Funding For Education Equipment to Ethiopia

The order, which was worth £1.2 million, was supported by a Letter of Credit (LC) issued by a major Ethiopian bank.

Despite this lucrative deal, the manufacturer’s bankers were only prepared to release funds to progress the order once the LC had been confirmed by a European bank or institution.

Confirmation is the process which effectively guarantees that the payment would be made to the supplier whatever happened to the Ethiopian Bank while the order was being fulfilled and exported. This was a risk that the bank itself was not prepared to accept.

Faced with the prospect of not being able to fulfil the order due to this lack of confirmation, the manufacturer contacted TAEFL. Using industry specific knowledge, TAEFL contacted several financial institutions at decision maker levels, which were known for having a key interest within the Ethiopian market.

As such, TAEFL successfully identified a credible financial institution that was prepared to confirm the LC, therefore enabling the manufacturer to proceed with the order.