The continent pays some of the world’s highest transport costs while its waterways lie empty
By Our Reporter
The continent’s waterways remain stubbornly underused for transport whilst logistics costs remain amongst the world’s highest. Reframing rivers as economic infrastructure could unlock billions in trade
For most policymakers in Africa, rivers are primarily about water supply, irrigation and hydropower. Yet this narrow framing misses a critical opportunity. The continent’s vast network of waterways represents an underutilised transport infrastructure asset that could dramatically reduce the cost of moving goods and connecting markets.
Inland water transport accounts for less than 2% of total freight movement across the continent, while road transport dominates at over 80% according to the African Development Bank. This imbalance comes at a steep price. Logistics costs in Africa represent between 20% and 40% of product value, almost four times the global average. Transport costs alone contribute as much as 61% of logistics costs in South Africa, compared to a global average of 39%.
The economic case for inland waterways is straightforward. Moving freight along the Congo River costs around 5 cents per tonne-kilometre, only a third of the cost of moving freight by road or rail. In the Democratic Republic of Congo, maintenance costs per kilometre of navigable waterway are a fraction of those per kilometre of road. Yet whilst the DRC’s river network offers natural advantages, infrastructure decay and poor coordination have allowed this potential to wither.
Kenya provides a microcosm of the challenge and opportunity. The Tana River, Kenya’s longest at 708 kilometres, flows from the Aberdare Range to the Indian Ocean. The Athi-Galana-Sabaki system, at 390 kilometres, drains a basin area of 70,000 square kilometres. Both rivers cross major economic zones and agricultural areas. Yet their role in economic planning remains confined to water management agencies focused on irrigation and hydropower rather than transport corridors.
The contrast with Lake Victoria’s recent revival is instructive. The lake has the potential of generating $60 billion worth of trade annually between Kenya, Uganda and Tanzania, but currently realises only $6 billion. In February 2024, the 96-metre M.V. Mpungu began operations, becoming Lake Victoria’s first scheduled roll-on/roll-off freight service. The vessel carries up to 21 fully loaded trucks (1,000 tonnes of cargo) between Port Bell in Uganda and Mwanza in Tanzania twice weekly. Early results demonstrate market appetite for reliable water transport.
Kenya rehabilitated Kisumu Port in 2024 with $7 million invested in fuel jetties, berths, terminals and customs facilities. Tanzania’s Mwanza, Musoma and Bukoba ports have become the busiest on the lake. In November 2025, regional experts convened in Kampala for a validation workshop on inland waterway transport policy harmonisation, bringing together nine countries to unlock the potential of Eastern Africa’s lakes and rivers.
This regional coordination matters because fragmented approaches undermine efficiency. The UN Economic Commission for Africa notes that Africa’s infrastructure deficit reduces economic growth by 2% annually and cuts productivity by up to 40%. Whilst 69 PIDA projects worth $160.8 billion address transport, energy, water and digital connectivity, rivers feature primarily in hydropower schemes rather than multimodal transport planning.
The historical precedent exists. During the 16th century, the Niger-Senegal-Gambia river network influenced a considerable portion of West Africa trade from Senegal through Northern Nigeria to Benin. By the 1800s, river barges on the Niger had a capacity of 60 to 80 tonnes, measured about 100 feet long and 14 feet wide, had a crew of 18 and could accommodate more than 50 passengers alongside animals and cargo. An unnamed European merchant observed in 1832 that traffic on the lower Niger appeared twice that of the upper Rhine.
Modern infrastructure projects increasingly recognise multimodal integration. Claver Gatete, executive secretary of the UN Economic Commission for Africa, described the Lamu Port-South Sudan-Ethiopia Transport Corridor as enhancing connectivity, reducing trade costs and catalysing regional economic integration. The Lobito Corridor similarly demonstrates how rail, road and river systems can work together. In September 2024, the US Development Finance Corporation committed $13 million to the African Rivers Fund IV, supporting small and medium businesses in frontier markets including Angola, DRC and Zambia.
The Niger River illustrates both potential and current limitations. Nigeria has 8,600 kilometres of inland waterways, yet most commercial activity concentrates in the Niger Delta rather than the river system itself. Strong currents at low water levels and seasonal variations create navigation challenges. The planned Abidjan-Lagos Highway, carrying 75% of West Africa’s trade, receives far more investment attention than waterway improvements.
The Congo Basin presents perhaps the greatest unrealised opportunity. In theory, the Congo River could provide enough hydropower to cover the entire demand in sub-Saharan Africa, yet many regions accessible only by water have waterways, ships and ports in poor repair. The International Commission of the Congo-Oubangui-Sangha Basin assists member countries with inland shipping initiatives, but coordination between six countries remains complex.
