The Zimnat General Insurance trade credit insurance conference was held at Cresta Lodge in Harare on the 8th June 2018 and was intended to promote collaboration and the sharing of ideas in utilising trade credit insurance to promote international and local trade.
It was organised by the Zimnat General Insurance Trade Credit Insurance, Bonds and Guarantees Division, which specialises in credit insurance to cover a trader’s risk of defaults in payment for goods and services. Zimnat established the division, which is located at 71 Mull Road in Harare’s Belvedere suburb, as a stand-alone entity earlier this year to help promote trade in the new economic environment, in which increased trade is expected to play a major part.
Trade credit insurance protects traders who supply goods or services on credit against the risk of payment default. The new division offers this for both local and foreign trade. It also offers surety bonds and guarantees. “We realised that if there is to be increased trade, particularly with respect to exports, there is need to offer traders security against the risk of non-payment by those to whom they supply their goods and services,” commented Zimnat General Insurance managing director Stanley Mazorodze.
The conference was intended to promote a better understanding of trade credit insurance and to highlight the critical role that trade finance can play in successfully resuscitating the country’s economy. Among the speakers was BancABC Zimbabwe head economist James Wadi, who focused on Zimbabwe’s economic outlook and trade finance prospects. Kenyan reinsurance company Continental Reinsurance managing director Souvik Banerjee spoke on using trade credit insurance to improve the trade finance mechanism and export generation capacity within a recovering economy. Mr Rahul Aggarwal, of Genesis Risk Managers in Mauritius, talked about construction contract bonds and guarantees for infrastructural and mining development.
“We felt it would be useful for decision makers in local companies to benefit from the experience of experts from other countries,” said Zimnat Trade Credit Insurance, Bonds and Guarantees Division general manager Shepherd Tembo.
“With the prospects for increased investment and trade between Zimbabwean companies and the rest of the world looking promising, it is important for the benefits of trade credit insurance to be fully understood and made use of so that local companies can export to international markets knowing that the risk of non-payment is offset by insurance cover,” he said.
He added that Zimnat also offers domestic credit insurance and services credit insurance to local suppliers to cover the risk of non-payment when they supply goods or services on credit to local companies. It also offers bonds and guarantees. “With particular interest being expressed by foreign investors in mining and infrastructure, we felt the experience of Mr Aggarwal from Genesis Risk Managers in Mauritius with respect to contract bonds and guarantees in these sectors would be useful for local companies who might wish to offer their services or products in these sectors,” he said.
“It is our hope that those attending this conference will go away with a better understanding of trade credit insurance and bonds and guarantees and make use of them for the benefit of their businesses and the economic resuscitation of our economy,” he added.
Download the presentations here:
“Economic Overview & Outlook Review” by James Wadi
“Bonds & Guarantees for Infrastructure Development” by Genesis Risk Managers
“Using Trade Credit Insurance to Improve the Trade Finance mechanism and Export Generation Capacity within a Recovering Economy” by Souvik Banerjea, Managing Director, Continental Reinsurance.