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Ethiopia banks on railways. EKF helps with the financing

Guarantees worth DKK 1.1 billion secure Danish jobs

In the next few years, Ethiopia will implement a series of large railroad constructions which will increase the rail network in the huge country by fourfold to a total of approximately 2,400 km. The plan is to extend the rail network to approximately 5,000 km in the long term. For comparison, the total rail network in Denmark covers about 2,000 km.

> EKF helps to secure financing for parts of the ambitious building project by issuing guarantees worth a total of DKK 1.1 billion.
> The main part of this amount is used to guarantee orders for the Danish contractor Per Aarsleff A/S as well as for a number of small sub-suppliers.
> A small part of the amount covers orders for Italian sub-suppliers of, among others, cables and rails. This part will be fully reinsured by SACE, the Italian export credit agency.
 
Ethiopian Railway Corporation (ERC) will pay back the loan in 13 years.

From Awash to Weldia
EKF guarantees one of the projects in the large-scale building programme involving 404 km of railways from Awash in the central part of Ethiopia to Weldia in the northern part of the country.

The aim of the project is to improve the business climate in the northern part of the country, both by increasing the mobility of the workforce and by providing access to shipments to the international market through harbours in the neighbouring country Djibouti.

The 404 km of railways will go through flat desert terrains, mountain landscapes and green plateau-like areas filled with animal life stretching from 700 m to 2,400 m above sea-level. Some of the areas are sparsely populated whereas others contain cities of both 40,000 and 200,000 inhabitants.

Newly established company DMS Africa needed liquidity to execute an important order. A Working Capital Guarantee did the job.

A guarantee and credit for Africa project

Newly established company DMS Africa needed liquidity to execute an important order. A Working Capital Guarantee did the job.
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