Morocco unveils €10 billion rail investment plan as African Financing Forum opens

The second international forum on investment and financing solutions for the future of railways in Africa opened in Rabat on Wednesday, bringing together financial institutions, development banks, investors and railway officials to explore ways to accelerate rail infrastructure development across the continent.

Held on October 14-15 under the patronage of King Mohammed VI, the forum aims to translate Africa’s railway ambitions into projects that can secure financing and move toward implementation.

Mohamed Rabie Khlie, director general of Morocco’s National Railways Office (ONCF), said the event builds on the 2023 Dakar Declaration and called for an urgent shift from diagnosis to practical action and sustainable partnerships.

Transport infrastructure is undergoing unprecedented changes that require a reassessment of mobility models to meet sustainability needs, Khlie said. He added that rapid population growth, a rising youth population and accelerated urbanization made the modernization of transport systems increasingly necessary, in line with the African Union’s Agenda 2063.

Khlie warned that infrastructure deficits cost Africa around 2% of annual economic growth and reduce productivity by as much as 40%.

Highlighting Morocco’s experience, he described the launch of Al Boraq, Africa’s first high-speed train, as a major turning point. The Moroccan rail network now carries more than 55 million passengers annually, he said.

Khlie also outlined an investment program worth more than €10 billion through 2030. The plan includes extending the high-speed line toward Marrakech to create a 630-kilometer network, acquiring 660 new railcars and trains, and developing rapid urban rail services in major metropolitan areas.

Traditional public financing is no longer sufficient to meet the sector’s high costs, he said, calling for innovative and sustainable financing mechanisms adapted to the financial resources and economic conditions of individual African countries.

Morocco targets wider rail expansion

In a speech delivered on his behalf by Zine El Abidine Ibritel, secretary-general of the Ministry of Transport and Logistics, the outgoing transport minister said Morocco considers railways a strategic priority for territorial development and economic competitiveness.

The minister outlined a separate investment program worth 134 billion dirhams through 2030, covering the extension of the high-speed line, rail links to Nador West Med port, the development of regional train services and the acquisition of 168 new trains. The program is also linked to preparations for the 2030 FIFA World Cup.

He called for a stronger contractual framework between the state and ONCF to clarify obligations, financing arrangements and risk management, helping build confidence among lenders and financial partners.

At the continental level, he urged governments, financial institutions and investors to coordinate more closely and direct resources toward projects with the greatest development impact. He also advocated connecting ports and logistics platforms to rail networks and upgrading freight corridors to facilitate transit and strengthen economic integration.

Development banks, he said, should provide flexible financing suited to the long investment horizons of railway projects, while private-sector participation should include commitments that safeguard service quality and financial sustainability.

The minister also stressed that assessing rail projects solely on their initial construction costs was insufficient, as reliable services require sustainable funding for operations and maintenance.

He pointed to opportunities offered by green financing, given railways’ environmental benefits, including electrification and improved energy efficiency. Morocco, he added, was ready to share its expertise in railway engineering, maintenance and operations with other African countries while supporting the development of local rail industries and skilled employment.

Carbon markets seen as potential funding source

François Davenne, director general of the International Union of Railways, highlighted the environmental and financing challenges facing the sector, describing Africa as a major priority for railway development and international cooperation.

Rail transport is among the most effective and sustainable tools for combating climate change, Davenne said, criticizing what he described as the inadequate recognition of railways’ environmental benefits in existing financing mechanisms.

Carbon markets could, in principle, provide public funding without interest charges for projects whose financial returns take decades to materialize, he said.

Citing a study by the union, Davenne said the railway sector could help avoid 1.8 gigatons of carbon emissions in developing countries by 2050, potentially generating between $27 billion and $72 billion in revenue.

He pointed to a gap between the carbon prices used in studies, around €100 per ton, and market prices, which he said were below €20.

Davenne also announced the launch of the “MORE Alliance,” a partnership with international stakeholders seeking to update carbon-credit methodologies and secure formal recognition under Article 6 of the Paris Agreement. He called on policymakers and financial actors to work together to turn railways’ environmental benefits into tangible financing opportunities.

Turning political priorities into bankable projects

Asmaa Bouraida, regional coordinator for the African Union Development Agency, emphasized the broader social and economic benefits of railway investment.

Reliable rail services can create jobs, open new markets for farmers and connect landlocked countries to global trade, she said.

Bouraida praised Morocco’s Atlantic Initiative, describing it as strategically important to the region’s geopolitical and economic landscape. She also commended the country’s progress toward the African Union’s Agenda 2063 and its operation of the continent’s only high-speed rail service.

She highlighted Morocco’s 2022 green bond issuance, which attracted domestic and international investors to finance long-term assets, and said the agency wanted to share this experience through South-South cooperation.

The central challenge, Bouraida said, was turning political priorities into projects capable of attracting bank financing. She called for greater investment ambition and harmonized cross-border technical standards, while raising questions about who would bear maintenance costs and construction and demand risks.

She also outlined agency programs supporting African countries, including infrastructure development initiatives and a joint guarantee platform backed by major African and international banks.

Bouraida said the forum should conclude with concrete projects supported by clear financing arrangements and partnerships. Developing Africa’s railways, she added, requires coordinated efforts from governments, banks, engineers and communities.