Investing in rail can help put African cities on a more sustainable track

Africa is home to 11 of the world's most populous cities, with urban areas growing rapidly. While urbanization has fueled significant economic expansion across the region, it has also brought a variety of challenges, including a significant rise in the demand for motorized transport. The impact on people’s lives is hard to overstate: for the residents of African cities, more vehicles on the road often translates into chronic traffic congestion, longer commutes, as well as increased traffic fatalities and injuries.

Rail-based systems like suburban commuter trains and light rail could be an important part of the solution, especially when integrated into a well-designed and comprehensive urban transport system. Experience from various cities around the world has shown that, when done right, railways can provide efficient and affordable mobility, reduce air pollution and climate emissions from transport, and support the development of compact, livable cities.

The good news is that many African cities already have railway lines, most of which are not being used to their full potential. While the lines may be operated primarily for freight, repurposing these for passenger transport could create vibrant development corridors, especially if coupled with transit-oriented development (TOD) measures to support the construction of high-density commercial and residential buildings around the stations. Our new World Bank report examines the potential of urban rail in Lagos, Maputo, Nairobi, and other cities in Africa.

Here’s what we found:

• Existing railway rights-of-way are valuable assets, but will require significant investment in tracks, train control systems, and rolling stock to provide competitive and attractive passenger services. Upgrading these lines will greatly improve urban mobility in highly congested cities.

• While suburban rail can serve as the backbone of a transit system, it still needs to be integrated into the community and with other transport modes, especially lower-density transport modes that connect passengers to the rail stations. This requires investments in feeder infrastructure like sidewalks and bikeways. Active coordination with local government and regional authorities is crucial. Seamless integration between rail and bus services is another key priority. In that regard, it is important to define new ways of collaborating with bus and minibus operators, as these operators often see the railway as a competitor.

• When it comes to TOD, moving from the concept stage to implementation can be difficult. To ensure success, it is essential that TOD strategies for African cities reflect the local context and challenges. Building consensus around TOD implementation is also exceedingly important given the large number of stakeholders with interests and influence over the process.

• Financial support and investments for rail operations is essential, particularly for offering affordable rail services to lower-income residents. This will be a departure from the current urban transport model in many countries, where the government provides only the road infrastructure, with private bus and minibus operators recouping the service costs through passenger fares. A thorough analysis of costs and potential revenue sources—such as ticket sales, commercial revenues, government subsidies, and land value capture (LVC)—is necessary to ensure financial viability of the railway services. Ultimately, the government, not the railway, is responsible for providing the framework that will ensure the long-term financial sustainability of all rail services.

• Land in African cities holds significant value but successful Land Value Capture (LVC) examples are rare. LVC can provide a long-term revenue stream for urban rail by monetizing the increased land value resulting from improved accessibility. This funding can repay development investments or support services. There are two main types of LVC. The first is tax-based LVC, which uses local government land or property taxes to capture the increase in land value. The second is development-based LVC, which harnesses the increased property value of station areas and other land adjacent to the urban rail system through methods such as land sales, leasing, joint developments, or the sale of air rights. As with TOD, proponents must recognize that LVC requires aligning interests across a broad range of stakeholders and structuring deals in a way that benefits each stakeholder. Financial benefits may also take a long time to be realized. Focusing on public housing near rail lines could be another viable approach, especially for low-income areas.

• Public-Private Partnerships (PPPs) are a useful tool for delivering suburban rail service and vital for enabling LVC. In each of the cities we studied, the groundwork has been already laid, with PPP laws in effect. Moving forward, effective implementation will require that governments develop the right skills to structure and oversee PPPs, while also ensuring that any funding challenges are resolved.

With the right policies and resources, railways have the potential to become the anchor for sustainable urban development across many parts of Africa. Several major cities in the region are particularly well-positioned for this transition, in part because of the availability of existing rail infrastructure— cities like Accra-Tema, Conakry, Dar es Salaam, Kampala, Kinshasa, Lagos, Luanda, Maputo, Nairobi, and more. We stand ready to work with policymakers and practitioners across the region so African countries can harness the power of rail and create more sustainable, more livable cities.