Mozambique has secured funding for its recently announced $500m Moatize-Nacala rail freight line, the country's Transport and Communications Minister has announced.
The funding has come from the governments of the Netherlands and Denmark and from the EU.
Construction of the railway is expected to begin in two months.
The line will be used to transport cargo from the coal-rich northern Moatize mines to Nacala port.
The line will also link the existing Sena line to a railway that runs between the deep water port of Nacala and Malawi.
The railway is part of the country's plan to serve as a regional trans-shipment route and an alternative to the highly congested ports of Dar-es-Salaam in Tanzania and Kenya's Mombasa.