Credit Guarantee said on Monday it had reviewed and upgraded its credit ratings of four of South Africa’s trading partners — Abu Dhabi, Costa Rica, Qatar and Uruguay — and had also re-rated Argentina and Angola as open for export cover.
“Having emerged from under the cloud of civil war, enormous opportunities now exist in the construction, agricultural, infrastructural, tourism and oil/mining-linked sectors [of Angola],” said Credit Guarantee.
“Boasting a GDP growth of 18% in 2005 and with the International Monetary Fund expecting 14,3% and 13,4% in 2006 and 2007 respectively, it is the most logical market for South African exporters and we are happy to consider providing cover, but we will consider each application on its own merits,” said Ismail Dadabhay, general manager export division.
“With continued international economic buoyancy, Angola could quite easily become the ‘China of the African continent’,” he added.
Credit Guarantee said its decision on Argentina came at the highest risk rating and that they would consider applications on a case-by-case basis.
Five years ago, there was a financial crisis in the country, which resulted in a serious lack of foreign exchange, but over the ensuing years there has been a significant improvement, the insurer pointed out.
In respect of Uruguay, Credit Guarantee said that the political stability and sound economic growth over the past three years had been pertinent in quite a dramatic improvement of the rating.
Credit Guarantee is South Africa’s largest insurer of company debtors. — I-Net Bridge