Mobilising Climate Finance for Rail Infrastructure in Africa
A Sector-Based Response to a Continental Challenge
Africa stands at a critical juncture in its pursuit of sustainable development, where robust transport infrastructure—particularly rail—must play a central role in driving regional integration, climate resilience, and economic transformation. The African Union’s Programme for Infrastructure Development in Africa (PIDA), under its Priority Action Plan (PAP 2), is intensifying efforts to deliver infrastructure projects that are climate-resilient and bankable, with rail recognised as a strategic pillar in the continent’s low-carbon transport future.
Despite the compelling need, a severe shortfall in climate and infrastructure finance is hindering progress. The African Development Bank estimates that Africa faces an annual infrastructure financing gap ranging between USD 68 billion and USD 108 billion. Even more pressing is the climate finance deficit—an estimated USD 3 trillion will be required by 2030 to implement the continent’s Nationally Determined Contributions (NDCs) under the Paris Agreement, yet only a fraction of this funding has been secured.
Recognising these gaps, the African Union Commission (AUC), in collaboration with partners such as the African Development Bank, AUDA-NEPAD, UNECA, and with support from GIZ and the EU, has initiated a sector-based approach to fast-track the mobilisation of climate finance. This effort is led by Frédéric Mao, Senior Policy Advisor for Green Infrastructure Corridors for Intra-African Trade (Support to PIDA), GIZ African Union.
The roundtables were held in June 2025 in Addis Ababa, focusing on the energy and transport sectors—bringing together public and private stakeholders, regional economic communities (RECs), financial institutions, railway agencies, and climate finance practitioners.
For the transport sector, the emphasis was on enabling bankable investments across green corridors—spanning rail, ports, and aviation—with the Continental Railway Sourcebook forming a foundation for structured discussion. Railway development emerged as a vital enabler for reducing emissions, improving cross-border connectivity, and fostering disaster risk resilience through more sustainable transport modalities.
These roundtables not only offered technical clinics on project structuring and innovative finance but also explored practical pathways to make African railway infrastructure projects investment-ready.
The outcomes from these discussions will feed directly into the upcoming Luanda Infrastructure Investment Summit, where bankable projects aligned with PIDA objectives will be presented to investors.
Focus on Rail Projects
Revitalising East Africa’s Northern Corridor Through the Standard Gauge Railway
The Northern Corridor continues to serve as a critical lifeline for trade and logistics in East Africa. Linking the Port of Mombasa in Kenya to landlocked neighbours such as Uganda, Rwanda, the Democratic Republic of Congo (DRC) and South Sudan. This strategic route facilitates the movement of goods and people across some of the region’s most important economic zones. As pressure mounts on ageing infrastructure and congested roads, the region’s governments have turned to modern rail as a transformative solution.
A Strategic Response to Infrastructure Deficits
The Standard Gauge Railway (SGR) was conceived to address longstanding logistical bottlenecks stemming from an outdated metre-gauge railway network, an overreliance on road transport, and the resulting high cost of logistics in the region. As a flagship of Kenya Vision 2030 and Uganda Vision 2040, the SGR aims to support greater regional integration, improve transport efficiency, and stimulate economic development across the corridor.
The rationale for the SGR is rooted in key challenges that have long impeded efficient transport in East Africa:
- An ageing and underinvested rail system that cannot meet modern freight or passenger demands
- Heavy dependence on road transport, contributing to high road maintenance costs, congestion, and pollution
- Elevated transport costs, especially for landlocked countries
- Weak logistics performance and poor safety standards on existing networks
- Limited connectivity and economic competitiveness due to poor regional integration
The new 1,435mm gauge railway is designed to offer a faster, safer, and higher-capacity alternative that aligns with global standards, paving the way for greater trade facilitation across the corridor.
