ECIC Product Overview
Export Credit Insurance Corporation of South Africa SOC LTD (ECIC) is the official export credit agency (ECA) of the South African government, founded on 02 July 2001 in terms of the Export Credit and Foreign Investments Insurance Act 78 of 1957, as amended. The corporation, established in 2001 with a mandate of facilitating and encouraging South African export trade by underwriting bank loans and investments outside the country to enable South African contractors to win capital goods and services contracts in countries outside of South Africa operates under the auspices of the Department of Trade, Industry and Competition as a self-sustaining company and a Schedule 3B entity under the Public Finance Management Act, 1999 (as amended).
EXPORT CREDIT INSURANCE
The Performance Bond Insurance Scheme enables the ECIC to work with banks and other financial institutions to increase capacity of the South African market to issue bond facilities for export contracts.
Export credit insurance cover is provided for transactions involving capital goods and/or services outside South Africa. Through the provision of credit insurance to banks and suppliers, the Corporation facilitates term finance for such transactions.
The investment insurance cover targets South African business entities, which want to invest in foreign countries. The investment insurance covers acquisitions or equity contribution and shareholder loans. This insurance coverage is provided against political risk only.
SMALL & MEDIUM TRANSACTIONS
LEASE AND RETURN OF PLANT/ EQUIPMENT INSURANCE COVER
BLACK INDUSTRIALISTS SUPPORT PROGRAMME
The Small and Medium Transactions programme is tailored to cater for transactions in two categories: anything up to USD 10 million as small transactions; and, those above USD 10 million and up to USD 20 million as medium transactions.
This insurance cover focuses on capital equipment, not necessarily owned outright by the export contractor, which becomes subject to various lease agreements and for which the export contractor acts as either the lessor or lessee.
ECIC participates in the vision entrenched in the National Development Plan (NDP) which considers a South Africa where everyone embraces their full potential.