- Ethiopia’s Ministry of Finance will take over the Ethiopian Railway Corporation’s debt of Birr 264 billion after finalising a restructuring agreement with Chinese creditors.
- The debt stems from loans for the Addis Ababa–Djibouti railway and light‑rail projects.
- The government allocated Birr 463.4 billion for debt servicing in the 2025/26 fiscal year.
Market Impact:
Transferring the railway debt to the federal budget eases pressure on the corporation, potentially paving the way for new private investment in rail logistics and multimodal projects. However, it adds to the federal debt burden and could constrain fiscal space for other infrastructure.
Key Numbers:
- Br 264 billion — ERC debt assumed by the Ministry of Finance.
- Br 463.4 billion — total debt‑servicing allocation for FY 2025/26.
- 1 railway corporation — ERC is one of eight state‑owned enterprises under Ethiopia Investment Holdings.
Business Signal: The move reflects government willingness to centralise liability for large infrastructure projects and may strengthen ERC’s ability to pursue new projects and attract commercial partners.