Mozambique Rail Upgrade: EU & AFD Invest €145M for Capacity Boost

EU and France Invest €145 Million in Mozambique’s Rail Infrastructure Upgrade

Mozambique’s railway network is set for a significant transformation following a €145 million (approximately $169 million) investment spearheaded by the Agence Française de Développement (AFD) and the European Union (EU). The financial package, agreed upon on July 22, 2025, combines two non-sovereign loans from the AFD and a grant from the EU, aiming to significantly enhance the capacity and efficiency of the Maputo–Ressano Garcia railway line. This initiative seeks to modernize the existing infrastructure, primarily through line doubling and signalling system upgrades, with the overarching goal of bolstering freight and passenger transport and facilitating a shift from road to rail. The project directly addresses Mozambique’s strategic need for improved logistics and contributes to the country’s climate goals. Why is this investment crucial? Because it aims to fortify Mozambique’s position as a key logistics hub within Southern Africa. How will this be achieved? Through infrastructure upgrades and a focus on sustainable transportation practices. Who benefits? The entire nation of Mozambique and the broader Southern African region.

Modernization of the Maputo–Ressano Garcia Line

The primary focus of the €145 million investment is the modernization of the Maputo–Ressano Garcia railway line, a critical artery for both passenger and freight movement in southern Mozambique. The project encompasses two key components: doubling the line’s final section and upgrading its signalling system. This is a significant undertaking; doubling the line will require extensive track laying, bridge modifications, and other civil engineering works. The signalling upgrade will involve the installation of modern signalling technology that offers improved train control and safety, ultimately improving the operational efficiency and reducing delays along the corridor. This is crucial for increased throughput and will enhance the capacity to handle the projected traffic increases.

Boosting Capacity and Modal Shift

The investment is designed to drastically increase the railway line’s capacity. Current estimates state that the throughput will increase from the present 14.9 million tonnes per year to an impressive 44.6 million tonnes annually once the second phase of the project is finished. This boost in capacity has the potential to shift a considerable amount of freight from road transport to rail, as a more efficient and robust rail network will create a more attractive alternative for shippers. The EU’s support for this initiative is underpinned by its Global Gateway strategy, which is committed to promoting smart, clean, and secure transport corridors to promote regional integration and economic development.

Environmental Sustainability and Economic Development

Beyond the capacity enhancements, this project has significant environmental implications. By encouraging a shift from road to rail, the project directly contributes to Mozambique’s climate goals by reducing greenhouse gas emissions. The project is expected to reduce carbon emissions by approximately 30,000 tonnes of CO₂ equivalent annually. Additionally, this rail project represents a significant step towards Mozambique’s economic development goals. Improved transport infrastructure is key to regional integration and trade, which further stimulates economic growth and attracts foreign investment.

Project Implementation and Future Phases

The project’s second phase will focus on the recruitment of consulting firms for design, supervision, and project management. This will be vital to ensure the project is carried out according to the highest industry standards. The construction phase is on track for completion by 2030. CFM Chairman Agostinho Langa Júnior has highlighted that CFM requested the funding to realize several planned projects, including the expansion and signalling modernization of the Ressano Garcia line, alongside rolling stock acquisition. These developments aim to enhance urban mobility and contribute to the comprehensive economic advancement of Mozambique, in line with the country’s regional integration efforts.

Conclusion

The €145 million investment by the AFD and the EU represents a major step forward for Mozambique’s railway infrastructure, promising to dramatically increase capacity, improve efficiency, and promote sustainable transport practices. The focus on modernizing the Maputo–Ressano Garcia line, coupled with plans for future expansion and rolling stock acquisition, underscores a long-term strategy for strengthening the nation’s transportation network. The expected increase in rail capacity, and the resulting shift from road to rail, carries the potential to significantly lower greenhouse gas emissions, aligning with global climate goals. These developments have strong implications for the logistics sector, regional trade, and overall economic growth within Mozambique and Southern Africa. Furthermore, the project serves as an example of how strategic infrastructure investments can drive economic and environmental sustainability within the railway industry, promoting regional integration and enhancing a nation’s competitiveness in the global market. The success of this project will serve as a model for future railway development initiatives throughout the region.