By KENNEDY MUPESENI –
THE African Development Bank (AfDB), through its private sector window, has approved a senior loan equivalent to US$300 million to support construction of the 912 kilometre Nacala railway.
The bank’s support to the Nacala Corridor is long-standing, having financed regional road infrastructure from Lusaka in Zambia, to Nacala in Mozambique, which also integrates Malawi.
This is according to a statement made available to the Times in Lusaka yesterday.
The project sponsors are Vale SA of Brazil and Mitsui of Japan.
AfDB stated that it was proud to partner with Vale and Mitsui, along with the group of co-financiers, to enable financing of the $4.5 billion project investment, one of the largest single foreign direct investments into Africa in recent years.
“The project will bring about global competitiveness to Mozambique’s mineral exports, including the country’s important coal reserves.
“While the rail infrastructure is anchored on the viability brought about by mineral exports in Mozambique, the project will also build competitiveness around the region’s agricultural and manufacturing trade, thus supporting Africa’s industrialisation agenda,” reads the statement in part.
The statement indicated that the Nacala railway and port project would enable efficiency and environmentally-friendly transport of mineral resources, general freight and passengers through two of Africa’s fastest-growing economies.
In doing so, the project stands to facilitate trade and development across the Southern African region.
Railway extension lines into neighbouring countries were currently under feasibility discussion.