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Proparco and SETRAG reach a new milestone in the modernization of Gabon’s railway network

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Signing ceremony on the occasion of the Africa Forward Summit, organized by France and Kenya in Nairobi on May 11–12.

On the occasion of the Africa Forward Summit in Nairobi, Proparco and the Société d’Exploitation du Transgabonais (SETRAG), concessionaire of the railway network, signed a Memorandum of Understanding (MoU) regarding the financing of the Transgabonais Modernization and Safety Project, in the presence of SETRAG’s shareholders: Eramet Comilog (51%), Meridiam (40%) and the Gabonese State (9%).

This financing project, supported by Proparco and the International Finance Corporation (IFC), for a total amount of €225 million, is part of Phase III of an ambitious renovation program for the 648 km Transgabonais railway, a strategic infrastructure for passenger, freight and mineral transportation in Gabon. 

The financing project is part of a coordinated approach by the AFD Group, which also includes sovereign financing from the French Development Agency (AFD) in support of the Gabonese State, alongside a dedicated grant expected from the European Union’s Global Gateway initiative. 

This public-private partnership illustrates a structuring cooperation serving Gabon’s economic and social development. In regions where alternative infrastructure is sometimes lacking, the Transgabonais railway is a vital economic artery for Gabon, fostering around 20% of the country’s GDP. It also provides an essential public transport service, contributing to social cohesion and territorial connectivity. 

The financing project aims to enable SETRAG to fully realize its operational potential, complete the infrastructure renewal plan, and ensure reliable rail services benefiting the national economy and populations dependent on the network. While strengthening the diversification of uses in favor of passenger and non-mining freight transport, the project will also help secure the transport of manganese, a critical mineral essential for global economic development and the energy transition. 

The project would contribute to achieving several Sustainable Development Goals (SDGs), notably SDGs 8, 9, 10 and 13, and is aligned with Proparco’s strategy in support of a sustainable, resilient and inclusive economy. 
The signing of this Memorandum of Understanding took place on the sidelines of the Africa Forward Summit, a high-level international gathering bringing together heads of state, public and private stakeholders, businesses and civil society organizations to accelerate investment, strengthen economic partnerships and finance concrete solutions to the challenges facing the African continent.
 

By supporting the modernization of this strategic railway network, Proparco is contributing simultaneously to the decarbonization of transport, Gabon’s economic development, and the improvement of living conditions for the populations who depend on it. This project illustrates Proparco’s commitment, as well as the AFD Group’s capacity to support sustainable infrastructure at the heart of local economies and climate transition challenges, alongside the European Union and IFC.

Françoise Lombard

  • CEO of Proparco

This financing project reflects our lenders’ confidence in SETRAG’s ability to continue the modernization and safety enhancement of the Transgabonais railway for the benefit of Gabon and its people. To date, along the 648 km railway line, we have replaced 400 km of sleepers and 160 km of rails — a remarkable achievement considering the technical and geological challenges of the route. The commitment of Proparco and IFC alongside us is an extremely strong encouragement for all our teams, who work every day to make the Transgabonais a strategic asset supporting Gabon’s development policy and a logistics benchmark in Central Africa.

Christian Magni

  • CEO of SETRAG

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