CAPE TOWN — The Export Credit Insurance Corporation of SA is becoming more exposed to the mining industry as South African mining companies seek out investment and trade opportunities in the rest of the world, and particularly Africa.
The agency, which falls under the Department of Trade and Industry, was established in 2001 to provide export credit insurance for export transactions and to provide political risk insurance for outward investments from SA.
In the company’s annual report tabled in Parliament yesterday, CEO Patrick Kohlo said the planned projects are concentrated in the mining sector, constituting 45,6% of those approved by the board.
Infrastructure, at 19,5%, is second to mining, with the agro- industry (9,3%), accommodation and catering (7,1%) and other sectors making up 18,5% of all projects approved. Results tabled by the agency have also confirmed the big hit that trade suffered during the global financial crisis last year.
Its chairman, Tladi Ditshego, said that corresponding with the downturn in underwriting activity brought about by the international crisis, gross premium income for this financial year dropped to R156,9m.
That compares with the R170,3m recorded in the previous financial year.
The company plans to focus its efforts on offering its products to small, medium and micro enterprises by actively promoting supplier and buyer credit products for small or medium transactions with quicker turnaround times in the approval process.
The agency has also sought to aggressively pursue opportunities that are beginning to arise as a result of Africa’s burgeoning trade with the rest of the world, in particular China.
No comments:
Post a Comment