CONTENTS | ANB-BIA HOMEPAGE | WEEKLY NEWS
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Malawi |
DEVELOPMENT
Four countries in Southern Africa have pooled their resources to rehabilitate the Nacala railway, a major link to the Indian Ocean. They are certain this move will not only facilitate the smooth movement of imports, but will also rejuvenate cross-border trading activities and attract foreign investment
The Nacala Corridor was disrupted for almost two decades after being devastated by the Mozambican civil war that paralysed up to 77 kilometres of the line. The infrastructure was in a shambles; there were fears of insecurity due to landmines planted along the corridor, while the rugged line hampered a fast transportation of goods because of its dilapidated state.
The good news that something is being done to develop the Nacala Corridor which links land-locked Malawi to Mozambique, and also provides a link to Zambia, has won financial pledges from Britain, the USA and Japan. The donors are mainly concerned about the delay of relief food items from the ports of Nacala and Beira to famine-stricken Malawi. Cereals and other relief are stuck at the ports while thousands of people suffer from hunger. Six Southern Africa countries — Malawi, Zambia, Mozambique, Angola, Lesotho and Swaziland are facing food shortages due to drought and poor harvests in the previous season. Up to 13 million people in Southern Africa are threatened with famine, according to reports from aid agencies.
Britain and Canada are donating $5.6 mn for repairs to the railway while the United States which is already a major food donors to the region, is to make available a $22mn loan to Mozambique and Malawi through its Overseas Private Investment Corporation (OPIC). OPIC‘s president says: «The US government aims to help the two countries reduce the cost of transporting petroleum and much-needed food as well as exports, in a project that is expected to restore Mozambique’s infrastructure destroyed during the two decades civil war».
The Corridor — essential to the region’s development
South Africa has joined the three other partners in the Nacala Corridor Development Project, calling for its immediate implementation as a way to boosting economic activities in Southern Africa. The railway link is deemed to be a stimulus and impetus to more economic integration and corporation. It is also a hope for improved cross-border trade, improved foreign direct investment, a means of encouraging local participation in the economic development process.
Investments such as agro-industry, mining, tourism and other resource-based ventures are to be boosted by the project, especially among the peoples along the Corridor. Developing the Corridor will provide adequate cost-effective, efficient and reliable transport, telecommunications and energy systems to make it a competitive investment area in the region.
South Africa’s Deputy High Commissioner, Lukas Mokwena, spoke highly of the project during the September 2002 stakeholders meeting in Malawi. He said the project was part and parcel of the newly-established New Partnership for African Development (NEPAD) which will improve the economies of partner countries in the initiative. «Its something that is really big. It’s part of the poverty eradication programmes, and is the beginning of the dream that we have as a continent to take part in the development in the global economy», enthused Mokwena. He said that once completed, the initiative will provide employment to 75% of the people along the corridor.
Analysts however doubt if the project will meet its deadlines considering that most of the partner nations are in dire economic straits and heavily rely on donors for their development projects. A major problem is demining the area which experts say will consume most of the donor funding.
However, at a time when Southern Africa is making efforts to uplift the living standards of the region’s population, partner countries in the project ought to be financially and technically supported to ensure the Corridor is developed.
Jicks Magitala is an exports manager based in Malawi’s commercial capital of Blantyre. He is really anxious about the initiative’s successful implementation. «You see, the Nacala link is the central nerve to drive any development endeavours in Southern Africa. Partner governments must soften their hands and supplement funding coming from donors, so that change can be felt in the near future».