Mozambique will open its national railway network to private operators in a major structural reform aimed at tackling inefficiencies and boosting economic productivity.

Under the new government policy, third-party logistics companies will be permitted to run their own trains on national tracks. The shift means the state-owned rail company, Portos e Caminhos de Ferro de Moçambique, will relinquish its role as the sole operator and transition into an independent infrastructure manager.

Speaking on the strategic overhaul, Daniel Egas, Senior Country Economist at the International Growth Centre, explained that the reform is designed to break up the long-standing state monopoly.

“Basically, it is a move that the government is trying to take to reduce the monopoly and sometimes the inefficiencies of only one company running the railway in Mozambique,” Egas said. “I think it is kind of a structural reform within the sector that will allow the private sector to get into this kind of business. It will increase the competitiveness, which is really good, at least for the market.”

By allowing private logistics firms direct track access, the government hopes to optimise freight capacity and better connect Mozambique’s vital trade corridors with the rest of the Southern African region.

–ChannelAfrica–