EU Grant To Unlock Full Capacity On Ghana’s Tema–Mpakadan Rail Line

A fresh injection of European funding is set to revive one of Ghana’s most ambitious rail projects, offering a pathway to resolve long-standing operational challenges on the Tema–Mpakadan line.

The European Commission has approved a €20 million grant—about $21.6 million—to upgrade the railway’s signalling system, a critical step toward restoring efficiency on the corridor. The investment will fund the installation of the European Train Control System (ETCS) Level 1, a technology expected to enhance safety standards while allowing more trains to run simultaneously.

Since its commissioning in 2024, the 97.6-kilometre standard-gauge line—built at an estimated cost of $449 million—has been unable to reach its full potential. Persistent signalling faults have limited operations to a single train at a time, significantly reducing capacity and undermining the line’s commercial viability.

Officials say the upgrade could mark a decisive turnaround. Dr. Frederick Appoh, Chief Executive of the Ghana Railway Development Authority, expressed confidence in the impact of the intervention. “With ETCS Level 1 implementation, we will unlock safe multiple train operations, improve capacity and reliability, and ensure full utilisation of a strategic national asset,” he stated.

The Tema–Mpakadan route represents the first phase of a broader 1,000-kilometre standard-gauge network envisioned to connect the port city of Tema to inland regions, with future extensions planned toward Burkina Faso. Its success is considered central to Ghana’s long-term goal of improving freight movement and regional trade integration.

However, the project has faced a series of technical and operational setbacks, including infrastructure defects and challenges with rolling stock reliability. These issues have necessitated ongoing rehabilitation works, even as authorities prepare for a relaunch of passenger services slated for October 2025.

Beyond the immediate technical benefits, the grant also reflects a shift in Ghana’s infrastructure financing strategy. Faced with fiscal constraints, the government is increasingly turning to grant-based funding rather than loans to support major projects. Appoh noted that the agreement highlights the strength of Ghana’s partnership with European institutions.

The funds are expected to be disbursed before the end of the year, raising hopes that the signalling upgrade will finally enable the line to operate at its intended capacity and reinforce its role as a key component of West Africa’s evolving rail network.

 

By: Andrews Kwesi Yeboah

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