The Export Credit Insurance Corporation of South Africa (ECIC) has introduced financing incentives under the Luxembourg Rail Protocol to improve access to credit for South African rail manufacturers, financiers, and operators.
Source: Johannes Plenio via
PexelsThe announcement was made ahead of ECIC’s participation at the 2025 Southern African Railways Association (SARA) Rail Conference and Exhibition in Pretoria.
The Luxembourg Rail Protocol provides a harmonised international legal framework for recognition and enforcement of security interests in railway rolling stock.
By strengthening asset-based security, it reduces lender risk, lowers financing costs, and expands access to credit for rail-related exports. Manufacturers of locomotives, wagons, signalling equipment, and components stand to benefit from these improved financing conditions.
Incentives to encourage adoption
ECIC said that where the Protocol is in force in the debtor or lessee’s state, it will apply a discount of up to 20% on its risk premium when underwriting rolling stock financings.
Discounts are subject to ECIC’s minimum local content rules, compliance with the Protocol, and standard underwriting conditions. Detailed policy guidelines will be published shortly.
Supporting cross-border rail markets
The Protocol also facilitates cross-border interoperability and ownership recognition, making it easier for South African exporters to enter African markets and encouraging private sector participation in financing rolling stock and infrastructure projects.
"The Luxembourg Rail Protocol is a game-changer for Africa’s rail industry," said Ntshengedzeni Gilbert Maphula, acting CEO of ECIC. "By aligning financing structures with global best practice, it strengthens investor confidence and positions South African exporters to participate in the continent’s rail development.
"The ECIC is committed to supporting exporters in seizing these opportunities through innovative export credit solutions."
ECIC will use its presence at the SARA Rail Event to showcase how export credit insurance, combined with the Protocol, can unlock financing channels, reduce transaction risk, and support private investment in the rail sector.
About ECIC and the Protocol
Established 24 years ago, the Export Credit Insurance Corporation of South Africa provides export credit and investment insurance solutions to support South African exporters in international markets, particularly where conventional insurance is unavailable.
The Luxembourg Rail Protocol, part of the Cape Town Convention on International Interests in Mobile Equipment, simplifies private-sector financing of railway rolling stock by establishing global standards for creditor and lessor rights, a 24/7 international registry, and a permanent identification system (URVIS).
It entered into force in March 2024 and has been ratified by South Africa, the EU (in respect of its competences), Luxembourg, Gabon, Paraguay, Spain, and Sweden.
