Public Management

African rail overhaul could boost trade, cut costs: Report

African rail overhaul could boost trade, cut costs: Report
Wednesday, 14 February 2024 04:22

In a bid to boost free trade under the implementation of the African Continental Free Trade Area (AfCFTA), several models have been proposed to revamp the railway system. These proposals aim to address existing transportation hurdles and enhance intra-African trade efficiency.

In Late December, South African trade research group Tralac issued a report proposing cheaper alternatives to rebuilding Africa’s outdated rail, potentially easing trade bottlenecks and speeding up continental trade. Instead of a costly rebuild, the group suggests gauge reconfiguration and interconnecting existing lines.

2 sofibanque

Currently, the continent uses approximately nine different gauges. While some countries have chosen the Cape gauge of 1.067 m, which is the most common and represents 61.3% of the continental network, others use the metric gauge of 1.000 m (19.2% of the network) or the standard gauge of 1.435 m (estimated at 14.5% of the network). The report suggests using modern engineering techniques to convert railways based on models that allow for near-uniform widths, facilitating the movement of trains from one state to another.

Another issue identified that needs to be addressed is the challenges of interconnection, which result in the discontinuity and lack of meshing of several lines on the continent. Most railways, except in a few Southern and Northern African countries, are simple links penetrating inland from coastal seaports, with very little interconnection. Furthermore, 16 countries on the continent still do not have railways, according to another report by the International Union of Railways (published in 2018). The report proposes a plan to construct the missing links for better meshing to achieve a continental-type rail system.

The potential impacts of these solutions could be significant. According to estimates by AGL, cited by the African Development Bank in its report “Rail Infrastructure in Africa Financing Policy Options”, a complete reconstruction would require an investment of over $100 billion.

486 sofibanque

Existing Network - Source: African Development Bank, 2015

These models could also reduce the time required for reconstruction, given the size of the continent. This could accelerate the implementation of the AfCFTA, which, according to official projections, will increase demand for intra-African freight by 28% over the next few years. At present, only 0.3% of total intra-African freight is carried by rail, compared with 80% by road.

With advantages such as volume optimization for freight shipments, rail transport, according to the AfDB, is proving more competitive than road transport over distances of more than 500 km. It can even replace a large fleet of trucks with a few railcars. This option, which favors a shift from road to rail, could have a major positive impact on logistical constraints such as costs per tonne-kilometer, shipment lead times, traffic congestion, road network sustainability, greenhouse gas emission reduction, and the development of efficient, high-capacity transport corridors to effectively achieve the objectives of the AfCFTA.

In addition to these technical problems, which should be largely resolved if the African Union’s Agenda 2063 is realized, many other factors are limiting the potential of the African rail system and free trade, such as network management models, domestic legal provisions such as those governing customs and immigration, among others.

Henoc Dossa 

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Togo cut projected 2025 budget revenue by 1% to CFA1,472 billion while raising spending by 2.3% to CFA1,717.1 billion. The revised budget shows a...
Togolese banks granted CFA903 billion in new loans by end-September 2025, up 22% year on year. The National Credit Council cited sustained...
Ecobank and Coris Bank dominate WAEMU public securities market Ecobank leads largest, liquid markets; Coris strong in Sahelian states Banks...
President authorizes new buyer credit to expand national video surveillance Loan complements earlier financing from CITIC Bank and Bank of...
Most Read
01

AI-backed agri-fintech is increasingly being used to pilot new rural credit models in Africa, where ...

From Mobile Data to Farm Loans: How AI Is Expanding Rural Credit in Africa
02

Fruitful partners with Elsewedy unit to launch processing project in Egypt New facility wil...

Egypt attracts Polish Fruitful investment in horticultural processing
03

Investment bank BCID-AES established  in Bamako Bank aims to fund infrastructure, agricultur...

Sahel Alliance Establishes Investment Bank, Key Financing Decisions Pending
04

This week’s health update shows Africa edging closer to the end of the mpox public health emergency,...

Weekly Health Update | Africa Steps Up Essential Medicines Strategy, Despite Outbreaks, Funding Gaps
05

Fitch upgrades Côte d’Ivoire to BB, saying political uncertainty has lifted and the country has mo...

Fitch Says Côte d’Ivoire Has “Left Political Risk Behind” as Rating Upgrade Highlights Strengthening Fundamentals
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.