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Mali, a Sahelian country without access to the sea, depends almost exclusively on its coastal neighbours for its import and export needs.
Among them, Senegal plays a central role thanks to its autonomous port of Dakar, which serves as the main entry point for goods destined for the Malian market. Every day, hundreds of trucks transit through the N1 national road, the only route linking Dakar to Bamako via Tambacounda, transporting fuel, consumer products, industrial equipment and foodstuffs.
While this road is vital, it is also saturated, expensive to maintain, prone to climatic hazards, and exposed to increasing security problems.
Faced with this situation, the relaunch of the Dakar-Bamako railway corridor appears to be a structural, sustainable and economically strategic alternative.
At the same time, the establishment of a dry port in Tambacounda, a pivotal area between the two countries, would make it possible to fluidize logistics operations, decongest the port of Dakar, and boost local economies.
However, the States of Senegal and Mali, limited by their budgetary capacity and security priorities, are not in a position to carry out such a project alone.
In this context, it is an innovative idea: to entrust this large-scale project to the Senegalese diaspora through a long-term concession-type montage.
By mobilizing its savings, partnering with technical and financial partners, and benefiting from Senegal's state guarantee against sovereign risks, the diaspora could become the engine of a strategic, high-impact project. This innovative model combines patriotic investment, economic profitability and regional development.
The objective of this article is to present in detail the proposed economic model, demonstrate its technical and financial relevance, and propose a realistic implementation scenario. It addresses both the public authorities and the Senegalese diaspora in order to gain their support and to start the process in practice.
State of play of the Dakar-Bamako corridor
The Dakar-Bamako corridor is a vital axis for West African trade. It connects the autonomous port of Dakar, the major maritime entry point of the subregion, to Bamako, capital of landlocked Mali.
This multimodal corridor extends over about 1,300 km, crossing strategic economic zones of Senegal (Thiès, Kaolack, Tambacounda) to Kayes and Bamako. While historically the railway has played a central role in this transport, it is now virtually out of service, leaving all the burden on road transport.
The decline of the Dakar-Bamako rail transport
The Dakar-Bamako railway line was inaugurated in colonial times to serve the interior of West Africa. It was nearly 1,228 km long and allowed freight and passenger transport at competitive costs.
In the early 2000s, this infrastructure was granted to the private company TRANSRAIL through a public-private partnership. However, without sufficient investment and effective governance, the line has gradually deteriorated. Today it is largely out of use, especially on the Malian side, and its commercial activity has been suspended since 2018.
Total dependence on the road
With no rail solution, the corridor now rests almost exclusively on the N1 national road.
Every day, between 300 and 600 trucks, mostly Senegalese and Malian, transport various goods between Dakar and Bamako. According to available data, this mode of transport accounts for about 80 per cent of trade between the two countries.
But this solution has several limitations:
- High costs: road transport is up to 30% more expensive per tonne than rail. Logistics costs can represent up to 30% of the value of goods imported by Mali.
- Long and uncertain transit timeThe Dakar-Bamako journey can take between 10 and 24 days depending on periods, customs congestion, breakdowns or security incidents.
- Rapid degradation of infrastructure: the road overload accelerates the wear and tear of Senegalese roads, especially in the Tambacounda region, little equipped to withstand such a logistical flow.
- Security issues- cases of theft, rackets or administrative obstacles are frequently reported on the corridor.
The constraints of the port of Dakar
The autonomous port of Dakar remains a strategic asset for Senegal. However, its capacity is beginning to be limited in the face of growing trade flows.
Storage areas are saturated, long procedures, and aging infrastructure. Competition from other ports (including the recently upgraded Abidjan) could divert part of Malian traffic if a durable solution is not found.
Moreover, the lack of an intermediate logistics platform, particularly in the interior of Senegal, prevents fluid distribution to Mali and other landlocked countries. The absence of a dry port in Tambacounda makes it difficult to manage transit efficiently, which increases the congestion of the port of Dakar.
Senegal is actively working onthe construction of a second deep water port in Ndayane,a few kilometers south of Dakar. This port project, in partnership with DP World, will considerably strengthen the country's maritime capabilities and position Senegal asthe natural logistics gateway to the Sahel.
