Africa is a particularly risky continent on which to do business. In recognition of that reality, the South African government has tried to minimise the risk of South African companies doing business abroad by providing export credit insurance.
The Export Credit Insurance Corporation (ECIC) has just released its first annual report. The state-owned company appears to have had a successful first nine months.
The government set up the export credit agency (ECA) following the termination of an agreement with the private company, Credit Guarantee, to underwrite bank loans, supplier credits and investments to enable South African companies to sell capital goods and services abroad.
ECIC's primary clients include large South African banks such as Standard Bank, Absa and Nedcor, which provide facilities to South African companies.