The financial services sector has been hogging the limelight this early February with institutions like Absa coming to the fray and now credit insurance company BECI has entered the year with new products. Beci has been in Botswana for the past quarter of a century, and has enjoyed, built and maintained a secure relationship with our Government specifically with the Ministry of Investment, Trade and Industry (MITI).

BECI pioneered export credit insurance which allowed our enterprises to break into export markets and create new frontiers. All risks classified as political risks which we cannot reinsure in the private markets are reinsured by MITI through the Political Reinsurance Fund. To this day our Government never suffered any loss due to this cover provided to BECI.

“We are privileged to now take our underwriting to a new level. This entails the Medium and Long-Term Export Credit Insurance cover for up to 10 years and Outward Investment Insurance for up to 15 years. As indicated in the Finance Minister’s speech, the Export Credit Reinsurance Act of 1997 is being reviewed, to among others, expand BECI’s products to include the Outward Investment Insurance (OII) and the Medium and Long Term (MLT) export credit insurance. The MLT has been well provided for under the current Act.

“The trade incentives that we are rolling out have been part of the trade agenda since the 1940’s as a way to address the disastrous impact of the great depression,” said the Assistant Minister of Investment, Trade and Industry, Hon. Mr. Karabo S. Gare.

I am pleased to state that the MLT will fill in this gap so as to support local businesses to enable them to thrive. I can confirm that we are ready to implement these new products which without a doubt are game changers in our financing and insurance solutions value chain. Specimen policies such as MLT Export Contractor Policy, a MLT Financial Credit Cover Policy, and an OII Policy are all in place already. Apart from that a Country Assessment Methodology, a Commercial Risk Assessment Methodology, an Exposure Limit Methodology, and a Pricing Methodology are all also in place.

BECI has been an integral part of the development and realisation of the Botswana Export Strategy (BES) and the Botswana Exporters Development Programme (BEDP).