Mozambique and Malawi signed on Friday an agreement to expand and modernize the Nacala Development Corridor.
The project includes a railway that crosses the two countries and will stimulate the operations of the economic activities, trade and transport of coal.
Speaking at the signing ceremony, Mozambique’s Minister of Foreign Affairs and Cooperation, Oldemiro Baloi, said the expansion of the Nacala Corridor will boost the development of the mining, agriculture, transport and logistics sectors in both countries and the region.
“For the Government of Mozambique, this is a valuable contribution to materializing our objectives in the chapter on the modernization and expansion of iron-port infrastructures, giving greater robustness to the national economy and better capacity to respond efficiently to the needs of access to the ocean from the inland countries, the Republic of Malawi and the Republic of Zambia,” said the foreign minister.
Malawi Minister of Transport and Public Services Jappie Mhango said upgrading the railway line will boost the region’s economy and will improve the trade of small and large entrepreneurs who are the backbone of most of the economies.
“Indeed, the development of the transport and communication sector is one of the strategic pillars of the Government of Malawi’s action, taking into account the transversality of this sector in the national economy,” said Mhango.
The Nacala Corridor leaves the province of Nampula, passes through the province of Lichinga and Tete in the north of Mozambique and leaves for Malawi.
The investment for the expansion of the Nacala Corridor is worth 2.5 billion U.S. dollars, and was financed by the Brazilian company Vale. Since 2011, the project has undergone renovations to boost the mining industry among several countries in the Southern African region.