ACCRA, 23 JUNE 2023: Afreximbank and Ghana Railway Company have joined forces to develop a transformative railway network, linking Ghana’s western corridor to the Port of Takoradi, and fostering trade and industry. The project, spanning 299 kilometers, aims to create essential connections to external markets, boosting economic growth.
During the Afreximbank Annual Meetings (AAM2023), the two entities signed a project preparation facility Head of Terms agreement and Pre-Mandate Letter. This agreement will provide early-stage funding for bankable feasibility studies, with a total estimated debt facility of US$2.1 billion.
Afreximbank’s commitment includes financial solutions, project financing, syndication, and advisory services to ensure the project reaches a timely financial close. The railway investments along trade corridors are expected to enhance transport capacities, facilitate the transportation of goods to regional and global markets, and promote intra-African trade under the AfCFTA context.
Prof. Benedict Oramah, President of Afreximbank, highlighted the significance of the project, expressing enthusiasm for innovative non-recourse project finance solutions based on freight volumes. He emphasized the bank’s dedication to helping member countries overcome infrastructure bottlenecks and stimulate economic transformation.
The Western Railway Corridor project is expected to reduce transport costs by 30%, improve transport services’ safety and reliability, and create around 5,000 jobs during the implementation phase, with an additional 50,000 indirect opportunities along the railway corridor. It will also facilitate mineral and commodity exports, contributing to an estimated US$950 million of trade per annum.
Source : afreximbank.com
