South African Business 2017 edition

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FOCUS ECIC: 15 years of export project excellence The Export Credit Insurance Corporation of South Africa has a unique understanding of Africa’s export dynamics. The creation of the ECIC began 15 years ago in July 2001 when the Export Credit Insurance Corporation of South Africa Ltd (ECIC) was given a mandate of filling a market gap through provision of medium to long-term export credit and investment insurance by underwriting bank loans against political and commercial risk, on behalf of the South African government. The short-term transaction market was amply catered for, but medium to long-term export transactions still had a need for a dedicated export credit agency, hence the establishment of the ECIC. Although regarded as the "insurer of last resort", the ECIC is as much of an enabling development organisation as it is an export credit agency (ECA), explains its chief executive officer, Kutoane Kutoane. Acting as a catalyst for private investment, the ECIC steps in where commercial lenders are either unwilling or unable to accept long-term risks. While the ECIC is part of a broader government policy, it remains an autonomous limited liability company, but with the government as its sole shareholder. The institution is enabled under the amended Export Credit and Foreign Investments Insurance Act of 1957. "ACTING AS A CATALYST FOR PRIVATE INVESTMENT, THE ECIC STEPS IN WHERE COMMERCIAL LENDERS ARE EITHER UNWILLING OR UNABLE TO ACCEPT LONG-TERM RISKS." Along with the major shareholder, the Department of Trade and Industry, the ECIC makes use of market research tools and specialised business development units to develop new insurance products that support government’s export promotion objectives. ECIC CEO, Kutoane Kutoane Performance Bond insurance cover, which was launched in 2015, is one such example. Currently, the ECIC is working on covering credit lines and return of plant and equipment, but it also continues to motivate for the release of increased lending capacity by financial institutions by entering into agreements with other ECAs. In this way it creates a framework for both re-insurance and co-insurance and, to this end the ECIC has adopted a comprehensive plan of action aimed at actualising cooperation programmes for mutual benefit in conjunction with, among others, BRICS, ECAs, Afreximbank and Africa Trade Insurance. SOUTH AFRICAN BUSINESS 2017 38
FOCUS The ECIC is strategically positioned as a key player in facilitating the availability and affordability of long-term finance to aid in unlocking the development potential of such operations, particularly in economically frustrated regions that experience fiscal constraints. It is well known that Africans are extremely proud of their heritage and that the strategies that foreign investors might apply elsewhere in the world need to be revised for the continent. The dynamics of the problems that African leaders and financiers face need comprehensive understanding and this is where the ECIC excels. The ECIC addresses obstacles through facilitation and by aiding in the release of funding required for infrastructure, and this is of particular concern to global organisations seeking an African presence. Export credit is imperative for the specific reason that capital exports are long-dated assets and it is customary for firms to finance such exports with bank debt for cash-flow management purposes. Export credit financing is, therefore, an important and key aspect of international trade. Access to competitively priced export credit creates the ability for our local contractors to bulk up and compete more effectively in foreign markets. With the ECIC in support of such transactions, the South African export market is enabled and contractors become more credible. This has a far-reaching impact on fostering a stronger economy and drives domestic job creation, contributes to fixed-capital formation and the GDP, as well as the generation of fiscal revenue. "The ECIC is able to price African risk more effectively given its indigenous status even though demands might be universally similar. Ideally, what we ensure is the provision of cost-competitive cover and the honouring of claims when they arise," says Kutoane. The ECIC's vision and mission is a commitment to sustainable business growth through innovative products, operational excellence, business development and strategic partnerships and, in enabling frontier markets to optimise production, it is motivating a positive socio-economic impact. "We also play a role by offering aid in narrowing the skills gap with a number of initiatives related to education, skills development and volunteerism. Beneficiaries of these projects have included Penreach in Mpumalanga, the Rehoboth Trust in KwaZulu-Natal, the Maths and Science Leadership Academy in the Northern Cape, and DeafSA in Limpopo," says Kutoane. The ECIC is a registered financial services provider: FSB No. 30656 CONTACT INFO Physical address: Block C7 & C8, Eco Origins Office Park, 349 Witch Hazel Avenue, Highveld Ext 79, Centurion, 0157 Postal address: PO Box 7075, Centurion, 0046 Tel: +27 12 471 3800 | Fax: +27 12 471 3850 Email: info@ecic.co.za | Website: www.ecic.co.za 39 SOUTH AFRICAN BUSINESS 2017
