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Sizwe sama Yende

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South African born, pan African entrepreneur Robert Gumede, has increased his footprint in the continent after teaming up with a US company to develop a transport network worth about $5billion (R94.5bn) to connect Liberia and Guinea.

The Liberty Corridor project will comprise a brand new state-of-the-art rail system that will connect Guinea to a new deep water port at the coastal town of Didia in Liberia.

It will also see the extension of the existing hydro-power network from Cote d’Ivoire into the Nimba districts of Liberia and Guinea, an upgrade of existing road networks in the Nimba district to all-weather roads and the implementation of fibre optic telecommunication cable connecting Liberia to the Nimba district and potentially beyond.

Gumede’s Guma Africa Group has signed a letter of intent with High Power Exploration (HPX) and the Liberian government.

“The Liberty Corridor will be a leading African example of multi-user, independently operated, open access railway line and roads network infrastructure that will support the economic opening of the West African region to World markets,” the parties said in a joint statement.

“An estimated investment of US$3 to $5 billion will enable sustainable mineral development and downstream value addition to regional economies.” Since the letter of intent has been signed, the parties will now enter into negotiations to agree on a framework granting exclusive rights to develop, finance and grant operating rights to the Liberty Corridor, following the Rail and Road Treaty signed by the Guinea and Liberia governments.

The corridor has the potential to transform the mineral-rich Nimba region, to stimulate further economic activity in mining, agriculture, manufacturing, health, education and improve the quality of life for the two million people living in the region.

Lastly, it will create much-needed and sustainable jobs. The Nimba region is rich in bauxite and iron-ore.

HPX Chief Executive Officer Bronwyn Barnes said: “HPX is delighted to have formed this partnership with the Government of Liberia and the Guma Africa Group to develop The Liberty Corridor in Guinea and Liberia. President Joseph Boakai (of Liberia) has started his Presidency on a strong footing, engaging with industry to build Liberia’s economy. We are delighted to have signed this Letter of Intent with the Government of Liberia as we seek to build Liberia’s mining sector in an open and transparent relationship that also delivers benefits to broader industry and community.”

Gumede said that time for lip service was gone as both companies were ready to roll their sleeves.

“Both Robert Friedland (US billionaire and mining financier) and I decided to pull our resources together to help to transform both Guinea and Liberia economies by investing in the infrastructure in order to unlock mining, agriculture, telecommunications, industrialisation of the two countries and the creation of sustainable jobs in partnership with the two governments,” Gumede said.

The value of the transport logistics and the mines in the Nimba region are expected to increase to R160 billion (R3 trillion) in seven to ten years. The Guma Group has entrenched its footprint in Africa and is doing diversified businesses in 28 African countries.