• Rail

Ethiopia and Italy Forge New Path to Railway Modernisation and Regional Integration Ethiopia and Italy Forge New Path to Railway Modernisation and Regional Integration

Ethiopia's ambition to transform its transport landscape has taken a significant leap forward with the signing of a Strategic Cooperation Framework Agreement between the Ethiopian Railways Corporation (ERC) and Italy’s COIPA Italia S.p.A. This landmark partnership is set to drive the modernisation of Ethiopia’s railways, while simultaneously strengthening economic and diplomatic ties between the two nations—a move that holds considerable promise for partners and professionals in Africa’s travel and infrastructure sectors.

The agreement, sealed in the presence of distinguished officials and industry leaders, was hailed by Italian Ambassador to Ethiopia, Dr. Agostino Palese, as a milestone that “deepens the mutual relationship between Ethiopia and Italy.” He described it as not just a business transaction, but a true symbol of friendship and shared prosperity. Dr. Palese underscored the role of modern, efficient, and sustainable rail transport as a catalyst for both economic transformation and enhanced regional integration—a message that resonates deeply across sub-Saharan Africa as governments and private investors look to unlock the potential of cross-border connectivity.

Dr. Alemu Sime, Ethiopia’s Minister of Transport and Logistics, also praised the agreement, framing it as a “win–win relationship for both countries.” He expressed gratitude for Italy’s longstanding support in Ethiopia’s development journey, particularly in the area of large-scale infrastructure projects. The collaboration with COIPA Italia has the potential not only to deliver technological upgrades and operational efficiencies, but to position Ethiopia as a critical transport hub in the Horn of Africa, thereby facilitating greater trade and mobility for the entire region.

ERC CEO, Engineer Hlina Belachew, pointed to COIPA Italia’s proven commitment to Ethiopia’s rail vision and voiced confidence that this framework would translate into tangible projects and enduring results. For those monitoring Africa’s evolving transport sector, the commitment to move from agreement to action is a vital indicator of progress and reliability.

COIPA Italia’s Chief Executive, Dr. Vito Favorito Sciamarella, highlighted the multidimensional benefits of the partnership. In addition to substantial technology transfer and investment opportunities, the alliance is set to foster robust institutional capacity within ERC. Such capacity building is crucial for sustainability, ensuring that local expertise and management can drive continued development and maintenance of Ethiopia’s rail assets long after the initial projects are complete.

COIPA Italia brings to the table a solid track record in developing Ethiopia’s railway infrastructure, logistics hubs, and related transport projects. Its approach fits within the broader trend of African states seeking comprehensive, sustainable solutions to transport challenges—solutions that support not only domestic priorities, but also the larger vision of regional integration and economic diversification.

An important dimension of the partnership is the inclusion of specialised companies that bring world-class expertise to every aspect of rail operations:

  • Inros Lackner – An internationally renowned name in railway engineering, recognised for its global experience in designing, planning, and executing complex rail projects.
  • MEDTEC – A company with deep specialisation in railway track maintenance, as well as the assembly, construction, and upkeep of rolling stock.
  • AvantGarde – An expert in all facets of rolling stock maintenance, ensuring the longevity and reliability of critical train assets.

These collaborations are set to deliver a broad spectrum of benefits, from the modernisation of Ethiopia’s existing railway lines to the development of new corridors and logistics platforms. For African travel and transport professionals, this spells new opportunities for business, tourism, and trade. Improved rail infrastructure can dramatically reduce journey times, enhance passenger comfort, and increase the reliability of both freight and passenger services—all of which are essential ingredients for a thriving travel industry.

Moreover, the emphasis on technology transfer and local capacity building means that the expertise brought by Italian partners will remain in Ethiopia, strengthening the country’s ability to manage and expand its rail networks independently in the future. This approach is increasingly seen as the gold standard for infrastructure partnerships in Africa, ensuring that investments generate sustainable value and empower local talent.

For the wider African region, Ethiopia’s rail modernisation drive is a signal of growing momentum towards integrated transport networks. As African economies become more interconnected, the ability to move people and goods quickly and efficiently is a key competitive advantage. Modern railways are also pivotal in supporting the African Continental Free Trade Area (AfCFTA), which hinges on seamless logistics and enhanced mobility between member states.

The ERC–COIPA Italia agreement sets a strong example of how international partnerships, underpinned by shared vision and practical expertise, can deliver transformative results for African infrastructure. As the continent continues to urbanise and demand for efficient mobility grows, such collaborations will become even more central to shaping the future of travel, tourism, and commerce.

This strategic cooperation is not merely an investment in Ethiopia’s railways; it is an investment in the continent’s future. By leveraging state-of-the-art technology, fostering local skills, and building world-class infrastructure, Ethiopia and Italy are laying down the tracks for a new era of African connectivity—one that will benefit not only their own economies but also the travel, tourism, and trade sectors across sub-Saharan Africa.