Mozambique: Government to reintroduce Action Plan for Business Environment - AIM
Photo courtesy: FNB Mozambique
FNB recently organized the “Economic Business Breakfast” in Beira, Sofala province, aiming to discuss current opportunities and challenges in the transport and logistics sector and its impact on the local and regional economy.
Under the theme “Transport and Logistics,” the event was attended by clients, representatives of various companies, partners, and senior bank officials. Topics discussed included economic perspectives in Mozambique, the context of the Transport and Logistics sector in the country and city of Beira, as well as the sector’s needs and challenges. The speakers included Alfredo Mondlane, Head of Economics and Market Research at FNB; Félix Machado, CEO of Terramar Logística and President of the Beira Commercial Association; and Hedie Soberano, Economist and CFM representative.
Alfredo Mondlane emphasized the importance of this debate, stating that it aims to “improve access to specialized information about the logistics sector for Mozambican businesses. We know this is a crucial sector for the national economy, and Beira city plays a fundamental role as the country’s most important logistics corridor. We aim to improve economic dynamics and be closer to our clients by providing them with tools for more informed decision-making. The logistics sector represents one of the backbones for Mozambique’s economic growth.”
Mondlane expressed optimism about the sector’s economic impact, citing economic statistics: “After a 5% growth in 2023, we foresee sector growth of around 4.9% in 2024. The logistics sector currently represents about 8% of the national GDP and has been receiving considerable investments. Although there are challenges associated with the country, we are confident that it is a prosperous sector with a tendency to grow at a rate of 5% per year in the coming years, accompanying national economic growth.”
Félix Machado, President of the Beira Commercial Association and CEO of Terramar Logística, also addressed the logistics sector’s challenges: “We cannot deny that there are several challenges, especially in terms of infrastructure. Our ports, corridors, railways, access roads, and customs systems need to function effectively to meet market demand. There are inefficiencies in our corridor that we cannot ignore.” Machado proposed that “the private sector and the Government join efforts to reflect on how we want to manage our transport system, bringing the numbers to the table with the goal of making our corridors more competitive, evaluating the cost/benefit perspective, and eliminating existing bureaucracy.”
Referring to the city of Beira, Machado highlighted relevant projects that can boost the development of the logistics sector, including the expansion of the pipeline system, increasing the capacity of the Machipanda railway line, constructing more cargo terminals, improving the access road to the Port of Beira, attracting investments for infrastructure development, and implementing technological solutions to improve transport efficiency.
Hedie Soberano, panelist at the event representing CFM, described ongoing work to improve existing infrastructure on the Machipanda and Sena Lines: “The Machipanda railway line, which connects Beira to Zimbabwe, was recently rehabilitated to address its deteriorated state. Before the intervention, trains reached a maximum speed of 40 km/h, compromising cargo transport flow. After the interventions, this line allows a greater cargo transport capacity, increasing from 1.5 to 3.5 million tons per year, in less time. The Sena Line also presents challenges that have been identified and are being addressed to improve transport flow, like the Machipanda Line.”
Alfredo Mondlane concluded by highlighting FNB’s commitment to the sector: “Historically, FNB has a strong appetite for credit in the Transport and Logistics sector. This debate, promoted by the Bank, demonstrates our optimism towards this segment, which we want to continue promoting to help the country expand and grow.”
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