For this ambition to become a reality, it is essential to create internal infrastructures, such as the Dakar-Bamako rail and a dry port in Tambacounda, able to absorb and redistribute flows efficiently.
The economic interest of rail freight
The revival of rail transport between Dakar and Bamako is not simply a logistical issue; It represents a major economic lever for regional integration, trade competitiveness and transport sustainability. A functioning rail network would offer many advantages in terms of capacity, cost, speed and environmental impact.
A much higher transport capacity
One of the main assets of rail freight is its mass capacity. While a truck can carry between 20 and 30 tons of cargo, a single train can move up to 1,500 tons per convoy.
According to TYPSA consortium estimates and the projections of railway experts, the modernised Dakar-Bamako line could transport between 5 and 15 million tonnes of freight per year, with a potential to extend to 20 million tonnes in the long term.
This potential is all the more relevant as Mali plans to increase its imports, particularly in the sectors of construction, agri-food, energy and capital goods. To this is added the re-export traffic to other landlocked countries such as Burkina Faso or Niger.
Significant savings on logistics costs
Rail is historically more economical than road for long distances. Comparative studies by the World Bank estimate that the cost per tonne-kilometre of rail freight is 30 to 50 per cent lower than that of road transport, especially for heavy or time-sensitive loads.
At the macroeconomic level, this means:
- a decrease in the cost of imports for Malian companies,
- a reduction in the final selling price for consumers,
- improving the competitiveness of Malian exports (including cotton, gold, mangoes) through Dakar.
Increased speed and reliability
While road transport on the Dakar-Bamako corridor can take 10 to 24 days, a modern train journey could take 2 to 4 days. Rail would thus improve the regularity of deliveries, essential for industries dependent on continuous supply chains.
By reducing delays and logistical uncertainties, rail would also promote better flow planning and reduction of intermediate stocks, which represents a significant economic gain for businesses.
A favourable environmental impact
In a global environment of ecological transition, rail is a virtuous mode of transport. It consumes on average 3 to 4 times less energy than the road for the same quantity transported. In addition, it emits about 75% less CO2 per tonne-kilometre.
This environmental performance opens the door to climate finance, such as green bonds, green bonds, or carbon compensation mechanisms. A railway project such as Dakar-Bamako can thus claim subsidies or interest relief under sustainable financing.
The model proposed: long-term concession dedicated to the diaspora
Given the budgetary constraints of the states and the security uncertainties, the use of an innovative investment model seems indispensable to revive the Dakar-Bamako railway line and build a dry port in Tambacounda.
This model is based on a key idea: mobilising savings and expertise from the Senegalese diaspora through a long-term concession granted to an investment vehicle controlled by its members.
Diaspora: An Underexploited Economic Power
The Senegalese diaspora, with several million people around the world, sends more than one million people each year.$2.7 billionin transfers to the country, i.e.10% of national GDP. These funds are mainly consumer or real estate oriented. However, even a small fraction of this savings could be structured to finance productive projects with high economic and social profitability.
Similar initiatives have taken place elsewhere, in particular the « diaspora leaps » in Nigeria or Ethiopia, demonstrating that members of the diaspora are willing to invest in patriotic projects, provided that the montages are transparent, safe and well supervised.
Structure of the project: creation of a SPV diaspora
The core of the model is the creation of aSpecial Purpose Vehicle (SPV)or project company, dedicated exclusively to the development, rehabilitation, and operation of the railway corridor and the dry port. This entity would be legally independent and managed according to international standards of governance.
- Shareholding :
- 60-70% held by diaspora investors (individuals or groups)
- 15 to 20% owned by technical partners (rail operators, logistics companies)
- 10 to 15% reserved for States (preferential or governance actions)
- Role of the VPS :
- raising funds (bonds, shares, partner loans)
- supervise railway rehabilitation work
- build and operate the dry port in Tambacounda
- managing the commercial operation of rail freight and logistics services
Financing: diaspora combination, banks, guarantees
The funding plan would be structured around several pillars:
- Diaspora own funds: raising of capital via a dedicated platform (e.g. Senegalese diaspora investment fund), in the form of shares or fixed yield bonds (5–7% over 10–15 years).
