€20m to upgrade Tema–Mpakadan Railway

The European Commission has approved a €20 million grant to modernise the signalling system on Ghana’s Tema–Mpakadan railway line, a move expected to enhance safety and increase train capacity along the route.

The funding will support the installation of the European Train Control System (ETCS Level 1), an advanced signalling technology designed to improve the monitoring and coordination of train movements. This upgrade is expected to reduce operational risks while allowing more trains to run efficiently on the line.

Although the Tema–Mpakadan railway—commissioned in 2024 at a cost of $449 million—was envisioned as a major transport link, it is currently operating below its full potential due to signalling limitations. At present, only one train can operate on the track at a time, restricting frequency and overall efficiency despite growing demand.

According to the Chief Executive Officer of the Ghana Railway Development Authority, Frederick Appoh, the upgrade will eliminate this constraint by enabling multiple trains to run safely on the same line, thereby improving reliability and passenger safety.

He explained that the approval follows the submission of an Aide Mémoire on sustainable transport earlier in the year and marks the conclusion of the project identification phase. The decision was finalised in Brussels on March 27, 2026, after extensive technical consultations with European rail experts.

The project will now proceed through the European Union’s internal approval processes, starting with a Quality Review Committee assessment in May 2026. This will be followed by member state validation in September and a final financing decision expected in October, with disbursement of funds projected for December 2026.

Once implemented, the new signalling system is expected to significantly improve service reliability, increase train frequency, enhance safety, and optimise the overall use of the railway network. Dr. Appoh noted that the upgrade will help unlock the full potential of the railway as a critical national transport asset.

The grant also highlights growing collaboration between Ghana and its European partners, particularly at a time when the country is increasingly relying on grant-based financing due to fiscal constraints.

Dr. Appoh acknowledged the support of international partners, including Rail Baltica, Network Rail, Hitachi, Alstom, and Siemens.

The initiative aligns with Ghana’s broader transport strategy, particularly efforts to revitalise the Volta Corridor and strengthen rail infrastructure as a driver of economic growth. Once completed, the Tema–Mpakadan railway line is expected to operate at full capacity, delivering faster and more efficient transport services.