The mandate of the Export Credit Insurance Corporation of South Africa SOC Ltd is to facilitate and encourage South African export trade and participation in economic development projects abroad. In order to facilitate and encourage South African trade and participation in economic development projects abroad, ECIC provides export credit and foreign investment insurance cover to Commercial Banks and Development Finance Institutions. This includes political (100%) and commercial (up to 95%) risk insurance cover.
Guaranteed Rates of Exchange
ECIC covers export credit loans denominated in South African Rands and US Dollars, as well as the SA Rand and US Dollar value of foreign investments. In the case of export credit loans denominated in US Dollars, South African contractors who are the beneficiaries of drawdowns under export credit loans for work completed face exchange risks in so far as their expenses are Rand denominated. Guaranteed Rates of Exchange (GRA) obtained from the South African Reserve Bank are available to the contractor to eliminate the impact of currency fluctuations on their pricing during the delivery phase of the project. For this cover an exchange risk cover premium administered by ECIC is payable to the South African Reserve Bank. The South African contractors/exporters may benefit from this product provided they obtain contractors cover from ECIC.