Improving the Role of Eximbanks/ECAs in the OIC Member States
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providing facilities that are fit for the SMEs’ needs including short and medium/long term
financing in local and foreign currency and applicable to both exporters and manufacturers of
exportable goods who wish to import raw materials.
There are certain useful lessons to be learned from Nigeria’s example:
 Identify comparative advantage and build knowledge. NEXIM’s main purpose is to
promote SME-led export development in non-oil sectors in Nigeria, a space that
commercial banks are unwilling and unable to occupy due to the risks or costs issues. To
this end, it is critical that the entity has full knowledge of the local market including
existing financing gaps, exporters’ needs and the type/features of facilities that will meet
these needs.
 Establish a clear vision and mission to define a market space in which to focus:
NEXIM has a clearly defined vision and mission statement which relates directly to its
role and mandate. It is not seeking “to be all things to all people” but rather is very
targeted in its market space and seeking to be a first class institution in that role. It is
seeking outside support (via AfDB) to help improve and position itself.
 Ensure good, up-to-date and reliable information is available. NEXIM has made
available information on its products and services, lending and insurance processes
including timeframes for processing client requests and general guidelines for
prospective and existing clients on its website. By doing so, the institution aims to
promote transparency and efficiency for its clients.
5.2.2. Malaysia
Linking Local Businesses to Global Markets with a full product offering
Malaysia’s export base is dominated by machinery and oil & gas (almost 70%) while the rest is
comprised of vegetables, chemicals, plastic/rubber and metals, and the country’s main trading
partners in order of importance include China, Singapore, Japan and USA. Collectively the top
four trading partners account for over half of total exports.
Malaysia’s thriving financial sector includes various types of banks and insurance companies
that provide international and Shariah-compliant products and services. These include
commercial banks, local and international Islamic banks, investment banks, general business
insurance and reinsurance companies as well as takaful and retakaful operators. The banking
sector also includes international banks such as BNP Paribas, Citibank, Deutsche, HSBC, J.P.
Morgan Chase, Standard Chartered, Bank of Nova Scotia and Royal Bank of Scotland as well as
few global insurance companies including AIG.
Development finance institutions such as MEXIM also occupy an important segment of the
financial market and exercise their mandate on a select clientele – export oriented businesses
and entities. While initially established to provide financing, MEXIM was merged with the
government export credit insurer and is now tasked with developing insurance and guarantee
facilities in order to provide full service to its clientele.