Beira, 12 June 2024 – FNB recently organised the ‘Business Economic Breakfast’ in the city of Beira, Sofala province, with the aim of debating the current opportunities and challenges of the transport and logistics sector and its impact on the local and regional economy.
Under the theme ‘Transport and Logistics’, the event was attended by clients, representatives of various companies, partners and senior staff from the Bank. During the meeting, various topics were discussed, including the economic outlook for Mozambique, the context of the Transport and Logistics sector in Mozambique and in the city of Beira, as well as the sector’s needs and challenges. Among the speakers were Alfredo Mondlane, Head of Economics and Market Research at FNB; Félix Machado, Executive Director of Terramar Logística and President of the Beira Trade Association and Hedie Soberano, Economist and representative of CFM (Caminhos de Ferro de Moçambique).
Alfredo Mondlane highlighted the importance of this debate, saying that it aims to ‘improve access to specialised information on the logistics sector for the Mozambican business community. We know that this is a key sector for the national economy and that the city of Beira plays a fundamental role, being the most important logistics corridor in the country. We want to improve the economic dynamics and be closer to our clients, giving them the tools to make more informed decisions. The logistics sector is one of the backbones of Mozambique’s economic growth.”
Mondlane was optimistic about the sector’s economic impact, citing economic statistics: ‘after a growth of 5% in 2023, we expect the sector to grow by around 4.9% in 2024. The logistics sector currently accounts for around 8 per cent of national GDP and has been receiving considerable investment. Although there are challenges associated with the country, we are confident that it is a prosperous sector that will grow at a rate of 5 per cent a year over the coming years, in line with national economic growth.”
Although there are challenges associated with the country, we are confident that it is a prosperous sector with a tendency to grow by 5% over the next few years.
Félix Machado, President of the Beira Trade Association and CEO of Terramar Logística, also addressed the challenges facing the logistics sector: ‘We can’t deny that there are several challenges, especially in terms of infrastructure. Our ports, corridors, railway, access roads and customs systems need to work effectively to meet market demand. There are inefficiencies in our corridor that we cannot ignore.” Machado proposed that ‘the private sector and the government join forces to reflect on how we want to manage our transport system, bringing the numbers to the table with the aim of making our corridors more competitive, assessing the cost/benefit perspective and eliminating existing bureaucracy’.
Referring to the city of Beira, Machado highlighted relevant projects that could boost the development of the logistics sector, including the expansion of the pipeline system, increasing the capacity of the Machipanda railway line, building more cargo terminals, improving the access road to the Port of Beira, attracting investment for infrastructure development and implementing technological solutions to improve transport efficiency.
Hedie Soberano, a CFM representative, described the work underway to improve the existing infrastructure on the Machipanda and Sena Lines: ‘The Machipanda railway line, which links Beira to Zimbabwe, was recently rehabilitated to remedy the state of disrepair it was in. Before the work, the trains reached a maximum speed of 40 km/h, jeopardising the fluidity of freight transport. After the work, this line will have a greater freight transport capacity, going from 1.5 to 3.5 million tonnes a year in less time. As for the Sena Line, it also presents challenges that have already been identified and are being addressed to improve the fluidity of transport, just like the Machipanda Line.”
Alfredo Mondlane concluded by emphasising the FNB’s commitment to the sector: ‘Historically, the FNB has had a strong appetite for lending to the Transport and Logistics sector. This debate promoted by the Bank demonstrates our optimism about this segment, which we want to continue to promote in order to help the country expand and grow.”
