Press Releases

More Hermes Cover for Africa

10 January 2012

• Cooperation agreement between Euler Hermes and Afreximbank boosts trade with Africa

Euler Hermes Kreditversicherungs-AG, which manages the Federal export credit guarantee scheme on behalf of the Federal Government, and the African Export-Import Bank (Afrexim) signed a cooperation agreement in December. The aim is to boost trade between Africa and Germany. Export credit guarantees (Hermes Cover) protect German companies against bad debt losses in connection with exports to difficult and risky markets.

Among the 50 countries of sub-Saharan Africa are some of the fastest growing economies in the world. Nevertheless the region contributes less than 2 % to the world economy. However, while total German exports have grown by about 7 % since 2006, exports in particular to sub-Saharan Africa have increased by more than twice that amount. Last year the Federal Government covered export business with sub-Saharan Africa worth more than one billion Euros.

Africa is a fast growing market which offers considerable potential for German industry. "We expect that demand for export credit guarantees for business with sub-Saharan Africa will continue to rise", Andreas Klasen, Managing Director of PWC and expert for trade and export financing, pointed out. PwC manages the Federal export credit guarantee scheme together with Euler Hermes Kreditversicherungs-AG. "Afreximbank knows the local situation very well and now it will be easier for German exporters to profit from this knowledge."

The close cooperation on questions on export credit insurance is a key element of the agreement. Besides, Afreximbank can act as guarantor for African companies or local projects.

The African Export-Import Bank was founded in 1993 by African governments and private and institutional investors. Afreximbank concentrates on funding and promoting African trade. Its headquarter is located in Cairo.

Since 1949, the Federal Export Credit Guarantees (Hermes Cover) have been an important instrument of state export promotion in Germany. Reliable protection of the export industry against bad debt losses, in particular in connection with exports to risky markets, continues to be the major concern. The Federal Government has entrusted a consortium consisting of Euler Hermes Kreditversicherungs-AG and PricewaterhouseCoopers AG WPG with the management of the scheme.

Contact: Euler Hermes Kreditversicherungs-AG, Federal Export Credit Guarantees, Ruth Bartonek, spokesperson, ++ 49 40/88 34-9241, ruth.bartonek@eulerhermes.com Internet: www.agaportal.de