Supplier Credit Centre
ECIC provides insurance cover to an exporter domiciled in South Africa who offers credit to a foreign buyer with whom s/he is negotiating and transacting with.
ECIC provides 100% Political Risk Insurance Cover and 85% Commercial Risk Insurance Cover to the exporter.
ECIC offers insurance cover on political risk pre-shipment to exporters who may be exposed to loss from the date of contract signature and the commencement of delivery.
The manufacturing risk cover relates to the loss that may be sustained by the insured due to the fact that:
- The contract has been wholly or partially cancelled before the insured has fulfilled all his/her contractual obligations.
- The execution of work in the buyer’s country or shipment of goods being manufactured in South Africa are prevented/interrupted for a continuous period of not less than 6 months by political circumstances.
ECIC provides 100% Political Risk Insurance Cover of the maximum amount of loss, provided the maximum amount of loss is not more than 90% of the South African contract value.
For transactions on the African continent the minimum SA content should be 50% and combined SA content plus content from other African countries (including the host country) should not be less than 70%. For transactions outside the African continent, the minimum SA content applicable to such export credit facilities and commercial loans shall be 70%.
Suppliers Credit Cover:
The export contract must have a minimum credit term of 2 years or more.
A portion of the contract price must be paid by the buyer upfront at contract signature and/or with each delivery, reaching at least 15% of the contract price when delivery has been completed.
Projects related to export or sale of capital goods or tailor-made items which involve a lengthy manufacturing period and where an alternative buyer may not be found easily.