Africa Investment Forum: Thelo Group, Afreximbank partner to expand Africa’s rail network

Railway networks have the power to connect the African continent, boost trade, and enhance mobility for its people. Ronnie Ntuli, Chairman of Thelo Group, signed a Memorandum of Understanding with Afreximbank, aiming to identify, invest in, and manage rail projects across Africa. In an interview with CNBC Africa, Ntuli emphasized the importance of railways as a means to enhance mobility, stating that it's all about getting people from point A to point B. The partnership with Deutsche Bank brings 180 years of experience to the African continent concerning railways and mobility. This collaboration aims to set up an integrated mobility system to facilitate the movement of goods and people efficiently. Additionally, the memorandum of understanding with Afreximbank, a leading development finance institution, provides financing solutions for rail infrastructure projects. This partnership is seen as a robust initiative to not only develop and operate railways but also to finance these projects effectively. The MOU's mandate covers projects across the continent, with a particular focus on regions in South Africa, East Africa, and West Africa. The collaboration between Thelo Group and Afreximbank involves structuring financing solutions to implement these railway projects successfully. Ntuli highlighted the importance of such partnerships in solving the challenges faced in financing large-scale infrastructure projects. The signing of the MOU between Thelo Group and Afreximbank unlocks significant value for Telo, as it provides a crucial piece of the puzzle in financing capital-intensive infrastructure projects. Ntuli expressed that the partnership offers technical expertise of global standards and the ability to mobilize capital effectively, addressing the challenge of financing long-term projects. Apart from financing, regulatory environments in multiple jurisdictions pose a significant challenge for unlocking opportunities for rail projects across the continent. Ntuli emphasized the importance of addressing regulatory hurdles to ensure the seamless development and operation of railways within a regional integration framework. Despite these challenges, African governments are showing a willingness to support and facilitate the growth of railway networks. In a competitive industry, Ntuli welcomed competition in the rail sector, highlighting the importance of structured competition that benefits the continent and its people. He stressed the significance of transparency and fairness in the competitive landscape, signaling their readiness to engage with competition from around the world. Looking ahead, Thelo Group aims to break ground on its first committed corridor project within the next 12 months. Discussions with the leadership of Africa Investment Forum are underway, with a focus on achieving significant progress in the development and implementation of railway projects in Africa. The commitment to enhancing connectivity, trade, and mobility through railway networks underscores the transformative potential of rail infrastructure for the continent.