- Financial partners: contributions from development banks (BAD, BOAD, IFC), bilateral agencies (AFD, KfW), green funds.
- Public guarantees: the Senegalese State would provide apartial guaranteeprotection against country risk or legal instability, through the FONSIS or a public investment credit agency.
This set-up aims to reassure investors while ensuring a significant leverage effect. Each dollar mobilized by the diaspora could thus attract two to three dollars of international co-financing.
Income and economic model
The VPS would derive revenues from several channels:
- Rail freight tariffs: price per kilometer/tonne less than road but sufficient to ensure profitability
- Logistics services at the dry port: storage, customs, grouping, transhipment
- Partnerships with large import-export companies
- Rental of warehouses and terminals
- Possibility of ancillary revenues (digitalization, carbon billing)
On the basis of moderate volumes of 1 to 2 million tonnes per year from year 3, the profitability of the project would be achieved in 7 to 10 years. The returns would be reinjected to improve service or redistributed as dividends to the diaspora.
Tambacounda dry port: a strategic hub
The construction of a dry port in Tambacounda is a key part of the Dakar-Bamako railway project.
Located about 470 km from Dakar and less than 200 km from the Malian border, Tambacounda is the most strategic intermediate logistics point between the two capitals. It is also a major communication hub between the north, centre and east of Senegal, making it an ideal choice to establish a regional multimodal platform.
What is a dry port?
A dry port is a land logistics platform connected to a marine port by rail or road. It allows for the main inland port operations: customs clearance, storage, consolidation, sorting, transhipment, etc. This helps to reduce congestion in the sea port, reduce waiting times and streamline the distribution of goods.
In Tambacounda, the dry port would transfer a significant part of the customs and logistics activities from the port of Dakar to the interior of the country, thus bringing the Malian border service closer to the exchange zones.
Planned functions of the dry port of Tambacounda
- Rail-truck transfer: receipt of goods arriving by train from Dakar, reconditioning, and shipment by truck to Mali or other regions.
- Customs Centre: Advanced customs post allowing pre-clearance or full clearance for Malian or transit goods.
- Warehouses and logistics areas: modern storage facilities, refrigerated or dry, with additional services (grouping, packaging, palletization).
- Space for activity areas: offer of land or hangars for logistics, industrial or commercial companies wishing to implant nearby.
Regional economic benefits
The development of a dry port in Tambacounda would have a transformative impact for this historically marginalized region. It would create hundreds of direct jobs in the transport, handling, security and logistics sectors, and would stimulate the local economy through training effects (housing, catering, crafts, services).
Tambacounda would thus become aregional economic hub, able to radiate not only to Mali, but also to the south of Mauritania, the Gambian east and even the north of Guinea.
Financial & economic analysis (optimal scenario)
A major project such as the rehabilitation of the Dakar-Bamako rail coupled with the creation of a dry port in Tambacounda requires a rigorous financial analysis to demonstrate its viability. This section details cost estimates, forecast revenue sources, cost-effectiveness scenarios, and medium- and long-term economic benefits.
Estimates of investment costs
Dakar-Bamako Railway Rehabilitation
The consolidated estimates of several studies (including those of TYPSA and SWERIG) show the cost of the complete modernisation of the Dakar-Bamako line betweenEUR 750 million and EUR 1.2 billion, depending on the extent of the work and the equipment included (rolling equipment, signalling systems, stations, maintenance).
