International
Revival of Cape to Cairo Railway Set to Boost African Trade and Connectivity
By Iyojo Ameh
The Cape to Cairo Railway project, a historic endeavor originally proposed in the late 19th century, is being revitalized by the African Royal Group of Companies with significant support from The Southern African Railway Association (SARA) and regional railway operators.
The project was announced during a roundtable meeting with investors at the 2024 Rail Conference and Exhibition in Sandton Convention Centre, Sandton, South Africa on Tuesday.
HIH Prince Estifanos, Investment Director of the African Royal Group of Companies, expressed enthusiasm about the project’s potential benefits.
The initial phase of the project will commence in Southern Africa, with an expansion planned to cover other Regional Economic Communities (RECs) by December. The African Royal Group, through its Africa Trade and Investment Center, is leading efforts to finance and advance the revival of this crucial rail link.
The Johannesburg-based firm has played a key role in moving the project forward, having secured three Memorandums of Understanding (MOUs) with major railway operators across Africa. They have also facilitated partnerships with a diverse array of investors and financiers, including international corporations and continental financial institutions.
The Cape to Cairo Railway aims to create a continuous rail corridor from Africa’s southern tip to the northern reaches, enhancing intra-African trade and reducing logistics costs. The project’s revival is expected to transform the continent’s transportation system by decreasing reliance on road transport, which will help reduce carbon emissions, lower road traffic accidents, and better preserve road infrastructure.
Prince Estifanos underscored the importance of attracting investment to develop Africa’s rail infrastructure, revealing that prominent financial institutions such as the World Bank, the International Monetary Fund (IMF), and the African Export-Import Bank (AFREXIM) have shown considerable interest in funding the railway sector. Effective partnerships with governments and private operators are seen as key to advancing and implementing railway projects across African states.
“We are optimistic that the Cape to Cairo Railway will eliminate trade barriers, lower logistics costs, and generate millions of jobs across the continent. The investment will start in Southern Africa, with plans to extend to other Regional Economic Communities by December,” said Prince Estifanos.
