Driving South Africa’s rail renaissance through strategic partnerships
Globally, rail is the backbone of transport, driving greener economies and efficient freight movement. In South Africa, the question is no longer why rail matters but how we revive it.
According to the African Development Bank Group, rail offers unmatched energy efficiency, lower greenhouse gas emissions and reduced costs per ton-kilometre, making it vital for long-distance freight. Its dual benefits of economic growth and climate impact mitigation align directly with South Africa’s sustainable development goals.
Over the past 5 years, the country has taken important steps through initiatives such as Operation Vulindlela, the National Logistics Crisis Centre (NLCC) and the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). These policies have created momentum, but unlocking South Africa’s full potential requires significantly more investment, particularly in rail infrastructure.
Government targets under the National Development Plan (NDP) 2030 call for R1.6 trillion in public sector investment and R3.2 trillion from private sources. Within that, Transnet requires R100–R120 billion, and PRASA a further R120 billion, to restore and modernise the rail network post pandemic.
While COVID-19 disrupted operations globally, it also underscored the opportunity for public-private partnerships (PPP) to close the funding gap. South Africa has already seen success through the Gautrain PPP, which leveraged global expertise and investment to deliver world-class commuter rail.
Recent amendments to National Treasury Regulations (NTR) 16 and municipal PPP legislation, alongside a policy allowing third-party private operators access to the core network, open the door to new investment models. These reforms create an environment where private capital and expertise can accelerate rail’s modernisation.
International precedents reinforce this opportunity. The US has committed US$600 million to a multi-country railway in Angola, while China has pledged US$1 billion for infrastructure linking Tanzania and Zambia. These investments signal confidence in rail as a motivator for trade, economic development and regional integration, lessons South Africa can adapt to its own network rejuvenation.
Alstom, with its long-standing presence in Southern Africa, has partnered with Standard Bank on projects that create jobs, build skills and stimulate the rail industry. With a footprint in 20 African countries and 6 global financial centres, Standard Bank brings together capital, expertise and networks to finance strategic infrastructure projects.
Such partnerships demonstrate that transforming South Africa’s railways is not just possible but within reach if we act decisively.
Aligning private sector investment priorities with government’s strategic goals will strengthen South Africa’s broader infrastructure ecosystem. Rail revitalisation is not just about moving goods and people more efficiently; it’s about enabling trade, creating jobs, attracting investment and building a resilient, inclusive economy.
The challenges are real, but so is the opportunity. With decisive collaboration between the public and private sectors, South Africa’s rail network can once again be the engine of economic growth, delivering benefits to citizens and businesses alike.
Meet the experts behind the insights
- Luvuyo Masinda - CEO, Standard Bank Corporate and Investment Banking
- Tristan le Masne - MD, Southern Africa at Alstom