Boost for Japanese exports to Africa through SA

Demand for freight from Japanese companies could increase following the signing of a reinsurance agreement between the Export Credit Insurance Corporation of South Africa (ECIC) and Japan’s official export credit agency, Nippon Export and Investment Insurance (Nexi). Nexi covers risks which arise in foreign transactions and which are not covered by commercial insurance. The Japanese government established the trade and investment insurance programme in 1950 as part of its export promotion policy. ECIC is a state-owned entity mandated to facilitate and support South African cross- border investments and exports by underwriting political and commercial risks. The agreement was formally announced during the 9th Tokyo International Conference on African Development (TICAD9) in Yokohama, Japan. The agreement, the first between Nexi and an African export credit agency, will enable Japanese companies operating in South Africa to expand exports into third markets, including within the African continent, according to a joint statement. “This agreement demonstrates South Africa’s growing role as a trade and investment hub for the African continent,” said ECIC acting chief executive officer Ntshengedzeni Gilbert Maphula. “By joining forces with Nexi, we are not only strengthening bilateral economic cooperation with Japan but also creating new opportunities for intra- African trade in support of the African Continental Free Trade Area (AfCFTA). “This partnership enhances ECIC’s capacity to underwrite complex cross-border transactions while reinforcing investor confidence in South Africa as a gateway into Africa.” South Africa hosts the largest concentration of Japanese companies on the continent, and this agreement will further anchor the country’s position as a launchpad for trade and investment into Africa, he says. ER