South African Business 2016 edition

INTERVIEW and it could

INTERVIEW and it could actually be competing with South Africa as a gateway into Africa. The DRC have the greatest, most vast potential for growth and improvement when you look at all of its mineral reserves but, unfortunately, with all those threats of violence from rebel groups it is a very sensitive type of market. So those are the kinds of risks we look at. Vee Craft crew boat supplied to Nigeria. What are the limiting factors you notice in terms of our economic growth? Unless we get our education on its proper footing so that it is more aligned with our growth strategies, then we’re going to miss out and we’ll still be looking into this mundane old stuff where we have unskilled labour producing equipment and material. The converting of materials requires a more renewed type of an employee, a worker, a worker with skills, a worker who has technological know-how... but that comes from what? Education! So that will limit our growth in a big way if we don’t get it right. Our infrastructure also needs a revamp and we need to invest more, but we are also seriously looking at maintenance issues. There’s no need to build a road that you can’t maintain. The other factor is that our policy at government level needs to be much more fl exible. At the moment we have very rigid policies, but sometimes we make policies that suggest that we want to restrict rather than enable our growth. What should the average business person know about Africa and the issue of risk? There are some key issues, one of which is the heightened level of political risk in most African countries. When you look at West Africa you see all the terrorist activities that are happening there, and the rebel situation in some countries, in particular in core growth countries such as Nigeria. I believe Kenya has incredible potential However, on the other side of risk is the reward. Does Africa offer investors far greater rewards for a relatively low risk? You’ve seen companies from South Africa that prove the advantage of the market in the rest of the continent. Look at Shoprite and MTN and the kind of success they have had investing in Africa and growing their markets into Africa. There are many companies that have set up shop in Africa and they are reaping serious rewards. Look at our banks, as well as brewing giant SAB. The rewards are much less in Europe, and that is something that you call a legacy perception, but, yes, most of our countries are small and come from a long period of exploitation from the West, so they certainly can offer an investor a much more faster and much higher return than you could hope to get in a mature market. I travel across the continent a lot and it always strikes me as funny that there are a lot more European dealers and other business people looking for opportunities in Africa compared to the amount of South Africans. To me, it sometimes looks like we are more scared of our continent and our country than so many of the welltravelled foreigners themselves. I mean even if you think about Zimbabwe… everyone is so scared about investing in Zimbabwe, but just think about it. What are you really scared of in Zimbabwe? Zimbabwe offers a tremendous amount of growth potential for a lot of companies. Group Five is there and we have been working with Group Five in Zimbabwe and they are very happy to continue the infrastructure building in Zimbabwe. You need to travel your country and continent and you will start to see the potential and opportunities that are waiting for you out there. SOUTH AFRICAN BUSINESS 2016 60

Export Credit Insurance Corporation SOC Limited (ECIC) PROFILE The ECIC facilitates and encourages South African export trade by underwriting export credit loans and investments outside South Africa. Profile The ECIC is the national Export Credit Agency of the government of South Africa and provides political and commercial risk insurance to facilitate export trade and investments outside South Africa. The ECIC aims to facilitate and encourage South African export trade by underwriting export credit loans and investments outside South Africa, which will help contractors win international capital goods and services contracts. The ECIC’s vision is to be leaders in the medium and long-term export credit and investment insurance business, focusing on project fi nance underwriting, customer needs, and prudent portfolio and risk management. Their mission is to provide export credit and investment insurance solutions in support of South African Capital goods and services by applying best practice risk management principles. Services The ECIC provides insurance that enables South African exporters to offer their services and products to the international market, with a particular focus on emerging markets in Africa that are considered too risky for conventional insurers. Its overarching goal – and its mandate from the South African government, as its sole shareholder – is to make South African exporters attractive to international buyers to attract foreign income, stimulate local economic growth and create local jobs.Founded on 2 July 2001 by the Export Credit and Foreign Investments Insurance Act (1957, as amended), the ECIC’s only shareholder is the Government Grinrod electric locomotives supplied for use in Sierra Leone. of South Africa, represented by Department of Trade and Industry (the dti). The ECIC is a registered financial services provider: FSB No. 30656 CONTACT INFO Key contact person Chris Thirion - Head: Stakeholder Management and Strategy Tel: +27 12 471 3800 Physical address: Block C7 & C8, Eco Origins Office Park, 349 Witch Hazel Ave, Highveld- Ext 79 Centurion Postal address: PO Box 7075, Centurion, 0004 Email: info@ecic.co.za Web: www.ecic.co.za 61 SOUTH AFRICAN BUSINESS 2016