The African Development Bank has signed an agreement for the financing of the Nacala Railway Corridor project to the value of US$300m.
The infrastructure project – which includes the construction of a 912-kilometre railway and a port – is aimed at unlocking the western region of Mozambique and the landlocked Malawi.
“The project is expected to have a catalytic effect in the region and create economic benefits for the various stakeholders, including sponsors, governments and the local population,” said AfDB director for non-sovereign operations and private sector, Kodeidja Diallo. “It will enable a significant reduction in transportation costs and increase coal export volumes.”
Additional capacity created by the project in cargo and passenger trains is also expected to create employment opportunities and increase agricultural trade in the regions.
