Cairo, Egypt

Amid rising urgency for instruments to de-risk investment across Africa, the Africa Co-Guarantee Platform’s (CGP) six partners have affirmed commitments to better leverage guarantee and insurance products, resulting in more trade and investment across Africa. 

The partners pledged to extend direct transaction support for specific projects, including infrastructure development and optimizing balance sheets by sharing risk. They will develop new and hybrid products to address issues such as intra-regional trade, the current food and fertilizer crises, and enhanced coverage for infrastructure investments, public-private partnerships, and fragile/transition states and situations. The CGP will also work with stakeholders to build capacity in the use of risk mitigation instruments that strengthen project preparation and bankability.

The partners are the African Development Bank, African Trade Insurance Agency (ATI), African Union Development Agency (AUDA-NEPAD),  GuarantCo (part of PIDG, the Private Infrastructure Development Group), the Islamic Corporation for the Insurance of Investment and Export Credit Insurance (ICIEC), and Afreximbank, which hosted the steering committee meeting.

In his opening remarks, Afreximbank’s Director of Guarantees and Specialized Finance Kofi Asumadu-Addo, said: “This is a critical moment and the CGP is needed more than ever. The COVID-19 pandemic, the Ukraine crises and the consequent macroeconomic challenges facing the continent, require urgent action on our part as risk mitigation providers. Collectively, we have the capacity among the Platform partners to respond adequately and appropriately to help de-risk and attract investments into and across Africa. We need to bring this to bear in order to reduce the trade and investment financing gap. Afreximbank supports the CGP – but we want to see more concrete results.”

Max Ndiaye, Acting Director of Syndications, Co-Financing and Client Solutions at the African Development Bank, said: “This platform was launched in 2018 by President Adesina and the senior leadership of the other partners to help overcome the clear risk mitigation gap in Africa, which stands in the way of closing more trade and investment deals. The urgency has only become greater since then. We need a transaction-focused platform that really delivers for our stakeholders.”

ATI’s Chief Underwriting Officer, Benjamin Mugisha, said the platform would leverage each member’s strengths to provide proactive solutions to address Africa’s needs. “The Co-Guarantee Platform has a unique opportunity to synergize its members' shared vision and mandate and has committed to proactively do this going forward. The platform will leverage each members strengths to providing proactive solutions to address the needs of the continent.”

Ibrah Wahabou, AUDA-NEPAD’s Head of Infrastructure and Connectivity, said: “The Co-Guarantee Platform is Africa’s bold response by Africa-based DFIs and the African Union Development Agency to deal with the exaggerated, unjustified perception of Africa as a risky place for investors. Together, through the CGP, we are changing the narrative based on concrete deals.”

GuarantCo Associate Director Ben Storrs said: “We look forward to supporting the development of the Co-Guarantee Platform and institutional partnerships to address Africa’s infrastructure challenges at a greater scale. Collectively, we hope to continue building local capacity to enable greater use of innovative credit mitigation solutions to unlock critical infrastructure financing.”

Bessem Soua, ICIEC’s Division Manager for Sub-Saharan Africa and Europe, said: “The Co-Guarantee Platform is a unique opportunity for multilateral partners to work together on scaling up risk mitigation capacity to de-risk investments and trade in Africa. Priorities and concrete steps have been agreed among the partners to take the platform to the next level and ensure a collective and coordinated response to the continent's needs.”

The Partners also launched the CGP’s web presence to provide information about the platform and its partner institutions. The site also contains an email address to submit transactions and queries.

About the Africa Co-Guarantee Platform 

The Africa Co-Guarantee Platform is a transaction-based mechanism created to overcome Africa’s risk perception gap and increase financing for trade and investment projects through more effective use of guarantees and insurance.  Created in 2018, the platform’s current pipeline includes trade and investment projects in the energy, agriculture, health and infrastructure sectors across Africa. The African Development Bank hosts the CGP secretariat.

