Botswana Export Insurance and Guarantee Company ‘s Marketing Executive, Rockey Ramalefo, said last week that his company is eager to work closely with all interested parties towards bringing credit discipline to Botswana’s businesses industry as claim levels from policyholders are spiraling out of control.
Speaking at a seminar organized for motor dealers at the BECI offices on Thursday, Ramalefo said his company had observed an increase in the level of claims from many of the policy holders.
“I would like to urge those that have not taken up our credit policies to do that as a matter of urgency,” he said.
“We have been discussing this with the banks,” he continued “to use our credit policy as a security for seeking funding, the reason being that a protected debtor’s book is more secure to lend against.”
His call comes at a time when the business climate has been rocked by high interest rates which sparked high default rates that ultimately affected the profit margins. That has resulted in the collapse of some of the business entities.
Ramalefo said people should try to protect their companies “by ensuring that profitability is maintained during turbulent times.”
“ We should bring together all players in the market to form a platform that allows us to leave the bad payers out,” he said to a group of motor dealers. “We long for the day when business will be flowing , with credit being extended, as it should be in a disciplined market and thus contributing to the growth of the economy.”
BECI is a Botswana Development Corporation (BDC) subsidiary whose aim is to hedge companies against both domestic and international credit and political risk.
It covers up to 80 percent of the debt under the domestic credit insurance while on the international or export it takes 85 percent. Regarding political risks the company covers up to 90 percent.