Corridor-Wide Ambitions: From Mombasa to Kigali
The full project envisions a continuous standard gauge link from Mombasa to Kigali, connecting the key cities of Nairobi, Naivasha, Malaba, Kampala, and Mirama Hills. This line forms the backbone of the Northern Corridor’s rail modernisation plan and is structured in stages across Kenya, Uganda, and Rwanda.
- Kenya: Mombasa – Nairobi – Naivasha – Malaba (961km)
- Uganda: Malaba – Kampala (272km), plus additional lines from Kampala to Mpondwe and Bihanga to Mirama Hills (663km), and from Tororo to Gulu, Nimule, and Gulu to Pakwach and Vurra (762km)
- Rwanda: Mirama Hills – Kigali (136.5km)
The section extending into South Sudan and the DRC remains outside the scope of this particular corridor upgrade but is considered a longer-term regional ambition.
Status of the Kenyan Sections Kenya has made notable progress, with the Mombasa–Nairobi (Phase 1) and Nairobi–Naivasha (Phase 2A) sections already in operation since 2017 and 2019, respectively. Both phases were financed by a US$5 billion loan from the Export-Import Bank of China.
Subsequent phases are now moving ahead:
- Phase 2B (Naivasha–Kisumu, 262km)
- Phase 2C (Kisumu–Malaba, 107km)
Both are currently in the planning stage, with construction contracts awarded to China Communications Construction Company (CCCC). The total cost for these final two phases is estimated at US$5.3 billion.
| Section | Length (km) | Status |
| Mombasa–Nairobi (Phase 1) | 472 | Operational since 2017 |
| Nairobi–Naivasha (Phase 2A) | 120 | Operational since 2019 |
| Naivasha–Kisumu (Phase 2B) | 262 | Contract awarded, planning underway |
| Kisumu–Malaba (Phase 2C) | 107 | Contract awarded, planning underway |
The phased development approach has allowed Kenya to strategically manage the financial and technical complexities of the corridor while aligning with broader national and regional development frameworks.
Unlocking Regional Impact
Once fully implemented, the SGR is expected to significantly enhance cargo haulage efficiency across the Northern Corridor, offering an alternative to the heavily burdened road transport system. With the potential to lower freight costs, reduce transit times, and improve trade competitiveness, the corridor stands to benefit not only from modernised infrastructure but also from stronger regional integration and economic resilience.
The project embodies the ambition of East African states to harmonise infrastructure development with policy goals, offering a glimpse into what a unified, rail-powered trade network might achieve for the continent.
Uganda and Rwanda Advance SGR Development with Renewed Commitment and Regional Coordination
As the Northern Corridor’s Standard Gauge Railway (SGR) moves steadily forward, progress on the Ugandan and Rwandan sections is gaining momentum, supported by renewed political will, dedicated project structures, and regional cooperation frameworks.
Project Progress in Uganda
In Uganda, the most advanced section is the Malaba–Kampala stretch (273km), where feasibility studies were completed in 2014 and recently updated in 2024. This section is now in preliminary works, following the award of the engineering, procurement, and construction (EPC/T) contract to Yapi Merkezi, a Turkish firm. The Government of Uganda is financing the early stages under a Limited Notice to Proceed agreement. Full construction is scheduled to take approximately 48 months.
Meanwhile, other lines—including the Kampala–Bihanga–Mpondwe and Bihanga–Mirama Hills corridors (663.4km), as well as the Tororo–Gulu–Nimule and Gulu–Pakwach–Vurra routes (762km)—are at varying stages of feasibility assessment. A consultant is currently being procured to conduct a full feasibility study, expected to be completed by the end of 2026. The pre-feasibility work has been finalised, and plans for full feasibility studies are underway.
To manage the development, Uganda’s Ministry of Works and Transport (MoWT) has established a dedicated SGR project office. The Ministry of Finance is actively engaging with Export Credit Agencies (ECAs) and development finance institutions to secure funding for the Malaba–Kampala section. Simultaneously, the government is financing key project enablers such as land acquisition, with over 50% of the right-of-way already secured, and construction supervision.
