DBSA could co-finance South Africa high-speed rail network expansion
South Africa’s only high-speed rail network is drawing up a multibillion rand plan to expand outside Johannesburg and Pretoria, joining a potential bonanza of infrastructure projects the government says are key to reviving the economy.
A proposal for the venture is awaiting sign-off by the National Treasury, William Dachs, chief executive officer of the Gautrain company, said. Investment and loans would come from a mix of private investors and state institutions such as the Development Bank of Southern Africa (DBSA).
The Gautrain expansion would add a further 150km (93 miles) of track to the existing 80km network, connecting more remote destinations such as Soweto, which has a population of about 2 million people. The township was separated from Johannesburg during the apartheid era.
South African President Cyril Ramaphosa has placed infrastructure at the heart of his plan to revive an economy devastated by the coronavirus pandemic, under-investment, and corruption. He sees the government spending ZAR100 billion ($6.2 billion) on various projects, with the aim of attracting ten times as much private investment within four years. His plans include the privatization of some older railway systems and routes, which have struggled with years of mismanagement, vandalism, and theft.
The Gautrain, whose operator has shareholders including French rail group RATP Dev, was built as part of South Africa’s preparations to host the 2010 football World Cup.
