ECIC IR 2023

Integrated Report 2023

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Organisational Overview

WHO WE ARE The Establishment of ECIC

Our export credit and investment insurance solutions rest on best practice risk management and underwriting principles, and act as a catalyst for private investments where commercial lenders are either unwilling or unable to accept long-term risks. The Corporation’s insurance products facilitate international trade and protect parties involved in cross-border projects, from financing institutions to exporters. Single projects are often linked to comprehensive ECIC policies that cover both commercial and political risk. Respectively, such risks relate to buyers who, for whatever reason, do not honour contractually agreed payments and projects that fail due to the actions of host governments. The Corporation’s footprint in Africa and substantial appetite for insuring against political risk despite political volatility and underwriting projects with flexible terms and conditions that suit project specific needs and cash-flow profiles, give us a competitive advantage. Our legislated, strategic, and operating environment gives context to our business model and the relationship between the inputs, output, outcomes, and impact of our activities. ETHICS AND CULTURE The continued high-profile lapses in corporate governance in private and public sector entities over the past years emphasise the importance of a strong culture of integrity and ethical leadership. As an insurer, the Corporation is regulated by the Prudential Authority and Financial Sector Conduct Authority on prudential matters and conduct issues respectively. The Social and Ethics Committee drives ethical leadership and a culture of ethical business conduct among employees throughout the Corporation. The Committee fulfils its functions and responsibilities in terms of the Companies Regulations, 2011 and other Board-assigned functions, as required. During the reporting period, the Committee confirmed that the Corporation’s business conduct aligned with the applicable UN Global Compact Principles and OECD Recommendations Against

• Most ECAs were created after World War II. South Africa also began to offer official support for export transactions in 1957. • Instead of creating a dedicated ECA, the Department of Economic Affairs (now the Department of Trade, Industry and Competition, the dtic ) offered reinsurance cover to Credit Guarantee Insurance Corporation of Africa Limited (CGIC), a privately owned insurance company. • After 1994, the dtic began the process of normalising external trade to prepare full participation in the global trade village. • The study commissioned by the dtic revealed that the insurance market gap was for medium to long term export transactions. • As from 1 July 2001, the dtic stopped offering reinsurance cover for Short-Term trade transactions. • A dedicated ECA was established in South Africa in the form of the Export Credit Insurance Corporation of South Africa SOC Ltd (ECIC). • The core business was to fill the market gap through the provision of medium/long term export credit and investment insurance on behalf of the government. • On the 31st of May 2021, the ECIC mandate was expanded to include short-term insurance support involving the export of non-capital goods (consumables) and related services. WHAT WE DO We provide risk mitigation solutions for South African exporters who offer goods and services into the international market. Our focus is on Africa and other emerging markets outside the continent that are considered too risky for conventional insurers. The delivery of our mandate is aligned with South Africa’s national imperatives of inclusive economic growth, job creation and competitiveness in global markets, especially in Africa and other emerging markets that are considered as too risky for conventional insurers.

YOUR EXPORT RISK PARTNER

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