The Export Credit Insurance Corporation of South Africa (ECIC) has entered into a memorandum of understanding (MoU) on cooperation with the export credit insurance agencies (ECAs) of the other Brics member countries – Brazil, Russia, India and China.
The MoU, which was signed on the last day of the Brics Summit , in Fortaleza, Brazil, on July 15 aimed to strengthen collaboration among member countries’ ECAs by establishing a framework of cooperation to support and encourage international trade as well as facilitate the supply of goods and services from their respective countries.
According to the memorandum, the agencies would also cooperate on joint projects targeted at developing the accumulated potential of trade and manufacturing ties in third-world countries.
The information exchange envisaged under this enhanced collaboration would allow ECAs to reduce their risks and improve Brics members’ insurance export support.
“The cooperation will also help foster trade-support networks, business linkages and improve the business environment between South Africa and [the] other Brics countries,” commented ECIC CEO Kutoane Kutoane, who signed the agreement on behalf of the agency.
“There is tremendous value in engaging exporters and supporting South African trade and investments in [the other] Brics countries. The agreement will also enable Brics ECAs to seek assistance and advice from each other in all matters relating to export insurance for projects undertaken in any of the Brics countries.”
He added that there was also good scope for leveraging the linkage among ECAs to enhance exports.
“This agreement and collaboration will increase the presence of South Africa’s companies in [the other] Brics countries. The ECIC, in collaboration with South Africa’s banks and development finance institutions, looks forward to a sustainable relationship for the support of export trade development through increased cooperation,” Kutoane explained.
The five export credit agencies of the Brics countries are the Brazilian Fund and Guarantee Management Agency, the Export Insurance Agency of Russia, the Export Credit Guarantee Corporation of India, China Export & Credit Insurance Corporation and the ECIC.
They are all State-owned agencies and members of the Association of International Union of Credit & Investment Insurers.