African Express: the countries of the region are discussing the construction of railways with Russian Railways

Libya, South Africa, Ghana and Burkina Faso are negotiating with Russian Railways on the construction and modernization of railways, the company told Izvestia. The company plans to enter this market together with Russian metallurgists, industry sources say. This will allow the launch of new mining projects, including lithium, which is key for the production of microelectronics, as well as bauxite, cobalt, manganese and titanium. The combination of the construction of new roads and the development of deposits is important for the prospects of payback for these projects, experts emphasize. Who Russian companies will have to compete with in this area and what are the main risks of such investments — in the Izvestia article.

Russian Railways wants to enter Africa

The African continent has huge potential both from an industrial and logistical point of view. This is especially true for Russia against the background of Western sanctions. Russian Railways is actively showing interest in the region. The total length of railways in Africa is about 70,000 km, while in Russia it is 180,000 km. At the same time, Africa is almost twice as large as Russia. The resources for logistics development are obvious.

Russia is still providing stable freight traffic with the region, delivering goods to the ports of the Northwest and the Azov-Black Sea basin, from where they go to Africa. In particular, this is how Russian grain gets to Egypt, Algeria, Kenya, Nigeria and South Africa. In 2025, 8 million tons of grain cargoes were delivered in this way. The expansion of railway communication will certainly open up even greater opportunities. In fact, we can talk about the continuation of the promising North–South transport corridor for the Russian Federation, which is actively developing as new partners are connected.

Russian Railways is exploring possible infrastructure projects in several African countries at once.

"The possibility of building and modernizing railway infrastructure in Burkina Faso, Ghana, South Africa, and Libya is being worked out, and negotiations are underway," the company told Izvestia.

The Burkini authorities are really interested in modernizing and building the railway infrastructure with the involvement of Russian specialists from Russian Railways, the Russian Embassy in Ouagadougou told Izvestia.

"Negotiations in this area are underway between the relevant structures of the two countries," they said. — Representatives of Russian Railways are part of the high-level Russian delegations visiting Burkina Faso.

At the same time, in the context of new projects, we are talking not only about expanding the capabilities of the Russian agro-industrial complex, but also the extractive industry. This is primarily due to the intentions of the Russian Federation to expand its presence in the fields of African countries, Izvestia found out.

— Russian metallurgists may be one of the key players in this area. Mining of titanium, lithium, uranium, and bauxite may be of interest to them in the region. There are a lot of resources in Africa, and Russia is ready to extract them abroad in order not to waste its strategic reserves," a source in the transport industry told Izvestia. — But such projects require infrastructure, integrated solutions for the development of mining and transportation capacities, the construction and expansion of railways. Therefore, Russian Railways is involved in this process.

Russian diplomats in Burkina Faso noted that "when developing plans for the implementation of projects with Russian participation in the field of mining in the country, logistics issues are of priority importance" because railways, along with roads, are the main transport routes in the country.

"It appears that Russian Railways is conducting a dialogue with the Russian metallurgical industry in Russia as part of a discussion of potential projects," the embassy noted.

And the Libyan authorities are interested not only in transport projects, but also in joint mining with the Russian Federation, a diplomatic source told Izvestia. Russia has already tried to build a railway in Libya — even under Muammar Gaddafi, but due to the outbreak of the civil war, the plan could not be implemented.

Attracting metallurgists to transport projects seems very logical. South Africa and other countries in the region still have sufficient experience to manage the national railway network. In August, South Africa decided to open access to the railway infrastructure to private operators. They have allocated routes for the transportation of fuel, iron ore, chromium, manganese, and containers. Therefore, the construction of railways as an end in itself, without reference to specific mining projects, carries high economic risks and may not pay off, Vladimir Eskin, director of Terminal Gaz, a leading expert at the Fund for the Development of Non-Primary Non-Energy Exports, explained to Izvestia.

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Advantages and risks of projects in Africa

There is a growing global demand for critical minerals needed for high-tech industries and the development of green energy. And control over their deposits provides not only economic, but also geopolitical advantages. In Africa, projects related to the exploration and production of cobalt, manganese and bauxite are most profitable for Russia, says Vladimir Eskin. They could be handled by Alrosa, Rusal and Norilsk Nickel.

— Ghana is one of West Africa's leaders in bauxite deposits. Traditionally, the interest of Russian companies (primarily RUSAL) has been concentrated in Guinea, but Ghana should not be written off — this country has a favorable business climate, well-established port infrastructure and does not suffer from serious security challenges," said Ivan Kopyttsev, a junior researcher at the MGIMO Africa in the Focus of Russian Interests program..

Bauxite is used in ferrous metallurgy, including for the creation of aluminum products. In the case of Burkina Faso, comprehensive geological exploration is needed: at the moment, gold mining is actively engaged in the country.

Lithium is of great interest to the Russian Federation, which Russia has not yet independently mined, as it is simply necessary for the development of microelectronics in the context of the electrification race. Lithium and manganese reserves are concentrated in Ghana and South Africa, among others. South Africa is also rich in titanium deposits. In a number of positions, Africa's share in the world's reserves of resources is very significant: more than 40% for bauxite, 50% for manganese and cobalt, also necessary for the production of batteries.

However, Russian Railways is still considering new business projects in Africa with great caution, a source in the transport industry tells Izvestia. The political instability on the African continent significantly complicates the coordination of investments. Libya still cannot recover from a series of civil wars: armed conflicts periodically break out there. There are coups every now and then in Burkina Faso. After another one, the country withdrew from the West African Economic Community (ECOWAS), although it had participated in the work of the association for 50 years before that. Ghana and South Africa are probably the safest investment destinations in this regard.

— The expectation of an increase in turnover is justified only when implementing a comprehensive strategy, rather than targeted projects. The advantage here is not only in short-term financial returns, but also in long-term access to resources and increased political influence. Military and political support of projects is critically important to protect investments in conditions of high competition and instability," Vladimir Eskin believes.

In general, Russia has established good relations with most African countries, including through grain supplies, as well as military-technical cooperation. But then the question of economic feasibility arises, emphasizes Vsevolod Sviridov, Deputy director of the HSE Center for African Studies.

— One mining project will not provide sufficient load for the profitability of new railways. A more systematic approach is needed. For example, Russian Railways can participate as an operator in the modernization of transport systems, digitalization of railway management, and personnel training. And only on the basis of these strategies could they enter the market in the long term. In addition, the construction of cross—border railway projects requires coordination with several countries and complex financing schemes," the expert said.

Another option is the supply of rolling stock. Transmashholding, in particular, is engaged in this. After that, it will probably be possible to proceed to the full-fledged construction of railway lines.

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Competitors of Russian companies in Africa

At the same time, of course, competitors are also active, especially on the east coast of Africa. For example, China plans to invest $1.4 billion to modernize the TAZARA railway, which connects copper mines in Zambia with a port in Tanzania. The United States is "operating" in the west: the Americans have already invested more than $500 million in the route from Congo to the port of Angola for the export of copper, cobalt and lithium.

The construction of floating power plants there to supply energy to remote fields could accelerate the implementation of Russian projects. This will significantly increase the attractiveness of Russian offers in Africa, Eskin noted. Recently, Rosatom has been actively engaged in this area, but so far mainly in Southeast Asia, where there are many island states. By 2030, domestic thermal power plants can fully enter the international market.