Abstract:
The main response to sub-Saharan Africa’s (SSA) challenges has been foreign aid. Yet,
despite the large amounts received, the challenges remain. There is an opportunity
to consider a different model with less focus on aid and more on investment. In the
transport sector specifically, investment decisions should be informed by a long-term
optimal balance between different transport modes. The research presented
in this paper highlights the significant cost reduction opportunities possible through
the densification of rail freight, especially over longer distances, with concomitant
implications for increased profitability for rail operators. The densification opportunity
should also place a core focus on transport corridors being developed throughout
the region. SSA countries themselves can play a critical role in unlocking this potential
through, inter alia, simplifying regional economic communities and taking the lead in
structuring agreements with the international community.
