Mozambique: Maputo Corridor yields more than US$2 billion in 10 years – Carta

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Mozambique: Maputo Corridor yields more than US$2 billion in 10 years – Carta

4:21 CAT | 13 May 2022

Image: TVM

The macroeconomic impact of the Maputo Logistics Corridor (CLM) over the last 10 years is estimated at just over US$2 billion in economic activities carried out in the country and the region.

The figures are the result of a study carried out by Maputo Port Development Company (MPDC), the Port of Maputo concessionaire, in partnership with Standard Bank.

Presented a few days ago during the Porto de Maputo 2022 Conference by David Mullins, economist and specialist in macroeconomic forecasting and modelling tools, the study concludes that the impact of CLM on gross domestic product stands at US$2,086 billion.

In addition, the CLM created just over 331,500 jobs and yielded US$489 million in taxation over the last decade. Its impact on the balance of payments was just over US$1 billion.

According to Mullins, the study identified constraints that need short, medium and long-term solutions.

In the short term, Mullins indicated the need to reduce bureaucracy and also to upgrade computerised infrastructure at border posts.

In the medium term, the study recommends updating the rail system, including rolling stock, and introducing a one-stop border post at the Lebombo/Ressano Garcia border post.

In the longer term, the MPDC urges the government to ratify the African Continental Free Trade Agreement (AfCFTA), which it signed in January, 2021.

The Maputo Logistics Corridor (CLM) is currently focused on accessing global markets for exports and imports. It currently handles 30 million tonnes of cargo (road and rail) per year, mainly ores from South Africa, but with the possibility of receiving more from other SADC mining countries in the future. The current volume of road traffic stands at 1,600 heavy vehicles per day.

By Evaristo Chilingue

Source: Carta de Moçambique