The World Bank will soon make available US$380 million for the improvement of infrastructures linking Malawi and Mozambique, as part of industrial incentives to the two countries.
The fund will be used to improve logistics for the flow of agricultural products from the production areas to the markets of the two countries, from the port of Nacala.
The Minister of Transport and Communications, Mateus Magala, who advanced the news on Tuesday, 18 October, in Nacala, said that, with the funding, it is intended to promote industrialisation for sustainable and modern development between both nations.
“For Malawi it will be US$150 million and the remaining US$230 million will be for Mozambique. These amounts will bring more possibilities and will help the corridor to be not only for transit or cargo, but for industrialisation,” said the minister, cited by Radio Mozambique.
Mateus Magala was speaking Tuesday at the end of a joint visit with two Malawian ministers – for Transport and Public Works and Land and Urban Planning – to the rail and port facilities in Nacala.
It should be noted that the World Bank funding was approved in April last year, but with a broader vision that encompasses more countries in the region, besides Mozambique and Malawi.
According to the World Bank document, the funding also aims to increase coordination of regional trade, reduce the cost and time of trade, develop regional value chains and improve access to infrastructure.
The World Bank’s Regional Integration Director for Sub-Saharan Africa, Middle East and North Africa, Deborah Wetzel, said at the announcement of the funding that the project will also benefit local communities in the two countries through investments that will facilitate trade, regional coordination and diversified economic opportunities along the Nacala and Beira corridors, connecting Mozambique to Malawi, and along the Maputo Corridor, which connects Mozambique to South Africa via Ponta do Ouro.
“We are pleased to support Mozambique and Malawi in building recent regional infrastructure developments, working on reducing the costs of trade and improving their competitiveness. The project’s support for the development of regional value chains can drive job creation and more income for communities,” said Deborah Wetzel.
For the World Bank, by improving trade competitiveness and regional connectivity, the project will help reduce the costs of exporting companies to the importing market, consequently reducing costs for consumers.