Malawi, African Development Bank Sign MK27 Billion Financial Pact For Nacala Corridor

By Fostina Mkandawire, MANA

Government and the African Development Bank on Monday signed a financial agreement of MK27Billion for the development of the Multinational-Nacala Road Corridor Development Project Phase V.

Signing the agreement on behalf of the Malawi Government in Lilongwe, Minister of Finance, Economic Planning and Development, Joseph Mwanamvekha said the project’s main objective is to contribute to regional integration, trade facilitation for Malawi, northern Mozambique and Zambia.

He said the project will involve rehabilitation of a 55km road between Nsipe and Liwonde; and the construction of a One Stop-Border-Post between Malawi and Mozambique at Chiponde. 

“The Nacala Transport Corridor is the shortest route to the seaport for Malawi, northern Mozambique and Zambia. 

He added; “The target population is the people in the three countries that use the Nacala Road Corridor of which the estimated population is over two million people.”

Mwanamveka said the Nacala Corridor will also serve as an alternative route to the Beira corridor for Malawi and Zambia which has been particularly devastated by Tropical Cyclone Idai. 

“It will bring a huge positive impact on the people and lives of those living along the Nacala Corridor and the entire nation at large,” he said.

The Multinational-Nacala Road Corridor Development Project Phase V will run for five years from 2019 to 2024.

He said the project is being co–financed by the African Development Fund (ADF), European Union (EU), and Malawi Government. The total financing for Phase V of the Project is UA45.289million (approximately, MK46 billion).

Acting Director General for Southern African region at African Development Bank, Dr. Josephine Ngure said the Multinational-Nacala Road Corridor Development Project Phase V will extend the benefit of collaboration and achievements made between the Bank group and Malawi.

She said the Bank’s strategy for Malawi (2018-2022) under implementation aims to support the foundations for private sector growth by investing in infrastructure.

She said by strategically investing in infrastructure the Bank seeks to unlock private investment promote diversification and build economic resilience to reduce poverty and inequality.

“The African Development Bank will continue to support Malawi in its development effort through promotion of private sector, economic diversification, public private partnership, resource mobilization and regional integration and creation of jobs,” she said. 

She said their ongoing intervention have achieved and continue to contribute to Malawi’s economic growth and wealth creation.

Some of the notable early infrastructure projects financed by the Bank Group in the 1970s include the Tedzani Hydro Electronic power station, Nkula hydro electronic power station, Nkula Lilongwe transmission line and Kamuzu International Airport.

Leave a Reply

Your email address will not be published.