Botswana Railways (BR), in collaboration with Transnet Rail Infrastructure Manager (TRIM) and the appointed Transaction Advisor (TA), successfully held the kick-off meeting for the Mmamabula-Lephalale Rail Link on 2 July 2025, marking a significant milestone in the advancement of this strategic regional infrastructure initiative.
The meeting brought together key stakeholders to align on the project scope, deliverables, timelines, and critical sensitivities, ensuring a shared understanding that will enable smooth coordination and effective implementation going forward. The session also laid the groundwork for mutual agreement on performance expectations and key performance indicators, including the alignment of relevant financial institutions supporting both BR and Transnet.
The Transaction Advisor emphasised the unique nature of this bilateral arrangement, noting its significance as a partnership between two cooperating countries, Botswana and South Africa, working jointly to attract private sector investment into a cross-border rail infrastructure project. This represents a progressive model of regional cooperation and integrated transport development.
Transaction Advisor – Terms of Reference and Timelines
As agreed during the kick-off meeting, the TA will provide end-to-end advisory services under the following Terms of Reference (TOR):
- Transaction Structure Advisory – Proposing a suitable public-private partnership (PPP) model aligned with the legal and institutional frameworks of both countries.
- Commercial Advisory – Evaluating project bankability, investor appetite, and funding options, including blended finance.
- Legal and Regulatory Advisory – Reviewing cross-border legal, institutional, and regulatory frameworks and proposing enabling structures.
- Technical Assessment – Validating technical inputs, including cost estimates, alignment with engineering reports, and O&M requirements.
- Risk Assessment – Identifying key commercial, financial, and political risks and proposing a suitable risk allocation matrix.
- Procurement and Bid Process – Preparing the Request for Proposals (RFP), and supporting the client in managing the competitive bidding process through to selection of a preferred bidder.
The advisory services are expected to be delivered over a period of 8 months, beginning July 2025, to select the preferred bidder by March 2026. The preferred bidder will then undertake the detailed engineering designs for the link and subsequently proceed with the construction of the railway line.
Strategic Importance of the Rail Link
The Mmamabula-Lephalale Rail Link is a priority corridor designed to enhance regional integration and interconnectivity within Botswana and Southern Africa’s transport network. The line will link Mmamabula (Botswana) to Lephalale (South Africa), improving access to export markets and offering an alternative route to the existing Mafikeng corridor, thereby increasing the resilience of the region’s logistics systems.
Once completed, the project is expected to:
- Unlock bulk commodity exports from Botswana,
- Boost regional trade and industrial development,
- Create jobs and promote skills development,
- Enhance transport efficiency and reduce transit times, and
- Support the competitiveness of Botswana’s mining and industrial sectors through better access to global markets.
This kick-off marks the beginning of a transformative journey toward a more connected and economically vibrant region. Botswana Railways, Transnet, and their appointed Transaction Advisor are committed to seeing this initiative through to successful implementation.
