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South African trade research group Tralac issued a report proposing cheaper alternatives to rebuilding Africa’s outdated rail, potentially easing trade bottlenecks and speeding up continental trade.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
Guinea Insurance plans 5.8 billion naira rights issue to boost capital Offer seeks NGX approval; two new shares for every three...
Naos Investimenti plans to expand into Togo to support SME and informal-sector financing. The Italian firm discussed market entry with Togo’s Chamber...
Togo expects external project grants to fall from CFA166.9 billion in 2026 to CFA31.6 billion by 2028. The government projects fiscal revenues to rise...
Lendable raises over $300 million at first close of two funds Funds target fintech credit, transport, energy SMEs in emerging...
Most Read
01

Togolese banks provided 16.2% of WAEMU cross-border credit by September 2025 Regional cross...

Togo accounts for 16.2% of cross-border bank financing in WAEMU
02

Microfinance deposits in Togo increased by CFA11.9 billion, a 2.7% rise in the second quarter of 2...

Microfinance: Deposits in Togo Rise 2.7% in Second Quarter of 2025
03

The BoxCommerce–Mastercard Partnership introduces prepaid cards, giving SMEs instant access to e...

South Africa’s BoxCommerce Partners with Mastercard on SME Fintech Solution
04

Nigeria licensed Amazon’s Project Kuiper to operate satellite services from 2026, setting up dir...

Amazon and Starlink Set Up Satellite Internet Rivalry in Africa
05

Gas-fired plants and renewables anchor Mauritania’s electricity expansion plan New thermal, solar...

Mauritania shapes power supply growth around gas and renewables
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.