The role of commercial banks and DFls in Southern Africa’s ral expansion

ACROSS southern Africa, thousands of kilometres of Cape gauge railway lines run through bustling cities, between green valleys, and alongside grassy savannahs.

- MORNE VISAGIE

A reminder left of rail’s dominance a few decades ago, the picture looks very different today. Many of these railway lines are underutilised or abandoned, with over 30% of Africa's rail infrastructure currently inoperable. With trade volumes projected to grow significantly, the urgency to revitalize rail infrastructure is clear.

Availability is another stumbling block for the continent’s rail sector. Most African countries average only three kilometres per 1 000 square kilometres compared to high railway density countries such as those in Europe, with 400 kilometres per 1 000 square kilometres.

This shortage of built railway lines further exacerbates the impact of inoperable rail lines.

Out of necessity, Africa's rail network has been replaced as the preferred mode for freight transport. Due to the significant shift to road, various shortand long-term road infrastructure problems have developed.

Traffic congestion has significantly increased across the continent, with three of the world’s cities with the worst traffic delays situated in Africa. Simultaneously, road infrastructure has been damaged by the consistent use of heavy freight vehicles.

The frequency of large weight loads exerting pressure on these public roads and highways have led to uneven tar surfaces, premature pavement failure, and potholes.

From an economic perspective, the consequences have also been severe. Africa moves around 80% of goods via road networks, and over 40% of the final purchasing price can be attributed to inflated transport costs. For the SADC region, the economic impact is even more significant, as 90% of freight is transported by road.

Projections estimate that traffic volumes for landlocked SADC countries will grow by 8.2% annually until 2030 and that trade volumes will also expand over the next five years, further stressing the urgency to alleviate trade's reliance on road.