Economy 4 days ago 1 min read

Ethiopia Inks Historic $29 Trillion ‘Gas-by-Rail’ Deal to Power Africa

ADDIS ABABA — Ethiopia has signed a landmark agreement to launch a $29 trillion “Gas-by-Rail” initiative, aiming to fundamentally reshape the continent’s energy and transport landscape.

The Host Country Collaborative Agreement with Insight Dynamic Resources officially inaugurates the Gas-by-Rail Economic Corridor Initiative (GBR-ECI). The ambitious project proposes a massive 73,500-kilometre transcontinental railway network, fittingly named the “Iron River of Energy,” designed to transport liquefied natural gas (LNG) across 40 Sub-Saharan nations, serving over 1.2 billion people.

Proponents describe the rail corridor as a “virtual pipeline” that can circumvent complex geopolitical challenges that have hindered traditional pipeline projects for years. The agreement positions Ethiopia to host the “Ethio-Cluster,” a major manufacturing zone targeted to produce green hydrogen and up to five million tonnes of green steel annually by 2030.

Visionary Musa Ibrahim Kuchi emphasised the urgent need for a shift in energy sources: “Africa cannot industrialise on charcoal and firewood. We are burning our future to survive today. Gas-by-Rail delivers energy where pipelines cannot reach”.

The project aims to slash woodfuel consumption and greenhouse gas emissions by 75%. Major global players, including Germany’s SMS Group and U.S.-based Wabtec Corporation, have already shown interest. A High-Level Summit expected to convene 40 African Heads of State in Addis Ababa later this year will ratify the protocols needed to operationalise this continental energy grid.