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Resilience through credit insurance

Kgolagano Leola of CGIC explores how brokers and insurers protect cashflow, manage risk, and empower businesses to grow, showing that resilience and strategic support are as vital as capital in today’s challenging market.
Written by
Kgolagano Leola
Published on
November 14, 2025
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In today’s challenging economic climate, small and medium-sized enterprises (SMEs) remain the beating heart of South Africa’s economy. Yet, these businesses are under increasing pressure. As the Head of Collections at Credit Guarantee Insurance Corporation (CGIC), I have a front-row view of how enterprises are navigating turbulent conditions, and how credit insurance is evolving to support them.

Reading the pulse of the economy - At CGIC, we see first-hand the payment challenges facing businesses across sectors. Historically, repayments on claims would be settled within six months. Today, however, we’re seeing stretched repayment periods of 12 to 18 months. This shift underscores the cashflow strain SMEs are under, as they carefully apportion limited resources among multiple suppliers.

Despite these pressures, what strikes me most is the resilience of South African entrepreneurs. Even in the most difficult periods, such as during COVID-19, many businesses found ways to survive, adapt, and emerge stronger. This resilience is something we at CGIC are committed to protecting and amplifying.

Skills that drive solutions - Credit insurance is, at its core, a risk management business. Our teams bring together diverse academic disciplines, commerce, law, IT, compliance, and finance, because complex risks demand multidisciplinary solutions.

Equally important are the brokers who work alongside us. The best brokers combine strong analytical abilities with empathy and problem-solving skills. They must understand their clients’ businesses intimately, identify risks, and tailor solutions that help enterprises grow despite uncertainty. At CGIC, we view brokers not merely as intermediaries but as business partners who enable clients to reach their targets.

“In a world of uncertainty, resilience is the true currency of business, credit insurance doesn’t just protect, it empowers.”

Kgolagano Leola
Head of Collections at Credit Guarantee Insurance Corporation

Dispelling the misconceptions - One of the biggest misconceptions about CGIC is that we extend credit like a retail bank. In reality, we provide credit insurance, protecting businesses against the risk of non-payment. If a buyer defaults, we step into our client’s shoes through the legal principle of subrogation, ensuring that their cashflow is not disrupted. This protection allows businesses to trade with confidence, pursue growth, and weather unexpected shocks.

We also extend our role into specialised areas, such as providing bonds for the construction industry, demonstrating the breadth of support we offer to businesses across South Africa.

A personal journey of passion and purpose - My own path to CGIC began with a deep love for academics and business. After graduating with a BCom in Accounting from the University of Johannesburg, I joined CGIC as part of its graduate programme. I was immediately drawn to South Africa’s insolvency regimes, particularly business rescue, which offers struggling businesses a lifeline.

Over 12 years, I’ve grown with the company, managing insolvency, salvage, legal recoveries, and collections. For me, knowledge has always been power, something I leaned on early in my career to balance youth with credibility. That drive to learn and innovate is what fuels my passion for helping businesses find solutions during their toughest moments.

Looking ahead - The future for CGIC is one of expansion and innovation. As we look to double our impact and extend our footprint into Africa, the opportunities to support businesses beyond South Africa are immense. Our ambition is not only to remain the pulse-taker of the South African economy but to become a catalyst for resilience across the continent.

Personally, I see the next chapter as one of growth, both for myself and for CGIC. The challenges will be significant, but so too will the opportunities to innovate, collaborate, and empower the businesses that drive Africa’s economic future.

In a world of uncertainty, resilience is the true currency of business. Credit insurance doesn’t just protect, it empowers. And at CGIC, our mission is clear, to stand alongside businesses as they navigate challenges, seize opportunities, and continue building the economy of tomorrow.

It's time to trade Boldly. With South Africa's leading provider of trade credit insurance.

Protect your company against payment default | Ensure uninterrupted cash flow. CGIC has a AA+ financial strength rating

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