The governments of Mozambique and Malawi have decided to expand the Nacala Development Corridor, which includes a railway line that crosses the two countries linking Moatize, in Tete province, to the port of Nampula, in Nampula province, under a agreement signed on Friday in Maputo.
The agreement, which provides for additional funding of US$2.5 billion for development of the corridor, will allow the corridor to evolve, “as well as fostering economic growth by promoting and coordinating economically viable businesses in the transportation, agriculture , trade, mining and tourism sector,” according to the Mozambican government.
The agreement is an addendum to the original agreement between the governments of Mozambique and Malawi on the Nacala Development Corridor, signed on 28 September 2000, to respond to the challenges in the transport and logistics sectors due to recent economic growth of the two countries,” said the Mozambican Minister of Foreign Affairs and Cooperation, Oldemiro Balói.
The central objectives of the agreement are also to regulate and coordinate cross-border aspects, as the railway crosses Malawi and it is therefore necessary to take into account some practical aspects such as immigration and customs procedures.
The Nacala Development Corridor was formally inaugurated last May. It is a US$4.5 billion investment funded by Brazilian mining group Vale to link its mines in Moatize to the port of Nacala, from where coal is exported to the whole world. (macauhub)