Media Contacts: 

African Development Bank

Olufemi Terry, Communication and External Relations Department,     Email: media@afdb.org

Afreximbank

Amadou Labba Sall, Email: asall@afreximbank.com

AUDA-NEPAD

Mwanja Ng’anjo, Head of Communication, Email: MwanjaN@nepad.org

ICIEC

Rania Binhimd, Communication Department, Email: RBinhimd@isdb.org

African Trade Insurance Agency

Sheila Ongas, Communications Officer, Email: sheila.ongas@ati-aca.org

GuarantCo Marjolein van Kampen, Communications Director, Email: marjolein.van-kampen@guarantco.com

Cairo, Egypt

The Board of Governors of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) approved ID 600 million (about USD 805 million) increase in capital for the foremost Shariah-compliant multilateral insurer during its 29^th Annual Meeting held in Sharm El Sheikh, Egypt on 4th June 2022.

The Governors approved a 150 percent increase in the authorized capital of ICIEC to make it ID 1 billion (about USD 1.35 billion), the largest in its history. Based on the approval, the subscribed capital is targeted to be increased by 168% from ID 297 million (about USD 398 million) to ID 797 million (about USD 1.08 billion). In addition, a special share class comprising ID 100 million (about USD 135 million) of the increased capital has been allocated for subscription by financial institutions owned by the member states of ICIEC.

The ICIEC Board of Governors Meeting was held during the 47^th Annual Meetings of the IsDB Group between 1-4 June 2022 in Sharm El Sheikh, Egypt, during which the Board also approved the Corporation’s 2021 Annual Report and audited Financial Statements.

The capital increase approval underscores the strong support enjoyed by ICIEC from its member states and an endorsement of its strategic growth plans in delivering the objectives of sustainable development to its member states. Moreover, the approval highlights the diversification of capital resources, with the inclusion of financial institutions, while prioritizing its mandate to member states.

According to ICIEC CEO, Mr. Oussama Kaissi, “Capital is important for a multilateral insurer because it determines our ability to underwrite more business and boost reinsurance capacity to support our member states. The Chairman of the ICIEC Board of Directors, Dr. Muhammad Al Jasser, and the entire Board have been tremendously supportive of ICIEC management. The Board recognized the need to increase the capital of ICIEC in order to continue to carry out its developmental mandate effectively. Furthermore, this capital increase will scale up ICIEC’s financial strength, enhance its loss-bearing equity resources, improve competitive position in the market and internal capital generation capacity-thus strengthening its credit fundamentals.”

Despite a challenging year worsened by the global economic impact of the COVID-19 pandemic, ICIEC reported business insured totaling US$9.8 billion in 2021. ICIEC’s 2021 business environment was marked by unprecedented risks, shifting priorities, and the COVID-19 response initiatives of the IsDB Group.

Despite the impact of the pandemic on insurance operations and the steep decline in market rates of treasury investment, Corporate Net-Results for 2021 stood strong at a US$ 9.3 million surplus equivalent to 182 percent achievement of the Business Plan target for the year.

PS: ID = Islamic Dinar, the unit of accounting of the IsDB Group

One ID = One SDR (Special Drawing Right) of the International Monetary Fund)

One SDR = US$1.34 at 7 June 2022       One ID = US$1.34

Jeddah, KSA

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Islamic Development Bank (IsDB) Group, signed a wide-ranging Memorandum of Understanding (MoU) with Export Bahrain, whereby ICIEC would provide export credit insurance services in support of small-and-medium-sized enterprises (SMEs) in the country.

The MoU was signed virtually in a video link by Mr. Oussama Kaissi, Chief Executive Officer of ICIEC, and Mrs Safaa Abdulkhaliq, Acting Chief Executive Officer of Export Bahrain, the national agency whose mandate is to support the development of exports of local SMEs to engage in global markets. This would be done through the provision of export credit insurance from ICIEC’s range of de-risking solutions to cover various commercial and non-commercial risks, including buyer bankruptcies, currency and political risks.

Export Bahrain is the flagship initiative of the Kingdom’s National SME Development Board. Earlier this year it reached a new milestone by facilitating over US$100m in export value through SMEs as of June 2021. Export Bahrain has strategically helped SMEs based in Bahrain to export more than 51 different product and service categories across ten sectors to over 55 markets across the GCC, Asia, Africa, Europe, Australia, UK, and the US.

