Landlocked Malawi Secures Access to Mozambique Port

Malawi, a landlocked country, has successfully negotiated leased space at a port in Mozambique to build and operate a new terminal.

This development is expected to provide Malawi with more competitive pricing for its exports and imports, significantly boosting its economy by granting access to a deepwater port.

The agreement, signed by the Presidents of both Malawi and Mozambique, will lead to the construction and management of the terminal at the northern port of Nacala in Mozambique.

This new terminal is set to strengthen the ties between the two nations and will complement ongoing projects such as the Mozambique-Malawi Regional Interconnection Project (MOMA) and the Nacala Development Corridor.

Currently, Malawi relies on distant ports like Durban, Dar es Salaam, and Beira for its imports and exports. This situation results in higher costs due to the long and poorly maintained routes to these ports.

The Nacala port has benefited from substantial investments, not only from neighboring countries but also from international entities like the Japan International Cooperation Agency, which contributed approximately $300 million to the port in 2018. These investments have allowed the port to expand rapidly, establishing it as a key regional maritime hub.

The establishment of the new terminal in Nacala is anticipated to create a more cost-effective logistics network for Malawi, enhancing its trade efficiency and providing a significant boost to its economic growth.