Keypoints:
- Rail investment proposals across Africa have tripled since 2024
- Governments see rail as key to cutting trade and import costs
- New corridors aim to boost exports and intra-African commerce
AFRICA’S next big investment story is not unfolding in data centres or digital infrastructure, but along steel tracks stretching across the continent. Railways, long neglected and underfunded, are re-emerging as a cornerstone of Africa’s economic strategy as governments and investors confront the high cost of moving goods.
After years of reliance on roads, proposed rail investments across Africa have more than tripled this year compared with 2024, according to Bloomberg. The surge reflects a growing consensus among governments, development banks and private investors that rail is essential to lowering logistics costs and unlocking regional trade.
High price of road dependence
Africa’s trade remains dominated by minerals and agricultural commodities. Yet much of this output is still transported by road, one of the most expensive options for long-distance freight. For landlocked countries, dependence on trucking can add as much as 20 percent to import costs, according to the World Bank, eroding competitiveness and constraining economic growth.
Rail transport offers a cheaper and more efficient alternative, particularly for bulk goods. As pressure mounts to make African exports more competitive, rail is increasingly seen as a structural solution rather than a legacy system.
Governments commit billions
Several flagship projects illustrate the scale of the shift. Morocco plans to spend about $10.5bn expanding and modernising its rail network, strengthening links between industrial zones and ports while upgrading passenger and freight capacity.
In South Africa, state-owned logistics group Transnet is seeking $7.8bn to rehabilitate rail tracks and port infrastructure after years of operational decline that have weighed heavily on mining and agricultural exports.
Across East and West Africa, governments are advancing similar projects, often backed by development finance institutions and private capital attracted by long-term returns tied to commodity flows and trade volumes.
Rail reshapes export corridors
Major mining investments are reinforcing rail’s renewed strategic importance. Ivanhoe Atlantic plans to ship iron ore from Guinea through Liberia, reviving cross-border rail infrastructure to unlock export capacity.
Further south, Angola’s Lobito Corridor is emerging as a critical route for moving copper and cobalt from the Democratic Republic of Congo to global markets. The corridor offers a faster and more reliable alternative to traditional export routes, underscoring how rail can reshape Africa’s commodity supply chains.
Beyond minerals
Improved rail connectivity promises benefits well beyond extractive industries. Lower transport costs can expand market access for manufacturers and agribusinesses, reduce operating expenses for firms, and support job creation across logistics and supply chains.
Those gains are increasingly urgent. Africa is expected to need around 1 bn new jobs by the end of the century as its population grows, according to international development estimates. Efficient transport networks are widely seen as essential to absorbing that workforce into productive sectors.
Closing a persistent gap
Despite the momentum, Africa’s rail deficit remains stark. As of 2024, the continent had roughly 66,000 kilometres of rail lines, compared with about 160,000 kilometres in China and around 69,000 kilometres in India. Many African networks are also fragmented, outdated or poorly maintained.
The African Union aims to address this through its Programme for Infrastructure Development in Africa, which targets 30,200 kilometres of new rail lines by 2040. Meeting that goal will require sustained financing, political coordination and cross-border cooperation.
Trade pressures sharpen focus
Global dynamics are adding urgency to the rail push. US President Donald Trump’s trade war policies and cuts to foreign aid have highlighted the risks of over-reliance on external markets and reinforced the case for stronger intra-African commerce in 2026.
In that context, railways are no longer seen as optional infrastructure. They are becoming strategic assets, capable of redrawing Africa’s trade routes and reshaping its economic future.
