South Africa Ratifies the Luxembourg Rail Protocol
The Republic of South Africa has formally deposited its instrument of ratification of the Luxembourg Rail Protocol. The ratification will become effective as of 1st May 2025. South Africa becomes the 6th State, and the second African State after Gabon, together with the European Union, to ratify the Luxembourg Rail Protocol following the recent ratification by Paraguay.
UNIDROIT Secretary-General, Professor Ignacio Tirado said: “South Africa’s ratification of the Luxembourg Rail Protocol to the Cape Town Convention represents a cornerstone in the implementation of the Treaty. The importance of supporting the development of international financing in the railway sector for the entire African region cannot be overestimated, and we are convinced that the Luxembourg Rail Protocol will play a pivotal role in reaching the ambitious goal of strengthening the rail infrastructure in Africa and beyond”.
Her Excellency Ambassador Jezile remarked: “South Africa has long acknowledged the importance of the Rail Protocol for the enormous potential it affords for development in the African Region. The ratification of the Treaty is an important step in facilitating financing in the rail industry, which is a key element for social development and economic growth in the whole continent as recognised by the African Union agenda”.
“This is a game changer for Africa with ratification by the country which has the largest rail system in Africa,” said RWG Chairman Howard Rosen. “It is also an essential part of the open access strategy of the government when new entrants into the market will need to procure and finance rolling stock, now with the support of the Luxembourg Rail Protocol”, he added.
“What South Africa really needs, now that the Country’s historic Rail Reforms are being implemented, is for the private sector to respond with significant investment. The adoption of the Luxembourg Rail Protocol will increase access to debt and reduce finance costs; it could not have come at a better time”, said James Holley, CEO of Traxtion, a leading African rail freight service provider and lessor.