Botswana is witnessing a surge in interest in its ambitious 1,500km Trans-Kalahari Railway project, as investors eagerly eye an alternative to South Africa’s grappling logistics network.
Unsolicited bids have poured in, revealing a keen interest from global investors to construct a railway line connecting Botswana to a Namibian port, bypassing the logistical hurdles faced by South Africa, per Bloomberg.
Transport and Public Works Minister Eric Molale shed light on the project’s momentum, citing the challenges plaguing Transnet, South Africa’s state rail and ports monopoly, and the subsequent need for alternate routes due to prolonged waiting periods at South African ports.
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“We learned in June that the waiting period at all South Africa ports to offload and load can be a minimum of two weeks, floating on the sea for that period,” he said in an interview Monday in Gaborone, the capital. “The UAEs, the Qataris, the Chinese, the Indians have also come to say this is not a long line for them and it is in fact, a comparatively short one that they can do very quickly.”
The inefficiencies in South Africa’s logistics network have significantly impacted the country’s economy, leading to unexpected contractions in growth and potential limitations on neighboring countries like Botswana, which heavily rely on South Africa for trade, given its prominence as a major diamond producer.
Minister Molale highlighted the appeal of this alternative route for businesses in South Africa, offering shorter transit times compared to their ports, particularly beneficial for enterprises in the Johannesburg and Pretoria areas.
Initially conceived in 2010 for coal exports from eastern Botswana, the Trans-Kalahari Railway faced setbacks due to declining coal prices and insufficient financial backing. However, the project’s focus has now shifted to harnessing the burgeoning potential of the Kalahari Copperbelt in the country’s west.
The proposed railway route spans from Gaborone, traversing the Kalahari desert, extending to Gobabis in Namibia, and culminating at Walvis Bay on the Atlantic Ocean.
Amidst a regional push for enhanced global market access, diverse initiatives have emerged, including a US-backed rail line from Zambia and the Democratic Republic of Congo to Angola’s Lobito port. Additionally, China is involved in negotiations for a railway connecting Zambia to Tanzania’s Dar es Salaam port.
The global transition to cleaner energy sources has amplified the significance of minerals like copper and cobalt, further underlining the importance of robust transportation networks for resource-rich nations.
“We see ourselves as best placed especially for companies in the Johannesburg, Pretoria area of Gauteng because either way, going west or east, they cover the same distance and some of them, like vehicle manufacturers, have come to us,” the minister said.
The collaborative efforts between Botswana and Namibia, established through a bi-national project office in 2015, have propelled the Trans-Kalahari Railway initiative. A total of 12 companies have submitted expressions of interest, signaling considerable international attention. Plans are underway to release requests for proposals by March, with construction earmarked to commence in January 2025.
Minister Molale reiterated the project’s appeal to global investors, affirming the influx of unsolicited bids, and underscoring the attractiveness of the Trans-Kalahari Railway initiative on the world stage.
The development draws a stark contrast with some other African countries, including Nigeria, the continent’s largest economy – that have been struggling to secure funding or get investors to back their railway projects.