Mozambique is preparing to let private companies operate parts of its national railway network as the government seeks to capture more regional freight traffic and expand the role of its ports in African trade.

The move comes as the country’s railways transported 3.6 million metric tons of goods in the first quarter of 2026, a 14.9% increase from the same period a year earlier. Opening selected routes to private operators could give exporters and importers more options as demand for freight capacity grows.

The opportunity extends beyond Mozambique’s borders. Its railways connect the ports of Maputo, Beira and Nacala to neighboring markets, including South Africa, Zimbabwe and Malawi, making the efficiency of its freight network important to businesses seeking access to international shipping routes.

Three corridors at the centre of regional trade

State-owned Ports and Railways of Mozambique (CFM) is preparing tenders for private companies to operate selected railway sections, according to local media reports citing the company. CFM has not disclosed which routes will be offered, when bidding will open or how operators will be selected.

The network serves three principal corridors. The Maputo corridor connects southern Mozambique with South Africa through the Ressano Garcia railway. The Beira corridor links Zimbabwe through the Machipanda line and Malawi through the Sena line. In the north, the Nacala corridor transports coal from the Moatize mining basin and serves Malawi.

The proposed changes are also intended to encourage greater use of rail and maritime transport instead of relying heavily on road freight.

Investment raises capacity, but reliability remains critical

Mozambique announced a 14 billion metical ($219.1 million) railway investment programme in April 2025, covering 2025 to 2030. It includes adding second tracks to selected lines, buying locomotives and acquiring 250 freight cars.

The Maputo corridor is also receiving attention. In July 2025, Mozambique secured €144 million ($161.2 million) in financing to upgrade the railway connecting Maputo with the South African border. The project is expected to raise annual freight capacity to 19 million metric tons.

But additional capacity will not automatically persuade businesses to switch from trucks to trains. In June 2026, the Confederation of Economic Associations of Mozambique called for more reliable rail services and a review of freight rates. Exporters have continued to favour road transport because of unpredictable delivery times and shortages of available railcars.

Contract terms will shape private-sector participation

The success of the tender process will depend on how responsibilities are divided between CFM and private operators, their access to tracks, investment obligations and operating rules.

Competition alone may not reduce freight costs. Better coordination between railways, ports, customs and road transport will also be necessary if Mozambique is to convert growing cargo volumes into a stronger position in regional trade.