Gabon: Meridiam and Eramet are seeking a record-breaking guarantee from the World Bank for the Transgabonais railway

Meridiam and Eramet, through the Société d’Exploitation du Transgabonais (SETRAG), are seeking political guarantees from the Multilateral Investment Guarantee Agency (MIGA), the World Bank’s investment guarantee agency, for a record amount to support a major modernisation programme for the Transgabonais railway, valued at €704 million.

The two French groups are seeking to secure exceptional cover against political risks (expropriation, transfer restrictions, war and civil unrest, and breach of contract) in order to secure the necessary funding for the upgrading and extension of this strategic 650-kilometre-long infrastructure, linking the port of Owendo near Libreville to Franceville, at the heart of the mining region.

This project is of vital importance to the Gabonese economy. The Transgabonais railway transports nearly 90% of the country’s mining freight, mainly manganese produced by Comilog (a subsidiary of Eramet), but also potentially iron and other resources. The line also carries around 330,000 passengers a year. The aim of the €704 million programme is to significantly increase transport capacity (from 12 to 19 million tonnes a year according to previous targets), and to improve the safety, reliability and overall performance of the ageing infrastructure.

This breakdown stems from the 2021 agreement, which enabled Meridiam to acquire a stake in the company through a capital increase of approximately €30 million, accompanied by an additional commitment of €40 million and the provision of railway expertise.

MIGA had already provided guarantees to Meridiam for SETRAG: €61 million in June 2023, followed by an increase of €30.7 million in December 2024, bringing the total exposure to approximately €91.7 million. The new request therefore represents a significant increase, making this transaction potentially the largest guarantee ever provided by MIGA for a rail project in Africa.

This arrangement forms part of a series of multilateral and private financing deals. In February 2026, a $350 million package had already been announced with the International Finance Corporation (IFC), combining a senior loan, European grants and equity contributions from Eramet and Meridiam. The use of MIGA guarantees aims to attract additional investors and lenders by reducing the perceived country risk in Gabon.

For Eramet, this project is essential to maintaining and growing its manganese exports, Gabon’s leading export. For Meridiam, a specialist in sustainable infrastructure in Africa, it is a chance to demonstrate its long-term investment model in strategic assets. The Gabonese government, for its part, sees this modernisation as a means of diversifying the economy, supporting local industrialisation and increasing mining revenues.

The application is currently under review by MIGA. If approved, this record-breaking support from the World Bank Group would send a strong signal to international investors and strengthen Gabon’s position as a mining logistics hub in Central Africa. No official statement has yet been issued by the parties involved regarding the exact amount of the guarantees requested or the timeline for finalisation.