Progress on the Rwandan Side
In Rwanda, the 147.8km Mirama Hills–Kigali section remains at the conceptualisation stage. A feasibility study conducted in 2017 is now slated for review and updating as the country prepares to advance its portion of the cross-border corridor. The Ministry of Infrastructure (MININFRA) is leading efforts to align the national railway strategy with regional developments, in anticipation of future integration with the Ugandan network at Mirama Hills.
Governance and Regional Collaboration
The SGR is anchored in a strong governance framework and driven by close coordination between national and regional actors:
- Kenya Railways Corporation (KRC) and the Ministry of Roads and Transport oversee the Kenyan sections, including infrastructure development and policy direction.
- Uganda Railways Corporation (URC) and the Ministry of Works and Transport (MoWT) are responsible for development and regulation in Uganda.
- Rwanda’s Ministry of Infrastructure (MININFRA) is leading efforts on the Rwandan segment.
Beyond national institutions, key regional stakeholders play a critical role in ensuring alignment and integration:
- The East African Community (EAC) has been instrumental in developing a regional Railway Master Plan, harmonising technical standards, and supporting coordinated development across member states.
- The Northern Corridor Transit and Transport Coordination Authority (NCTTCA) promotes trade and mobility along the corridor and ensures sustainability in infrastructure development.
- The Intergovernmental Authority on Development (IGAD) also supports regional infrastructure initiatives, fostering broader cooperation between East African countries.
A Project Years in the Making
The development of the SGR across Kenya, Uganda, and Rwanda is the culmination of a multi-decade effort grounded in strategic regional agreements and long-term vision.
| Year | Milestone |
| 2009 | Kenya and Uganda sign a Memorandum of Understanding (MoU) for construction of the SGR from Mombasa to Kampala. |
| 2013 | Tripartite Agreement signed by Kenya, Uganda and Rwanda to fast-track the development of the SGR. |
| 2014 | Construction begins on the Mombasa–Nairobi section; feasibility studies for Malaba–Kampala completed; regional protocol signed by partner states. |
| 2017 | Financial and economic reports prepared for the Rwanda section; SGR traffic projections commissioned; Mombasa–Nairobi section becomes operational. |
| 2019 | Nairobi–Naivasha section (Phase 2A) enters service. |
| 2024 | EPC/T contract signed for Malaba–Kampala; feasibility studies finalised for Naivasha–Kisumu (Phase 2B) and Kisumu–Malaba (Phase 2C). |
As the project enters a new phase of execution, these foundational milestones reflect a commitment by East African governments to realise the vision of a modern, interoperable railway network—an infrastructure legacy poised to transform regional connectivity.
Demand, Cost and Financial Viability of the Northern Corridor SGR
As the Northern Corridor SGR evolves from planning into implementation, understanding the projected demand and financial metrics is essential for measuring its long-term viability. Each section of the corridor presents a unique investment profile—shaped by geography, logistics flows, and the level of supporting infrastructure.
Mombasa–Nairobi (Phase 1): High Demand, Moderate Returns
The Mombasa–Nairobi section, which has been operational since 2017, forms the cornerstone of the corridor. Cargo demand projections indicate strong growth under both high and low scenarios:
- High-case (Up): Cargo volumes are expected to grow at a compound annual growth rate (CAGR) of 9.3%, increasing from 6.9k metric tonnes per kilometre in 2025 to 26.0k by 2035.
- Low-case (Down): Growth is still significant, with a 9.0% CAGR, from 1.8k in 2020 to 6.7k by 2035.
- Passenger demand is forecast to grow at 2.9% CAGR, from 0.03 to 0.05 passengers per kilometre per year over the same period.