Under the MoU, the two parties also agreed that ICIEC would use its expertise and knowledge of local and global markets especially those in member countries with the aim of giving institutional support to Export Bahrain and developing and enhancing the export capabilities of Bahraini SMEs to these markets.

ICIEC and Export Bahrain will also enhance their working relationship by exchanging economic and trade information and statistics on a regular basis. ICIEC in addition will also organize technical training courses relating to the export credit and investment insurance ecosystem for Bahraini officials, exporters and allied services.

All the above services and provisions provided by ICIEC will be channelled and processed through Export Bahrain. To facilitate a smooth operational and coordination process, ICIEC and Export Bahrain will establish a Specialist Working Group at each entity which would need on an ad hoc basis and when necessary.

Mr Oussama Kaissi, CEO of ICIEC, welcomed the signing of this landmark MoU. “Despite the onset of COVID-19,” he added, “many ICIEC member countries have shown remarkable resilience, especially in trade and exports. In the case of Bahrain, for instance, the export value facilitated through Export Bahrain in the First Half of 2021 had already surpassed the total export value of 2020 due to the increased awareness and shift in the mindset of local businesses. ICIEC stands ready to enhance its support to Bahrain by mitigating political and commercial risks for trade and investment through the provision of its Shariah-compliant insurance solutions for banks, corporates, ECAs, and other stakeholders.”

Mrs Safaa Abdul-Khaliq, Acting Chief Executive Officer of Export Bahrain similarly commented: “Export Bahrain’s efforts are geared towards establishing exclusive partnerships to ease and find solutions to the different challenges that Bahrain-based businesses may encounter during their export journey. We encourage businesses from all the various sectors to take advantage of this agreement as we are confident that this strategic partnership would allow more exporters to explore new markets and buyers with confidence, particularly now with more alternatives being offered in the Export Credit Insurance solution to Export Bahrain customers.”

Sharm El Sheik, Egypt

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the Arab Republic of Egypt, represented by the Ministry of Trade and Industry and two other partners of the Arab-Africa Trade Bridges (AATB) Program, have signed a Framework Agreement to increase economic integration and support sustainable growth in all Arab and African countries.

The two-year Framework Agreement will focus efforts on trade promotion, specifically in sectors where significant added value is created. Moreover, industries that rely on a more skilled workforce and industries that can promote further investment will receive an added boost as a result of this work program.

Egypt has been one of the active Member States under the AATB since its accession in 2019 in a bid to enhance the movement of Egyptian exports in African markets, raising the total level of exports to $100 billion over the next five years. The framework agreement will also support the African Continental Free Trade Agreement (AfCFTA), which is one of the largest free trade areas in the world.

Coordination was made between the General Secretariat of the Program and the Development Projects Unit of the Ministry of Trade and Industry in the Arab Republic of Egypt, to design a work program for the benefit of Egypt, implement projects for the benefit of the Egyptian economy, and help the various sectors to enhance their capabilities.

The agreed activities, which will be implemented between 2022-2023, include a trade mission: to Tunisia - at least 100 bilateral meetings were held between Egyptian companies and their Tunisian counterpart (concluding initial contracts of more than $5 million dollars across 20 companies); and to Nigeria – at least 75 bilateral meetings were held between Egyptian companies and their Nigerian counterparts (concluding contracts of more than $4 million dollars across 15 companies).

The conclusion of deals and contracts with commercial partners from across Africa will also be realized, in participation with the African Export-Import Bank (Afreximbank), International Islamic Trade Finance Corporation (ITFC), including finance and guarantees for several African countries, and a share in an annual seminar to fund trading in Africa. “Under this Framework Agreement between Egypt and the AATB partners of ICIEC, ITFC and Afreximbank we will foster greater trade flows between the two regions,” ICIEC CEO, Oussama Kaissi, said. “Increasing economic integration and supporting sustainable development in all Arab and African countries is the mission statement of this long-lasting partnership.”

[Sharm El Sheik, Egypt]

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the Insurance arm of the (IsDB) Group, has released its Annual Report and Audited Financial Statements for 2021, upon approval from its Board of Governors on 04^th June 2022.

