|Original Photo: Mereja.com|
Now, the Company has found a sudden change of fortune with the Government of Ethiopia offering debt and christening the Company’s project as National Project. Also, the Company has generated significant liquidity with sale of surplus assets. Moreover, with the lower Oil price the Company expects a huge sustained saving in its freight cost. This, it is hoped, these development will more than compensate for the weaker Euro.
According to some web-portals KGL has signed a 50-year renewable lease on 300,000 hectares in Ethiopia where its rentals are $1 per hectare per year. The Company is in dialogue with World Bank to insure against political risk in Africa.