ECIC IR 2023

ANNUAL Financial Statements for the year ended 31 March 2023

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Directors’ Report

Performance against pre‑determined objectives

2022-23 Annual Target

Performance Measure or In‑ dicator

Output

Actual Achievement

Reason for Variance

INDUSTRIALIZATION AND GROWING THE ECONOMY CONTRIBUTE TO TRADE FACILITATION THAT RESULTS IN JOB CREATION

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 Target not achieved. Two transactions to the equivalent value of USD8,22 million has been approved: 1) Robertson and Caine – R130 million 2) RAM Shopfitting – R13,2 million

Facilitation of ex‑ ports and cross border investments

Value of approved transac‑ tions Number of approved transac‑ tions

USD550 million

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.

4 deals approved

Value of approved transac‑ tions within expanded sec‑ toral 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

Level 1

B-BBEE verification will take place after 2022/23 external audit. Based on internal assessment, the indication is that the Corporation will retain the level 1 B-BBEE score.

N/A

BUILDING A CAPABLE STATE IMPROVE EMPLOYEE VALUE PROPOSITION Retention of staff % staff retained IMPROVE BUSINESS PROCESSES AND SYSTEMS Automation of business process‑ es % of business processes au‑ tomated

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 pre‑ mium (3-year average)

Ratio not greater than 31%

N/A

EMBED RISK MANAGEMENT PRACTICES Embed risk man‑ agement practices

Target achieved. No breaches on risk appetite limits to-date. Target achieved. Level 2 achieved across 100% of metrics. Target not achieved. A decrease of 8% has been reported. Target achieved. Operating cost of R130 million.

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

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

N/A

Risk maturity levels of the Corporation

Level 2 across 100% of metrics

N/A

ENHANCE FINANCIAL SUSTAINABILITY Increase in capital base

% increase in equity (exclud‑ ing foreign exchange move‑ ments and related tax)*

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.

Track the operating cost base of under‑ writing activities

Operating cost base of under‑ writing 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 cul‑ ture

Culture Entropy score

Culture Entropy score below 30%

N/A

ENHANCE CORPORATE GOVERNANCE Effective govern‑ ance and internal control measures External Audit results

Target achieved. Clean audit obtained

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

N/A

* The calculation of this target is based on the figures determined in terms of USD functional currency.

YOUR EXPORT RISK PARTNER

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