The State Secretariat for Foreign Trade at the Ministry of Industry and Trade has unveiled a public export credit insurance scheme to complement private-sector offerings. It will provide coverage of up to MAD7.5bn ($811m) on exports.
Established with an initial fund of MAD100m ($10.8m), this scheme includes a pricing system modulated according to the importing country and the level of risk, according to local media reports.
The government said that the scheme will sharpen the competitiveness of Moroccan exporters in strategic markets that have a level of risk not covered by private trade credit insurance. It will support exporters, particularly in emerging markets considered strategic but poorly covered by private insurance.
This was designed in consultation with all public and private stakeholders in the export insurance ecosystem. To identify best practices and adapt the chosen model to the specificities of the Moroccan market, an international benchmark study was conducted in partnership with the Moroccan Association of Exporters.
Markets
The study revealed that Moroccan exporters concentrate their activities on low-risk geographical areas, mainly Europe and OECD countries. Emerging markets such as those in Africa and the Middle East remain largely uncovered, which hinders the growth of Moroccan exports in these regions.
The scheme, unveiled on 22 April, consists of a dedicated public fund and will be managed by Atlantic Re, a state-controlled reinsurer formerly known as Société Centrale de Réassurance (SCR). Atlantic Re will ensure the reinsurance of risks while promoting the participation of approved export credit insurance operators through collective retention.
This complementary public insurance project is part of Morocco's broader strategy to reduce its dependence on traditional markets and strengthen its economic presence in high-growth regions, particularly in Africa. For a start, the public export credit insurance scheme will cover commercial and political risks for importers in 15 countries considered strategic in Africa.