Chief of Industrialisation and Infrastructure at the Economic Commission for Africa (ECA), Soteri Gatera, has urged African countries to sign the Luxembourg Protocol.
Gatera has made the call during his presentation titled, ‘The Luxembourg Rail Protocol: Railway Rolling Stock Financing – A new solution for Africa’ at the Programme for Industrial Development in Africa (PIDA) Week 2018 in Victoria Falls in Zimbabwe.
“Lack of integrated African rail networks is holding back African growth and intra-continental trade.
“There is an urgent need for more rolling stock. It is clear that states cannot carry this burden alone and private entrepreneurs and private capital is needed to ensure the dream comes true,” Gatera said.
According to African Business Communities, the Luxembourg Protocol, which was adopted in 2007 but is still not in force, creates a new global legal regime for securing creditors, facilitating more and cheaper asset-based financing of railway equipment without state support.