Proparco, IFC back $356 million upgrade of Trans-Gabon Railway

Proparco and the International Finance Corporation (IFC) have joined forces with the Société d’Exploitation du Transgabonais (SETRAG) to secure a €312 million ($356 million) financing package aimed at advancing the next phase of Gabon’s Railway Modernization and Safety Program. The agreement marks a major step in strengthening one of Central Africa’s most critical transport corridors.

The financing, supported by SETRAG’s shareholders, Eramet’s Comilog (51%), Meridiam (40%), and the Gabonese State (9%), complements additional public funding from the French Development Agency (AFD) and the European Union. Together, these investments are set to accelerate the long-term transformation of the Trans-Gabon Railway, a backbone of the country’s economy.

Driving modernization of a strategic national asset

The new agreement forms part of Phase III of the modernization program, combining €225 million ($256.46 million) in fresh funding with the refinancing of €87 million ($99.19 million) from earlier phases. The initiative focuses on upgrading the 648-kilometer railway linking Owendo on the Atlantic coast to Franceville in eastern Gabon.

Since the program began, significant progress has been recorded, including the renewal of 457 kilometers of track with concrete sleepers and the installation of new 60 kg rails across 186 kilometers. The latest phase will further enhance infrastructure, signaling systems, and operational capacity to improve reliability and safety.

Beyond infrastructure upgrades, the project is expected to expand the railway’s role beyond mining logistics, supporting passenger mobility and general freight transport across underserved regions.

Economic lifeline for Gabon

The Trans-Gabon Railway remains a vital artery for Gabon’s economy, contributing approximately 20% of the country’s GDP, according to available estimates that should be independently verified. It serves as a key transport link for remote communities while enabling the export of manganese, one of Gabon’s most important natural resources and a critical input in global industrial and energy transition value chains.

Given limited alternative transport options in many regions, the railway also plays a crucial role in connecting inland areas to coastal trade hubs, particularly the Port of Owendo.

Coordinated funding and execution for Trans-Gabon Railway

The IFC–Proparco investment builds on public sector contributions, including €173 million ($197.2 million) from AFD and a €30 million ($34.2 million) European Union grant under its Global Gateway initiative. The Gabonese State remains responsible for core infrastructure such as bridges and passenger equipment, while SETRAG oversees railway superstructure and operational execution.

As delegated project owner, SETRAG is tasked with implementing maintenance and renewal works on behalf of the state, making coordination between public and private stakeholders essential for the program’s success.

Leadership perspectives

Françoise Lombard, CEO of Proparco, described the agreement as the result of extensive collaboration with stakeholders, highlighting the role of joint financing in delivering sustainable infrastructure across Africa.

Ethiopis Tafara, IFC’s Regional Vice President for Africa, emphasized the importance of reliable transport systems in driving private sector growth, strengthening supply chains, and improving regional competitiveness.

SETRAG CEO Christian Magni noted that the financing represents a decisive milestone for both the company and Gabon, enabling accelerated modernization and reinforcing the railway’s position as a key logistics corridor in Central Africa.

Supporting sustainable development

The project aligns with several United Nations Sustainable Development Goals, including economic growth, infrastructure development, reduced inequalities, and climate action. It also reflects a broader push by development finance institutions to mobilize capital for resilient, inclusive infrastructure across emerging markets.

With execution now entering a new phase, the modernization of the Trans-Gabon Railway is expected to play a central role in shaping Gabon’s long-term economic diversification and regional connectivity.