ECIC IR 2023

Integrated Report 2023

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2022/23 Performance Report

2022-23 Annual Target

Performance Measure or Indicator

Output

Actual Achievement

Reason for Variance

INDUSTRIALIZATION AND GROWING THE ECONOMY CONTRIBUTE TO TRADE FACILITATION THAT RESULTS IN JOB CREATION Facilitation of USD550 million

Targets not achieved. 3 transactions to the equivalent value of USD509 million has been approved: 1) Letseng Diamonds – R130 million 2) Yellow Equipment – $308 million 3) NMSI – $193 million equivalent value of USD8,22 million has been approved: 1) Robertson and Caine – R130 million 2) RAM Shopfitting – R13,2 million Target not achieved. Two transactions to the

Value of approved transactions Number of approved transactions

The COVID-19 recovery and fiscal challenges being experienced by some of the African countries, and the tough economic conditions which are exacerbated by the ever-worsening power shortages are having a bearing on the value chains that support economic activities, especially in driving exports. The uptake for short-term transactions has been very low as we are in the early stages of the rollout of the short-term line of business. Furthermore, it should be noted that trade credit insurance is the primary product that drives short term insurance business that is currently not offered by ECIC . However, the product is in the development phase and would be offered soon once approved by Board. It is expected that there would be a significant increase in the short-term exposure with the introduction of the trade credit insurance product. 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. Whilst the contents of the agreement have been settled, some of the Entities are following their internal governance process to secure the execution of the agreement.

exports and cross border investments

4 deals approved

Value of approved transactions within expanded sectoral coverage

USD60 million

Target not achieved. Cooperation Agreement on Export Passport Programme has been finalised and awaiting signatures.

Export Passport Programme 5 companies benefiting

ACTIONS TO PROMOTE TRANSFORMATION ENHANCE TRANSFORMATION Maintain B-BBEE Score B-BBEE Level BUILDING A CAPABLE STATE IMPROVE EMPLOYEE VALUE PROPOSITION Retention of staff % staff retained IMPROVE BUSINESS PROCESSES AND SYSTEMS Automation of business processes % of business processes automated

Target achieved. B-BBEE Level 1 obtained.

Level 1

N/A

Target achieved. 94% staff retention achieved.

Retain 85% of staff

N/A

Target achieved. 72% (33 of 46) of business processes automated.

70% of business processes automated

N/A

IMPROVE STAFF EFFICIENCY Staff efficiency

Target achieved. Staff efficiency ratio of 16%.

Employee cost to earned premium (3-year average)

Ratio not greater than 31%

N/A

EMBED RISK MANAGEMENT PRACTICES Embed risk management practices

Target achieved. No breaches on risk appetite limits to-date.

No breaches on risk appetite limits over the 5-year period

No breaches on risk appetite limites (from 1 April 2022)

N/A

Target achieved. Level 2 achieved across 100% of metrics.

Risk maturity levels of the Corporation

Level 2 across 100% of metrics

N/A

ENHANCE FINANCIAL SUSTAINABILITY Increase in capital base % increase in equity

Target not achieved. A decrease of 8% has been reported. Target achieved. Operating cost of R130 million.

5% increase in equity

This is mainly due to the IBNR raised for various Ghana projects and CRR raised on the downgrade of the credit risk rating for Ghana pursuant to the default on debt.

(excluding foreign exchange movements and related tax)

Track the operating cost base of underwriting activities

Operating cost base of underwriting activities

Operating cost below R150 million

N/A

STAKEHOLDER AND CUSTOMER ENGAGEMENT Maintain a high CRIP score Corporate Reputation Index Performance (CRIP) score

Target achieved. CRIP score of 77%.

CRIP score of 70%

N/A

Target achieved. Culture Entropy score of 26%.

Improve employee engagement and organisational culture

Culture Entropy score

Culture Entropy score below 30%

N/A

ENHANCE CORPORATE GOVERNANCE Effective External Audit results

Target achieved. Clean audit obtained.

Clean audit with no repeat findings and no more than 3 new findings on the BAC Report (judgmental differences not taken into account)

N/A

governance and internal control measures

* The performance of this target is based on the South African Functional Currency financial statements in Note 40 on pages 85-86 of the Annual Financial Statements.

YOUR EXPORT RISK PARTNER

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