African Railways: A Sleeping Giant in Freight Transport

By Danilo Desiderio

Africa’s vast landscapes and growing economies demand robust, efficient transport networks – yet one of the most promising tools in this logistical arsenal remains largely untapped: railway freight.

Despite its unmatched ability to move large volumes of cargo over long distances efficiently, rail transport across Africa accounts for just 2 percent of global rail freight traffic, according to a 2016 report by the International Union of Railways (UIC). That places Africa as the least railway-connected continent in the world, even though railways could play a pivotal role in transforming trade and logistics across the region.

The Djibouti-Ethiopia railway line, often hailed as one of the continent’s most modern rail corridors, exemplifies this underutilization. While recent data from Ethiopia’s Ministry of Transport shows improved financial performance over the past 11 months, rail still carries only 14 percent of total cargo between the two nations.

The remaining 84 percent continues to be hauled by road – a costly, inefficient, and environmentally damaging alternative.

Why Rail Isn’t Living Up to Its Potential

The question remains: why isn’t rail capturing a larger share of freight movement in such a strategically important corridor?

One reason lies in the fragmented nature of transportation infrastructure. As highlighted in The Reporter (Ethiopia), Djibouti has made significant strides in port efficiency, with reduced dwell times for containerized cargo using multimodal transport.

However, ports and railways don’t operate in isolation – they are nodes in a complex web of logistics hubs that must function in sync to ensure smooth cargo flow.

When only parts of the system are upgraded – say, the port or the railway – inefficiencies elsewhere can bottleneck the entire supply chain. This is evident at Modjo Dry Port , a critical hub for customs clearance and onward distribution of goods arriving from Djibouti.

Despite improvements upstream, delays or congestion at Modjo can negate any gains made in port or rail efficiency, resulting in systemic logjams.

Toward a More Integrated Logistics Future

To unlock the full potential of African railways, policymakers must adopt a holistic approach to infrastructure development. Investments should not focus solely on tracks and terminals but also on intermodal connectivity, customs processes, digital systems, and last-mile delivery solutions.

This integrated strategy is essential for achieving real progress in reducing transport costs, improving delivery times, and lowering environmental impact. It’s also key to supporting broader economic goals, such as those outlined in the African Continental Free Trade Area (AfCFTA), which aims to create a single market for goods and services across the continent.

The Bigger Picture

Railways have the capacity to become the backbone of Africa’s freight logistics network. But realizing this vision requires coordinated planning, cross-border cooperation, and sustained investment in all components of the supply chain.

Only then can Africa shift from a continent where trucks dominate out of necessity – not efficiency – to one where rail plays its rightful role as a clean, cost-effective, and scalable engine of regional integration and economic growth.

Danilo Desiderio serves as the CEO of Desiderio Consultants Ltd in Nairobi, Kenya, specializing in African customs, trade, and transport policies. He is a customs and trade expert at the World Bank and a senior associate to the Horn Economic and Social Policy Institute (HESPI).