State-owned financial services provider Export Credit Insurance Corporation (ECIC) is keen to deepen partnerships with South African exporters who offer their capital goods and services in international and emerging markets, including in Africa.
Further, the corporation’s mandate also extends to partnerships with South African registered entities that would like to engage in cross-border investments. In this particular instance, the ECIC’s cover will be limited to political risk events that may arise.
“The overarching goal and mandate from the South African government as the ECIC’s sole shareholder is to ensure that South African exporters attract foreign buyers. In return, this secures foreign direct income, stimulates economic growth and creates local jobs,” says ECIC business development manager Paul Mojalefa.
He adds that, although the ECIC’s current pipeline is geared towards bigger deals, it is committed to providing more support to small and medium-sized exporters. The ECIC promotes inclusive participation in the local economy by supporting the Department of Trade and Industry’s Black Industrialist Programme.
To drive this mission, the ECIC will exhibit at the Investing in African Mining Indaba from February 5 to 8 at the Cape Town International Convention Centre.
“The ECIC will exhibit to further promote and position its brand in the mining sector, including in its value chain markets. ECIC will introduce and disseminate information on new insurance product offerings for exporters, financial institutions and black industrialists,” notes Mojalefa.
He adds that the lease and return of plant equipment insurance cover is one such newly revamped product for participants in the mining value chain.
The company has been exhibiting at the Mining Indaba since 2009 – the largest sector portfolio within the entire ECIC exposure book is mining. The ECIC’s strategic path is directed towards establishing a more diversified portfolio of sectors, including rail, information and communication technology, water and sanitation, energy and power projects. Despite the current challenges in mining regarding regulatory uncertainty and commodity price fluctuations, it remains an important focus area for the ECIC.
Previously, at Mining Indaba 2017, the ECIC was part of the finance panel, with ECIC COO Mandisi Nkuhlu representing the corporation alongside representatives from the International Finance Corporation and Industrial Development Corporation. The topics discussed included examining strategies to successfully finance emerging and mid-cap mining projects, comprising available financing options and optimal funding solutions.
Mojalefa points out that the ECIC is looking forward to increasing its networking activities, attracting more project sponsors and to further strengthen its relationship with major financial institutions as it aligns with South African exporters of mining equipment and services.
“Owing to the event being the biggest in the African mining industry, it surely impacts on the networking and project discussions, which are held at the same place over four days, with various mining industry players. That accounts for the impact that the event has on corporations such as the ECIC.”