ECIC Growing Its Footprint In Ethiopia and the DRC

(Forbes Africa, Johannesburg, 4 March 2022) The Export Credit Insurance Corporation (ECIC) provides political and commercial risk insurance cover to South African exporters of goods and services and to cross border investors. Its strategic focus is on emerging markets in Africa and outside the continent that are considered too risky for conventional insurers. Ethiopia and the Democratic Republic of Congo (DRC) are amongst the largest economies in Africa and are therefore key markets for South African exporters and the ECIC.  The ongoing civil war, which started in November 2019, created a highly uncertain environment in Ethiopia. The recent release of opposition political party officials from prison by the central government is a significant step towards a resolution of the civil war. Investments into Ethiopia for which ECIC was involved include a US$12,5 million in a cement plant by South Africa’s Pretoria Portland Cement (PPC) and a USD121,5m by Vodacom South Africa in 2021. ECIC provided political risk insurance cover for both investments. The DRC is endowed with exceptional mineral resources including cobalt and copper, significant arable land, and huge hydropower potential. This continues to attract significant investment into the country making it the third largest recipient of foreign direct investment in Sub Saharan Africa. The ECIC supported projects in various sectors of DRC including mining, transport, food, and construction sectors. South Africa can supply capital, skills, machinery, and consumer goods to help the country reach its development potential.