The African Development Bank (AfDB) has approved a long-term loan of US$300 million to finance part of the cost of a railway project and the port of Nacala in Mozambique that will also benefit Malawi, the bank said last Thursday. The AfDB said in a statement that of the amount, Malawi would have a direct benefit of US$83.6 million to help finance the construction of a 912-km railway line from Mozambique’s coal province of Moatize to the port of Nacala via Malawi.
Malawi is largely dependent on its neighbours for access to ports and international markets.
AfDB representative in Malawi, Andrew Mwaba said the project was of utmost importance to boost economic growth as well as the integration of Mozambique, Malawi and other countries in the region.
“This will facilitate value addition along the Nacala Corridor and contribute also to reduce the lack of transport infrastructure,” Mwaba said.
He stressed that the project would contribute to the development of the private sector in both countries and foster a favourable environment to support inclusive growth along the Nacala Corridor.
For this purpose, Mwaba said the AfDB would develop a joint business programme for small and medium enterprises (SMEs) along the Nacala Corridor.
“This will serve as a pilot project for conducting business and added value of SMEs in Mozambique and Malawi,” he added the representative of AfDB.
In April last year the Malawi government, Mozambique and Zambia launched the fourth phase of the Nacala Corridor, which includes the construction of two one-stop border posts between Malawi and Mozambique, and between Malawi and Zambia.