Indicative breakdown:
- Rehabilitation of roads and structures: 600–800 M€
- Acquisition of rolling stock: 100–150 M€
- Information and signalling systems: 50–100 M€
- Additional infrastructure (stations, workshops, maintenance): 50–100 M€
Construction of dry port in Tambacounda
The estimated cost of a medium-sized dry port, with a modular capacity, is between50 and 100 million US dollarsbased on the similar Ngogom project (Senegal, 2024). This budget would include:
- Land acquisition
- Logistics infrastructure (hangars, docks, customs areas)
- Internal rail and road networks
- Administrative buildings and security
Sources of income and flow assumptions
The main sources of revenue for the project include:
- Rail freight :
- Estimated tariff: 0.04 to 0.06 $/tonne-km
- Target volume:
- Year 1: 500,000 tonnes
- Year 5: 2 million tons
- Year 10: 5 million tons
- Example: 2 MT x 1,200 km x 0.05 $ = 120 million $ annual income
- Services dry port Tambacounda :
- Storage, customs, handling, value-added services
- Estimate: 10–20 $/tonne
- With 1 MT/year : 10 to 20 M$ of supplementary income
- Additional logistics services :
- Rental warehouses, private terminal, specialized facilities
- Future diversification opportunities (data centre logistics, combined transport, e-commerce)
Profitability and Return on Investment (ROI)
On the basis of a total investment ofUSD 1.1 to 1.3 billion, and a projected turnover of 150 to 200 M$ The project presents:
- A profit threshold (break-even)Grades 7-10
- A return to own diaspora capitalestimated at 8–10% in the long term, depending on debt structure and guarantees
- Increased sustainabilityfinancial leverage and potential eligibility for climate finance mechanisms (green bonds, carbon grants).
Overall economic benefits
For Senegal:
- Creation of 5,000 to 10,000 direct and indirect jobs
- Internal border
- Increased competitiveness of the port of Dakar
For Mali:
- Reduced import/export costs from 20 to 30%
- Secure supply chains
- Sustainable reintegration into regional trade
For the diaspora:
- Cost-effective and secure investment
- Direct contribution to national development
- Enhancing its role in the country's economic policies
Possible assembly routes and better approach
To achieve such a project, the choice of the structuring model is crucial. Several options are possible, each with advantages and limitations. The objective is to identify the most effective way to ensure financial feasibility, transparency, rapid resource mobilization and resilience to geopolitical and economic risks.
Traditional model: conventional public-private partnership (PPP)
This model is based on a joint venture between the State (or its agencies) and an international private railway/logistic operator.
Benefits :
- Rapid technical expertise
- Easier access to bank financing and international insurance
Limits :
- Low citizen involvement (excluding diaspora)
- Possible rejection of opaque PPPs by a suspicious population
- Profitability oriented exclusively to private partners
Recommended model: SPV diaspora lead with long-term concession
This model is a hybrid structure, centred on themobilising diaspora savingssupported by a secure institutional framework and a logic of impact.
Main features:
- Autonomous SPVbased specifically for the project
- Majority detention by diasporawith transparent governance and democratic representation
- Grant of 25–30 yearsgranted by the State for the operation of rail and dry port
- Technical and capital partnershipwith a recognized railway operator (e.g. Bolloré, Sitarail, or International Neutral Developer)
- Sovereign guaranteesto mitigate political risk, secure revenues and facilitate fundraising
Benefits:
- Rapid mobilization of capital via patriotic cause
- Strengthening the sense of belonging of the diaspora
- Fair distribution of profits (financial returns + social impact)
- Increased attractiveness for international donors through mixed governance
Key steps for implementation
Phase 0 – Preparation
- Constitutiondiaspora initiative group
- Implementation of aindependent feasibility study
- Preparation of thelegal framework of the SPV(Staff, Shareholders' Pact)
Phase 1 – Launch
- Mobilization ofinitial diaspora own funds(seeding)
- Selection oftechnical partnersand a financial structuring firm
- Pre-agreements with Senegalese and Malian governments on concession conditions
Phase 2 – Structure
- Final financial assembly: debt + capital + guarantees
- Signature of theConcession agreement
- Obtaining land, environmental and customs permits
Phase 3 – Implementation
- Call for tenders for railway works and the dry port
- Supervision by acontrol of independent works
- Establishment of operating systems, security, personnel
Phase 4 – Operation
- Launch of railway and logistics operations
- Regular monitoring, audit, publication of results for the benefit of shareholders and the State
- Reinvestment or redistribution of profits according to the statutes of the SPV
Security and attractiveness tools
- Senegalese State guarantee20 to 30 % of capital or flows
- Possibility of usingMIGA (World Bank)for country risk coverage
- Green bond(green bond) for the sustainable rail component
- Implementation of aRegional Secondary Scholarshipfor SPV shares, providing partial liquidity to diaspora investors
Arguments to convince authorities and diaspora
The success of this project depends on the full adherence of the two key pillars: the public authorities (State of Senegal and, to a complementary extent, State of Mali) and the Senegalese diaspora. It is therefore essential to highlight the concrete benefits and guarantees offered by this model.
