Nacala Port to facilitate faster movement of fuel, fertilizer and other goods

* President Filipe Nyusi of Mozambique has assured us that now Malawi has a stand-alone port

* This is the integration that we are talking about in terms of infrastructure development—President Chakwera

By Patricia Kapulula & Memory Kutengule Chatonda, MANA

On his arrival from Nacala, Mozambique where he attended the inauguration of Nacala Port, President Lazarus Chakwera said the port’s rehabilitation and expansion will facilitate faster movement of goods that the country needs most — such as fuel and fertilizer.

 

Speaking on Saturday at Kamuzu International Airport, Chakwera said the port will not only help Malawi but also other countries such as Zambia, whose goods will be passing through the Nacala Corridor.

“President Filipe Nyusi of Mozambique has assured us that now Malawi has a stand-alone port that can facilitate movement of goods and services,” he said. “We are grateful that these things have been put on paper, signed by all of us and an office dedicated to ensure that facilitation of such transportation is done.

“This is the integration that we are talking about in terms of infrastructure development,” Chakwera said, adding that as a landlocked country, Malawi faces various transportation challenges that distort prices of goods and services.

President Chakwera was joined by Zambian President Hakainde Hichilema for the inauguration of the Port, which underwent substantial revamping with funding from the Japanese Government, through the Japanese Development Agency (JICA), at the tune of US$277.5 million.

The project aimed at increasing the productivity of cargo handling by improving facilities at the port, thereby contributing to economic development and poverty reduction in the Nacala development corridor, which covers Malawi, Mozambique and Zambia.

The launch of the upgraded Port of Nacala, which was established in 1951, adds to the various initiatives Malawi Government is undertaking to address the systematic economic challenges the country is facing — such as constant fuel scarcity.

Speaking during the ceremony in Nacala City the Malawi leader described Nacala Port infrastructure as key for strengthening regional collaboration and economic integration in three countries.

“When we speak of regional economic integration, we must understand that it cannot be done without regional cooperation and collaboration. And when we speak of regional collaboration, we must understand that it cannot be done without building trust between our nations to enhance our bilateral relations.

“Without building trust, the work of facilitating the implementation of the African Continental Free Trade Area (AfCFTA) will simply be too difficult to achieve.”

Chakwera then urged the two countries to further enhance cooperation in energy supply and distribution  to promote the production of manufactured goods and productivity along the Nacala Corridor.

“Let me urge officials from Malawi, Mozambique and Zambia to work steadfastly on implementing energy projects between the three countries.

“One case in point is the Malawi-Mozambique Power Interconnector project which was launched in April 2022. Implementation of that project has to be speeded up.

“Similarly, while Malawi has been tapping power from Zambia through a line from Chipata to Mchinji since 2018, I urge officials on both sides to speed up the on-going feasibility studies on the Malawi-Zambia interconnector.

“This is important because we urgently need power for industrialisation, which is critical for the economic growth and development we all long to see,” he said.

In his remarks, President Hichilema commended President Nyusi’s government for fast-tracking the rehabilitation and expansion of Nacala Port — describing it as a milestone and remarkable gesture of partnership and generosity towards Zambia and Malawi.

He said the port will greatly support Zambia and Malawi in shortening the distance and reducing the cost of transporting goods  to and from the respective countries.

Taking his turn, President Nyusi urged Malawi and Zambia to invest more in rail and road infrastructures to improve transport and trade facilitation.

The three heads of state have signed the revised Nacala Development Corridor Agreement and two other agreements on Rail & Road Transport to enhance regional cooperation, economic integration, and trade competitiveness.

Through the countries’ execution of the agreements, they intend to have a vibrant Nacala Corridor that is attractive to both local and international investors.

At the same time, the other agreements will provide guidelines to improve transport and trade facilitation through the removal of non-trade barriers to trade, including physical and non-physical ones.

Meanwhile, at a press briefing on Friday at the Central Office of Information (COI) in Lilongwe — to address the nation on United Nations General Assembly (UNGA) outcomes and critical matters of national importance — Minister of Information & Digitalisation, Moses Kunkuyu defended recent trips by the President.

Kunkuyu said Chakwera is aware that there have been outcries when he travels outside the country, adding that “he is not the type that travels for holiday or fun”.

“The President knows there is scarcity of forex and fuel and in that vein he attends only to critical important international engagements that bring solutions to critical challenges as a nation.”

On the fuel crisis that the country experiencing Kunkuyu assured that government has put in place measures to ensure the availability of fuel through Nacala and Dar es Salaam ports by next week.

On the Nacala development corridor, Kunkuyu said it is advantageously important to Malawi as it remains critical in facilitating the transportation of fuel.

“Nacala port repositions Malawi as a shorter and most economic transit route for cargo destined for Zambia and Democratic Republic of the Congo and in the process becoming a great forex earner for Malawi. The port will also facilitate Malawi’s imports such as fuel,” he said.

On his part, Minister of Energy, Ibrahim Matola said they are working tirelessly to address the fuel challenge and Malawians should expect the condition to be normalised by Monday.

He added that the hand-to-mouth scenario that Malawi has had for past months need to be addressed by implementing long term solutions together with firms under the Ministry of Energy.

“We are navigating into other possible long term solutions in order for Malawi to have the product — the most important thing is the availability, affordability and reliability of the fuel,” he said.

Nation Oil Company of Malawi (NOCMA) Chief Executive Officer, Clement Kanyama said some fuel suppliers are not supplying the product owing to unavailability of forex in the country.

Kanyama has, therefore, assured Malawians that the supply of fuel in the country will be sustained through the allocation of additional US$34 million to the fuel sector.

On his update of the UNGA 78th Session, Kunkuyu said Chakwera secured numerous pledges of financial and technical support, among them a US$100 million education loan package for 1,000 young graduates to pursue post-graduate studies in science, technology, engineering & mathematics (STEM).

“The country also got a shot in the arm towards the national social cash transfer initiative with a US$42 million grant for social protection programmes. The grant is from US-based non-profit organisation, Give Directly,” he said.—Additional reporting by Sarah Munthali & Levison Lester, MANA