Mozambique and Malawi have agreed to expand the Nacala Development Corridor, under a new agreement recently signed.

The fresh agreement provides for additional funding of US$2.5 billion for development of the corridor,

Authorities in Mozambique said the contract 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.”

Initial, the two governments signed an agreement on Nacal Development Corridor in 2000 to respond to the challenges in the transport and logistics sectors due to economic growth of the two countries.


Oldemiro Balói, Mozambique Minister of Foreign Affairs and Cooperation said the central objective of the agreement is also to regulate and coordinate cross-border aspects, as the railway crosses Malawi.

“It is therefore necessary to take into account some practical aspects such as immigration and customs procedures.”

The Nacala Development Corridor, a US$4.5 billion investment funded by Brazilian mining group Vale was formally inaugurated last May.

It is to link its mines in Moatize to the port of Nacala, from where coal is exported to the whole world.

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