2020 has been defined by the COVID-19 pandemic, which created life-altering circumstances and presented great challenges for people around the world. However, 2020 was also a year defined by hope and promise, as people, companies, institutions, and governments worked together to tackle these challenges using innovative solutions and strong partnerships. ICIEC has worked to be at the forefront of these innovations and partnerships and is delighted to show the developments of the Corporation in 2020: ICIEC’s Year in Review.
2020 Press Highlights
2020 was a significant year for ICIEC in terms of the events the Corporation both hosted and attended, and awards received. Majority of the events in 2020 were held virtually in response to the COVID-19 pandemic, offering an opportunity for ICEIC to provide leadership, support, and solutions to mitigate the challenges posed by the crisis. Event attendance helped ICIEC to keep stakeholders up to date on its activities and raise awareness of the benefits of Islamic finance.
On July 6th, ICIEC participated in the “IsDB Group Private Sector Action Response to COVID-19 Webinar, Launching New Online Initiatives”. Hosting over 700 participants from various industries, the webinar discussed challenges facing both the private sector and the global economy during the COVID-19 outbreak and provided a platform to discuss investment and trade opportunities in IsDB member countries. Learn more here.
On July 13th, ICIEC and the Islamic Centre for Development of Trade (ICDT) jointly organized a Webinar on the “Impact of COVID-19 on the Insurance of Investment and Export Credit for Strengthening Intra-OIC Trade and Investment”. During this virtual forum, participants discussed the role and experiences of insurance and export credit agencies in OIC countries along with the insurance sector’s response to the pandemic. The webinar highlighted the importance of the investment and export credit insurance sector in covering risks for countries, local companies, and international trade partnerships, both during the pandemic and in the post-pandemic future. Read more about the event here.
On September 14th, ICIEC was awarded “The Global Islamic Export Credit and Political Risk Insurance Award for 2020” at the 10th annual Global Islamic Finance Awards (GIFA). This marks the fourth time ICIEC has received this accolade since its introduction in 2016 – previous awards occurring in 2016, 2017, and 2018, respectively. Learn more about the award here.
On October 19th, Moody’s Investor Services (Moody’s) affirmed ICIEC’s Aa3 Insurance Financial Strength Rating (IFSR) for the 13th consecutive year with stable outlook. The report highlighted the significant growth in business during H1-2020 with gross premiums increasing by 21% over H1-2019. Moody’s’ acknowledged ICIEC’s low accumulation of claims, despite negative impacts from the pandemic, as a strength when compared with other global credit insurers that experienced notable weakening in claims performance. Read about why ICIEC received this rating here.
To close out the year, ICIEC was awarded two major awards from the Islamic Finance News (IFN) 2020 Awards. For ICIEC’s EUR20 million cover for the enhancement of a scientific high school in Yamoussourkro, Cote D’Ivoire, the Corporation was awarded the IFN Africa Deal of the Year, showcasing the innovation and importance of development to Ivorian growth. Meanwhile, ICIEC’s EUR142 million cover for the construction and development of hospitals and related health facilities in Cote d’Ivoire was awarded the IFN Sovereign and Multilateral Deal of the Year, as the Corporation worked to support Cote d’Ivoire in its pandemic response efforts. Read more about these awards here.
Publications
2020 was a significant year for ICIEC in disseminating information about the Corporation’s activities. Frequent and informative publications are organizational goals for the Corporation, ensuring transparency for our valued partners and clients. Furthermore, as the only multilateral provider of shariah compliant export credit and political risk insurance, ICIEC believes the Corporation’s publications can help guide other organizations towards industry best practices and innovations.
On May 31st, ICIEC released its Annual Report and financial statements for 2019. Despite 2019 being marked by the intensification of trade tensions, political instability, and weak global growth, the Corporation raised its business insured by 20% to reach USD 10.86 billion – the highest in the past decade. The Corporation saw an increase of more than 28% over the previous year in total intra-OIC business, insuring a total of USD 5.4 billion, involving 36 member countries. Read more on ICIEC’s impressive 2019 results here.
