Rail lines are among African nations’ most valuable assets, but many countries cannot afford their upkeep. Privatisation has been the preferred method of shifting the maintenance burden from the transportation sector to the investment sector, raising infrastructure standards that, in turn, spur trade-related revenue and employment.
Twenty years have passed since the first comprehensive study of the degree of improvement in Africa’s rail transportation systems by the privatisation of state-owned railways. The privatisation had been accomplished primarily through concession agreements. At the time of the 2005 World Bank study, 20 state-owned rail lines were either undergoing privatisation or had concessions granted by governments. The study found that progress varied: Some deals were cancelled, others were delayed by wars, and some suffered from weather-related disasters or other calamities. On the whole, the bank found, “The railways (that have been privatised) are performing better than if they had not been concessioned.”
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