ECIC CEO: Why Mozambique’s LNG project is a big deal for SA companies

The Export Credit Insurance Corporation of South Africa (ECIC) plays a vital role in facilitating trade across the continent by providing export insurance to South African companies. This enables these companies to unlock opportunities that would otherwise be difficult to achieve. In a recent interview with CNBC Africa, ECIC CEO, Haudhoyne, discussed the South African export industry and the crucial role the company plays in its growth. ECIC serves as an export risk partner, involved in important projects like the Mozambique LNG discoveries and developments. The corporation provides insurance cover against both commercial and political risks in Mozambique, with a current involvement of approximately 20 billion rand. This support is expected to facilitate about 10 billion rand worth of South African goods and services being deployed in Mozambique. Haudhoyne highlighted the significant growth in South African exports in recent years, noting that 2019 saw the best export performance since 1954. While many may not be aware of this achievement, it underscores the success of South African businesses in accessing contracts on the continent. In the past decade, there has been a shift in investment focus from mining to sectors like power generation, infrastructure development, telecommunications, and more. ECIC has played a critical role in supporting South African exports in these sectors by underwriting bank loans and facilitating large-scale projects. In discussing opportunities for South African companies in the African export landscape, Haudhoyne emphasized the importance of value-added manufactured products. The CEO highlighted agro-processing as a key sector with immense potential for growth. By adding value to products and diversifying the export base, South Africa can better leverage its resources and contribute to food security on the continent. ECIC is committed to supporting export-led manufacturing and industrialization programs as part of its mission to empower South African companies in expanding their presence and impact in international markets. As South Africa continues to navigate dynamic global markets and seize opportunities for growth, organizations like ECIC play a crucial role in providing the necessary support and risk management tools for companies to thrive. The Mozambique LNG project serves as a prime example of collaboration and investment in key sectors that drive economic development and create sustainable partnerships across borders.