LUSA 06/13/2026

Lusa - Business News - Mozambique: Railways open to more operators to end state monopoly - minister

Maputo, June 12, 2026 (Lusa) - Mozambique’s Minister of Transport and Logistics announced on Friday that the country’s railway network would be opened up to new private operators, with a view to improving productivity and putting an end to the persistent inefficiency associated with the state-owned operator CFM’s monopoly.

“Our approach to logistics is clear: you cannot run logistics with a monopoly. We have consulted widely and will open up access to the railways to different stakeholders,” declared João Matlombe during a meeting with the Confederation of Economic Associations (CTA), the largest business association, in Maputo.

According to the minister, the state-owned company Ports and Railways of Mozambique (CFM), which manages the railway, will become one of the companies operating the network, but not the only one, as part of a “structural reform” that will also boost, accelerate and enable greater use of the infrastructure, to the detriment of the road system.

“The monopoly and inefficiency are damaging our economy, and we must carry out a structural reform within the sector (…). Only then will we break this monopoly and address the inefficiency we are constantly experiencing,” said the minister.

João Matlombe added that work is underway to ensure that the state-owned company CFM focuses solely on infrastructure management and “lets the private sector take over operations” to improve productivity, create more opportunities for price negotiation and provide various options for the import and export of goods.

"We need to make a decision now so that things actually change, and the example to follow is South Africa, which is already much further ahead in the process whilst we remain relatively behind," he noted.

Meanwhile, CTA President Álvaro Massingue suggested drawing up a National Logistics Competitiveness Strategy to tackle the high logistics costs in the country, one of the “biggest concerns for businesspeople”.

"The private sector believes that the railways should play a more central role in long-haul freight transport, reducing logistics costs, relieving road congestion and increasing the competitiveness of transport corridors," he said.

Business leaders called for improvements in operational reliability, a review of tariffs and a strengthening of rail logistics capacity, adding that many exporters continue to opt for road transport due to the lack of predictability in services, rolling stock limitations, long transit times and “tariffs that do not always reflect gains and efficiency”.

“The real challenge is to maintain and transform the road, rail, maritime and air systems into an integrated, efficient, digitalised and competitive network. If we can reduce costs, simplify procedures, improve connectivity, increase the predictability of services and strengthen multimodal integration, Mozambique could establish itself as the main logistics hub in Southern Africa,” concluded Massingue.

Traffic on Mozambique’s rail network almost doubled in the first quarter of the year, reaching 151,400 passengers, recovering from the effects of the post-election protests in 2025 and despite the impact of the floods, according to a government report.

As for rail freight transport, 3.6 million tonnes of various cargo were handled during this three-month period, an increase of 14.9% compared to 2025, representing 20% of the target for the whole year.

In February, the government approved the creation of an office to seek investment for the construction and operation of a railway line linking the south and north of the country, with the government expecting it to be operational in eight years.

The Mozambican rail network is divided into three zones – south, centre and north – which are not directly connected but which, in turn, link to several neighbouring countries, such as South Africa, Eswatini and Zimbabwe.

 

 

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