Southern African Trade and Connectivity Project (Malawi)
The nations of Malawi, Mozambique and Zambia over the weekend inaugurated the upgraded, expanded and modernized Nacala Port facility that will improve regional trade and integration. A colourful signing ceremony of a revised Nacala Development Corridor Agreement was also held at the same event at the Nacala Port in Mozambique on 7th October 2023 and was attended by Excellencies Dr. Lazarus McCarthy Chakwera, President of Malawi, Filipe Jacinto Nyusi, President of the Republic of Mozambique and Hakainde Hichilema of Zambia. The agreement is one of the products of the Southern Africa Trade Connectivity Project, a World Bank funded project under the Ministry of Transport and Public Works in Malawi.
The Nacala port is Malawi’s shortest and cheapest route and will serve as means of transporting commodities like fertiliser, fuel, pharmaceuticals, grain and consumer goods. An improved port facility and the full operationalisation of the entire Nacala Development Corridor stands to improve Malawi’s trade competitiveness and economic growth. The expansion and modernization of the port also provides answers to the problems of congestion, turn-around time, and cost that used to be associated with Malawi’s use of the Nacala Port in the past. The modernization of the port will translate into transport and logistical efficiency and consequently reduced transaction costs on the Nacala route.
Speaking at the inauguration ceremony, Malawi President Dr. Lazarus Chakwera said “we expect a boost in inclusive growth for various industries in our countries, especially in the energy, agriculture and manufacturing sectors. We also expect more employment and increased consumer demand further strengthening our economies. I call upon the private sector to exploit the opportunities availed by the Nacala Development Corridor marked by a modern-well equipped port.”
The three presidents spoke highly of several projects being implemented in their respective countries under the Southern Africa Trade Connectivity Project. Alongside the signing of the revised Nacala Development Corridor Agreement (NDC-Agreement), two other agreements were signed on Rail and Road Transport modes. Through the execution of these agreements, there will be a vibrant Nacala Corridor that is attractive to both local and international investors. The agreements will also be used to ensure continued improvement of transport and trade facilitation through the removal of physical and non-physical barriers to trade and transport.
The objective of Component 1 of the SATC project is to reduce trade costs and logistics bottlenecks and improve regulatory environment. The president of Malawi expressed gratitude to Mozambique for making available space in for establishing a dry Port in Nacala. He observed that this would go a long way in minimising logistical challenges on freight destined for Malawi.
The Southern Africa Trade and Connectivity (SATC) Project is a 6-year, $150 million World Bank funded project designed to increase private sector activity along targeted corridors of Malawi and Mozambique, through reduced trade costs and time, increased value chain development, and improved access to infrastructure.
