The Export Credit Insurance Corporation of South Africa (ECIC) has announced new financing incentives under the Luxembourg Rail Protocol, aimed at improving access to credit for local rail manufacturers, operators, and financiers.
The announcement comes ahead of ECIC’s participation in the 2025 Southern African Railways Association (SARA) Rail Conference and Exhibition in Pretoria.
Boosting access to affordable financing
The Luxembourg Rail Protocol creates a unified international legal framework for recognising and enforcing security interests in railway rolling stock. By strengthening asset-based security, it reduces risk for lenders, lowers borrowing costs, and broadens access to credit—particularly for exports of locomotives, wagons, signalling systems, and rail components.
Incentives to drive adoption
ECIC confirmed that when the Protocol applies in the debtor or lessee’s jurisdiction, it will offer up to a 20% discount on its risk premium for underwriting rolling stock financing.
These discounts remain subject to ECIC’s local content requirements, compliance with the Protocol, and its standard underwriting conditions. The corporation plans to release full policy guidelines in the coming weeks.
Expanding opportunities across Africa
The Protocol also promotes cross-border recognition of ownership and interoperability, making it easier for South African rail exporters to enter regional markets and attracting more private sector investment into rail projects.
“The Luxembourg Rail Protocol is a game-changer for Africa’s rail sector,” said Ntshengedzeni Gilbert Maphula, acting CEO of ECIC. “By aligning financing models with global best practice, it builds investor confidence and strengthens the position of South African exporters in the continent’s rail development.”
At the SARA Rail Conference, ECIC will demonstrate how export credit insurance—combined with the Protocol—can unlock financing channels, mitigate risks, and encourage private investment in railway infrastructure.
About ECIC and the Protocol
Founded 24 years ago, ECIC provides export credit and investment insurance to support South African exporters, particularly in markets where traditional insurance options are limited.
The Luxembourg Rail Protocol, part of the Cape Town Convention on International Interests in Mobile Equipment, streamlines private-sector financing for railway rolling stock. It introduces international standards for creditor and lessor rights, establishes a 24/7 global registry, and incorporates a universal identification system (URVIS).
The Protocol officially came into force in March 2024 and has been ratified by South Africa, Luxembourg, Gabon, Paraguay, Spain, Sweden, and the European Union
