In addition to numerous employment and infrastructure benefits, Cabinet’s recent approval of the Grootfontein-Katima Mulilo railway line is expected to breed more investment spinoffs for Zambezi’s capital.
This is according to Katima Mulilo’s CEO Raphael Liswaniso, who believes that improved connectivity and enhanced trade potential will attract both local and foreign investors looking to capitalise on the town’s strategic location.
“The railway will open up access to new markets, create avenues for joint ventures and partnerships and stimulate various sectors of the local economy, including agriculture, manufacturing and services,” Liswaniso told New Era in an exclusive interview recently.
Liswaniso continued that the railway extension will contribute to the expansion of development in Katima Mulilo.
“This calls for the preparedness of the town. As investments flow into the town, there will be a surge in construction activities leading to the establishment of new businesses, commercial centres and residential areas. As we may be aware, such huge development does not only come with benefits but it is accompanied by challenges, such as an influx of people to the town, which will increase drastically,” Liswaniso noted.
Much of the anticipated development is based on Katima Mulilo’s strategic location, as it borders four countries, namely Angola, Zambia, Botswana and Zimbabwe, which positions the town as a key hub for trade and transportation.
The key finding of the feasibility study is that the proposed 772km new railway line is viable from a technical, environmental, legal, financial and economic standpoint and should be constructed.
“With the railway extension, the town will serve as a vital link between these countries, facilitating the movement of goods and services, and boosting both local and regional trade,” said Liswaniso.
The CEO further noted that the newly approved railway will have a profound impact on the socio-economic development of the town, with one of the key areas of impact expected to be employment creation.
Moreover, the newly approved railway will help reduce road infrastructure damages and accidents in the area by providing a reliable and efficient means of transporting goods.
This, in turn, is expected to contribute to cost savings in road maintenance and enhance overall road safety.
“The railway project will generate numerous employment opportunities, particularly in areas such as cargo handling, truck ports and other related services. This will not only provide jobs for the local population but also attract skilled professionals and labourers from the surrounding areas, thereby fostering economic prosperity and development”.
It is anticipated to create a multiplier effect, generating further job opportunities and fostering sustainable growth.
“Additionally, the enhanced connectivity and increased economic activities are likely to attract more tourists to Katima Mulilo, boosting the town’s tourism sector and providing additional revenue streams. This, in turn, will require that the town increases initiatives in the area of security and safety. The town will also need to invest in education expansion and health services as the increase in the population calls for proactive approaches to urban planning to mitigate the impact of urbanisation,” said Liswaniso.
Integration
The inclusion of Katima Mulilo in the newly approved railway network should play a crucial role in supporting intra-Africa trade and the Africa Free Trade Area (AfCFTA).
This is because the railway connection between Namibia, Angola, Zambia, Botswana and Zimbabwe will create an efficient transportation route to facilitate the movement of goods between these countries.
Liswaniso noted that this will reduce trade barriers and costs, promote regional integration and enhance economic cooperation.
“The increased trade activities will not only benefit Katima Mulilo but will contribute to the overall growth and development of the SADC region. This calls for council to ready itself and foster their efforts in improving the town infrastructures,” the executive relished.
He further stated that to support the newly approved railway, several new developments can be considered at Katima, including cargo handling facilities that will be essential to facilitate the smooth flow of goods and ensure efficient operations.
“These developments can create additional employment opportunities and generate revenue for the town. Furthermore, the expansion of industrial zones and the provision of favourable investment policies and incentives will attract investors and encourage the establishment of new industries,” Liswaniso added.
Clarion call
“I want to call upon the residents of Katima Mulilo to proactively prepare themselves to grab the opportunities coming with this huge decision, as the approved Grootfontein to Katima railway has the potential to bring about transformative changes to Katima Mulilo and the wider SADC region. The creation of employment opportunities, improved infrastructure, attraction of investors, expansion of development and boost in local economy are among the many benefits this project will offer,” Liswaniso said.
African trade
Works and transport minister John Mutorwa recently emphasised the need to invest heavily in railway infrastructure for Namibia to reap maximum returns from the AfCFTA.
Responding to queries about the envisaged railway line from Grootfontein to Katima Mulilo, the minister said, “We don’t have any alternative if we are talking about inter-Africa continental trade; those are the facilities that we need”.
As the proposed railway will connect to the neighbouring countries and alternatively well beyond to other African countries via SADC, the project has been seen as crucial to access AfCFTA and its potential market of about 1.3 billion people with a combined gross domestic product of some US$3.4 trillion.