Credit Guarantee re-rates SA trading partners

Credit Guarantee (CGIC), South Africa's largest insurer of company debtors, announced that they had recently reviewed and upgraded their credit ratings of some of SA's trading partners, namely Abu Dhabi; Costa Rica; Qatar as well as Uruguay. The political stability and sound economic growth over the past three years has been pertinent in quite a dramatic improvement of the rating in respect of Uruguay.

Adding to the South-South trade initiative, Credit Guarantee has once again opened for export cover on Argentina, albeit at the highest risk rating and will consider applications on a 'case by case' basis. Five years ago, there was a financial crisis in the country, which resulted in a serious lack of foreign exchange but, over the ensuing years there has been a significant improvement. 

Most notable of the countries having been re-rated as open for cover, is Angola. Having emerged from under the cloud of civil war, enormous opportunities now exist in the construction, agricultural, infrastructural, tourism and oil/mining-linked sectors. Boasting a GDP growth of 18% in '05 & with the IMF expecting 14.3% & 13.4% in '06 & '07 respectively, it is the most logical market for South African exporters and we are happy to consider providing cover but we will consider each application on its own merits," says Ismail Dadabhay, General Manager Export Division. With continued international economic buoyancy, Angola could quite easily become the 'China of the African continent' he adds.