Capital expenditure (CapEx) for this section stood at US$3.804 billion, broken down as follows:
- Infrastructure: US$2.657 billion
- Rolling stock: US$1.147 billion
The financial internal rate of return (FIRR) is estimated at 6.37%, with a 15-year payback period.
| Indicator | Value |
| Financial NPV (before tax) | US$166.4 million |
| Financial NPV (after tax) | US$45.7 million |
| Payback period (before tax) | 13.03 years |
| Payback period (after tax) | 14.58 years |
Nairobi–Naivasha–Kisumu–Malaba (Phase 2): Moderate Returns Enhanced by Infrastructure Integration
The Phase 2 extension from Nairobi to Malaba (via Naivasha and Kisumu) shows robust demand forecasts:
- High-case scenario: Cargo volumes projected to grow at 4.6% CAGR, from 35.8k MT/km in 2025 to 70.1k by 2040.
- Low-case scenario: 4.3% CAGR, increasing from 13.9k to 26.0k MT/km/year by 2040.
- Passenger demand growth mirrors Phase 1, at 2.9% CAGR.
CapEx by section:
- Nairobi–Naivasha: US$1.483 billion
- Naivasha–Kisumu: US$3.663 billion
- Kisumu–Malaba: US$1.229 billion
Two financing models were assessed:
- Option 1 (rail only): Limited investment in supporting logistics or industrial infrastructure
- Option 2 (rail + support infrastructure): Includes logistics hubs and industrial parks
| Section | IRR (Opt. 1) | Payback (Opt. 1) | IRR (Opt. 2) | Payback (Opt. 2) |
| Naivasha–Kisumu | 1.19% | 34.2 years | 3.09% | 25.9 years |
| Kisumu–Malaba | 4.39% | 22.6 years | 4.59% | 22.2 years |
These figures highlight the importance of integrating economic zones and freight hubs along the line to improve returns.
Malaba–Kampala: Strong Economic Case, Viable Returns
For the Malaba–Kampala section in Uganda, demand projections suggest substantial growth:
- Container traffic is expected to rise from 207,000 TEUs in 2030 to over 658,000 TEUs by 2050.
- Conventional cargo volumes are forecast to increase from 5 million tonnes to nearly 14 million tonnes over the same period.
Capital expenditure (CapEx) is estimated at €2.7 billion (US$2.7 billion), with construction scheduled from 2025 to 2029.
Three potential capital structures were analysed:
| Debt/Equity Ratio | NPV (US$ million) | IRR | Payback (years) |
| 60:40 | 882 | 9% | 26 |
| 80:20 | 358 | 8% | 26 |
| 90:10 | 96 | 8% | 26 |
An economic analysis based on a 26-year operational horizon (2025–2050) revealed stronger fundamentals:
| Indicator | Value |
| Economic NPV (ENPV) | US$2.557 billion |
| Economic Internal Rate of Return (EIRR) | 4.53% |
| Benefit–Cost Ratio (BCR) | 1.87 |
Mirama Hills–Kigali: Lower Viability Without Strategic Investment
In Rwanda, the Mirama Hills–Kigali section presents a more challenging investment case:
- Project cost is estimated at US$1.86 billion
- Total maintenance costs over the lifecycle: US$17.42 billion
- Labour costs projected to grow at 2% annually
| Financial Indicator | Value |
| Financial IRR (FIRR) | 1.26% |
| Financial NPV | –US$1.47 billion |
| Economic NPV (ENPV) | –US$1.29 billion |
| Economic IRR (EIRR) | 4.53% |
| Benefit–Cost Ratio (BCR) | 0.18 |
Long-Term Demand Outlook: Kigali–Kampala Corridor
Despite the poor short-term financial outlook, long-term demand forecasts point to increasing volumes:
- Kampala–Mirama Hills: Expected to grow at 4.5% CAGR, from 6.6k MT/km/year (2022) to 88.2k MT/km/year (2081)
- Mirama Hills–Kigali: Estimated 5.3% CAGR, from 3.2k to 67.7k MT/km/year over the same period
This suggests potential for economic viability if paired with broader regional development initiatives and strategic infrastructure investment.
