Mozambique is set to benefit from a major overhaul of its key railway line, thanks to a $40m loan from the African Development Bank (AfDB). The project aims to improve the efficiency and safety of the Ressano Garcia railway line, which connects the port of Maputo to the South African border.
The Ressano Garcia line is a vital link for the transport of minerals from the mining belt of north-eastern South Africa, as well as other goods and passengers. The port of Maputo is the closest seaport for South Africa’s landlocked provinces of Mpumalanga and Gauteng, as well as neighboring countries such as Zimbabwe and Botswana.
However, the railway line has been plagued by poor infrastructure, frequent breakdowns, and low capacity. According to the AfDB, the line can only handle about 3 million tonnes of cargo per year, far below the demand of 20 million tonnes.
The AfDB loan will enable the Mozambique Rail and Port Authority (CFM) to procure 10 locomotives, 300 wagons, and 120 tank containers, as well as carry out maintenance and training for its staff. The project is expected to increase the volume and value of goods transported, create jobs, reduce transport costs, and facilitate trade.
The project is also aligned with the AfDB’s strategy to support regional integration and sustainable development in Africa. By shifting traffic from road to rail, the project will help reduce greenhouse gas emissions and road accidents, as well as ease congestion at the border.
The AfDB’s intervention comes at a time when Mozambique is facing multiple challenges, including a violent insurgency in the north, a humanitarian crisis caused by cyclones and floods, and an economic downturn worsened by the COVID-19 pandemic.
The AfDB has been a long-standing partner of Mozambique, providing financial and technical assistance for various sectors, such as energy, water, agriculture, and social services. In 2020, the bank approved a $400m loan to support the construction of a liquefied natural gas (LNG) plant in the north, which is expected to generate $38bn in revenue for the country over 25 years.
The bank has also been supporting regional projects that involve Mozambique, such as the Nacala corridor development project, which aims to improve the transport and logistics network between Mozambique, Malawi, and Zambia, and the Temane regional electricity project, which will supply power to Mozambique, South Africa, and Eswatini.
The AfDB’s president, Dr. Akinwumi Adesina, has praised Mozambique for its resilience and commitment to development, despite the difficulties it faces. He has also reaffirmed the bank’s solidarity and support for the country’s recovery and growth.
“Mozambique is a country of immense potential, and we are confident that with the right policies and investments, it can overcome its challenges and achieve inclusive and sustainable development,” he said.
The Ressano Garcia railway line upgrade is one of the many initiatives that the AfDB is undertaking to help Mozambique realize its potential and become a regional hub for trade and investment.
Source: MSN
