Nippon Export and Investment Insurance (NEXI) has entered into a reinsurance agreement with Export Credit Insurance Corporation of South Africa SOC Ltd (ECIC), South Africa’s export credit agency.
The agreement was announced during the MOU Signing Ceremony at the 9th Tokyo International Conference on African Development (TICAD9), attended by Prime Minister Shigeru Ishiba.
This marks the first time NEXI has signed a reinsurance agreement with an African export credit agency. Under the terms, NEXI will provide reinsurance for ECIC’s export credit insurance covering Japanese companies operating in South Africa when they export to third countries, including other African nations.
South Africa hosts the largest number of Japanese-affiliated companies on the continent and serves as a central hub for exports to other African countries. Facilitating intra-African trade is also seen as a step toward advancing the African Continental Free Trade Area.
The NEXI-ECIC agreement comes as part of a broader movement among export credit agencies to strengthen export credit insurance capacity and support exporters in emerging markets.
For example, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) recently signed a similar reinsurance agreement with Algeria’s national export credit agency, CAGEX, to facilitate Algerian exporters’ entry into new markets and expand trade across member countries.
The ICIEC-CAGEX partnership is intended to enhance risk mitigation for exporters by providing larger volumes of export credit insurance. This approach is designed to create a more secure environment for export activities and to promote economic resilience and diversification in member states.
Both ECIC and NEXI have stated their intention to support the export business expansion of Japanese-affiliated companies in South Africa, as well as exports to third countries, including those within Africa.
“We will actively support the exports business expansion of Japanese-affiliated companies in South Africa, as well as support third countries, including those in Africa,” the organizations said in a joint statement.
In a related development, Malaysian Reinsurance Berhad and Pacific Life Re Limited, Singapore Branch, have extended their memorandum of understanding to provide sustainable retakaful solutions to takaful operators. This reflects a growing focus on Islamic finance and alternative risk transfer mechanisms in the reinsurance sector.
Nippon Life Insurance Co., Japan’s largest life insurer by assets, reported a significant increase in unrealized losses tied to its domestic bond investments for the fiscal year ending in March 2025. The insurer’s bond holdings, primarily long-term Japanese government bonds, have been affected by rising yields and market volatility.
In response to these financial pressures, Japanese insurers – including Nippon Life and Sony Life Insurance – have adjusted their sovereign debt strategies, moderating their acquisitions and reducing exposure to interest rate risk as market uncertainty persists.
NEXI has indicated it will continue to support Japanese companies’ overseas operations through partnerships with foreign export credit agencies.
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