Investment into Rail

by Developed Africa 5. December 2013 09:00

The innovation and building of railways is an integral part of trade in most countries, and as we can see from the past, the expansion of railways in Africa has led to greater trade connection and ease of access to previously hard-to-reach areas. Whilst most of the expansion went on during colonial rule, for the benefit of the colonial powers, there is no denying the important impact the railways had on trade in Africa.

Today, more development is taking place, in particular China is investing a lot into East African railways, as the Financial Times (subscription required) has reported:

The groundbreaking on Thursday of Kenya's $4bn Mombasa-Nairobi line heralds another wave of rail construction... financed by the Export-Import Bank of China"

And they are also financing:

a line renewing the link between Addis Ababa, the capital of Ethiopia, and the port of Djibouti 756km away at a cost of roughly $3bn"

These constructions will bring a boost to the economy, despite what several critics saying that they will bring no significant change to trade. Developed Africa believes strongly that innovations in construction such as this will greatly advance Africa's development, and as such, we have a number of railway construction opportunities on our database which need investment. Investment into these innovations can only be good for investors and the country as greater connectivity brings ease of business. 


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