• Rail

Namibia's Railway Sector Posts Strong Recovery as Broader Transport Industry Slows Namibia's Railway Sector Posts Strong Recovery as Broader Transport Industry Slows

Namibia's railway transport emerged as a standout performer within the country's logistics landscape during 2025, recording impressive growth that signals renewed momentum for a sector long overshadowed by road freight dominance. The recovery carries meaningful implications for tourism operators and travel businesses seeking efficient cargo movement across this vast southern African nation.

According to the Annual National Accounts 2025 released by the Namibia Statistics Agency, railway transport grew by 12.4 percent in real value added, representing a dramatic turnaround from the 8.3 percent contraction recorded in the previous year. This rebound was primarily driven by increased cargo volumes, indicating improved activity in bulk freight movement and rail logistics throughout the period under review.

The performance stands in stark contrast to the broader transport and storage sector, which experienced significant deceleration. Overall sector growth reached just 1.9 percent in 2025, compared with a much stronger 10.7 percent expansion in 2024. This slowdown reflected weak results across multiple subsectors, with freight transport by road posting marginal growth of only 0.2 percent, down sharply from 9.7 percent the previous year. Air transport also lost momentum, growing by just 1.3 percent during the period.

Port services contracted by 10.1 percent while airport services fell by 5.6 percent, further weighing on the sector's overall performance. These declines highlight the uneven nature of Namibia's transport ecosystem and underscore the importance of rail's recovery in maintaining logistics capacity.

Despite the positive trajectory, Namibia's railway network continues to capture only a small fraction of national freight movement. Minister of Works and Transport Veikko Nekundi has disclosed that state railway company TransNamib transported an average of 1.3 to 1.5 million tonnes of freight annually over the past three years, representing merely 12 percent of total national freight volume. Government targets have aimed to increase rail's share to 15 percent, though achieving this requires substantial infrastructure investment.

The railway network spans 2,687 kilometres across the country, but infrastructure quality remains a significant constraint. Only approximately 48 percent of the network meets the minimum standards stipulated by the Southern African Development Community of 18.5 tonnes per axle load. The remaining sections operate at reduced capacity between 16.5 and 17.5 tonnes per axle load, limiting the railway's competitiveness for heavy cargo.

Recognition of these challenges has prompted calls for accelerated modernisation. Parliamentary committees have urged fast-tracking of railway upgrades, recommending that the Windhoek-Gobabis and southern railway routes be reactivated and upgraded [[1]](https://www.railwaysafrica.com/news/parliamentary-committee-urges-fast-tracking-of-namibian-railway-upgrades). The proposed Trans-Zambezi rail extension project has also been identified as a priority that should commence without delay.

International development partners have responded to Namibia's infrastructure needs. The African Development Bank approved a 196 million dollar loan to modernise railway infrastructure, with upgraded lines expected to benefit transporters, agricultural communities and industries along key corridors [[2]](https://www.afdb.org/en/news-and-events/press-releases/namibia-african-development-bank-approves-196-million-loan-modernize-railway-infrastructure-65439). The investment should enable faster, more affordable and reliable rail transport while reducing road maintenance costs as bulk cargo shifts from trucks to trains [[2]](https://www.afdb.org/en/news-and-events/press-releases/namibia-african-development-bank-approves-196-million-loan-modernize-railway-infrastructure-65439).

For African tourism professionals, improved rail infrastructure offers potential benefits beyond freight movement. Reliable railways can support tourism development by providing alternative transport options for visitors, enabling movement of supplies to remote lodges and contributing to the broader economic connectivity that sustains destination communities.

The government has articulated a vision for Namibia to develop safe and reliable rail transport infrastructure that supports socio-economic development. Plans include constructing, upgrading and maintaining railway infrastructure to create an efficient network capable of handling growing regional trade demands.

The sub-Saharan African rail freight transport market is projected to reach approximately 4.77 billion US dollars in 2025, growing to 6.19 billion dollars by 2030 [[3]](https://www.mordorintelligence.com/industry-reports/sub-saharan-africa-rail-freight-transport-market). Namibia's railway recovery positions the country to capture a share of this expanding regional market, provided infrastructure investments proceed as planned and operational efficiency continues improving. The coming years will determine whether this promising trajectory translates into lasting transformation of Namibia's transport landscape.