The World Bank is providing $10 million in funding for the construction of logistics centers in the district of Balama and in the town of Topuito, in the district of Larde, in the provinces of Cabo Delgado and Nampula, in the northern region. The infrastructure is considered strategic for boosting the national productive sector and is part of the “Conecta Negócios” project.
In an interview with the Mozambique News Agency, Pedro Paulino, the project coordinator, highlighted the economic impact of these initiatives on local value chains and on the integration of Small and Medium-sized Enterprises (SMEs) into the megaproject ecosystem, noting that they are part of a robust strategy to reduce transaction costs and increase the competitiveness of the private sector.
“The total announced investment is $10 million, with approximately $7 million earmarked for the Topuito center, while the remainder covers the development of the Balama center, located very close to the graphite extraction site, both funded by the World Bank,” he emphasized.
In his remarks, the official explained that in Topuito, the logistics center serves as a key component supporting the operations of the mining company Kenmare, creating a local industrial ecosystem with strong ties to the extractive sector, at a time when the government and the multinational responsible for heavy sand mining are in the process of negotiating a new concession contract model.
“The government’s main objective is to increase the state’s share of the revenue generated by this activity, raising the royalty rate from 1.5% to 3.5%, thereby strengthening the sector’s contribution to the national economy,” he emphasized.
Pedro Paulino stated that the project also includes the creation of an eco-industrial park, the establishment of a village for SMEs, and the construction of a business training and incubation center, which will strengthen the national business sector’s participation in the heavy industry supply chain, with a direct impact on job creation and skills development.
With specific regard to the Balama district, Paulino emphasized that the logistics center will be directly linked to graphite mining, positioning itself as critical infrastructure to assist in the processing, storage, and distribution of production.
“The initiative already has a designated site, environmental permits in place, and a technical plan in place, and is currently awaiting the launch of the public tender for the awarding of the construction contract,” he noted.
Last year, the government explained that “Conecta Negócios” aims to provide more than 1,000 internships for young people and integrate at least 800 into the formal labor market, with a focus on strategic sectors and covering the provinces of Cabo Delgado, Nampula, and Tete in northern and central Mozambique.
In a budget execution document prepared by the Ministry of Finance, the government described it as a “structural initiative” with a budget of $100 million, financed by the World Bank and implemented by the Zambezi Valley Development Agency and the Northern Integrated Development Agency (ADIN), to “strengthen the performance of Micro, Small, and Medium Enterprises (MSMEs).”
