Demand For Intermodal And Urban Rail Coming To Fore
BMI View: Rail networks will be an outperforming sector within African infrastructure over the coming decade. This will be driven increasingly by the need to support connectivity, urbanisation and the growing consumer class within Sub-Saharan Africa's economies.
Rail infrastructure in Sub-Saharan Africa (SSA) is set to be a key area of opportunity over the coming decade. There will be increasing demand for both urban rail and mass transit systems, as well as efforts to boost connectivity and facilitate the movement of human capital and goods. These trends are already beginning to be represented in our Infrastructure Key Projects Database, and we expect structural changes in economic patterns in the region, such as urbanisation, rising incomes and a proliferating middle class, will support further investment in the sector.
There are over USD105bn worth of rail projects in SSA in BMI's Infrastructure Key Project Database, and the sector is attracting international interest, with the Chinese dominating among international contractors on the ground. This level of investment is the second highest globally when looking at the value of rail projects under development (in planning and under construction) as a percentage of GDP at around 6%, with Africa outpacing even the Asia-Pacific region, which has over USD1trn of projects in our projects database but only amounts to around 4% of GDP.
|Huge Value In African Rail Development Plans|
|Value Of SSA Transport Projects Under Development & In Construction By Sub-Sector, USDmn (LHS) & Rail Projects Under Development As % Of GDP, by Region (RHS)|