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PESOE 2025: Railway Traffic Expected to Increase by Over 20% This Year

PESOE 2025: Railway Traffic Expected to Increase by Over 20% This Year

The Government’s budget proposal includes an investment this year in the acquisition of 750 new wagons to strengthen railway transport in the country, which is expected to contribute to a 26.6% increase in traffic, as there will be a greater flow of passengers.

According to the 2025 Economic and Social Plan and State Budget (PESOE), currently under discussion in Parliament, an increase in freight traffic is also anticipated, driven by the full operation of rehabilitated and expanded railway lines, namely Ressano Garcia (double track), Matola Gare–Moamba, and Machipanda.

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“These lines enable connections between the ports in the southern and central regions, thereby ensuring greater capacity and responsiveness to the demand for rail freight transport,” states the document prepared by the government of Daniel Chapo, who took office in January.

In April, the Government announced its intention to allocate nearly 14 billion meticals (217.1 million US dollars) by 2030 for the duplication of railway lines and the acquisition of carriages, locomotives, and wagons to strengthen the capacity for passenger and freight transport.

“In the Southern and Central railway systems, under the direct management of the company Ports and Railways of Mozambique (CFM), we have planned to invest around 14 billion meticals during the 2025–2030 period in the implementation of strategic projects,” said the Minister of Transport and Logistics, João Matlombe.

The operational results of the state-owned company CFM rose by 55% in 2024, reaching nearly 2.52 billion meticals (39 million US dollars), with over seven million passengers transported.

According to Agostinho Langa, Chairman of the Board of Directors of CFM, this performance contrasts with the operational result of 1.63 billion meticals (25.2 million US dollars) in 2023 — a figure still provisional but already considered “positive,” despite the “challenges” faced in 2024, particularly the impact of several months of post-election social unrest.

CFM operates the Ressano Garcia, Limpopo, and Goba railway lines; the Beira Railway System (which includes the Sena and Machipanda lines, as well as the Marromeu branch); the section shared by the three lines of the southern network and Maputo’s shunting zone; the general workshops in the South and Central regions; and the Matola Aluminum Terminal.

The company also operates fuel terminals at all national ports, as well as the grain and coal terminals at the Port of Maputo and the ports of Quelimane, Nacala, and Pemba.

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Approved last week by the Government during another Council of Ministers session, the draft law for the 2025 Economic and Social Plan and State Budget is estimated at 512.7 billion meticals (7.9 billion US dollars).

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Among the main macroeconomic assumptions underpinning the 2025 PESOE are a projected Gross Domestic Product (GDP) growth of 2.9% and an average annual inflation rate of around 7%. Revenue projections also point to 385.8 billion meticals (5.9 billion US dollars).

The PESOE is a document that defines the main economic, social, and financial policy objectives of the State, also identifying the projected revenues to be collected, the actions to be taken, and the resources required for its implementation.

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