Mozambique plans railway privatization

Mozambique is preparing to assign parts of its national railway network to private operators as part of an initiative to diversify freight services and provide importers and exporters with more options for transporting goods. The affected sections, procedure timeline, and selection criteria have not yet been specified.

Rail reform aims to boost transport alternatives

This reform aims to increase the use of rail and maritime transport in the movement of goods to reduce dependence on road networks. Mozambique has three main logistics corridors, centered around the ports of Maputo, Beira, and Nacala. Their influence extends beyond the national market, as they also allow neighboring countries to access international maritime routes.

Rail corridors connect regional trade routes

The Maputo corridor connects the port to South Africa via the Ressano Garcia railway line. The Beira corridor serves Zimbabwe via the Machipanda line and Malawi via the Sena line. The Nacala corridor transports coal from the Moatize mining basin and serves Malawi.

Rail freight saw growth in 2026

In the first quarter of 2026, the Mozambican railway network transported 3.6 million tons of various goods, a 14.9 percent increase year-on-year, according to government data. Authorities plan to strengthen existing infrastructure with an investment program of 14 billion meticais, approximately 219.1 million USD, for the period 2025-2030.

Modernization aims to increase freight capacity

This includes doubling certain lines, acquiring locomotives, and purchasing 250 freight wagons to increase transport capacity. The Maputo corridor is also the subject of a modernization program, with a financing of 144 million euros (approximately 161.2 million USD) announced in July 2025 to strengthen the line connecting Maputo to the South African border. The project is expected to increase the freight capacity of this axis to 19 million tons per year.

Challenges remain in railway efficiency

These investments respond to a capacity challenge, but also to competitiveness. The availability of rolling stock, the regularity of services, and the affordability of tariffs remain critical to convincing companies to prefer rail for long distances. In June 2026, the Confederation of Economic Associations of Mozambique had called for improving operational reliability and reviewing tariffs, while some exporters continued to prefer road transport due to uncertainties regarding delivery times and limited availability of wagons.

Reform success depends on coordination

Likewise, the arrival of new operators could promote a diversification of services, but the effects of this reform will depend on its concrete modalities: distribution of responsibilities between CFM and concessionaires, access conditions to infrastructure, required investments, and regulatory mechanisms. Competition among operators alone will not be sufficient to guarantee a cost reduction if railway connections remain poorly coordinated with ports, customs procedures, and road transport.