Photo by: Duane Daws
Malawi and Zambia this week secured a $73.6-million loan from the African Development Bank (AfDB) to advance Phase IV of the multinational Nacala Road Corridor development project.
The facility, approved through AfDB concessionary arm, the African Development Fund, comprised financing of $65-million and a $900 000 grant to Malawi and $7.7-million in financing to Zambia.
The Phase IV development of the Nacala Road Corridor, which links Mozambique, Malawi, and Zambia, included the rehabilitation of a 75 km road between Liwonde and Mangochi, and the establishment of one-stop border posts at Chiponde and Mchinji at the Malawi–Mozambique and Malawi–Zambia borders.
The four phases of the project have more than 900 km of road under construction or rehabilitation in the three countries.
“The Nacala corridor, at its completion, will be one of the most cost-effective routes to the sea for imports and exports from Malawi, Zambia and western Mozambique,” the development bank said in a statement.
The upgraded routes would also boost intraregional trade and further integrate the Southern African Development Community region.
The road infrastructure project had created more than 400 temporary jobs and about 100 permanent jobs, while the establishment of three roadside markets along the road would create more jobs and business opportunities for small-scale traders, 60% of whom were women, who would also be trained in export and import processing and entrepreneur skills.