Exclusive Interview

Mr. Zohir Laiche: Credit and political risk insurance (CPRI) is still developing in Algeria and have not yet been fully integrated into the country’s trade, investment, and business ecosystem. Although awareness is growing thanks to CAGEX’s effort and action on the spot, many companies, particularly SMEs, remain relatively unfamiliar with the benefits of credit insurance. The main gaps include limited market penetration, insufficiently structured demand from exporters, and a greater need for a risk management culture within companies.

CAGEX is actively working to bridge these gaps by strengthening its awareness programs, offering tailored insurance solutions and developing partnerships with banks and financial institutions to integrate credit insurance into their offerings. In addition, our credit insurance company is collaborating with regional and international stakeholders, such as the AMAN Union and ICIEC, to promote best practices, build capacity, and increase market visibility.

AMAN Union and ICIEC play a key role in promoting the culture of credit insurance in Algeria and beyond. Through their technical assistance, knowledge-sharing platforms, and reinsurance solutions, they contribute to assist national agencies such as CAGEX to strengthen their resilience and expand their reach. ICIEC brings valuable expertise in Shariah-compliant credit insurance, which aligns with Algeria’s growing interest in Islamic Finance.

CAGEX has a close collaboration with ICIEC, partly through its landmark Reinsurance Agreement signed during the 14th Annual General Meeting of the AMAN Union in Algiers last December. What is the status and progress of this collaboration as you expand your geographical reach and footprint beyond Algeria into new markets all over the world especially in Sub-Saharan African, where there are ever-evolving demands, geopolitical uncertainties and risks?

The partnership between CAGEX and ICIEC has just taken an important step forward after the signature of the Reinsurance Agreement at the 14th Annual General Meeting of the AMAN Union in Algiers. This agreement strengthened our risk-sharing mechanisms, enabling us to increase our underwriting capacity and provide more effective support to Algerian exporters.

As we expand, our geographic footprint beyond Algeria, particularly in Sub-Saharan Africa, our collaboration with ICIEC remains essential. This region offers numerous opportunities, not only but also complex challenges, such as constantly evolving geopolitical risks and liquidity constraints. By leveraging ICIEC’s multilateral expertise and reinsurance support, CAGEX may offer more robust coverage to Algerian and Regional exporters mitigating, in this way, commercial risks and facilitating access to new markets. We also work closely with ICIEC on capacity building and market information sharing initiatives, so that our clients benefit from risk management solutions adapted to the realities of emerging markets.

ICIEC is unique in that it is the only multilateral Shariah-complaint credit and Investment insurer in the world. Algeria is a latecomer to the global Islamic finance industry despite being a founder member of the OIC and the Islamic Development Bank (IsDB). Does Islamic finance and investment, credit and political risk insurance (PRI), fundraising through syndicated Murabaha and Sukuk, have a role to play in the Algerian economy and financial and business sectors? If so, what is CAGEX doing to promote the industry per se and the credit and PRI sector in particular?

Islamic finance is steadily growing in Algeria, despite the country’s late arrival at the global level. The government has taken steps to develop the industry, including launching Islamic banking products and exploring alternative financing mechanisms such as Sukuk. However, structured growth and regulatory developments are still needed.

Credit and political risk insurance (CPRI) within the framework of Islamic Finance plays a crucial role in securing investments and trade transactions, particularly for Algerian exporters seeking to enter OIC markets.

CAGEX is committed to support this development by collaborating with ICIEC and other Islamic financial institutions to promote Shariah-compliant credit insurance solutions. Additionally, CAGEX is actively working with local financial institutions to integrate Islamic credit insurance into their offerings, ensuring to businesses seeking Islamic financing to get appropriate risk management tools.

As the country explores syndicated Murabaha structures and Sukuk for raising capital, we see an opportunity for insurance mechanisms to complement these initiatives, thereby strengthening investor confidence and financial stability.

Algeria is hosting the IsDB Group Annual Meetings in May 2025. Do you think this will open the economy and market to further cooperation in Islamic trade, investment and development finance? Which countries and regions are the priorities for Algerian exporters and importers?

The organization of the IsDB Group’s Annual Meetings in May 2025 represents a strategic opportunity for Algeria to strengthen its role as a key player in Islamic trade, investment, and development finance. This event will bring together policymakers, investors, and financial institutions, creating a platform conducive to enhanced cooperation and new investment opportunities.

We expect increased interest from IsDB member states in exploring trade and investment partnerships with Algeria. This could lead to strengthened cooperation in export credit insurance, infrastructure financing, and SME’s development. For CAGEX, this is an opportunity to showcase Algeria’s potential as a trade hub and reaffirm our role in facilitating cross-border transactions.

Priority markets for Algerian exporters and importers include North Africa, West Africa, the Middle East, and selected Asian economies within the OIC. Strengthening trade ties with these regions will be essential to diversify Algeria’s economic partners and reduce dependence on traditional markets.

Looking ahead, what the priorities for CAGEX, its ongoing relations with ICIEC, the rest of the IsDB Group and in its efforts to expand to new markets especially in the OIC fraternity and beyond.

Looking ahead, CAGEX has set several strategic priorities:

1. Strengthening our collaboration with ICIEC and the IsDB Group: We aim to deepen our partnership with ICIEC to improve our reinsurance capabilities, expand our product range and facilitate trade finance solutions for Algerian exporters.
2. Expanding into new markets: We are focusing our efforts on expanding beyond Algeria, particularly in OIC countries and Africa, by developing solutions tailored to the needs of exporters operating in high-risk markets.
3. Promoting the culture of credit insurance: One of our main challenges remains increasing the penetration of credit insurance in Algeria by conducting awareness campaigns and collaborating with financial institutions, mainly, banks.
4. Investing in digitalization and innovation: We are implementing digital solutions to optimize our processes, improve the customer experience and improve our risk assessments.
5. Managing economic and geopolitical uncertainties: CAGEX will continue to adapt its strategies to protect Algerian exporters against global risks.

In the end, our ambition is to position CAGEX as a regional leader in credit insurance industry building on our partnerships with ICIEC, AMAN Union and the IsDB Group.