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The African Development Bank (ADB) has approved a long-term loan of US$300 million to finance development of Nacala’s railways and port, including the construction and rehabilitation of 912 kilometres of railway in Mozambique and Malawi and the construction of a new coal terminal in Nacala-a-Velha.
The funds will be allocated to four entities in Mozambique and Malawi, with Malawi receiving US$83.6 million.
Malawi is largely dependent on its neighbours for access to ports and international markets.
The ADB representative in Malawi, Andrew Mwaba, said that the project is of utmost importance to boost economic growth, the integration of Mozambique and Malawi and other countries in the region.
“This will facilitate value addition along the Nacala Corridor and boost transport infrastructure”, said Mwaba told Radio Mozambique, adding that that the project would contribute to the development of the private sector in both countries and foster a favourable environment for inclusive growth along the Nacala Corridor.
To achieve its goals, the ADB will develop a joint business program for small and medium enterprises (SMEs) along the Nacala Corridor.
“This will serve as a pilot project for conducting business and added value of SMEs in Mozambique and Malawi,” he explained.
In April last year, the governments of Malawi, Mozambique and Zambia launched the fourth phase of the Nacala Corridor project, which includes the construction of one-stop border posts between Malawi and Mozambique in Chiponde, and between Malawi and Zambia in Mchinji.Source: Jornal Notícias