The UIC and the Office National des Chemins de Fer (ONCF) today concluded the Investment and Financing Solutions for Africa’s Railway Future Forum, held in Rabat on 14-15 October under the High Patronage of His Majesty King Mohammed VI.
The Forum brought together senior representatives from African and international institutions, railway organisations, development finance institutions, multilateral development banks, private investors and industry to address how to mobilise the investment needed to accelerate railway development across Africa. The opening session featured Mohamed Rabie Khlie, CEO of ONCF; François Davenne, Director General of UIC; representatives of Infrastructure and Energy Department of the African Union Commission; and of AUDA-NEPAD, alongside representatives of the Moroccan authorities.
Over two days, participants including representatives of the African Development Bank (AfDB), World Bank, European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), KfW, JICA, UKEF, SACE, the African Union Commission, AUDA-NEPAD, UITP and the Rail Working Group, as well as railway operators and other public and private stakeholders, examined practical approaches to strengthening investment in rail infrastructure and services.
The Forum focused on four interconnected priorities: mobilising capital and innovative financing mechanisms; financing urban rail and sustainable mobility; supporting regional integration and freight corridors; and improving railway project preparation and bankability.
The Rabat Declaration: a framework for action
At the conclusion of the Forum, participants adopted the Rabat Declaration on Investment and Financing Solutions for Africa’s Railway Future, building on the Dakar Declaration on the Financing of Rail Projects in Africa, adopted in 2023.
The Declaration reaffirms the strategic importance of rail for sustainable economic growth, regional integration, resilient supply chains, climate action and inclusive development. It calls for stronger cooperation between African stakeholders, development finance institutions, multilateral development banks, private investors, industry and international organisations.
It encourages wider use of blended finance, public-private partnerships, guarantees, climate and sustainability-linked finance, resilience financing, land value capture, transit-oriented development and other innovative financing mechanisms, while emphasising the need to strengthen project preparation, institutional capacity and investment readiness.
The Declaration also calls for rail and public transport to be better integrated into climate finance frameworks, Nationally Determined Contributions and National Adaptation Plans, while recognising the opportunities presented by Article 6 of the Paris Agreement and other carbon market mechanisms.
“Africa's railway future requires more than ambition. It requires projects that are well prepared, financeable and supported by appropriate long-term financing mechanisms. The Rabat Declaration provides a common framework for moving from dialogue to implementation and strengthening cooperation among all those who can contribute to Africa's railway development,” said François Davenne, Director General of UIC.
UIC launches the MoveCredits Coalition
A major outcome of the Rabat Forum was the official launch by UIC of the MoveCredits Coalition on Carbon Markets for Rail and Public Transport.
The Coalition brings together railway and public transport operators, industry, financial institutions, multilateral development banks, development finance institutions, governments, technical experts, academia and international organisations.
Its objective is to strengthen the ability of rail and public transport to access carbon markets and mobilise additional sources of finance for sustainable transport investment.
The Coalition will work to:
- support the development of practical and credible carbon market methodologies for rail and public transport;
- facilitate knowledge sharing and technical cooperation;
- build capacity among stakeholders;
- support pilot initiatives and practical applications;
- advocate for greater recognition of sustainable transport within international climate finance and carbon market frameworks.
The initial areas of focus include urban mass transit, high-speed rail and the shift of freight from road to rail, with particular attention to recognising the emissions reductions associated with modal shift.
The initiative builds on work undertaken by UIC with key partners, including UITP and Alstom, and will now expand its cooperation with a broader range of railway, financial, technical and institutional stakeholders.
Turning the climate value of rail into an investment opportunity
Rail and public transport are increasingly recognised not only for their contribution to decarbonisation, but also for their role in economic resilience, regional connectivity and long-term infrastructure development. Yet many of these wider benefits are not fully reflected in conventional transport financing models. Rail projects require substantial upfront investment, while many of their economic, environmental and resilience benefits accrue over decades.
Carbon markets could provide one additional mechanism for addressing this financing challenge by creating revenue streams linked to verified future emissions reductions.
A UIC study estimates that rail expansion in low- and middle-income countries could avoid up to 1.8 gigatonnes of CO₂ by 2050, with potential carbon revenues estimated at USD 27-72 billion, depending on carbon prices.
The Rabat Declaration recognises the potential for high-integrity carbon credits generated through activities such as modal shift, electrification and renewable energy generation to contribute to the financing of rail and public transport projects.
Under appropriate market and project conditions, and where future carbon revenues can be effectively capitalised at financial close, such revenues could potentially make a meaningful contribution to project capital costs. Further technical work will be required to establish the methodologies, market conditions and project frameworks needed to realise this potential.
From dialogue to implementation
The Rabat Forum builds on the commitments made in Dakar in 2023 and marks a further step towards a more coordinated approach to railway investment across Africa.
The participants reaffirmed that investing in rail is not only an investment in transport infrastructure, but also in economic growth, regional integration, climate action, resilience and sustainable development.
The Rabat Declaration calls on African stakeholders, development finance institutions, multilateral development banks, private investors, industry and international organisations to translate the outcomes of the Forum into concrete partnerships, investment opportunities and practical actions.
The launch of the MoveCredits Coalition provides a new international platform through which stakeholders can contribute to this implementation agenda, particularly by addressing the financing opportunities at the intersection of rail, climate action and carbon markets.
Read and sign the MoveCredits Coalition Pledge: MOVECREDITS COALITION PLEDGE