For the Senegalese authorities
A lever for development without budgetary pressure
The project would enable Senegal to benefit from a strategic infrastructure without directly mobilizing significant budgetary resources. Mobilizing the diaspora and private partners alleviates the need for direct public funding.
Strengthening the regional role of Senegal
A functional railway corridor positions Dakar as theWest Africa's privileged logistics hubby consolidating its economic ties with Mali and potentially with other landlocked countries (Burkina Faso, Niger, Guinea).
Job creation and regional stimulation
The construction and operation of the line and the dry port generate thousands of direct and indirect jobs, particularly in the interior regions (Tambacounda, Kaolack, Matam). This promotes an equitable redistribution of economic development.
Exemplarity and political innovation
Support for a diaspora-funded project strengthens the legitimacy of the authorities and their international image as governments that support innovative, inclusive and sustainable solutions.
For the Senegalese diaspora
A profitable and useful investment opportunity
This project offers the diaspora a structured placement, with predictable returns, anchored in a logic of social impact. It is a credible alternative to traditional investments, often limited to real estate.
Direct participation in the country ' s development
Beyond financial returns, the diaspora is involved in a community-interest project with a strong leverage effect, and is actively involved in regional integration, reducing inequalities and strengthening infrastructure.
Guarantee and investment security
With partial state guarantee, rigorous governance, and a model based on tangible logistical flows, the risk of investment is moderate and controlled. In addition, the project is part of dynamics supported by international institutions.
Visibility and recognition
Members of the diaspora would be recognized not only as investors, but as co-builders of national development. Symbolic and real arrangements (seats on the board of directors, publication of results, communication) would strengthen this link.
Internationally comparable examples
- NigeriaThe 2017 diaspora-bounds raised USD 300 million from Nigerians abroad to finance infrastructure.
- Ethiopia: financing of the Renaissance dam partly provided by contributions from the diaspora (even if criticized on governance).
- Morocco: strong involvement of the Moroccan diaspora in productive investment through specific state-supported funds.
These precedents show that the African diaspora is ready to invest if the environment is favourable, clear governance, and real impact.
Call for action
The Dakar-Bamako corridor, which is crucial for West Africa, can no longer rely solely on expensive, slow and vulnerable road transport. Its transformation into a modern logistics axis, structured around the rail and a dry port in Tambacounda, represents a strategic opportunity for both Senegal and Mali. But given the limits of public funding and geopolitical uncertainties, innovation becomes imperative.
By proposing a long-term concession model supported by the Senegalese diaspora, this article highlights a viable, inclusive and sustainable solution. The diaspora has capital, competence and will to act. There is only a clear framework, strong political will and a suitable governance mechanism.
This vision is all the more urgent as other countries, including theMorocco, aim to serve the landlocked countries of the Sahel via a railway project linking its national network with those of Niger, Burkina Faso and Mali.
Although this project demonstrates the desire for continental integration, it must face a major obstacle: the crossing ofhighly unstable areason the security front.
In contrast, theSenegal enjoys recognised political stability, a more direct geographical positioning, and a privileged historical link with Mali. So many assets make it the natural candidate to embodythe logistics hub of West Africa.
Appeal to the Senegalese authorities
The State can play a catalytic role by facilitating the legal structure of the project, granting a transparent concession and guaranteeing some of the risks. This active but inexpensive stance would attract considerable funding and reposition Senegal as a regional driver of economic integration.
Call to DiasporaThe time has come to move from informal solidarity to structural investment. This project is not only a financial opportunity: it is a historic opportunity to build together a pillar of economic sovereignty, national cohesion and continental influence.
