Mozambique’s President Nyusi denies report of 99-year lease of port of Nacala to Malawi

* The agreement between the two countries is to develop a dry port, with a view to securing Malawi’s cargo

* In order to ensure that more cargo from Malawi is prepared at that location and arrives at the port without costs

* Which end up creating the challenge of logistics in general and this can only happen after a feasibility study

Maravi Express

The Memorandum of understanding (MoU) which Malawi and Mozambique signed last month did not grant a 99-year lease for a space at the northern port of Nacala to Malawi for the landlocked country to develop a terminal for imports and exports.

This was clarified by Mozambique President Filipe Nyusi in Maputo after that country’s media queried him following alleged reports by some Malawi media, saying the Malawi government had secured a 99-year lease for a space at the Nacala port.

According to reports by Malawi News Agency (MANA), whose journalist accompanied President Lazarus Chakwera on his visit to Mozambique, Chakwera was only quoted as saying he was “optimistic that the opening up of the Nacala Port to transport fuel and petroleum products from Mozambique to Malawi will reduce transportation costs and the energy agreement will also reduce black outs”.

MANA reported that the MoU, which was signed on August 14, seeks for Malawi to negotiate for a convenient border post, simplified trade regimes, equal treatment of transporters, and tightened security to reduce the crossing of borders using unchartered roots.

However, the Mozambique media picked up some other reports from Malawi alluding that their government had given the 99-year lease for a space at the northern port of Nacala and when they asked Nyusi for clarification, he said the story “was fake and may have been planted to discredit Nyusi, suggesting that he is giving away chunks of Mozambican territory to a foreign country”.

According to the https://clubofmozambique.com/news/mozambique-nyusi-denies-report-of-99-year-lease-of-port-of-nacala-to-malawi-aim-265571/, Mozambique “only granted land outside the operational area of the Port of Nacala so that Malawi could base its dry dock, which will serve to store general cargo in transit”.

That country’s Ministry of Transport & Communications also expressed its concern about information according to which the country was granting the Port of Nacala to neighbouring Malawi: Mozambique did not grant a concession in the Port of Nacala – Ministry

Its Permanent Secretary, Cláudio Zunguza clarified that the agreement is not a concession, saying: “The Ministry of Transport & Communications is working with Malawi, yes, but not in the process of granting concessions for the port of Nacala, but in a process that will allow Malawi to have a site in Muchilipo, about 15kms from the port of Nacala.”

This, according to the Permanent Secretary, is “to develop a dry port, with a view to securing [Malawi’s] cargo, in order to ensure that more cargo from Malawi is prepared at that location and arrives at the port without costs which end up creating the challenge of logistics in general”.

Furthermore, Zunguza emphasised that this can only happen after a feasibility study, saying: “There is a discussion that brings us to liquid cargo, taking into account that, installing a tubular system from the port of Nacala to the dry port over a distance of 15kms could pose a challenge.

“It is under discussion. This study will have to show which cargoes Malawi intends to bring with the greatest demand. Those dry cargoes will be stored in the dry port and, as for liquid cargoes, we can work to see if it is possible to install a tank near the port, which could allow Malawi to guarantee the storage of its cargo so that, through its rail or road system, it can be transported to Malawi,” Zunguza is quoted as saying.

Zunguza was speaking speaking at an event focussing on the development of infrastructure and its role in boosting the national and regional economy, saying: “The Nacala, Beira and Maputo corridors are guaranteeing great development, looking at their infrastructure, which is the first pillar we are working on.

“We are not completely satisfied, because we need the turnaround time for ships to not be as long as it is today, and we want to ensure that our corridors continue to be more competitive and efficient to meet national and regional demand.”

Together with his  counterpart, President Nyusi, Chakwera witnessed the MoU signing ceremony on energy formalised by Energy Ministers of the two governments and the President was quoted by MANA as saying the signing of the trade agreements is key in enhancing the economic relationship between the two countries.

Chakwera added that it was pleasing to note that Malawi and Mozambique bilateral ties are now stronger than ever, a development that is beneficial to the two countries’ people.

The Mozambican media caught up with their President Nyusi on his return from Malawi where the University of Malawi (UNIMA) awarded him an Honorary Directorate in International Affairs and Diplomacy.

Likewise, on Chakwera’s visit to Mozambique, Joaquim Chissano University conferred him an Honorary Doctorate Degree in International Cooperation & Development for his strategic thinking and adopting external policies to develop synergies with neighbouring countries.

Reported by MANA’s Fostina Mkandawire in Maputo during Chakwera’s tour of Mozambique, President Nyusi said the two countries will collaborate to ensure the agreements become practical so that the people of the two countries benefit.

“Key sectors that are crucial to the development of our two countries have been thoroughly scrutinised such as agriculture, energy and transport with much focus given to the transport and energy sector,” he said.

He added that the Government of Mozambique will continue supporting the joint project of construction of the 218km Malawi-Mozambique Interconnector Project and Matambo Substation as part of the Mozambique-Malawi Interconnection Project (MOMA).

The Mozambican President expressed dismay at the current trade volumes between Malawi and Mozambique which are relatively low despite the proximity of major commercial and industrial hubs of the two countries.

“I can confidently say that we have allocated a space at Nacala Port for Malawi to be spearheading transportation of products to minimise traffic and cargo taking too long to reach Malawi,” he was quoted as saying.

He further said a one stop border post will be operationalised at Mwanza in Malawi to further boost trading activities between the two countries.

President Chakwera was also taken on a learning visit to Boane district to appreciate industrial activities at Beluluane Industrial Park where he toured industrial area called Moz Park to appreciate trading activities being implemented by the Mozambican government.

Speaking after touring Midal Cables International, President Chakwera told MANA that the tour was an eye opener and the trading industry in Malawi will benefit, saying: “The magnitude of manufacturing and exporting activities witnessed today are worth emulating to Malawi. I am impressed by how Midal Cables is conducting its business.”

Chakwera said it is his vision to have a company that manufactures aluminium, alloy rod and wires the same way that Midal Mozambique is doing and exporting the cables worldwide.

The Moz Park is home to some of Africa’s key players within the manufacturing, industrial, import and export business — organised as a combined industrial park and free-trade zone and it accommodates over 35 companies employing more than 5,000 people.

The Moz Park is located in the southern part of Mozambique, 2km away from the main highway and 20km from the port.