Mozambique’s rail network is poised for a significant upgrade with the signing of three financing agreements between state-owned railway company Portos e Caminhos de Ferro de Moçambique (CFM) and the Agence Française de Développement (AFD) for an investment of €145m (169m).
The investment combines two non-sovereign loans from AFD, totalling $133m and a €30m ($35m) grant from the European Union.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The funding will be used towards the planned enhancement of the Maputo–Ressano Garcia railway line, a vital link for passenger and freight transport in southern Mozambique.
The project includes the doubling of the line’s final section and an upgrade of its signalling system.
The modernisation of the signalling system is set to improve safety and operational efficiency across the corridor.
This development is expected to bolster rail traffic capacity and encourage a shift from road to rail transport.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe project also aims to contribute to Mozambique’s climate goals by reducing greenhouse gas emissions by an estimated 30,000 tonnes of CO₂ equivalent annually.
CFM chairman Agostinho Langa Júnior said: “CFM requested this funding to respond to what is outlined in its Strategic Plan, which aims to execute a number of projects, including the doubling as well as the modernisation of the signalling system of the Ressano Garcia line, the acquisition of rolling stock, improve urban mobility etc. so as to better contribute to the economic development of Mozambique, as well as full regional integration.”
The financial support from the AFD and the EU will facilitate the expansion of the Ressano Garcia Line’s throughput, boosting it from the existing 14.9 million tonnes per year to 44.6 million tonnes per year once the second phase of the project is finished.
The next phase of the project involves the recruitment of consulting firms for design, supervision, and project management.
The construction phase is on track for completion by 2030.
Head of Cooperation of the EU Delegation to Mozambique Paula Vazquez-Horyaans said: “This strategic investment reflects the European Union’s commitment under the Global Gateway strategy to promote smart, clean and secure transport corridors that drive regional integration and economic development.
“By supporting the doubling of the Maputo–Ressano Garcia railway and upgrading its signalling system, we are helping shift freight from road to rail, thus enhancing safety, reducing emissions, and reinforcing Mozambique’s role as a key logistics hub in Southern Africa.”
