Proparco, the International Finance Corporation (IFC), and the Société d'Exploitation du Transgabonais (SETRAG), the concessionaire of Gabon's national railway network, have signed a €312 million financing agreement as part of the new phase of the Gabon Railway Modernization and Safety Program.
Supported by SETRAG's shareholders (Eramet Comilog 51%, Meridiam 40%, and the Gabonese State 9%), this agreement marks a key milestone in the continued modernization of the Trans-Gabon Railway, a strategic asset for Gabon's economic and social development. The new financing complements the public funding provided by the French Development Agency (AFD) and the European Union to the Gabonese State to finance its share of the Modernization and Safety Program (PMS).
For reference, the Gabonese State is responsible for maintaining public infrastructure assets (including bridges, hydraulic infrastructure, and passenger transport equipment), while its concessionaire, SETRAG, is responsible for the railway superstructure equipment (rails, sleepers, ballast, signaling systems, etc.). As the delegated project owner, SETRAG carries out maintenance and renewal works on behalf of, and in the name of, the granting authority.
The Proparco–IFC–SETRAG financing agreement forms part of Phase III of the Trans-Gabon Railway Modernization and Safety Program (PMS), which includes €225 million in new financing and the refinancing of €87 million from the previous phases. This ambitious program will continue the renewal of the 648-kilometre railway line linking Owendo, on the Atlantic coast, to Franceville in eastern Gabon. It also includes the modernization of the railway's infrastructure and systems to enhance the network's reliability, safety and capacity, while supporting the diversification of rail services beyond the mining sector, particularly for passenger and general freight transport. Since the launch of the program, 457 kilometres of track have been renewed with concrete sleepers, and 186 kilometres have already been fitted with new 60 kg rails.
In regions where alternative transport options are often limited or unavailable, the Trans-Gabon Railway is a vital economic lifeline, contributing approximately 20% of Gabon's GDP. It provides an essential public transport service for communities in remote and landlocked areas. The railway also plays a critical role in transporting manganese, a mineral for which Gabon is one of the world's leading producers. Manganese is a critical raw material that is essential to the energy transition and global industrial value chains.
The IFC–Proparco financing complements the public funding secured by the Gabonese State, including €173 million from the French Development Agency (AFD) and a €30 million grant from the European Union under its Global Gateway initiative. Close coordination between the Gabonese State and SETRAG will therefore be essential to successfully implement this new phase of the Modernization and Safety Program (PMS).
The project also contributes to the achievement of several United Nations Sustainable Development Goals (SDGs), notably SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure), SDG 10 (Reduced Inequalities), and SDG 13 (Climate Action). It reflects the shared commitment of Proparco, IFC and SETRAG to fostering a more sustainable, resilient and inclusive economy.
Françoise Lombard, Chief Executive Officer of Proparco:
« The signing of this financing agreement marks the culmination of extensive work carried out with all stakeholders, particularly the Gabonese State, Eramet and Meridiam. By joining forces with IFC to finance the modernization of the Trans-Gabon Railway—which provides an essential transport service for both local communities and the movement of critical minerals—Proparco demonstrates the AFD Group's ability to mobilize joint financing in support of sustainable infrastructure projects that strengthen local economies and enhance connectivity across the African continent. »
Ethiopis Tafara, Regional Vice-President for Africa, International Finance Corporation (IFC):
« Reliable transport infrastructure is essential to private sector development, regional competitiveness, and job creation. Through this partnership with Proparco and SETRAG, IFC is supporting the modernization of a strategic railway infrastructure that will strengthen supply chains, improve connectivity for communities and businesses, and support Gabon's long-term economic diversification. This investment reflects IFC's commitment to mobilizing capital for infrastructure that drives sustainable and inclusive growth across Africa. »
Christian Magni, Chief Executive Officer of SETRAG:
« The successful completion of this financing marks a decisive milestone for both SETRAG and Gabon. It reflects the confidence our financing partners have in our business model and operational trajectory. With this support, together with the ongoing operational backing of our shareholders, we now have the means to accelerate the safety upgrades and full modernization of the Trans-Gabon Railway, strengthening its position as a benchmark logistics corridor in Central Africa and as a driver of sustainable development for local communities and the national economy. »
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2025, IFC committed a record $71.7 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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About Proparco in Africa
Africa lies at the heart of Proparco's strategy. For nearly 50 years, Proparco has been supporting Africa's private sector to accelerate sustainable and inclusive development. This long-standing commitment is reflected in its presence across the continent through a network of six regional offices and five local agencies. Between 2022 and 2025, Proparco committed more than €4.6 billion in Africa—an average of over €1.1 billion per year.
Across the continent, Proparco finances high-impact, job-creating projects in key sectors, including sustainable infrastructure, sustainable industry, agriculture and agribusiness—notably through the FARM initiative to strengthen Africa's food sovereignty—as well as support for the local economic fabric, particularly entrepreneurs and SMEs, by strengthening financial institutions under the Choose Africa initiative. Proparco also invests in the development of high-quality essential goods and services.
Proparco offers financing solutions tailored to the needs of African businesses, enhanced technical assistance through its Propulse program, and dedicated support for innovation via Digital Africa, its subsidiary specializing in early-stage startups.
For more information: proparco.fr | LinkedIn: @Proparco
About SETRAG
The Société d'Exploitation du Transgabonais (SETRAG) is the concessionaire and operator of the 648-kilometre railway linking Owendo and Franceville in Gabon, crossing the country from west to east. As a key player in Gabon's transport infrastructure, SETRAG provides both passenger and freight rail services, including the transportation of mining and forestry products, thereby contributing to the country's economic development and territorial connectivity. SETRAG is owned 51% by the Eramet Group, through Comilog, and 40% by Meridiam. The company employs approximately 1,600 people and supports nearly 2,000 indirect jobs. Each year, it transports around 260,000 passengers and 8.9 million tonnes of freight. The Trans-Gabon Railway is a strategic national asset, connecting inland mining areas to the Port of Owendo and serving more than 20 stations across the country. Committed to sustainable performance, SETRAG is implementing an ambitious railway modernization and safety program to enhance the network's reliability, safety and capacity.
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