Ethiopia has moved to the forefront of Africa’s industrial ambitions after signing a major agreement to advance the “Gas-by-Rail” Economic Corridor Initiative, a plan that could redefine how energy is moved across the continent.

The deal, concluded Monday with Insight Dynamic Resources, lays the groundwork for a 73,500-km freight railway system intended to carry LNG to more than 40 Sub-Saharan nations. The proposed network is positioned as a practical alternative to traditional pipelines, which have long been slowed by political and technical hurdles.

As part of the framework, Ethiopia will anchor the “Ethio-Cluster,” a new industrial zone expected to manufacture green hydrogen and produce up to five million tons of green steel annually by the end of the decade.

Musa Ibrahim Kuchi, the initiative’s chief strategist, underscored the project’s urgency, arguing that Africa’s current dependence on woodfuel is unsustainable. The railway, he said, offers a direct pathway to cleaner and more reliable energy supply.

Backers say the corridor could drastically reduce emissions and curb reliance on charcoal, cutting woodfuel consumption by an estimated 75%. Interest from international engineering firms – including Germany’s SMS Group and U.S.-based Wabtec – signals early global momentum.