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145 Million Euro Railway Investment In Mozambique

railway
Jul 23, 2025
Article Source LogoRailly News
Railly News

MozambikThe European Union (EU) and France have agreed on a total of 100 million euros (USD) to modernise the Maputo-Ressano Garcia railway line, improving freight transport, reducing emissions and strengthening the country's position as a South African trade hub. 145 million euros will receive significant financial support. This strategic investment will play a critical role in Mozambique's achievement of its regional development and integration goals.

The financing of the project is total Two separate Agence Française de Développement (AFD) loans totaling €133 million ve A €30 million EU grant These funds will be used to build the final section of the Maputo-Ressano Garcia railway. will double and will significantly increase operational efficiency by replacing old signalling systems with a safer and more modern system.

Maputo-Ressano Garcia corridorIt plays a vital role in connecting Mozambique to South Africa. By doubling the line's annual carrying capacity, Increasing from 14,9 million tons to 44,6 million tons This massive capacity increase will not only support regional trade but also have a positive impact on logistics flows by reducing road congestion.

This expansion will also contribute to approximately 20% of the total annual growth in Mozambique's climate targets. Reducing 30.000 tons of CO₂ emissions Modern signalling systems will reduce accidents on the railway network, improve safety and increase overall operational efficiency.

Agostinho Langa Júnior, Chairman of the Board of Directors of CFM (Mozambique Railways), improvements include the purchase of the company's rolling stock and urban transportation improvements Strategic Plan He stated that it is compatible with the project. The project will be a significant milestone in supporting the country's economic growth and regional integration.

French Ambassador Yann PradeauWhile highlighting France's expertise in the field of railways and its commitment to sustainable development, EU officials said that this investment Global Gateway strategy He stated that he would develop safe and clean transportation corridors within the scope of the project.

The next phase involves hiring two consulting firms for design, supervision, and project management. To be completed by 2030 and is expected to deliver a modern infrastructure that will strengthen Mozambique as a major logistics hub. This project is of great importance not only for Mozambique but also for the economic future of the entire Southern African region.

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