The Export Credit Insurance Corporation of South Africa SOC Ltd: Study on the Potential Market Gap in the Provision of Short-Term Trade and Finance Insurance Products for South African Exporters and Buyers of South African Goods and Services

The Export Credit Insurance Corporation of South Africa SOC Ltd (ECIC) commissioned a study on the market for the provision of short-term trade and finance insurance products for South African exporters and buyers of South African goods and services.

The objectives of the research were to:

• gain an understanding of short-term trade finance and insurance products globally and in South Africa;
• identify potential gaps in the market;
• identify new short-term trade finance and insurance products; and
• provide recommendations to streamline ECIC’s role in the trade finance market to ensure optimal utilisation of limited resources for South African exports abroad.

The methodology included:

• a comprehensive literature review,
• international benchmarking research, which examined trade financing and Export Credit Agency (ECA) activity in the United States of America (USA), Brazil and China; and
• key stakeholder interviews to obtain in-depth understanding of the current shortcomings of the short-term trade finance and insurance market in South Africa.

This research provided input and insights to assist the ECIC in streamlining its role in the short-term credit insurance market so as to ensure optimal utilisation of limited resources.