plan that considers the projected available and required capital over a five year period. The plan is updated annually and describes any planned capital raising initiatives and how capital is deployed and managed within the organisation. Cover ratios The cover ratios measure the degree to which the available capital covers the required capital. The Corporation retains a strong solvency position, with the solvency capital requirement (SCR) cover ratio above 100% as required by the PA. 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. 36. Events after the reporting period Untimely passing away of Ecic’s Chief Executive Officer : Mr Mandisi Nkhuhlu

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