BECI To Roll Out Medium, Long-Term Credit Insurance
Pauline Dikuelo | Monday February 10, 2020 12:47
Just like the short-term export credit insurance, the medium and long-term credit insurance covers consist of both commercial and political risks.
Short-term risks are generally those where the credit terms are less than two years. Medium term risks are those between two and five years while long-term risks are in excess of five years up to 10 years. However, in case of certain projects such as power projects credit terms can easily span 18 years.
Addressing the media recently, BECI general manager, Cowell Habana said their main objective is to develop exports and small, medium enterprises locally.
“We are mainly focused on developing SMEs as we want to assist them to tap into the export market,” Habana said.
In August last year, BECI initiated the process of offering medium and long-term credit insurance and outward investment insurance through the engagement of consultants.
“The project is progressing accordingly and all the frameworks and policies have been devised. Key stakeholders have been consulted as well as a steering committee formed to oversee the product offerings,” Habana added.
When touching on their products, BECI Sales and Marketing manager Rocky Ramalefo said they mainly deal with businesses to facilitate trade and do not deal with individuals. In addition he said they provide guarantee to some banks when they have extended credit facilities to some businesses.
He further highlighted that to date, they have paid claims annually amounting to P22 million since inception and covered transactions up to P5 million.
“Even though we operate as an insurance, we do not offer general insurance but rather specialised insurance,” he said.
Last year, BECI also signed a Memorandum of Understanding (MoU) with Botswana Investment and Trade Centre with the aim to strengthen export development and promotion as well as develop reciprocal cooperation between the two entities. The importance was to strengthen institutional relations and capacity building through mutual cooperation. The MoU was also focused on supporting small and medium enterprises to export their products as well as assist by providing solutions to their funding problems.