CBE Green-lights Launch of Export Risk Guarantee Company

Naglaa Nazhi, Advisor to the Governor of the Central Bank of Egypt (CBE) for African Affairs said that the Export Credit Guarantee Company, which is 100% owned by the Central Bank, with a capital of $600 million, will start operating within two months.

Nazhi added during the fourth meeting of the Chemical Industries Export Council that the company is the first Egyptian entity that strategically supports Egyptian industrial and service exports in Africa.

She reviewed the means of cooperation of the Central Bank to support Egyptian exporters in facing the challenges they face with banking transactions when exporting to the African market.

She referred to the RBS system, which includes 89 African banks, through which it guarantees the settlement of payments by exporters to African countries.

Nazhi said that there are no problems in settling receivables within the framework of this system, which is traded in dollars and euros, which is expected to include another basket of currencies during the coming period.

On his part, Hazem Bashir, a member of the Export Council called for opening an account in the local currency of both Egypt and Sudan, pointing out that Sudan is one of the largest markets for Egyptian exports, and there is a desire by the political leadership of both countries to enhance trade and economic cooperation.

He noted that having one account for the two currencies will help verify the data of trade exchange data between the two countries and will increase the demand for the pound, which will raise its value.

The Board of Directors of the Central Bank agreed, at the end of last year, to establish an export credit risk guarantee company with the aim of supporting Egyptian industrial and service exports to the African continent, as well as supporting Egyptian contracting companies in winning major project contracts with African governments, whose annual volume is estimated at about $60 billion.

The establishment of an export credit risk guarantee company comes within the framework of the directives and keenness of President Abdel Fattah El-Sisi on the importance of strengthening strategic cooperation with African countries, especially on the economic level.

The Central Bank carried out the studies of the new company in conjunction with the African Export-Import Bank, the technical advisor for the project.

CBE, in its capacity as the owner of the Export Credit Risk Guarantee Company has joined the Berne Union, which consists of more than 86 countries, all working in the field of insurance.