The Corporation, a member of the Islamic Development Bank Group (IsDB) Group, has once more demonstrated resilience in a year of unprecedented risks, shifting priorities and continuing global impacts of the pandemic. In 2021, ICIEC insured a near-record of USD 9.8 billion with Corporate Net-Results equally strong at USD 9.3 million significantly surpassing targets. Since its inception, ICIEC has supported exports, imports, and foreign direct investments with a cumulative amount of USD 83.3 billion.

Based on its performance, ICIEC has maintained, for the 14^th consecutive year, an Aa3 rating by Moody’s - which is one of the strongest in the Export Credit and Political Risk Insurance industry. Our strong credit rating reflects our resilience, standalone fundamentals, as well as the strong willingness of our key shareholders, including the IsDB (AAA stable) and our Member States, to support ICIEC in times of financial distress.

In 2021, ICIEC supported a combined USD 4.5 billion of intra-trade and intra- investment among OIC countries, representing an 11% decrease as compared to the previous year. Of that, USD 3.7 billion represented intra-OIC trade among OIC countries, and USD 0.8 billion represented intra-investment among OIC countries. ICIEC support for trade and investment has helped MSs to achieve long-term sustainable development. ICIEC catalyzes impact by supporting transactions and projects that contribute to the SDGs. Through these SDGs, a call to action has been established to eradicate poverty, protect the environment, and improve the lives of everyone on Earth. Of the 17 SDGs, ICIEC is prominently committed to 6 goals that are directly related to its mandate.

Releasing the 2021 Annual Report, the Chief Executive Officer of ICIEC, Mr. Oussama KAISSI, expressed optimism about the Corporation’s prospects for 2022, stating “like all successful organizations, we have core priorities that give focus to our operations and enable our success. ICIEC priorities include the delivery of development impact, enabling Islamic finance, the development of value-based partnerships, and enabling excellence in both our staff and industry. In times of difficulty and volatility, we stand firmly behind our member states as the only Shari’ah-compliant multilateral export credit and investment insurance provider in the world”.

Mr. KAISSI went on to say “I would like to take this opportunity to thank the dedicated ICIEC team, whose hard work has been the backbone of its continued success. I would also like to thank His Excellency the Chairman, along with the Honorable Members of the Board of Governors and Board of Directors. They have been integral in providing guidance through their unparalleled wisdom and experience to navigate through its most challenging year for ICIEC. Their dedication to our success continues to inspire us and our decision-making in pursuit of delivering the best possible development solutions to our Member States”.

Sharm El Sheik, Egypt

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) cooperates with one of Egypt’s largest companies to accelerate climate action in the ICIEC Member States.

The Memorandum of Understanding (MoU) between ICIEC and El-Sewedy Electric provides a framework for joint action in promoting climate action and water projects, in line with both the ICIEC Climate Action Guidelines and El-Sewedy Electric’s Sustainability Strategy 2020-2023.

The MoU was signed by Mr Oussama Kaissi, Chief Executive Officer of ICIEC and Ahmed El-Sewedy, Chairman and CEO of El-Sewedy Electric.

Elsewedy Electric is a leading global provider of energy solutions with a footprint across electric, engineering and construction, digital solutions and infrastructure investments. Its climate action cooperation with ICIEC will lead to stronger coordination and more efficient implementation of its activities to the benefit of the Egyptian economy. The agreement will also bolster Egypt’s and other Member States’ drive toward the UN Sustainable Development Goals, the Paris Agreement, Egypt’s 2030 Vision and National Renewable Energy Strategy 2035, among others.

Under the terms of the MoU, ICIEC, which is the insurance arm of the Islamic Development Bank (IsDB) Group, will work with El-Sewedy Electric to: identify, assess and manage climate and water risks and opportunities; exchange essential information, expertise and resources; extend training and capacity building opportunities; and organize joint seminars and workshops.

Oussama Kaissi, CEO of ICIEC, said the signing of the MoU was a reflection of ICIEC’s prioritization of climate initiatives. “ICIEC is committed to meeting the objectives of global sustainable goals. This partnership with El-Sewedy Electric – a leading provider of sustainable projects in energy and infrastructure that enable businesses and communities to thrive – reflects that commitment. We are excited to see the many areas of cooperation come to fruition and to build on those in due course.”

