Mozambique and Malawi governments sign agreement to expand Nacala Development Corridor

September 23, 2017: The Mozambique and Malawi governments have decided to expand the Nacala Development Corridor under an agreement signed in Maputo recently. This includes a railway line that crosses the two countries linking Moatize, in Tete province, to the port of Nampula, in Nampula province. The project includes a railway that crosses the two countries and will stimulate the operations of the economic activities, trade and transport of coal.

According to newspaper reports, expansion of the Nacala Corridor will boost the development of the mining, agriculture, transport and logistics sectors in both countries and the region.

The 'Further Africa report' further adds quoting Mozambique’s Minister of Foreign Affairs and Cooperation, Oldemiro Baloi saying that for the Government of Mozambique, this is a valuable contribution to materialising our objectives in the chapter on the modernisation and expansion of iron-port infrastructures. This will give greater robustness to the national economy and better capacity to respond effectively to the needs of access to the ocean from the inland countries, the Republic of Malawi and the Republic of Zambia.

Malawi Minister of Transport and Public Services Jappie Mhango adds to what the Mozambique Foreign Minister said upgrading the railway line will boost the region’s economy and will improve the trade of small and large entrepreneurs who are the backbone of most of the economies.

The Nacala Corridor leaves the province of Nampula, passes through the province of Lichinga and Tete in the north of Mozambique and leaves for Malawi.

The investment for the expansion of the Nacala Corridor is worth 2.5 billion US dollars and was financed by the Brazilian company Vale. Since 2011, the project has undergone renovations to boost the mining industry among several countries in the Southern African region.