Commitments Under the Paris Agreement
All three implementing countries—Kenya, Uganda, and Rwanda—have ratified the Paris Agreement and outlined Nationally Determined Contributions (NDCs) that commit to ambitious emission reduction targets:
| Country | Paris Agreement Ratified | GHG Emissions Reduction Target (by 2030) | Transport Sector Actions |
| Kenya | 28 Dec 2016 | 32% reduction | Promotion of low-carbon transport systems, including railways |
| Uganda | 21 Sept 2016 | 24.7% (5.9% unconditional, 18.8% conditional) | SGR implementation, BRT systems, improved roads |
| Rwanda | 6 Oct 2016 | 38% (16% unconditional, 22% conditional) | Modal shift to low-carbon transport, especially rail |
Advancing the Central Corridor SGR: A Green Economic Development Model
As part of Africa’s broader shift towards climate-aligned infrastructure, the Central Corridor Standard Gauge Railway (SGR) presents another compelling example of how sustainable rail projects can drive regional connectivity, economic growth, and emissions reduction. Spanning Tanzania, Burundi, and the Democratic Republic of Congo (DRC), the Central Corridor SGR builds upon the vision of a Green Economic Development Corridor (GEDC), linking landlocked countries to the Port of Dar es Salaam via an efficient, multimodal transport network.
The Central Corridor: Regional Context and Vision
The Central Corridor serves as a critical transport and logistics artery connecting Tanzania to the landlocked markets of Burundi, Rwanda, Uganda, and the eastern DRC. Coordinated by the Central Corridor Transit Transport Facilitation Agency (CCTTFA), the corridor comprises roads, railways, inland waterways, and the maritime port of Dar es Salaam. With a renewed focus on sustainability, the corridor is evolving into a GEDC—an integrated model combining environmental protection, social inclusiveness, and economic value chain development.
This transition aims to optimise transport operations, promote inter-African trade, and enhance resilience against climate impacts, while attracting sustainable infrastructure finance to accelerate regional development.
The Central Corridor SGR Programme: Structure and Stakeholders
The SGR acts as the backbone of the Central Corridor’s GEDC ambitions. Tanzania is spearheading implementation, with 471km already operational and additional sections under active construction. The project is jointly executed by:
- Tanzania Railways Corporation (TRC) – Lead implementing agency for SGR construction within Tanzania.
- Ministry of Infrastructure, Equipment and Social Housing (Burundi) – National political and technical counterpart.
- Railway Transport Regulatory Authority of Burundi (ARTF) – Executing agency and regulator.
- Ministry of Transport and Communications (DRC) – Project authority for the DRC extension.
These national stakeholders are supported by regional bodies such as the East African Community (EAC) and Southern African Development Community (SADC), with CCTTFA playing a pivotal coordinating role—particularly in aligning infrastructure development with climate resilience strategies.
Connecting Tanzania and Burundi: The First Cross-Border Section
A major milestone is the development of the Uvinza–Musongati line, which marks the first cross-border railway link under the Central Corridor SGR. This section, enabled by a 2022 Memorandum of Understanding between Tanzania, Burundi, and the DRC, offers Burundi direct access to Dar es Salaam—critical for a country where over 90% of cargo currently moves by road.
The SGR is poised to transform Burundi’s logistics landscape:
- Reduce transport costs by up to 40%
- Improve reliability and safety of freight transport
- Enable transit of 3 million tonnes of minerals annually
- Stimulate economic activity and cross-border trade
Importantly, the SGR is Burundi’s first-ever railway, symbolising a shift from isolation to integration within regional and continental markets.
Construction Timeline and Financial Architecture
Phase I (Tanzania):
- Began in 2017 with the Dar es Salaam–Morogoro section.
