European Union approves €20 million grant to modernise Ghana’s Tema–Mpakadan railway signalling and boost rail capacity and safety
Ghana’s efforts to modernise its rail infrastructure have received a major boost after the European Commission approved a €20 million grant equivalent to approximately $21.6 million to upgrade signalling systems on the Tema–Mpakadan railway line.
The funding will support the deployment of the European Train Control System (ETCS) Level 1, a technology expected to significantly improve operational safety, increase line capacity, and enhance overall efficiency along the 97.6-kilometre corridor.
The Tema–Mpakadan line, constructed at an estimated cost of $449 million and commissioned in 2024, has been unable to operate at full capacity due to signalling deficiencies that currently limit operations to a single train at a time.
Dr. Frederick Appoh, Chief Executive Officer of the Ghana Railway Development Authority, said the upgrade will be critical to unlocking the line’s full operational potential.
He noted that the implementation of ETCS Level 1 will enable multiple trains to operate safely on the route, improve reliability, and ensure better utilisation of a key national transport asset.
The railway forms the first phase of Ghana’s planned 1,000-kilometre standard-gauge network, designed to connect the port city of Tema with inland logistics hubs and eventually extend northward to Burkina Faso, strengthening regional trade and transport integration.
Despite its strategic importance, the line has faced technical challenges since commissioning, including infrastructure and rolling stock reliability issues.
These setbacks prompted rehabilitation works ahead of the planned relaunch of passenger services.
The latest grant reflects a broader shift in Ghana’s infrastructure financing strategy, with authorities increasingly prioritising grant-based funding over debt-financed projects in response to fiscal constraints.
Government officials said the funds are expected to be disbursed before the end of the year, potentially marking a turning point for one of West Africa’s most significant rail development initiatives.
