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Africa’s Rail System
The digital transformation
of Africa’s rail system
By Gilbert Saggia, courtesy www.bizcommunity.com
According to the African Development Bank, the poor condition of rail infrastructure
and rolling stock in many African countries is undermining the potential of rail
systems to contribute to economic development.
AFRICA’S FIRST network of is creating opportunities for
railways was started in Alexandria, new business and revenue
Egypt in 1852. By 1860, South models that can leverage the
Africa had launched its first upgraded rail infrastructure
steam train, running from central to transform how companies
Durban to the Point, and by 1897, operate in the region. Kenya’s
a railway line between Cape regional SGR network will create
Town and Bulawayo in Zimbabwe a critical mass that will improve
was completed. In the early 20 economies of scale, reduce unit
th
century, rail lines were being costs and tariffs, and provide
constructed across the continent, sufficient cash flow for debt
connecting cities and countries repayments.
in North, East, West and southern These developments are
Africa. crucial: The UN estimates that
Today, fast-growing economies across 1.3 billion people will be added to Africa’s
Africa are upgrading antiquated rail population by 2050, accounting for more
infrastructure to support improved regional than half of global population growth.
trade and mass local transit. However, Trade will increase dramatically: The African
according to the African Development Bank, Development Bank estimates that Africa’s
the poor condition of rail infrastructure and GDP could grow from a base of $1.7tn in
rolling stock in many African countries is 2010 to more than $15tn by 2060. Having
undermining the potential of rail systems to the appropriate rail capabilities in place will
contribute to economic development. be essential as the continent works towards
achieving the UN Sustainable Development
Critical priorities for rail development in Goals, especially as it relates to Industry,
East Africa Innovation and Infrastructure (Goal 9).
Governments and rail operators are The African Development Bank found five
responding positively: Ambitious rail projects key drivers of the development of African
are underway in many African countries, railways, namely:
including Senegal, Morocco, Cameroon, • An increase in transport demand due to
Nigeria, Gabon, Ghana, Algeria, Ethiopia, African economic growth, leading to new
Egypt, Kenya, Uganda, Mozambique and demand for transportation and better
South Africa. infrastructure;
The $100bn investment into East Africa • An increase in global supply chain
14 September/October 2018 | Logistics News
