Africa’s role in France’s New Rail Deal
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Africa’s role in France’s New Rail Deal
Africa already plays a significant role in the French governments New Rail Deal.
By Leon Louw founder of WhyAfrica and editor of the WhyAfrica magazine
Although Africa already plays a significant role in the French governments “Nouvelle Donne Ferroyiare” (New Rail Deal), geopolitical tension could further strengthen existing ties.
The Russian/Ukraine conflict and increased Russian influence at the expense of French interest in parts of West Africa has disrupted established supply chains.
The French government is on a charm offensive in other regions of Africa to cement in new deals, especially for the minerals and raw materials needed in the construction of its massive rail expansion projects.
France’s New Rail Deal
The €100 billion plan, announced by Prime Minister Elisabeth Borne in 2023, aims to modernise and expand France’s rail network by 2040.
The plan includes the development of new high-speed lines as well as the expansion of regional express networks, modelled on the Paris RER system and the building of new locomotives and rolling stock. Efforts are underway to revitalise night train services and upgrade existing infrastructure.
The volumes of steel, cement, aggregates, copper and Rare Earth Elements (REEs) needed are mind boggling.
Africa’s opportunities are in cobalt, copper, REEs, bauxite and aluminum.
Where are the opportunities for Africa?
Although France has some steel-making capacity, its domestic steel production is not enough to cover the existing and future needs. The country imports steel from Germany, Belgium and Italy, but supply from Russia, Turkey and China have been affected by geopolitical tension.
Copper is imported mostly from Chile, Peru and Canada and Africa, but a lot more will be needed. The French imports most of its raw aluminum (bauxite-derived) from Africa, Russia and the UAE.
Is REE production the big opportunity?
REEs is a big opportunity for Africa although supply from the continent is still limited. France currently gets most of its REEs from China, the US and Australia but is looking to increase its number of African suppliers.
According to data from the World Integrated Trade Solution website France currently imports substantial volumes of cobalt, copper, REEs, bauxite and aluminum from Africa.
African countries like the DRC, South Africa and Zambia already play a significant role in the railway expansion plan through providing copper and cobalt in reasonably large volumes. Africa contributes more than 30% of Europe’s copper imports and most of its cobalt comes from the DRC.
The big opportunity for African producers lies in the REE space though. Africa’s REE supply is still extremely small compared to China and makes up less than 10% of France’s total REE imports.
To read more about the EU in Africa, geopolitics, mining and supply chains, visit the WhyAfrica website, your one-stop shop for on the ground information and business intelligence about Africa.
Image credit: Richard Stachman from Unsplash
Africa’s role in France’s New Rail Deal
