Sunday, April 14, 2024

WHY THE AFRICAN RAILWAY INDUSTRY HAS LAGGED SINCE INDEPENDENCE.

In exploring why Africa’s railway sector has lagged behind the rest of the world, it is important to start with Marta Marson’s research paper on the industry titled ‘The role of China in African railways’ published in 2021.

Marta observes: In absolute terms, World Bank spent almost 5 billion USD financing 80 projects in 29 African countries from 1970 to 2014 (44yrs). A total amount of more than 40 billion USD has been provided by China to finance 31 railway projects among 17 African countries in the period 2000–2014 (14 yrs.). This is more than eight times the amount spent by the World Bank in a time period three times longer for averagely bigger projects in a lower number of countries. This is possibly due to the perception, among International Financial Institutions, that rail transport is a losing game. (The role of China in African railways. Marta Marson, 2021)

Fragmented African Railway Lines from the Union of African Railways (UIA)

The World Bank and IMF, based in the United States possessing a strong highway infrastructure, might have encouraged African nations to focus on roads for transportation, unknowingly or deliberately overlooking the potential of railways as the cheapest form of transportation after water.

Some argue that this bias favoritism towards road infrastructure may have existed among World Bank and IMF advisors as they came to work with African nations on transportation development.  Similarly, some African planners might have been influenced by the US model, hence their focus on roads at the expense of rail. However, it is important to consider other related factors which might have influenced these decisions.

It’s important to remember that while railway transport has been shown to reduce carbon dioxide emissions by 75% compared to road transport and trucking, the concentration on roads has also been greatly encouraged by the fossil fuel industry in the west which dominates the African energy sector. Thers is not much available data on Africa’s energy sector specifically refined hydrocarbons, but as of 2021, the total consumption from petroleum and other liquids in Africa amounted to roughly 4,293 million barrels per day. Egypt and South Africa were the largest consumers, with 816 million and 543 million barrels per day, respectively. This represented 19 percent and 12.65 percent of the total consumption in the African continent. Nigeria followed, consuming approximately 11.5 percent of the total African consumption according to statista.com. At a rate of USD 70 per barrel, this puts the African energy sector at a value of USD 301 billion daily and growing.

It should be noted that majority of African countries do not refine their own oil but rely on importation, this includes the continent’s major producers of the product like Nigeria.

Africa’s energy sector is dominated by companies like British Royal Dutch Shell, Total Energies (Formally Total and ELF), British Petroleum (BP) and others who have dominated the African sector since independence. Some new players have been coming up. In some cases, these corporations appear disguised with different names in order to hide their footprint, one basic example being Shell which calls itself Vivo Energy within the East African region of Kenya and Uganda where it dominates the OMC (Oil Marketing Companies) sector with its sister Total Energies.

On examination of the World Bank’s appalling funding practices for the African railway industry in conjunction with the dominance by western oil firms of the African energy sector, the reason behind the Western countries’ reluctance to provide funds for the African railway sector becomes evident. It was predicted that there would be enormous profits to be made which let the World Bank to encourage investment in the road sector. During one of his remarks, the Ugandan president mentioned how foreign oil companies within Uganda’s oil sector discouraged the construction of an oil refinery infrastructure. The president had to make it clear that the refinery had to be built or there would be no extraction of oil at all from the country.

With automobiles being the biggest while trains the lowest consumer of refined hydrocarbon fuels, it has indeed been proved that; the transportation of 1 ton of goods over a distance of 500 miles a train utilizes 1 gallon of diesel. compare this to 51 gallons consumed by trucking of the same load over the same distance by road. It is therefore not difficult to see how these companies working with the IMF and World bank are encouraging and have contributed to these destructive and inefficient choices to the neglect of rail. For them it is More roads, more automobiles on African roads, and more refined oil consumption for their profit maximization.

©Kwame Gonza is a Technologist, Industrialist, Railway engineering consultant, and Pan-Africanist member of the ACUP-African Continental Unity Party.

Reference:

  1. The role of China in African railways. Marta Marson, 2021
  2. Total consumption of petroleum and other liquids in selected countries in Africa in 2021 (Statita.com)
Kwame Gonza
Kwame Gonza
Kwame Gonza is A Pan Africanist member of the African Continental Unity Party (ACUP), a Mechanical Engineer and the Pioneer of the Africa Railway Triangle Network Master Plan (ARTNMP) which aims to Connect the Whole African Continent. He is a Geopolitical analyst who has been a guest on SABC News South Africa, Press TV Iran, TV Africa Ghana, Oromia Broadcasting TV in Ethiopia and Channel TV Nigeria to Comment and advice on the future of Africa and Pan African Issues.

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