Mozambique to lease part of Nacala Port to Malawi

Mozambique has taken a significant step to strengthen economic ties with its landlocked neighbour, Malawi, by leasing part of its northern Port of Nacala. The move is set to enhance trade between the two countries and is part of a broader strategy to improve regional infrastructure and economic collaboration.

Last week, Mozambican President Filipe Nyusi and Malawian President Lazarus Chakwera signed the initial agreements during Chakwera’s visit to Maputo.

This deal will allow Malawi to develop its dedicated terminal within the Port of Nacala, streamlining the transportation of goods and reducing reliance on other, more expensive ports in the region.

“The agreements will benefit both countries, as they align with ongoing initiatives like the Mozambique-Malawi joint electrification project, MOMA,” President Nyusi remarked, highlighting the multi-faceted benefits of the collaboration.

The Port of Nacala is a key component of the Nacala Development Corridor, a joint venture by Mozambique, Malawi, and Zambia aimed at enhancing regional connectivity. The corridor includes a vast network of roads, railways, and border posts, crucial for landlocked countries like Malawi and Zambia to access global markets through the Indian Ocean.

Recent upgrades to the Port of Nacala, funded by US$300 million from the Japan International Cooperation Agency (JICA), have significantly boosted its capacity. Last year, the port handled 3.1 million tonnes of general cargo, surpassing expectations, and is projected to handle even more in the coming years.

This collaboration promises to lower transportation costs for Malawi, especially in fuel imports, which are currently expensive due to reliance on road transport from distant ports. President Chakwera expressed optimism that these developments would also positively impact other sectors, including tourism, and further integrate the economies of both nations.