Final report : final impact evaluation of the export credit insurance component of the private sector export promotion project

USAID support consisted of $1.2 million of TA and $8 million loan. SMAEX has been operating since 1/89. SMAEX has been unable to meet the subproject's unrealistic target of insuring 20% of all private exports. However, SMAEX's record (around 6%) is not bad, and while it has not been possible to quantify SMAEX's impact on Moroccan markets, it is appears that SMAEX has the potential for playing a significant role in making Morocco's exports more competitive not only in the European Community, but in new markets elsewhere. SMAEX has established itself well as an independent organization, and its impact has certainly been greater than would have been the case if export credit insurance had continued to be offered by only one of the banks. As an independent organization, SMAEX is able to offer its services to any and all exporters. Perhaps more important is the increased financing available to exporters because now all banks can offer to discount export-related commercial paper covered by SMAEX insurance. Although SMAEX is a private entity, it is also a relative monopoly (Morocco's only supplier of export credit insurance) -- with the result that the usual incentives of competition do not contribute to improving its performance. There appears to be little room for initiative or independence in the SMAEX organization; decisionmaking is highly centralized. SMAEX coverage is heavily concentrated on textiles (64%), firms in Casablanca (70%), and exports to the European Community (89%). SMAEX has not contributed as much as it might to helping explore markets outside the EC. Recommendations address these issues. (Author abstract, modified)