Page 1 and 2: SOUTH AFRICAN 2017 EDITION BUSINESS
Page 3: ENTREPRENEURSHIP COMES TO LIFE THRO
Page 8 and 9: CONTENTS Skills development 38 Deta
Page 10 and 11: CONTENTS Transport 78 South Africa'
Page 12 and 13: CONTENTS Government South African N
Page 14 and 15: SPECIAL FEATURE South African econo
Page 16 and 17: SPECIAL FEATURE 7% 6% 5% 4% 3% 2% 1
Page 18 and 19: SPECIAL FEATURE Special Economic Zo
Page 20 and 21: SPECIAL FEATURE R150-billion, will
Page 22 and 23: 3 600 people. 26 months turnaround
Page 24 and 25: SPECIAL FEATURE Renewable energy pr
Page 26 and 27: SPECIAL FEATURE to have South Afric
Page 28 and 29: SPECIAL FEATURE the Minister of Ene
Page 30 and 31: INTERVIEW REDISA: putting waste to
Page 32 and 33: INTERVIEW and developing small busi
Page 34 and 35: INTERVIEW Turning waste into wealth
Page 36 and 37: Looking north South African compani
Page 40 and 41: SPECIAL FEATURE Skills development
Page 42 and 43: FOCUS Building South Africa’s hum
Page 44 and 45: FOCUS Positive change through enter
Page 46 and 47: PROFILE Novus Holdings Leading inno
Page 49 and 50: KEY SECTORS Overviews of the main e
Page 51 and 52: OVERVIEW advance loans to farmers i
Page 53 and 54: With so many training companies to
Page 55 and 56: 25 years of wetlands conservation F
Page 57 and 58: OVERVIEW the gold price to above $1
Page 59 and 60: Mineral beneficiation Industrialisa
Page 61 and 62: OVERVIEW four years, much faster th
Page 63 and 64: gasprimepower Cummins Power Generat
Page 65 and 66: Environmental sustainability in the
Page 67 and 68: Existing systems South Africa’s m
Page 69 and 70: INTERVIEW Have you introduced any n
Page 71 and 72: Businesses benefit from backup proc
Page 73 and 74: Engineering Transnet Engineering is
Page 75 and 76: OVERVIEW communication technology.
Page 77 and 78: Food and beverages Food and drink a
Page 79 and 80: OVERVIEW for selling vehicles but f
Page 81 and 82: OVERVIEW ports, partly with a view
Page 83 and 84: Airports Company South Africa PROFI
Page 85 and 86: PROFILE cial link in the local carg
Page 87 and 88: OVERVIEW Information and communicat
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A Leader In Solutions Dr Vusi Mncub
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PROFILE The criteria for each of th
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Education and training New universi
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Discuss. Educate. Innovate. DURBAN
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PROFILE Southern African Wildlife C
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OVERVIEW Tourism Tourism is a growt
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OVERVIEW Casinos are a popular part
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OVERVIEW Banking and financial serv
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OVERVIEW Development finance and SM
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LISTING South African National Gove
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LISTING Department of Public Enterp
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A REGIONAL OVERVIEW OF THE OVERVIEW
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VISION "Well-governed, connected, g
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FOCUS comprised local labour. Opera
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REGION ishing in the province. Bloe
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REGION Key sectors The leading econ
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PROFILE Executive Mayor, Cllr Mzwan
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Come invest Ekurhuleni Aerotropolis
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PROFILE • A proposal for local ec
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REGION manufacturer Sappi are among
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131 SOUTH AFRICAN BUSINESS 2017
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Polokwane Chamber of Business The C
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Open for business The City of Polok
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REGION netite, zinc, antimony, coba
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REGION its fair share to the econom
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Sol Plaatje the place to grow your
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REGION Platinum is found in the Rus
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Robertson). A good percentage of th
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The Unwavering Strength Behind All
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South African Business 2017 edition

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