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US$2,1 million was injected into ECGC and about US$1 million into Aurex.

THE Reserve Bank of Zimbabwe (RBZ) has revived subsidiaries, the Export Credit Guarantee Corporation (ECGC), an export promotion company, and Aurex, a jewellery maker, the Financial Gazette’s Companies amp Markets (CampM) has established.

CampM can report that the two companies are now fully capitalised with ECGC, whose major role is to boost exports, now awaiting the Insurance and Pension Commission (IPEC)’s approval to start operating.

RBZ governor, John Mangudya, confirmed the development when contacted by CampM, saying US$2,1 million was injected into ECGC and about US$1 million into Aurex.

In addition to manufacturing jewellery, Aurex, which was established in 1992, also cuts and polishes diamonds.

“ECGC and Aurex have been fully capitalised,” said Mangudya.

Aurex resumed operations in April. ECGC is an important player in the export sector and will play a critical role in the growth of small and medium scale enterprises.

Aurex was once one of Africa’s leading gold and silver jewellery manufacturers.

Its revival is in line with the objective of government’s economic blue print, the Zimbabwe Agenda for Sustainable Socio- Economic Transformation (ZimAsset), to beneficiate minerals.

ECGC was established to increase exports by covering the risk of export trade.

It offers credit insurance and guarantee services which enable exporters to compete more effectively in export markets, export payments insurance policy, export finance guarantee, invoice discounting for exporters and credit cover.

ECGC was around 2012 prohibited from handling any new business due to its failure to raise the minimum capital requirements.

At its peak, ECGC, which was established around 2000, was responsible for offering local exporters credit insurance which covered political and economic risks, with the political risk covering wars, civil uprising, moratorium and import exchange controls associated with the buyer’s country.

Commercial risks included buyer’s insolvency, protracted default and non acceptance of goods, leading to non payment of goods supplied.

The cover was both for regional and international markets.

Apart from offering export credit insurance, the corporation also provided domestic credit insurance, construction bonds and guarantees, customs bonds and pre-shipment export finance to banks and other financial institutions.

The corporation also forged strategic alliances with the Zimbabwe National Chamber of Commerce, the Confederation of Zimbabwe Industries and Zimtrade to facilitate the resurgence of the export sector.

Together with Zimnat, it also introduced a comprehensive export insurance package for exporters trading through the bonded warehouse around 2001.

The facility was a one-stop shop for exporters.

Source : Financial Gazette