In July, ICIEC launched the first edition of its revamped quarterly newsletter. The newsletters have been designed to feature updates and announcements, industry insights and success stories from ICIEC and our partners. Re-introducing newsletters reflects the Corporation’s genuine desire for greater engagement with its valued partners, clients, and stakeholders.
On August 19th, ICIEC released its Annual Development Effectiveness Report (ADER) for 2019. The ADER highlights the impact of ICIEC’s work on furthering human development within OIC member countries, including the Corporation’s impact on facilitating lasting development by providing insurance solutions for imports and exports of essential commodities, and the construction of critical infrastructure. Read more about the report here.
On September 14th, ICIEC released information regarding its performance over the first half of the fiscal year. The update highlighted that, while the pandemic has provided challenges for a positive financial performance, the Corporation was able to raise its total businesses insured by over 9%. Read more about these positive developments here.
On December 14th, ICIEC published a stock-take study for the G20 Saudi Presidency on “Best Practices of MDBs and Specialized Multilateral Insurers (SMIs) in Political Risk Insurance for Equity Investments, Medium and Long-Term (MLT) Debt Investments and other Insurance Solutions.” The study analyzes the current state of the political risk and credit insurance market for equity investments and MLT debt investments. It also identifies best practices and potential gaps in the market and provides recommendations on how identified gaps could be filled, particularly for low-income countries and fragile states. Learn more about our work on the G20 study here.
Partnerships
ICIEC understands the value of collaboration in expanding trade, strengthening coverage, and growing economies. This is why the Corporation has made efforts throughout 2020 to forge new relationships and strengthen existing partnerships throughout the pandemic. To do so, ICIEC has signed several new Memorandums of Understanding (MoU), cooperating with national Export Credit Agencies (ECA) to help stabilize OIC states and grow their economic prospects.
On June 30th, a MoU was signed between ICIEC and the Uzbekistan National Export-Import Insurance Company (Uzbekinvest). The partnership advances both parties’ respective operational mandates of providing insurance support for trade and investments. The new MoU will create opportunities for joint strategic projects between the two insurance entities in addition to other forms of cooperation such as technical assistance, training, and capacity building. Read about the ICIEC-Uzbekinvest partnership here.
On July 22nd, a MoU was signed between ICIEC and the Austrian ECA Oesterreichische Kontrollbank Aktiengesellschaft (OeKB). The MoU is an agreement for OeKB and ICIEC to work jointly at increasing projects and investments from Austrian businesses and investors into ICIEC member countries while providing other forms of cooperation such as technical assistance, training, and capacity building. The agreement allows for quick and flexible agreements for risk sharing in the form of reinsurance or co-insurance, encouraging higher risk appetite for trade transactions and investments. Read about the ICIEC-OeKB partnership here.
On August 17th, ICIEC signed a MoU with the United Kingdom’s ECA, which operates under the name UK Export Finance (UKEF). The MoU allows for both entities to enter co-insurance, reinsurance, or cooperation agreements to engage in strategic joint projects that support exports and investments from the United Kingdom into ICIEC’s member countries. The deal provides potential for UKEF to risk-share with ICIEC and leverage the Corporation’s preferred creditor status across key international markets such as UAE, Oman, and Bahrain – all ICIEC member countries. Read about the ICIEC-UKEF partnership here.
On September 7th, ICIEC signed a MoU with Compañía Española de Seguros de Crédito a la Exportación, S.A., Compañía de Seguros y Reaseguros, SME (CESCE). The partnership encourages cooperation in supporting trade and investment between Spain and ICIEC member countries through joint export credit insurance provisions, risk sharing, and co-insurance, in addition to promoting other forms of cooperation such as technical assistance and capacity building. Read about the ICIEC-CESCE partnership here.
On December 10th, ICIEC signed a MoU with the ECA Eximgarant of Belarus (Eximgarant). The signed MoU promotes collaborative efforts to support trade and investment between the Republic of Belarus and ICIEC member countries, encouraging joint export credit insurance provisions and other forms of cooperation such as technical assistance and capacity building. Read about the ICIEC-Eximgarant partnership here.
COVID-19 Response
ICIEC has been working since the beginning of the pandemic to forge partnerships and find solutions that help mitigate the challenge of COVID-19 in our member countries. ICIEC’s crisis response has brought close collaboration with IsDB and other members of the IsDB Group, ensuring the provided aid met the unique needs of our varying member countries and their citizens. The Corporation is continuing many of these support efforts into 2021.
