African Development Bank funds $40m upgrade to Mozambique’s key railway line

4 Feb 2024

African Development Bank (AfDB) is injecting a substantial $40m into the Mozambique Rail and Port Authority (CFM). This comprehensive overhaul of the Ressano Garcia railway line, a critical conduit from the bustling port of Maputo to the South African border, will help smooth transport minerals from the mining belt of north-eastern South Africa through the port of Maputo - the closest seaport.

The African Development Bank loan will enable CFM to buy 10 locomotives, 300 wagons, and 120 tank containers. Source: African Development Bank Group.

The project has grand ambitions to streamline logistics, reduce transport costs, and facilitate trade. It is said to also create jobs and promote environmental sustainability by transitioning traffic from road to rail.

The blueprint includes the procurement of 10 locomotives, 300 wagons, and 120 tank containers. It also encompasses a robust maintenance programme and training for CFM personnel.

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Projected outcomes include improved access to rail services for individuals and businesses, an increase in the volume and value of goods transported, and a boost in foreign earnings and tax revenue for the government. There's also benefits to regional integration and sustainable development.

The Maputo corridor, where the rolling stock purchased under this project is to be deployed, is used to export mineral commodities (such as bulk magnetite, ferrochrome, chromium ore and coal) from the mining belt of north-eastern South Africa through the port of Maputo, which provides the shortest seaport access.