Dr. Lubinda (Mufalo) Sakanga, representing the Southern Africa Railway Association and SADC, recently spoke at the African Development Bank Transport Forum 2024 in Abidjan, highlighting the pressing need for a shift in railway development in Africa. Emphasising the importance of railway transport, Dr. Sakanga outlined three key points to address for future development: policy focus, creating an ecosystem, and economic regulation.
1. Shifting the Policy Focus for Railways
Dr. Sakanga stressed the need to move away from the colonial-era model of railways designed primarily for the extraction of African resources and the importation of equipment. With the Africa Continental Free Trade Agreement promoting intra-Africa trade, he argued that railways must now focus on economic viability and connectivity within the continent. This means shifting the narrative from port-to-port transport to a network that links cities such as Lusaka and Harare, or Tanzania and the DRC. Highlighting the estimated infrastructure demand of $400 billion over the next 20 years, he called for an economic approach responsive to Africa’s industrial needs.
2. Creating a Railway Ecosystem
Dr. Sakanga introduced the concept of a railway ecosystem, drawing a parallel to agriculture. Just as agriculture requires fertile land, seeds, human capital, and equipment, a thriving railway sector needs robust manufacturing capabilities, research-focused universities, and an integrated industry. Currently, Africa’s railway manufacturing base is weak or non-existent in many countries. With the projection of needing 200,000 wagons, he questioned the rationale behind importing all this infrastructure when a manufacturing plant costs less than $100 million. Dr. Sakanga advocated for establishing railway manufacturing hubs, creating a sustainable ecosystem that includes strategic partnerships with agriculture, energy, and education sectors.
High-speed railway projects, such as the Africa Integrated High-Speed Railway Project, also require power generation and reliable energy sources. Planning for such advanced rail systems must be detailed and integrated with national and regional master plans. Without energy, manufacturing, and human capital, high-speed railways are unsustainable.
3. Implementing Effective Economic Regulation
Dr. Sakanga underscored the need for appropriate railway economic regulation, focusing on concessions, vertical integration, and vertical separation. While each model has its merits, he emphasised the importance of balancing public and private sector interests. Public interest covers government and citizen concerns, while private sector interests drive investment, structuring incentives, and subsidies in the railway sector.
Regardless of the chosen economic regulatory regime, Dr. Sakanga highlighted the necessity of policy guidance, safeguarding customer rights, ensuring service quality, and establishing a regulatory body to manage infrastructure and arbitrate conflicts between customers, operators, and infrastructure managers. Most crucially, he stressed the importance of human capital, which drives innovation and strengthens the railway ecosystem.
Conclusion: A Call for Pragmatic Steps
In his closing remarks, Dr. Sakanga referenced the Forum on China-Africa Cooperation’s (FOCAC) $50 billion investment, urging that a deliberate portion of these funds be allocated to Africa’s railway manufacturing sector. His hope is that this forum will lead to concrete steps toward the continent’s railway development, focusing on strategic, continental railway initiatives to drive Africa forward.