Cairo, Egypt

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has signed a Memorandum of Understanding (MoU) with the Federation of Afro-Asian Insurers and Reinsurers (FAIR) to foster greater cooperation to encourage business collaboration among their members.

Under the MoU, there will be greater cooperation between FAIR and ICIEC on sharing insurance and reinsurance information, regulatory guidelines, emerging insurance needs, and market gaps, ICIEC’s added value in risk mitigation, and credit enhancement for the benefits of common countries of coverage/operations.

The MoU was signed by Oussama A. Kaissi, CEO of ICIEC, and Mo’men Mukhtar, the Secretary-General of FAIR.

Oussama Kaissi, CEO of ICIEC, said the MoU will help garner a more holistic approach to business collaboration for both parties. He added: “This framework is a landmark agreement because it will promote greater cooperation between members of FAIR and ICIEC, including fostering increased technical assistance, training and capacity building.”

Sharm El Sheik, Egypt

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has signed a Memorandum of Understanding (MoU) with the Arab Republic of Egypt and the Federation of Egyptian Industries (FEI) to facilitate co-operation and promote trade and investment opportunities for Egyptian industries.

Under the agreement – the Framework Cooperation on Trade and Investment – the parties will provide professional representation and advocacy of Egyptian industries’ interests both locally and globally, as well as a regular exchange of essential information, knowledge, advisory and consultation services.

The cooperation under the MoU will also extend to training and capacity building opportunities to create awareness of ICIEC’s added value in risk mitigation and credit enhancement, organise joint seminars, conferences and workshops; and any other activities and programmes of mutual interest which the parties may jointly devise.

The MoU was signed by Oussama. Kaissi, CEO of ICIEC, and Mohamed Zaki El Sewedy, Chairman of the FEI.

Oussama Kaissi, CEO of ICIEC, said: “ICIEC is pleased to announce a new framework agreement with FEI which will foster increased trade and investment opportunities for Egyptian importers and exporters. This MoU is paramount to further the cooperation between ICIEC and Egyptian businesses going forward.”

Sharm El Sheik, Egypt

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and UAE-headquartered Tabarak Investment Capital have signed an insurance policy that will provide greater insurance cover for the export and import of Shariah-compliant goods and services.

The documentary credit insurance policy will apply to the confirmation of Irrevocable Letters of Credit (ILC) by Tabarak Investment Capital in the ICIEC Member States. The policy will cover the commercial and political risks of the issuing banks, thereby enhancing the capacity of Tabarak to expand its trade finance support in the United Arab Emirates.

The approved limit for the policy is $100 million over a 12-month tenure.

The insurance policy was signed by Mr Oussama Kaissi, Chief Executive Officer of ICIEC, who praised the partnership’s goal of “fuelling trade finance by giving confidence to banks that commercial and political risks will be covered”.

Sharm El Sheikh, Egypt

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and Saudi EXIM Bank have signed reinsurance agreements during the Islamic Development Bank’s Private Sector Forum (PSF) that will help facilitate the flow of trade finance into and out of the Kingdom of Saudi Arabia.

The Facultative Reinsurance Agreement will see ICIEC provide reinsurance to Saudi EXIM Bank coverage of confirmed documentary credits. The agreement encompasses documentary credits confirmed by Bank AlBilad and Arab National Bank – the original policyholders – and will create additional capacity for Saudi EXIM Bank to support exporters and importers of essential goods and services in Saudi Arabia.

Under the agreement, ICIEC’s reinsurance will provide protection against commercial and political risks of issuing banks in the ICIEC Member States. The combined approved limit for the reinsurance agreements is $138 million over a 12-month tenure.

Saudi EXIM Bank is an Export Credit Agency (ECA) that aims to promote the development and diversification of Saudi exports and increase their ability to compete in global markets in a range of sectors. It does so through the provision of export financing, guarantees, credit insurance and other facilities.

Mr Oussama Kaissi, Chief Executive Officer of ICIEC, welcomed the partnership which would boost Saudi Arabia’s competitiveness as well as its cooperation with the other Member States. “By providing this facultative reinsurance, ICIEC gives extra confidence to banks – as well as exporters and importers – those transactions will be protected against the range of risks confronting marketing participants today.”