Improving the Role of Eximbanks/ECAs in the OIC Member States
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bringing the total number of entities in the region to 26. When analysed by region, a significant
number of countries from the OIC’s Arab and Asian groups have ECAs, compared to only two
African countries. Some of these countries however are also members of regional entities such as
the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and Arab
Investment and Export Credit Guarantee Corporation (DHAMAN).
The characteristics of ECAs among OIC member countries vary. The majority has mixed state and
private ownership and over a third are fully government-owned entities. There are a few
government programs and funds, and one active private insurer in Lebanon (where there is no
official ECA). Moreover, the role of governments varies significantly across OIC countries, as
reflected in varied levels of ECA ownership, involvement in policy, finances and governance. OIC
ECAs’ scope of operation also varies with a majority providing insurance and less than half
providing direct financing or guarantees, and only 4 out of 26 ECAs offering Islamic finance and
insurance instruments. ECAs also vary in the scale and reach of their operation, as evidenced by
the difference in staff size and business volumes.
Lessons for the Government and for Existing and New ECAs
There are a number of examples in OIC member countries of well-conceived, well-designed and
well-executed ECA programs from which lessons can be drawn. These lessons can be applied to
both the government policy-makers and shareholders, as well as the ECAs themselves. For those
countries without an ECA but looking to establish such facilities, there are a number of factors
that should be considered.
As for the Government, it is recommended to:
o Give the ECA a clear mandate, statutory functions and a sound governance structure
o Define the nature and extent of government financial support, and properly plan for this
in the national budgeting process
o Constantly monitor and review the ECA’s activities and portfolio
o Circumscribe the role of the government in the ECA’s activities
o Undertake regular, external independent evaluations
For Existing ECAs, it is recommended to:
o Establish a clear vision and mission to define a market space in which to focus
o Understand not only the nature of the market gaps but why they exist
o Understand the export market and exporters’ contribution to global supply chains
o Conduct extensive research to ensure up-to-date knowledge about the needs of national
industries and evolving trade flows, in order to design the products and facilities that
best suit the export landscape
o Consult with the private sector sources of finance and insurance with a view to
maximizing their contribution
o Create links to international partners and players
o Seek client input and feedback
o Continuously review and improve internal technical and management systems
o As a financial institution, ensure financial sustainability through robust planning and risk
management