- Subsequent phases include Morogoro–Makutupora, Makutupora–Tabora, Tabora–Isaka, and Isaka–Mwanza.
- Passenger services began in August 2024 between Dar es Salaam and Dodoma.
Phase II and Cross-Border Extension:
- Phase II – Lot 2 (Uvinza–Musongati) construction contract signed in 2025 with a Chinese consortium.
- Feasibility studies are underway for the DRC extension, coordinated by CCTTFA and TRC.
Cost Breakdown (Selected):
- Phase I: US$1.21–1.92 billion per lot
- Phase II – Lot 2: US$1.04 billion (Uvinza–Malagarasi), US$1.12 billion (Malagarasi–Musongati)
- Burundi’s contribution: US$621.57 million over five years
Financing includes national budgets, AfDB loans and grants, and ECA-backed facilities arranged through Standard Chartered, EKF, and EKN.
Financing Innovation: Climate-Aligned Funding and Carbon Credit Pathways
Recognising the fiscal pressures on national budgets—especially Burundi’s—the CCTTFA has launched an innovative climate finance initiative focused on:
- Mobilising green funding via institutions such as the Green Climate Fund (GCF)
- Structuring a carbon credit mechanism based on methodologies like AM0090 (Verified Carbon Standard)
This initiative, piloted on Phase II – Lot 2, aims to:
- Reduce reliance on public funding
- Demonstrate bankability through emission reduction potential
- Develop a replicable model for other corridor sections
The SGR’s projected climate benefits include an estimated 8 million tonnes of CO₂-equivalent emissions avoided over 30 years. The electrified railway, powered in part by renewable energy, offers a sustainable alternative to road freight while improving resilience against climate-induced disruptions.
Alignment with Development and Climate Agendas
The Central Corridor SGR aligns with the NDCs of all participating countries:
| Country | Paris Agreement Ratified | GHG Reduction Target | NDC Transport Focus |
| Tanzania | 18 May 2018 | 30–35% | Mass transit systems, electrified rail, renewable energy use |
| Burundi | 17 October 2018 | 3.04% (12.61% conditional) | Promotion of mass transport |
| DRC | 13 December 2017 | 21% (19% conditional) | Development of rail, tramways, and sustainable logistics |
In addition, the project is consistent with the AfDB’s Climate Change and Green Growth Strategic Framework (2021–2030) and its Climate Action Window (CAW), under which a project concept note has been submitted.
Economic Impact and Job Creation
The project demonstrates strong country ownership, with measurable socio-economic returns. Over the life of the SGR, the initiative is expected to generate:
| Country | Direct Jobs | Indirect | Induced | Secondary | Total |
| Tanzania | 730 | 1,724 | 1,553 | 3,909 | 7,366 |
| Burundi | 921 | 1,132 | 567 | 102 | 3,489 |
| Combined | 1,821 | 2,952 | 2,071 | 4,012 | 10,855 |
Additional benefits include safer transport corridors, reduced accident rates (3% annual reduction projected), and accelerated mineral export capacity, particularly for nickel and rare earths.
A Scalable Model for Sustainable Railway Investment
The Central Corridor SGR is a catalytic project that showcases how African governments, regional bodies, and climate finance partners can co-develop transformative infrastructure aligned with global sustainability targets. Like its Northern Corridor counterpart, it reinforces:
- The economic case for rail as a low-carbon logistics backbone
- The value of cross-border policy harmonisation and execution frameworks
- The potential of climate finance—grants, concessional loans, and carbon revenues—to unlock major rail investments
As Africa’s rail transformation accelerates, the Central Corridor SGR stands out not only for its geographic scope but also for its innovation in financing. It charts a path forward where infrastructure, climate goals, and inclusive growth move in concert—driven by rail.
