Taurai Mangudhla
HARARE – Zimnat Insurance has established a trade credit insurance unit, Zimnat General Insurance Trade Credit Insurence, Bonds and Guarantees division.
The unit specialises in credit insurance to cover a traders risk of defaults in payment for goods and payments and has been in operation since May. Already the business had attracted around $1 million in premiums.
The new division is seen contributing to the group positively and the economy in the new dispensation where increased trade is expected.
Zimnat General Insurance Managing director Stanley Mazorodze said trade credit insurance protects traders who supply goods or services on credit against the risk of payment default and offers surety bonds and guarantees to both local and foreign trade.
“We realised that if there is to be increased trade, particularly with respect to exports, there is need to offer trader security against the risk of non-payment by those to whom they supply their goods and services,” Mazorodze said.
Zimnat is currently holding a trade credit conference whose aim is to promote a better understanding of trade credit insurance and highlight the critical role that trade credit can play.
