Minister Barbara Creecy Outlines South Africa’s Rail Policy, Financing Models and Regional Integration during SARA Ministerial Panel

During the recent Southern African Railways Association (SARA) Ministerial Panel, South Africa’s Minister of Transport, Barbara Creecy, set out the priorities for rail reform, private sector participation, and regional cooperation. She located South Africa’s current initiatives within the framework of the National Rail Policy and broader continental ambitions for trade and infrastructure growth.

Investment Potential in Africa’s Railways

Creecy referred to estimates from the Economic Commission for Africa that the African Continental Free Trade Area will result in growing Africa’s rail network by 26,000 kilometres and require 97,000 bulk cargo wagons and 20,000 container wagons by 2030. This would expand the continental fleet to 132,000 bulk cargo wagons and 36,000 container wagons.

She noted that this demand highlights both the scale of investment potential and the tasks facing African countries. These include upgrading existing rail networks, modernising rolling stock, and ensuring interoperability across borders. She said that no country has the fiscal capacity to meet these demands alone, making private sector partnerships essential in infrastructure, train operations, and rolling stock.

Financing and International Protocols

Creecy addressed the importance of South Africa ratifying the Luxembourg Rail Protocol, which supports asset-based financing and leasing models. She said alignment with modern international regulatory frameworks gives investors policy certainty and underpins access to international financing.

She added that lessons from South Africa’s energy sector show that achieving financial close on private sector investments is not straightforward. Some bid windows had failed due to unviable proposals. For rail, this means developing domestic capacity to support private sector participation. She highlighted ongoing work with the Development Bank of Southern Africa to establish a private sector participation unit. This will ensure that opportunities offered to the private sector are properly researched, market-responsive, and able to reach financial close.

Freight Corridor Refurbishment and PRASA Opportunities

Creecy said that a request for information has already been concluded on Transnet’s five priority freight corridors. During the remainder of the year, bids will be issued for major refurbishment and infrastructure upgrades on these lines, with a target of increasing capacity to meet demand of up to 300 million tonnes, above the 250 million tonne target set for 2029.

She explained that private operators will work alongside Transnet Freight Rail, and concessioning models are being considered to bring investment into the corridors.

A further request for information will be issued on the PRASA network, potentially covering long-distance passenger routes between Gauteng, Limpopo, Mpumalanga, and KwaZulu-Natal.

Regional Cooperation and the Master Rail Plan

Creecy said the finalisation of South Africa’s domestic master rail plan will be central to linking with the SADC master rail plan, which provides a regional vision. Aligning national plans with the regional framework will enable coordination on cross-border access, interoperability of rolling stock, and ease of movement.

She stressed that keeping infrastructure in state ownership supports interoperability and standards. Other countries that privatised sections of their networks had experienced challenges with standards and maintenance. By retaining state ownership, South Africa aims to avoid such problems while benefiting from the experience of earlier reforms in other parts of sub-Saharan Africa.

Creecy pointed out that South Africa already has a strong foundation for reform and regional cooperation, with the next steps focused on aligning domestic and regional plans to unlock investment and integration.