WHERE AS Ethio-Djibouti Standard Gauge Railway Share Company (Here after designated as” EDR”) is established in accordance with the intergovernmental Bilateral Agreement and the shareholder’s agreement signed between the Government of the Federal Democratic Republic of Ethiopia (FDRE) and the Republic of Djibouti on the 6th day of December 2016 and the 11th day of January 2017 respectively to operate under
the governance of the commercial law of Ethiopia:

WHERE AS The share company is expected to have far reaching business objectives to deliver freight and passenger rail transport services to the public at large and to the needy customers that yield in revenue which shall be the basis for sustainable running of the railway transport share company:

WHERE AS the startup capital contributed by both governments is considered to be the main source of Finance for the company and the high level infrastructure investments as well as the inevitable maintenance costs thereof and the delivery of high quality railway transport service demand a modern financial management system that enables EDR to obtain and allocate resources and measure operational performance in order to identify the financial result that each type of service contributes to the successful operation of the Company:

WHERE AS modern financial system plays a key role in presenting the right performance related business information to the right users at the right time against key financial performance indicators to determine the position/status of the Share Company.

NOWTHEREFORE; the Board of Directors, pursuant to 21.1 of the Articles of Association of the Share company, approved this Financial policy Directive for the financial management tasks or financial transaction, recordings, reporting, decision making to be implemented by the Company.