ZAMBIA: Nacala trade corridor to be extended to stimulate economic growth in southern Africa

Record ID: 455375

  • Title: ZAMBIA: Nacala trade corridor to be extended to stimulate economic growth in southern Africa
  • Date: 15th March 2007
  • Summary: (SOUNDBITE) (English) HENRY CHIPEWO, ECONOMIST, SAYING: "It is a pity that it has taken so long but I am just happy that now Zambia has come up on board as the economy is improving they have realized the importance of actually finishing that railway line."
  • Embargoed: 30th March 2007 13:00
  • Keywords:
  • Location: Zambia
  • Country: Zambia
  • Topics: International Relations,Economic News
  • Reuters ID: LVA90BQI6YWTBC5CNUEYJWNU4D3E
  • Story Text: The governments of Mozambique, Malawi and Zambia are redeveloping a trade corridor from Nacala Port on the Indian Ocean via Malawi into the eastern and northern portions of Zambia. The project includes the rehabilitation and upgrading of strategic infrastructure along the route for a seamless flow of goods and services
    This is the end of the line for Zambia's east-facing trade network. A road connects Zambia with its eastern neighbour, but no railway. But in the hills behind these bikers, some good news from this impoverished area of Zambia is in the making: soon, a railway line will cross the border into Malawi to ferry goods east to a deep water port on the Indian Ocean.
    Zambia has historically had to rail products including copper thousands of miles (kilometres) south, via ports at Durban or Maputo.
    These tracks, which end on the Malawi side of the border, will by April of this year connect Zambia to the sea at Nacala, Mozambique, opening a new era of trade for the entire region and making Zambian products far more competitive.
    "The only sad part, our colleagues across (Malawi) they put up to the border 25 years ago, waiting only for Zambia to connect up to the border so that we can have railway line running up to Nacala port so we are saying this is one of the very important project," said Bernard Siwakwi, a town clerk in the town of Chipata, where Zambia's uncompleted rail line ends.
    Economic growth in southern Africa is pushing projects like Nacala. The realisation that improvements to infrastructure are needed to keep growth on track are stimulating infrastructure projects across the region. And instead of relying on aid donations, countries like Zambia, Malawi and Mozambique have attracted private local and overseas financing and investment.
    "It is a pity that it has taken so long but I am just happy that now Zambia has come up on board as the economy is improving they have realized the importance of actually finishing that railway line," said economist Henry Chipewo.
    The Nacala port in Mozambique and sections of railways Mozambique and Malawi being renovated by private investor RDC and the governments of all three countries have committed to ensuring the project goes ahead. All three countries have also committed to upgrade and rehabilitate strategic infrastructure along the route to provide an efficient, reliable, and seamless flow of goods and services.
    "If we are exporting to the Americas for instance, there is no point of, you know, exporting through the port of Dar es Salaam, you know, you would all use the port of Durban or Nacara. If you are exporting to China why go to Durban, you know. So all this actually making the cost of Zambia to be very, very high," Henry Chipewo continued.
    Local authorities are busy identifying and implementing economic development projects made viable by improvements to infrastructure networks and services. The project has prominent backing from the New Partnership for Africa's Development (NEPAD).
    Zambia hopes to complete laying its part of the railway line this April, while Malawi sections of the track have already been newly laid in some areas and rehabilitated in others.
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