Thelo eyes Africa railway expansion

Thelo Group, a leading provider of integrated transport solutions in Africa, is gearing up for a massive expansion across the continent. The company is strategically leveraging partnerships and raising $250 million to support the implementation of the African Continental Free Trade Area (AfCFTA). This initiative aims to boost intra-Africa trade, reduce logistics costs, and enhance transport efficiency through a key partnership with DB Engineering & Consulting, a subsidiary of Deutsche Bahn. Ronnie Ntuli, Chairman of Thelo Group, recently shared insights on the company's ambitious plans during an interview with CNBC Africa. Ntuli highlighted the importance of raising capital to drive the new strategy of positioning Thelo as an African transportation and logistics champion. The focus is on addressing the growing need for transportation solutions on the continent, particularly in bulk freight, mineral, and agricultural sectors. Thelo Group is currently in the early stages of fundraising, engaging with financiers both in South Africa and internationally. Ntuli emphasized the alignment of the company's mandate with multilateral finance institutions, making them key partners in the capital-raising efforts. The goal is to secure financing that will support Thelo's vision of expanding its capacity, expertise, and engagement to meet the transportation demands in Africa. With several large-scale projects in the pipeline, Thelo Group is prioritizing its initiatives based on freight volumes and strategic partnerships. The company has already made significant progress on projects like the Ghana Western Rail Line and is actively pursuing opportunities in countries with abundant mineral resources. By collaborating with government entities and financial institutions like the Africa Export-Import Bank, Thelo Group is laying the groundwork for transformative transportation infrastructure in Africa. Central to Thelo Group's strategy is the commitment to reducing transportation and logistics costs on the continent. Ntuli explained that African transportation expenses are significantly higher compared to other regions, primarily due to infrastructure challenges and operational inefficiencies. By focusing on rail technology for bulk freight transportation, Thelo aims to achieve economies of scale, lower trade costs, and enhance the overall efficiency of logistics operations. As the company progresses with its expansion plans and infrastructure development projects, Thelo Group remains dedicated to driving sustainable growth, fostering regional connectivity, and supporting trade facilitation across Africa. With a clear vision and a strategic approach to investment and partnerships, Thelo Group is poised to play a pivotal role in revolutionizing the transportation landscape in Africa.