Proparco, IFC and SETRAG Sign a €312 Million Financing Agreement to Modernise the Trans-Gabon Railway

The €312 million agreement secures funding for the next phase of safety, infrastructure and capacity improvements on Gabon’s principal railway corridor. The financing combines €225 million in new funding with the refinancing of €87 million from previous phases.
The programme is intended to strengthen passenger and general freight services while supporting manganese transport and economic activity along the 648-kilometre route between Owendo and Franceville.

• Total financing agreement: €312 million
• New financing: €225 million
• Refinancing from previous phases: €87 million
• Trans-Gabon Railway length: 648 kilometres
• Track renewed with concrete sleepers: 457 kilometres
• Track fitted with new 60 kg rails: 186 kilometres
• SETRAG shareholders: Eramet Comilog 51%, Meridiam 40% and the Gabonese State 9%
• Additional public funding includes €173 million from AFD and a €30 million European Union grant

Proparco, the International Finance Corporation (IFC) and Société d’Exploitation du Transgabonais (SETRAG), the concessionaire of Gabon’s national railway network, have signed a €312 million financing agreement for the next phase of the Gabon Railway Modernisation and Safety Programme.

Supported by SETRAG’s shareholders, Eramet Comilog (51%), Meridiam (40%) and the Gabonese State (9%), the agreement marks a key milestone in the continued modernisation of the Trans-Gabon Railway, a strategic asset for Gabon’s economic and social development.

The financing complements public funding provided by the French Development Agency (AFD) and the European Union to finance the Gabonese State’s share of the Modernisation and Safety Programme.

The Gabonese State is responsible for maintaining public infrastructure assets, including bridges, hydraulic infrastructure and passenger transport equipment, while SETRAG is responsible for railway superstructure equipment such as rails, sleepers, ballast and signalling systems.

As the delegated project owner, SETRAG carries out maintenance and renewal works on behalf of, and in the name of, the granting authority.

The financing agreement forms part of Phase III of the Trans-Gabon Railway Modernisation and Safety Programme and comprises €225 million in new financing and the refinancing of €87 million from previous phases.

The programme will continue the renewal of the 648-kilometre railway line linking Owendo, on the Atlantic coast, with Franceville in eastern Gabon. It also includes the modernisation of railway infrastructure and systems to improve the network’s reliability, safety and capacity.

The investment will support the diversification of rail services beyond the mining sector, particularly passenger and general freight transport.

Since the programme was launched, 457 kilometres of track have been renewed with concrete sleepers, while 186 kilometres have been fitted with new 60 kg rails.

In regions where alternative transport options are limited or unavailable, the Trans-Gabon Railway provides a vital economic connection and contributes approximately 20% of Gabon’s gross domestic product. It also delivers an essential public transport service to communities in remote and landlocked areas.

The railway plays a critical role in transporting manganese, a mineral for which Gabon is one of the world’s leading producers. Manganese is a critical raw material for the energy transition and global industrial value chains.

The IFC and Proparco financing complements public funding secured by the Gabonese State, including €173 million from AFD and a €30 million European Union grant under the Global Gateway initiative.

Close coordination between the Gabonese State and SETRAG will be essential to the successful implementation of the next phase of the Modernisation and Safety Programme.

The project also contributes to several United Nations Sustainable Development Goals, including SDG 8 on Decent Work and Economic Growth, SDG 9 on Industry, Innovation and Infrastructure, SDG 10 on Reduced Inequalities and SDG 13 on Climate Action.

Françoise Lombard, Chief Executive Officer of Proparco, said: “The signing of this financing agreement marks the culmination of extensive work carried out with all stakeholders, particularly the Gabonese State, Eramet and Meridiam. By joining forces with IFC to finance the modernisation of the Trans-Gabon Railway—which provides an essential transport service for both local communities and the movement of critical minerals—Proparco demonstrates the AFD Group’s ability to mobilise joint financing in support of sustainable infrastructure projects that strengthen local economies and enhance connectivity across the African continent.”

Ethiopis Tafare, Regional Vice President for Africa at the International Finance Corporation, said: “Reliable transport infrastructure is essential to private sector development, regional competitiveness, and job creation. Through this partnership with Proparco and SETRAG, IFC is supporting the modernisation of a strategic railway infrastructure that will strengthen supply chains, improve connectivity for communities and businesses, and support Gabon’s long-term economic diversification. This investment reflects IFC’s commitment to mobilising capital for infrastructure that drives sustainable and inclusive growth across Africa.”

Christian Magni, Chief Executive Officer of SETRAG, said: “The successful completion of this financing marks a decisive milestone for both SETRAG and Gabon. It reflects the confidence our financing partners have in our business model and operational trajectory. With this support, together with the ongoing operational backing of our shareholders, we now have the means to accelerate the safety upgrades and full modernisation of the Trans-Gabon Railway, strengthening its position as a benchmark logistics corridor in Central Africa and as a driver of sustainable development for local communities and the national economy.”