The GED Africa project is the Duna Group’s largest international investment to date, aimed at realising a trade corridor of major significance in Africa. The financing and operation of a development of this scale, involving multiple countries and financial stakeholders, is highly complex. Below, we outline the key information about the project, as well as the most important aspects of its financing, operational and economic structure.
The financing of the project was approved by EXIM Bank and MFB, which was involved in the process, following nearly ten months of financial, legal and risk due diligence audit.
In order to implement the financing structure, the two state-owned banks requested a state guarantee, which was provided to them by the Hungarian state. This guarantee was not addressed to Duna Aszfalt Zrt., but served as security for the financing banks to complete the bond issue. The decision to provide the guarantee was taken by the Hungarian Government and the relevant state bodies on their own authority; the Duna Group had neither any influence over this nor any decision-making power.
The banks providing the financing granted the loan not to the African project company but to Duna Aszfalt Zrt., meaning that Duna Aszfalt Zrt. is primarily liable for the repayment of the loan with its own assets. The beneficiary of the state guarantee is not the Duna Group, but the financing banks. The guarantee serves as security solely in the event that Duna Aszfalt Zrt. is unable to meet its payment obligations despite utilising all the resources and assets at its disposal. The guarantee therefore does not replace the company’s liability, but rather reduces the risk borne by the financing banks.
The project’s financing structure is advantageous in several respects for the Hungarian state and, indirectly, for Hungarian citizens. As we have previously noted, Duna Aszfalt Zrt. pays a guarantee fee for the state guarantee, which represents direct revenue for the state. Furthermore, the bonds issued to finance the project carry interest rates that are higher than the market average and include a significant risk premium. As the bonds were subscribed to by Hungarian state-owned financial institutions, the interest income also flows into the state’s financial system. This means that the successful operation of this arrangement not only facilitates the implementation of the project but also generates revenue for the state, which in turn indirectly benefits the Hungarian community and taxpayers.
The security of the financing is further strengthened by the fact that the Duna Group is not a group of companies built around a single project. Through Duna Aszfalt Zrt., construction activities are carried out not only in Hungary but also by subsidiaries in Poland, the Czech Republic, Slovakia and Romania; thus, the group’s financial stability is underpinned by projects being implemented in several countries and revenue generated across multiple markets. Consequently, the risk to the financing banks does not depend solely on the success of the African project.
Our company has so far met all its interest and debt service obligations relating to the bonds issued in full, and intends to continue to do so in the future.
Duna Group’s revenue will derive from tolls collected during the operation of the completed infrastructure. Under the financing structure, these revenues will primarily be used to make early repayments on the bonds; thus, the successful operation of the project will directly contribute to faster repayment of the financing and a shorter maturity period. The more successful the project’s operation, the faster the outstanding financing obligation will decrease, and with it, the risk to the financing banks.
Comparing the costs of international infrastructure development projects solely on the basis of construction costs per kilometre does not provide a real picture.
The Kasomeno–Mwenda project is not a motorway but involves the construction and operation of an approximately 184-kilometre-long, dual-carriageway public road, the technical specifications of which differ significantly from those of a motorway project in Hungary. The soil and geological conditions in Africa necessitate different technical solutions.
The project also includes a 362-metre-long border bridge, two state-of-the-art single-stop border checkpoints, and the full building up of the electronic toll collection and operational infrastructure. For this reason, no professionally well-founded comparison can be made with the per-kilometre costs of other African projects comprising solely road construction elements, nor with those of domestic motorway developments.
Construction costs were determined by market competition. International and local partners, as well as subcontractors, were selected through an open tender process in which all eligible market participants could take part.
The GED Africa project is being implemented in the Democratic Republic of the Congo and the Republic of Zambia. As part of the project, a road nearly 184 kilometres long, a 362-metre border bridge, two state-of-the-art border posts and the infrastructure required for their operation are being constructed. The new route will shorten the transport route between the mining area in Haut-Katanga province and the port of Dar es Salaam in Tanzania by around 500 kilometres, thereby significantly reducing transport times and logistics costs. The two new, state-of-the-art border posts will also significantly speed up border crossings between the two countries, further improving the efficiency of transport and trade.
The project is being implemented under a 25-year PPP (Public–Private Partnership) arrangement. The three-year construction phase, which began in 2024, will be followed by 22 years of operation and maintenance. The investment is being carried out by international and local contractors under the technical supervision of the Duna Group.
The project is being implemented by GED Africa Ltd., the Duna Group’s project company registered in Mauritius. Mauritius is one of the most important financial and business centres for international investment aiming at Africa. Many international companies opt for this structure as it provides a well-developed financial services environment.
In an international ranking of corporate tax systems, Mauritius was ranked 15th in 2024, whilst Switzerland was 4th and Hungary was 22nd. In the 2025 rankings, Mauritius moved up to 16th place, Hungary to 21st, and Switzerland to 3rd.
We hope that this information will contribute to a fuller understanding of the project’s financing and operational structure.