The country bets on improved logistics to become a regional hub amid rising mineral demand and port congestion in South Africa.

Highlights

• France and EU back €144M project to double key rail line linking Maputo to South Africa.
  
• New capacity will increase freight volumes to 19 million tonnes per year.
  
• Government plans $219M investment by 2030 to modernize rail and port infrastructure.
  

Mozambique has secured a combined €144 million in funding from France and the European Union (EU) to upgrade the rail corridor connecting the Port of Maputo to the South African border town of Ressano Garcia. The financing includes two loans from the French Development Agency (AFD) totaling $US133 million. The goal is to modernize the country's rail and port infrastructure, making them "sustainable, intelligent, and resilient."

The corridor is vital for bilateral trade and serves as a key route for transporting minerals, agricultural goods, and containers between the two countries. According to Agostinho Langa, Chairman of the Board of Chemins de fer du Mozambique (CFM), the upgrade will raise freight capacity to 19 million tonnes annually. It will also improve access to the Port of Maputo for landlocked neighbors such as Zimbabwe and Eswatini (Swaziland).

This project is part of Mozambique's broader strategy to invest 14 billion meticais (about $219 million) by 2030 into its rail network. The investment plan includes doubling essential lines, acquiring locomotives and passenger cars, and enhancing port logistics. These steps aim to strengthen the country’s ambition to become a logistics hub for the Southern African Development Community (SADC), especially as regional ports like Durban, Beira, and Walvis Bay face increasing congestion.

Still, concerns remain about the economic sustainability of Mozambique’s rail network, as over 85% of the country’s passenger rail operations are currently funded by the state. In a context of budgetary constraints, this dependence on public subsidies casts uncertainty on the long-term profitability of the system.

This article was initially published in French by Henoc Dossa

Edited in English by Ola Schad Akinocho