q and a11 Apr 2023 12:29
Q: First, the RNS at the time said the company intended to work hard to ensure security and all government clearances were in place within months . Why was this not achieved and why are we more confident now? Secondly, how have we not needed to raise more money to have kept working on so many fronts for the past twelve months? I fear we are going into large debts.
A: As regards the readiness of government in Ethiopia (for our project launch), we had many oral assurances twelve months ago and it is fair to say that the implementation belatedly started flowing early this year after organizational changes within government. Unfortunately we cannot take short cuts on security and certain key requirements for providing finance. But fortunately these requirements are now well and truly being implemented. The project has the highest levels of government focus and support now, for which we are very grateful and now work hard to launch.
As regards the company’s spending rate and use of debt, we have indeed worked hard to make progress but still be very frugal pending key milestones being achieved (notably in respect of the Tulu Kapi financing). For example, our service providers are largely payable at finance closing and our partners keep funding directly into the projects. The unsecured advances drawn are only half the levels we have used previously when we got up to c.GBP3 million. We greatly appreciate the confidence and support of our service providers and partners and of course the parties who provide unsecured advances.
We understand the frustration and anticipation and can assure that all parties, including government, are indeed finally formalising approvals in synch. It will shortly be seen to have all been worthwhile.
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