On July 6th, ICIEC played a key role in launching IsDB’s Strategic Preparedness and Response Programme (SPRP), a COVID-19 focused innovation allocating USD 2.3 billion of aid to member countries and Muslim communities in non-member countries. This aid package has been crucial to helping member countries respond to the virus, restore normalcy, and restart their economies. The Programme is working to fulfill the IsDB COVID-19 Response “3 R’s”: Respond, Restore, Restart. Of the allocated aid, USD 150 million has been provided by ICIEC for extended insurance cover, facilitating continued trade and investment in member countries. Read about the launch of the SPRP here.
As of October 23rd, ICIEC continued in its partnership with IsDB by jointly launching the COVID-19 Guarantee Facility, an innovative program providing USD 2 billion to support the private sector. The facility will be implemented by the two entities to support COVID-19 hit industries in the OIC member countries and to attract cross-border investments. Learn more about the partnership here.
ICIEC continued its efforts to support those affected by the COVID-19 pandemic by partnering with the Islamic Solidarity Fund for Development (ISFD), the poverty alleviation arm of the IsDB Group. Together, ICIEC and ISFD launched ICERI, or the ICIEC-ISFD COVID-19 Emergency Response Initiative. The Initiative was created to help IsDB member countries meet their import needs of medicine, medical equipment, food supplies and other essential commodities.
Several strategic projects have already been supported through the ICERI, including ICIEC’s USD 9 million in LC confirmation insurance to BMCE Bank of Africa Morocco to secure urgent imports of strategic commodities to Senegal. The Initiative has also helped ICIEC extend USD 5.5 million in coverage to the State Bank of India’s Singapore branch for the critical importation of wheat to address food security for the citizens of Bangladesh. Read more about ICERI here
Seminal Projects
Throughout 2020, ICIEC provided insurance support for numerous important development projects across its member countries, enabling the development of infrastructure in a wide variety of fields. These ongoing projects are helping to address the unique needs of our member countries, furthering ICIEC’s mission to facilitate long-term and impactful investment. The Corporation made significant contributions to healthcare and medical infrastructure throughout the pandemic, improving the ability for healthcare workers to provide quality care and support to underserved communities.
ICIEC provided a cover of EUR142 million for a project in Cote d’Ivoire, which was financed by Deutsche Bank, helping to build two new hospitals in the south-eastern towns of Adzope and Aboisso. The two hospitals will employ around 600 local people and foster the development of a micro-economy in the areas surrounding them. Additionally, the project will finance five new medical units in existing hospitals across the country. Greatly improving citizens access to essential healthcare infrastructure.
ICIEC has extended more than EUR 143 million in cover toward infrastructure developments in Diamniadio, Senegal. ICIEC’s cover contributes to the construction of a 50,000-seat capacity Olympic football stadium, two training grounds and a system to produce and store the solar energy that will power the stadium, in addition to creating nearly 400 jobs.
ICIEC has issued EUR 50 million in guarantee coverage for a transformational telecommunications project in Indonesia conducted between China’s largest telecommunications equipment manufacturer and Indonesia’s second largest telco operator. By investing approximately USD 2 billion to expand and strengthen its 4G network, the telco operator will ensure 90% of Indonesia’s 267 million people, particularly in rural areas, will have access to reliable voice and data coverage.
ICIEC has provided EUR20 million in Non-Honoring of Sovereign Financial Obligation cover against the non-payment of a loan facility provided to the Government of Côte d’Ivoire. ICIEC’s cover enables the government to move forward with the renovation of the Scientific High School of Yamoussoukro in addition to advancing the construction of 22 new classrooms.
ICIEC covered approximately USD 9.6 million to Boskalis, a leading Netherlands-based maritime infrastructure company, to develop a new contract for the expansion of the Alexandria Port in Egypt. The capacity of the container terminal is on-track to accommodate approximately 1,250 million containers – double the Port’s existing capacity. The project will contribute to the creation of 3000 temporary construction jobs, in addition to the almost 3000 direct and 2000 indirect jobs created for the long-term.
