African Export-Import Bank (Afreximbank) has renewed a partnership agreement with South Africa-based Thelo DB Proprietary Limited (Thelo DB), signing an MoU to support railway corridor and network development, as well as operations
This includes the opportunity to expand infrastructure and enhance operational efficiencies of existing networks.
Under the terms of the MoU, Thelo DB will review each railway project from a technical perspective and provide technical solutions. Afreximbank will consider the diagnostic technical and feasibility analysis undertaken by Thelo DB and based on that propose financial and advisory solutions to the owners of the railway infrastructure.
This solution is being deployed in Ghana to develop the Western Railway Corridor project under a Railway Management Agreement executed on 22 August 2022.
Under the MoU, Afreximbank and Thelo DB intend to replicate and rollout this solution across the continent.
Ronnie Ntuli, chairman of the board of directors of Thelo DB said, “We are both proud and excited to renew our Memorandum of Understanding with African Export Import Bank. This signing provides Thelo DB with the unique opportunity to further deepen our working relationship with Africa’s pre-eminent trade finance institution and thus provide integrated technical and financing solutions for development of the continent’s railway sector on a sustainable basis. In turn, the partnership presents a much-needed intervention for infrastructure development, freight and passenger transportation solutions, trade, training and skills transfer, economic development, and regional integration.”
Speaking at the signing ceremony, Prof. Benedict Oramah, president and chairman of Afreximbank commented, “Today’s renewal of the MoU signed three years ago between Afreximbank and Thelo DB is a reaffirmation of our joint commitment to engineer fit-for-purpose technical and financial solutions that will address the shortcoming of the railway sector in Africa which has been undermined by inadequate capital structure, inappropriate route designs, and operational inefficiencies. With this partnership, we will develop a blueprint that can be replicated across the continent through an integrated railway model that constitutes a paradigm shift away from the traditional railway construction approach."