Industry Background

Industry Background

Despite South Africa having a strong presence on the railway scene and claiming almost 30% of the continent’s kilometres, with more than 60% of its rail freight.

The country’s rail manufacturing sector has not leveraged this position to lead in the manufacturing of rail and rolling stock on the continent, in an industry which was estimated to be worth at least $51.6 Billion in 2020.

For the continent to successfully implement the AfCFTA, the continent need to rely on rail through the private sector participation and not through privatising the infrastructure, but rather through a partnership between private companies and our government.

As such, any structured manufacturing investment in this industry will have major benefits for South Africa and its African peers in terms of goods distribution and new export markets exploration (including job opportunities and skills development), for meaningful and sustainable development