African High Speed Rail: ACCI President Tasks NEPAD Private Sector Participation
The Vice President, Pan-African Chamber of Commerce and Industry and President of Abuja Chamber of Commerce and Industry, Prince Adetokunbo Kayode SAN, has called on continental, regional and national leaders to integrate African private sector into the railway revival projects.
Prince Kayode who spoke at the second webinar series of the African Union’s Development Agency (AUDA-NEPAD) on Wednesday said the Organised Private Sector (OPS) possesses the skills and the funding to support the realisation of Agenda 2063 of which the High Speed Rail is a major component.
He noted that African High Speed project should excite the continent to develop the Railway sector value chain adding that the various business segments are enormous with huge potentials for African prosperity.
While commending African governments for deliberately integrated their private sector into the Project implementation process, he particularly noted that the decision of South Africa to produce all rail parts within the country will boost job creation and enhance local capacity.
“On financing, we recommend a deep mix of private sector investment moderated by involvement of multilateral financial institutions like the World Bank, AFDB and Afrexim bank. While the direct borrowing to finance infrastructure is in vogue, diversifying funding source is a better model as is the case in Ethiopia,Ghana and Tanzania” he said.
“Additionally ,I recommend the adoption of the Luxembourg protocol which securitise leasing and acquisition of rolling stocks. The protocol should be endorsed by African nations to remove the financial burden of railway projects. This protocol holds the key to railway expansion and modernisation without debt threat” he said.