BusinessLatest NewsNewsRailwayTransport & Distribution

Malawi and Mozambique Strengthen Trade and Connectivity Efforts

Malawi and Mozambique have reaffirmed their commitment to strengthening collaboration under the Southern Africa Trade and Connectivity Project (SATCP). The initiative aims to enhance trade activities along dedicated corridors between the two neighboring countries.

On Tuesday, Mozambique’s High Commissioner to Malawi, Alexandre Manjate, and Malawi’s High Commissioner to Mozambique, Wezi Moyo, reached an agreement in Lilongwe to implement one-stop border posts (OSBPs). These posts are expected to streamline cross-border trade by reducing delays and improving efficiency.

Prior to the agreement, officials visited key border points, including Mwanza-Zobue and Dedza-Calomue, to assess Malawi’s facilities in preparation for the OSBP implementation. The visit provided an opportunity to evaluate the current infrastructure and make necessary observations to define a clear roadmap for the project.

Domingos Diogo, a consultant for the SATCP in Mozambique, emphasized the importance of aligning efforts between both countries to ensure the successful execution of the project. He noted that improved trade facilitation would create a more seamless and efficient system, benefiting businesses and economies on both sides of the border.

As part of the six-year SATCP, which commenced in 2021, Malawi has outlined key infrastructural developments to support regional trade. Among these, the country plans to rehabilitate the 47-kilometer Liwonde-Matawale road, which serves as a crucial link to the Chiponde border crossing in Mangochi, connecting to Niassa province in Mozambique. Additionally, Malawi will rehabilitate the Blantyre-Zomba road to improve domestic connectivity and enhance trade movement.

To strengthen its customs monitoring capabilities, the Malawi Revenue Authority (MRA) will acquire drones to track and combat contraband smuggling. This measure aims to enhance trade security and reduce illegal activities that hinder revenue collection. Furthermore, inland inspection centers will be constructed in Lilongwe and Blantyre to speed up the clearance of goods, thereby reducing congestion and improving efficiency at the border points.

In addition to road rehabilitation and customs monitoring, the SATCP will focus on last-mile infrastructure improvements. These include the construction of market warehouses, bridges, and the rehabilitation of specific road sections. These developments are expected to facilitate smoother transportation of goods and enhance market access for businesses and traders.

The World Bank is financing the SATCP with a total investment of $380 million—$150 million allocated to Malawi and $230 million to Mozambique. The primary objectives of this funding are to boost regional trade coordination, lower transaction costs, simplify trade processes, develop regional value chains, and improve access to key infrastructure.

With the implementation of one-stop border posts and extensive infrastructure development, Malawi and Mozambique are set to strengthen economic ties and create a more competitive trade environment in the Southern Africa region. The SATCP is a significant step toward modernizing trade operations, reducing logistical barriers, and fostering economic growth for both countries.

Related posts

Zambia Signs $110 Million Kasumbalesa Development Agreement with ZMart

Staff Reporter

Zambia Calls for Collaboration to Achieve Single African Air Transport Market (SAATM) and Unlock Economic Potential.

Staff Reporter

Transport logistics central to improved trade with Africa

Staff Reporter

Leave a Comment