Proparco and IFC back Gabon railway upgrade
The agreement marks a key milestone in the continued modernisation of the Trans-Gabon Railway.
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Proparco, the International Finance Corporation (IFC) and Société d’Exploitation du Transgabonais (SETRAG) have signed a €312 million financing agreement for the next phase of the Gabon Railway Modernisation and Safety Programme.
Supported by SETRAG’s shareholders – Eramet Comilog (51%), Meridiam (40%), and the Gabonese State (9%) – the agreement marks a key milestone in the continued modernisation of the Trans-Gabon Railway.
The programme will continue the renewal of the 648-km railway line linking Owendo, on the Atlantic coast, to Franceville in eastern Gabon. It also includes the modernisation of the railway’s infrastructure and systems to enhance the network’s reliability, safety and capacity, while supporting the diversification of rail services beyond the mining sector, particularly for passenger and general freight transport. Since the launch of the programme, 457 km of track have been renewed with concrete sleepers, and 186 km have already been fitted with new 60 kg rails.
The railway also plays a critical role in transporting manganese, a mineral for which Gabon is one of the world’s leading producers. Manganese is a critical raw material that is essential to the energy transition and global industrial value chains.
“The signing of this financing agreement marks the culmination of extensive work carried out with all stakeholders, particularly the Gabonese State, Eramet and Meridiam. By joining forces with IFC to finance the modernisation of the Trans-Gabon Railway – which provides an essential transport service for both local communities and the movement of critical minerals – Proparco demonstrates the AFD Group’s ability to mobilise joint financing in support of sustainable infrastructure projects that strengthen local economies and enhance connectivity across the African continent,” said Françoise Lombard, chief executive officer of Proparco.
“Reliable transport infrastructure is essential to private sector development, regional competitiveness, and job creation. Through this partnership with Proparco and SETRAG, IFC is supporting the modernisation of a strategic railway infrastructure that will strengthen supply chains, improve connectivity for communities and businesses, and support Gabon’s long-term economic diversification. This investment reflects IFC’s commitment to mobilising capital for infrastructure that drives sustainable and inclusive growth across Africa,” noted Ethiopis Tafara, regional vice president for Africa at the IFC.
“The successful completion of this financing marks a decisive milestone for both SETRAG and Gabon. It reflects the confidence our financing partners have in our business model and operational trajectory. With this support, together with the ongoing operational backing of our shareholders, we now have the means to accelerate the safety upgrades and full modernisation of the Trans-Gabon Railway, strengthening its position as a benchmark logistics corridor in Central Africa and as a driver of sustainable development for local communities and the national economy,” commented Christian Magni, CEO of SETRAG.
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