In trade between China and the Portuguese-speaking African Countries (PALOP), payment uncertainty is a constant concern. Information asymmetries, logistical challenges and uncertainty in financial settlement can undermine transactions. To mitigate these vulnerabilities, export credit insurance is an indispensable tool, offering protection and security in operations.
However, in the Macao SAR, the gap between the formal existence of this mechanism and its actual use suggests room to optimise the “Platform”.
Historically, Hong Kong has demonstrated maturity in this area, with the HKECIC operating for decades. In Macau, the discussion took on practical contours in 2017, with the Framework Agreement between the AMCM and Portugal’s COSEC. This step culminated in the launch, in 2019, of the “Export Credit Insurance System” based on a “Bank Policy”.
Although the system has existed for more than six years, its real dynamism has been the subject of analysis, with utilisation rates indicating room for growth.
The reason for this lower-than-expected uptake may be related to the model adopted. Unlike in other jurisdictions, in the Macao SAR the exporter relies on bank intermediation through factoring. This structure, involving banking procedures and financial costs, may affect SME uptake.
The result is a mechanism that, although available, remains potentially underused, leaving entrepreneurs to face the same challenge of requiring full payment for goods before shipment, which underlines the need for more agile guarantees.
In this context, the measures in Hengqin, in force since 2025, represent a relevant step. By offering subsidies of up to 48% on premiums, the Macao SAR seeks to reduce the cost barrier.
However, the challenge goes beyond financial incentives; it lies in simplifying processes and/or disseminating this instrument more widely. Effective coordination between banks and insurers is essential if the mechanism is to consolidate itself as a practical and accessible solution for bilateral trade.
Reviving the spirit of 2017, with Hengqin’s support and a constructive outlook, is the stimulus needed. The Macao SAR has the opportunity to turn its network of partnerships into a tool that reduces transaction costs and risks for the Lusophone market. Promoting these mechanisms would protect stakeholders and encourage new transactions, turning commercial potential into concrete reality.
This is a crucial alternative if the Macao SAR is to offer competitive trade facilitation instruments, boosting China-PALOP trade.
