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Setting the scene: Charles Nortje on CGIC’s role in South Africa’s economy and future

Charles Nortje opened the CGIC Summer Conference with a powerful message: trade credit insurance is vital to South Africa’s economic resilience. This article explores CGIC’s role in enabling liquidity, supporting SMEs, and aligning with sustainability goals under Old Mutual’s broader vision.
Written by
Charles Nortje
Published on
October 17, 2025
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Charles Nortje, CEO of Old Mutual Insure and former CEO of Credit Guarantee Insurance Corporation (CGIC), opened the CGIC Summer Conference by grounding delegates in the bigger picture of credit insurance’s role in the economy.  

Warmly welcoming clients, intermediaries, and partners, he made it clear that CGIC’s work goes far beyond issuing policies, it is about enabling trade, supporting transformation, and building resilience in South Africa’s business ecosystem.

Connecting CGIC to Old Mutual’s pillars- Nortje positioned CGIC within the Old Mutual Group’s three sustainability pillars: responsible investment, climate action, and financial wellness. He explained how trade credit insurance supports each: by keeping the wheels of commerce turning, by directing capital toward greener and more ethical trade, and by ensuring businesses and communities have access to liquidity when they need it most.

Citing GDP data, he noted that CGIC’s gross exposure accounts for roughly 16% of South Africa’s insurable economy. “That means CGIC is lubricating about 60% of the insurable economy,” he said. Without trade credit insurance, businesses would be forced into impractical cash-only dealings, stalling growth.

Climate action with realism - Nortje stressed that CGIC cannot ignore the climate agenda. While the South African economy remains dependent on fossil fuels, insurers must encourage a just transition. CGIC will increasingly favour trade that aligns with sustainability goals, avoiding sectors or practices that degrade the environment or exploit people, while actively supporting renewable energy and infrastructure projects. “We want to leave a sustainable planet for our children,” he said, urging businesses to at least have a transition plan toward net zero.

At the same time, Nortje cautioned against a one-sided view of ESG. Environmental goals cannot come at the expense of societal well-being or governance standards. “You can’t just stare at the environmental piece; you’ve got to look at the social and governance impact too.”

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“Without trade credit insurance, businesses would be forced into impractical cash-only dealings, stalling growth.”

Charles Nortje
CEO of Old Mutual Insure

Supporting financial wellness and SMEs - Turning to financial wellness, Nortje broadened the definition to highlight CGIC’s role in keeping businesses liquid. Beyond underwriting trade, CGIC runs an “intensive care unit” for distressed companies, advancing selective credit lines to help them recover. Many small and medium enterprises have graduated to sustainable growth through this model.

CGIC also invests in empowering SMEs and entrepreneurs, providing cover that allows them to trade confidently without the burden of upfront cash transactions. In one of the world’s most unequal societies, Nortje emphasised, enabling inclusive growth is a moral and economic imperative.

Challenges ahead: relevance and innovation - Looking ahead, Nortje cautioned that while global credit insurance loss ratios are currently low, insurers should not squander the breather. Cost control, talent investment, and innovation remain critical. He questioned whether stagnant premium growth is really about economic stagnation, or whether insurers face a “crisis of relevance.” Products have hardly changed in decades, and risk appetites may need recalibration to unlock new opportunities.

Bonding and surety, he added, offer growth potential but require caution given their complexity and long-tail risks.

Act on the right information - Nortje closed with a reflection on information and decision-making. Leaders, he argued, must seek diverse sources, challenge their assumptions, and triangulate perspectives. “If you act on the wrong information, it’s not climate change that will wipe you out, you’ll be wiped out sooner by relying on the wrong information.”

It was a fitting call to action: for insurers, clients, and policymakers alike to use this moment of relative stability to innovate, collaborate, and build a sustainable, inclusive future.

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