Building on a Track Record of Climate-Financed Rail Projects
The viability and impact potential of climate-aligned railway investments in Africa and globally have already been demonstrated through similar projects supported by international financing institutions:
| Project | Country | Funding Partner | Financing Value |
| Rail Modernisation Project | Mauritania | European Investment Bank | €113 million (2025) |
| Lobito Corridor Railway Project | Angola | Development Bank of Southern Africa (DBSA) | US$200 million (2024) |
| Western Railway Corridor | Ghana | Afreximbank | US$1 million (feasibility studies, 2023) |
| Light Rail Transit – Greater Metropolitan Area | Costa Rica | Green Climate Fund (GCF) | US$250 million debt + US$21 million grant (2021) |
| Belabo–Ngaoundere Railway Renewal | Cameroon | European Investment Bank | €123 million (2021) |
These examples demonstrate not only the appetite for sustainable rail infrastructure investment but also the potential for projects like the SGR to attract concessional finance under green and climate-aligned funding mechanisms.
Green Rail Corridors Advancing Climate and Development Goals
The Northern and Central Corridor SGR projects represent more than transport infrastructure—they are anchors for inclusive growth, regional integration, and climate resilience in Africa. Positioned within the African Union’s Agenda 2063, the UN Sustainable Development Goals (SDGs), and the Paris Agreement, these projects illustrate how climate-aligned infrastructure can support long-term development outcomes.
Delivering on Continental and Global Priorities
Both corridors advance key aspirations under Agenda 2063, particularly those related to:
- Regional connectivity and economic integration
- Industrialisation and value-added trade
- Environmental sustainability and climate resilience
- Inclusive infrastructure access for landlocked countries
They also align with global sustainability goals. By improving access to markets, reducing emissions, and strengthening resilience, the corridors contribute to:
- SDG 9: Industry, Innovation and Infrastructure
- SDG 11: Sustainable Cities and Communities
- SDG 13: Climate Action
Rail’s Dual Climate Benefit
These green rail corridors deliver both mitigation and adaptation value:
- Mitigation: Rail transport emits significantly fewer greenhouse gases than road freight. The planned electrification of the corridors—partly powered by renewable energy—could prevent millions of tonnes of CO₂ emissions over their lifecycles.
- Adaptation: By diversifying transport modes, the corridors reduce exposure to fuel price volatility, road degradation, and weather-related disruptions—making the region’s logistics network more resilient.
National Climate Commitments and Institutional Alignment
Kenya, Uganda, Rwanda, Tanzania, Burundi, and the DRC have all included low-carbon transport strategies in their Nationally Determined Contributions under the Paris Agreement. The corridors give these countries a concrete tool for meeting those goals while promoting economic development.
Moreover, both projects align with the African Development Bank’s Climate Change and Green Growth Framework (2021–2030), which promotes low-carbon infrastructure, regional value chains, and climate finance innovation.
What’s Next?
As the continent mobilises to meet the twin challenges of infrastructure gaps and climate change, projects like the Northern and Central Corridor Standard Gauge Railways stand at the forefront of Africa’s green transport transition. With strong regional ownership, clear alignment to national and international climate commitments, and increasingly innovative approaches to financing—including green funds and carbon credit mechanisms—these rail initiatives offer a replicable model for sustainable infrastructure development across the continent.
The sector-based roundtables held in Addis Ababa marked a meaningful step toward closing Africa’s infrastructure financing gap—estimated at over US$170 billion annually—and advancing a just transition that supports both economic resilience and climate goals. As technical work continues to make projects bankable, and dialogue with financiers deepens, all eyes now turn to the upcoming Luanda Infrastructure Investment Summit in October 2025, where these projects will seek to convert policy alignment into capital flows. Africa’s rail corridors are not just transport routes—they are climate pathways, economic lifelines, and regional bridges. The next station: implementation.
Source:
Frédéric Mao, Senior Policy Advisor for Green Infrastructure Corridors for Intra-African Trade (Support to PIDA), GIZ African Union.