Export Credit Insurance Corporation (ECIC)
ECIC is South Africa’s official export credit agency. Its mandate is to facilitate and encourage export trade and outbound investments by providing risk insurance and guarantees. In simple terms, ECIC helps local companies (and their banks) manage the risks of doing business abroad, especially in developing countries or large long-term projects. ECIC is a schedule 3B public entity (under the dtic’s oversight) and works closely with commercial lenders and exporters.
What ECIC Offers:
Export Credit Insurance:
The core product of ECIC is insurance for exporters of capital goods and related services. When a South African exporter sells machinery, equipment, or undertakes a construction project in another country on credit terms (meaning the foreign buyer will pay over time, e.g. 5 or 10 years), ECIC can insure the transaction. The insurance covers the risk of the buyer not paying due to commercial reasons (insolvency, protracted default) or political events (war, nationalization, currency restrictions in the buyer’s country). By having this insurance, the exporter or its financing bank is protected – ECIC will pay out the claim, and this makes banks much more willing to finance the export contracts (since the risk is taken by ECIC). This is especially useful for large exports to higher-risk markets.
Small and Medium Transactions Program:
ECIC recognizes that not all exports are huge; thus it has a program for smaller export deals. Transactions up to USD 10 million are considered “small” and up to USD 20 million “medium” in this context. The Small & Medium Transactions (SMT) insurance program provides a streamlined and somewhat faster underwriting process for these deals, often with pre-approved country limits and possibly slightly different terms to accommodate smaller firms. This allows even relatively small exporters to access credit insurance without a lengthy process.
Investment Insurance:
For South African companies investing equity in projects abroad (or making shareholder loans to foreign subsidiaries/joint ventures), ECIC offers political risk insurance for those investments. This covers risks like expropriation (the host government taking the project assets), political violence, or currency inconvertibility (not being able to repatriate profits) that could impact the investment. It’s an important product for companies venturing into new markets, ensuring that if a political event derails the project, they can recover a portion of their invested capital through insurance.
Specialised Covers:
ECIC also has a few niche insurance products. For instance, Lease and Return Cover – insurance for situations where South African firms lease out plant or equipment to foreign clients and expect it to be returned. ECIC covers the risk of loss or non-return of that equipment. Another offering is the Black Industrialists Export Support Program (underwriting framework) where ECIC aligns with the Black Industrialist policy: it may offer more favorable terms (like reduced premia or higher cover percentages) to qualifying black-owned exporters to support their international growth.
How to Engage:
Typically, exporters approach ECIC during the planning of an export contract that will need buyer financing. The process involves providing information on the foreign buyer, the host country, the contract terms, and the South African content of the
project. ECIC carries out a risk assessment (including country risk and credit risk analysis). If approved, it issues an insurance policy or guarantee. For investment insurance, a similar application is made describing the investment project. The Funding by Agency – ECIC page on this platform will list ECIC’s main products (as individual pages like Export Credit Insurance, Investment Insurance, etc., summarizing their features). It will also give ECIC’s contact info and link to their official site for application forms. Generally, ECIC works B2B – it may coordinate with your bank that’s providing the export loan. So you might also be directed to ECIC by your lender.
Available Funds from the ECIC
ECIC FUNDING
Bond Insurance
The ECIC Bond Insurance Scheme enables banks and other financial institutions to increase their capacity to issue bond facilities for South African export contracts. ECIC provides cover against the calling of performance bonds by foreign buyers, protecting banks against losses arising from a South African exporter’s failure to fulfil contractual obligations. Cover is available on both a portfolio (Risk Participation Agreement) basis and a facultative (single transaction) basis.
ECIC FUNDING
Investment Insurance
ECIC Investment Insurance provides cover to South African business entities that wish to invest in foreign countries, protecting equity contributions, acquisitions, and shareholder loans against political risk events. Cover is available for up to 90% of the loss suffered by the investor and is structured to reflect the risk profile of the host country, the investment period, and the scope of covered political risk events. This product does not cover commercial risks — it is strictly a political risk insurance instrument for outbound South African investment.
ECIC FUNDING
Small and Medium Transactions
The ECIC Small and Medium Transactions (SMT) programme provides export credit insurance cover for South African export contracts valued up to USD 20 million. It is designed to make ECIC cover more accessible by using pre-approved underwriting criteria: if the foreign buyer or borrower meets these criteria, the South African exporter can be confident that ECIC support will be available without going through the full standard approval process. The insured facility covers up to 85% of the South African contract price, with 100% political and commercial risk cover available.
ECIC FUNDING
Export Credit Insurance
ECIC’s Export Credit Insurance provides cover to banks and suppliers against losses arising from political and commercial risk events on South African export transactions involving capital goods and/or services. By insuring term finance provided to foreign buyers or borrowers, the ECIC facilitates South African exporters’ access to medium- and long-term credit for their international contracts. The product also includes Foreign Exchange Risk Cover, administered by ECIC on behalf of the South African Reserve Bank, for USD-denominated transactions.
ECIC FUNDING
Black Industrialists Support Programme
The ECIC Black Industrialists (BI) Support Programme provides a specialised export credit insurance underwriting framework for Black South African-owned businesses seeking to participate in international export markets. The programme removes several standard barriers — including no assessment fees, unsecured insurance support for bonds and working capital, and a simplified approval process — to make ECIC cover accessible to black-owned start-ups and going-concern exporters. Export projects of up to USD 20 million are covered at 100% for both political and commercial risks.
ECIC FUNDING
Lease and Return of Plant / Equipment Insurance Cover
The ECIC Lease and Return of Plant/Equipment Insurance Cover protects South African export contractors and lessors against the loss of, or failure to recover, capital equipment used on foreign construction and project sites. The product addresses the specific challenge faced by South African contractors who lease equipment internationally and encounter difficulties repatriating it at the end of a project. Cover is available under two structures: a Financial Lease (Full Pay-Out) and an Operating Lease (including Return of Equipment cover).
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