SACE: Financing Italian Exports and Global Growth

SACE (Servizi Assicurativi del Commercio Estero) is Italy’s export credit agency (ECA). It plays a crucial role in supporting Italian businesses, particularly small and medium-sized enterprises (SMEs), in their international expansion. SACE provides a range of financial and insurance products designed to mitigate risks associated with exporting goods and services and investing abroad.

Key Functions and Services

SACE’s core function is to insure companies against the risks of non-payment from foreign buyers. This insurance covers both commercial risks (e.g., buyer insolvency) and political risks (e.g., war, currency transfer restrictions). By assuming these risks, SACE encourages Italian exporters to venture into new markets and offer competitive credit terms to their customers.

Beyond insurance, SACE offers financial guarantees. These guarantees allow companies to secure financing from banks for export-related projects. SACE essentially acts as a co-signer, reducing the lender’s risk and making it easier for Italian businesses to access capital. This is particularly important for SMEs that may struggle to meet traditional lending criteria.

Furthermore, SACE is involved in direct lending for certain large-scale projects, particularly those involving Italian content and contributing to strategic national interests. These direct lending activities often support infrastructure projects and energy initiatives around the world, promoting Italian expertise and technology.

Impact on the Italian Economy

SACE’s activities have a significant impact on the Italian economy. By facilitating exports and foreign investments, SACE contributes to job creation, economic growth, and technological advancement. It enables Italian companies to compete effectively in the global marketplace, increasing their market share and profitability.

Moreover, SACE’s support helps diversify the Italian economy, reducing its reliance on domestic demand. By encouraging businesses to export, SACE helps insulate them from economic downturns in the Italian market. This diversification enhances the resilience of the Italian economy as a whole.

Global Reach and Partnerships

SACE operates globally, supporting Italian companies in virtually every region of the world. It works closely with international financial institutions, export credit agencies from other countries, and commercial banks to provide comprehensive financial solutions for exporters and investors.

SACE’s partnerships are crucial for sharing risks and mobilizing capital for large-scale projects. By collaborating with other institutions, SACE can leverage its resources and expertise to support projects that would otherwise be too risky or complex to undertake.

Looking Ahead

In an increasingly complex and uncertain global environment, SACE’s role is more important than ever. It is adapting to new challenges, such as climate change and geopolitical instability, by developing new financial products and services that support sustainable development and promote responsible business practices. SACE continues to be a vital instrument for promoting Italian exports, supporting economic growth, and fostering international cooperation.