Ghana is seeking about €20 million (US$23.41) in European Union funding to upgrade a key railway line linking the port of Tema to inland areas, as authorities move to ease transport bottlenecks and expand rail capacity.
The proposed financing would support the installation of a modern signalling system on the Tema–Mpakadan line, according to the Ghana Railway Development Authority, with final approval expected in October 2026.
Commissioned in 2024 at a cost of roughly US$449 million, the line has yet to operate at full capacity due to the absence of a functional signalling system, which currently restricts operations to one train at a time.
Officials say the upgrade would introduce the European Train Control System (ETCS) Level 1, a standard designed to improve safety and traffic management on rail networks.
The installation would allow multiple trains to run simultaneously under controlled conditions, significantly increasing throughput on the corridor.
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The Tema–Mpakadan line is seen as a strategic link between Ghana’s main port and inland logistics hubs, with potential to support both passenger and freight transport.
Authorities say improving its efficiency is key to reducing pressure on the country’s congested road network and lowering transport costs.
The project forms part of a broader policy push to reposition rail as a central pillar of Ghana’s transport system, as outlined in the Ghana Railway Master Plan 2026.
The plan aims to expand rail connectivity across major cities and industrial zones while boosting freight capacity, particularly for bulk commodities.
Transporting minerals such as manganese, bauxite and iron is a key priority, alongside improving access to agricultural regions, including cocoa-producing areas.
Analysts say shifting cargo from road to rail could enhance supply chain efficiency, reduce road maintenance costs and support export competitiveness.
However, Ghana’s rail ambitions have historically faced delays linked to financing constraints and implementation challenges.
A long-term development roadmap covering 2020 to 2035 set a target of 4,000 kilometres of railway lines, but only about twenty-five per cent has been completed so far, according to official data.
The signalling upgrade is therefore seen as a relatively quick intervention that could unlock existing infrastructure capacity without requiring large-scale new construction.
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Officials say securing external financing will be critical to accelerating such projects and ensuring that completed rail lines deliver their intended economic impact.
If approved, the EU-funded upgrade could mark a step forward in Ghana’s efforts to revitalise its rail sector and shift more freight and passengers away from roads.
As demand for transport continues to grow, authorities are betting that targeted investments in rail infrastructure will play a central role in improving mobility and supporting economic growth.
