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Erudite AfricaCenter of Excellence
← Advanced Credit and Portfolio Risk

Project finance appraisal

Module 01 / 5 · 65 min · Free preview

Test whether a large project earns its cost of capital and whether its debt can be serviced on the proposed terms.

In this module you will learn to

  • Check a project against the six feasibility tests before any numbers are run
  • Compute and interpret NPV, IRR and payback for a project loan request
  • Stress the project with sensitivity tests and judge how fragile it is
  • Structure equity, tenor, grace and repayments so that DSCR stays comfortably above 1
  • Set disbursement and other conditions that protect the bank during implementation

Built on

  • Erudite Africa training module: Level 3: Advanced Credit and Portfolio Risk (October 2026)
  • Erudite Africa credit training program overview and Ethiopian-context module (2026)
  • A commercial bank's Revised Credit Procedure Manual (2025), unnamed
  • NBE directives as listed in the lessons: SBB/87/2024, SBB/88/2024, SBB/89/2024, SBB/90/2024 and SBB/95/2025
  • Ethiopian laws: Proclamations No. 97/1998 and 98/1998, Movable Property Security Right Proclamation No. 1147/2019, Financial Reporting Proclamation No. 847/2014

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.