The African Development Bank (AfDB) is to lend Mozambique’s rail and port authority, Portos e Caminhos de Ferro de Mozambique (CFM), $40 million for the purchase of 10 diesel-electric locomotives, 300 wagons and 120 tank containers.
All the rolling stock and diesel locomotives are to be used on the Ressano Garcia railway line, which generates more than 90% of the country’s rail traffic and comprises 70% of CFM’s overall rail transport volume, according to an AfDB statement.
The new rolling stock will enable CFM to improve logistics and reduce transport costs for goods.
It is also expected that the rail improvements will assist efforts to move freight transportation from road to rail, as well as increase the country’s foreign exchange earnings.
Intra-African trade and regional integration will be improved by increasing the volumes of freight transported to or from neighbouring countries by providing the most efficient rail link with Mozambique for South Africa, Eswatini, Malawi, Zimbabwe and Zambia, and offering access to Mozambique’s principal port in its capital, Maputo.
The AfDB said it was trying to seek another $30m from international lenders for CFM.