Technical barriers are surmountable. Africa’s rivers face natural constraints including waterfalls, rapids and seasonal flow variations. The continent’s ancient crystalline rocks create uneven terrain unsuitable for navigation in many sections. Yet European canal systems overcame similar geography through locks and engineered channels. The question is whether the economic return justifies the investment compared to alternative infrastructure.
The policy implication extends beyond transport ministries. Water resources agencies, typically focused on Sustainable Development Goal 6 (clean water and sanitation), must collaborate with those pursuing SDG 9 (industry, innovation and infrastructure). Kenya’s Tana and Athi Rivers Development Authority allocates 367.7 million Kenyan shillings to regional development services, yet these remain disconnected from broader transport planning.
East Africa’s recent policy harmonisation efforts provide a template. The November 2025 workshop validated a regional inland waterway transport policy framework and strategic plans for the Northern and Central Corridors, proposing concrete interventions to address infrastructure gaps, safety standards and environmental compliance. These aim to reduce transport costs and enhance connectivity.
The financial architecture is evolving. Private sector participation in African port operations has grown, with over 20 ports incorporating private terminal operations. DP World has invested close to $3 billion in Africa to date, with a further $3 billion planned over the next three to five years in ports infrastructure, logistics hubs and multimodal connectivity across sub-Saharan Africa. Extending this model to inland waterways requires demonstrating commercial viability.
The African Continental Free Trade Area creates new imperatives. Whilst the AfCFTA represents a market of 1.3 billion people and a combined GDP of over $3.4 trillion, intra-African trade accounts for only 15% of the continent’s total trade. UN Economic Commission for Africa studies project that adequate infrastructure and AfCFTA implementation could increase this to 33%. AfCFTA provides an opportunity to develop road and railway networks that could increase intra-Africa freight demand by 28%.
Rivers should feature in this calculation. The Transaqua project, first proposed in the 1970s, would divert 5% of the Congo River’s annual flow to revive Lake Chad through a 2,400-kilometre canal. Beyond water security for ten African countries, such infrastructure could enable navigation between previously disconnected regions. In 2016, the Lake Chad Basin Commission endorsed the concept, though implementation remains distant.
Environmental sustainability considerations also favour waterway transport. River freight produces lower greenhouse gas emissions than road transport for bulk cargo. Properly designed navigation infrastructure can coexist with ecological protection, though poorly planned projects risk damaging vulnerable ecosystems. The Lake Victoria experience demonstrates that rehabilitation efforts must balance commercial activity with environmental management, particularly given the lake’s critical role in fisheries and water supply.
The shift required is conceptual as much as financial. Development banks, including the African Development Bank and regional institutions, maintain infrastructure portfolios dominated by roads, rails and energy projects. Inland waterway proposals compete for attention against more familiar project types with established assessment methodologies. Building institutional capacity to evaluate river transport investments would help mainstream these opportunities.
Kenya’s infrastructure budget for 2024-2025 includes funding for a logistics hub in Athi River town and various railway improvements, yet no comparable allocation for developing the Athi River as a transport corridor. This pattern repeats across the continent. Governments prioritise tangible projects with clear political visibility over complex multimodal systems whose benefits accrue gradually.
The path forward requires treating Africa’s rivers as potential economic corridors deserving the same planning rigour as road and rail projects. This means comprehensive feasibility studies examining which river sections justify navigation improvements, what traffic volumes would make investments viable, and how waterway development integrates with existing transport networks. It means involving private operators early to ensure commercial sustainability. And it means regulatory frameworks that facilitate cross-border operations whilst maintaining safety and environmental standards.
For countries sharing river basins, joint planning mechanisms similar to those emerging around Lake Victoria offer models. The East African Community’s tripartite agreements on inland waterway transport provide templates that could extend to West and Central Africa. Success depends on sustained political commitment and willingness to subordinate narrow national interests to regional connectivity gains.
The prize is substantial. Reducing logistics costs from 30% to 15% of product value would free capital for productive investment, make African manufacturers more competitive, and lower consumer prices. Rivers alone cannot achieve this transformation, but as part of integrated multimodal systems, they could contribute disproportionately to their modest infrastructure requirements.
Africa’s rivers have shaped settlement patterns, agriculture and cultures for millennia. Reframing them as economic infrastructure assets rather than merely water resources could unlock their full potential for the continent’s development. The question is whether policymakers, development partners and private investors can see beyond conventional infrastructure categories to recognise the opportunity flowing past them.
