Enabling South Africans to do business on the continent

The Export Credit Insurance Corporation of South Africa (ECIC) plays a significant role in supporting South African businesses looking to venture into the rest of Africa. The corporation provides political and commercial risk insurance to South African exporters of capital goods and related services. This insurance gives South African companies the peace of mind to expand their operations into different African countries. Portia Dube, the Head of Business Development at ECIC, emphasizes the importance of partnerships and collaborations to ensure successful business transactions in the continent. Dube explains that ECIC spends a considerable amount of time on the ground, engaging with export credit councils, advisory firms, private investors, and other institutions actively involved in cross-border activities. By partnering with these entities, ECIC offers financial support and government backing to South African businesses seeking to conduct transactions in foreign markets. Additionally, ECIC also engages directly with state entities, ministries of finance, and infrastructure development to ensure the necessary support for projects in host countries. One of the key roles of ECIC is to create opportunities and facilitate connections between South African companies and potential partners in the host country. By providing insurance cover to exporters or financial institutions involved in the transactions, ECIC effectively secures the South African government's support for the project. This support allows exporters to offer competitive financing packages and buyers to access enhanced credit lines without depleting their existing credit limits. In terms of risk mitigation, ECIC covers a wide range of political and commercial risks that may arise during business operations in foreign markets. Political risks such as currency instability, changes in laws, nationalization, expropriation, civil unrest, and disturbances are all part of the insurance coverage offered by ECIC. Additionally, the corporation also protects against commercial risks like insolvency and protracted default, ensuring that South African businesses can operate confidently in challenging environments. Despite not being able to directly influence the overall market conditions, ECIC's role in mitigating risks and providing insurance coverage levels the playing field for South African businesses looking to expand into new territories. By offering a reliable risk partner, ECIC empowers companies to navigate the complexities of doing business in Africa with more confidence and security. The forging and maintaining of partnerships are crucial elements for the success of business endeavors in foreign markets, as highlighted by Dube. ECIC's strong relationships with governments and market players across the continent build trust and confidence in the corporation's ability to support projects and cover potential losses. This trust is essential for attracting businesses to seek ECIC's insurance services, knowing that their interests are protected in the event of unforeseen challenges.