Multinational - SADC Sub-Regional Transport and Trade Facilitation Project


Project Summary

Approval Date 26 Oct 2022
Signature Date 05 Dec 2022
Planned Completion Date 29 Feb 2028
Sovereign / Non-Sovereign Sovereign
Sector Transport
DAC Sector Code 21023
Commitment U.A 52,500,000
Status Implementation

Project General Description

Over recent years Malawi and Mozambique have been exposed to several shocks including economic, climate and health that have inhibited growth and slowed the countries’ paths to prosperity. Integration of the countries’ economies among several other factors is seen as a promising path towards accelerating their development trajectory. In this respect, efficient transport systems are seen as catalytic and key to the success of this process. As such, this proposed project is conceived as an important investment meant to contribute to the countries’ development agendas. The SADC Sub Regional Transport and Trade Facilitation project comprises reconstruction of Kaphatenga-Nkhotakota-Dwangwa road (135 km) in Malawi and Mueda Nambungale road (64.4 km) in Mozambique meant to improve connectivity on the entire 1,604 km link from Malawi to Mozambique as well as reinforce social cohesion. In Malawi, ADF and OPEC financing will cover 75 km and Government will finance 60 km. The project is part of the PIDA Priority Action Plan (PAP II) 2021- 2030 and is also aligned to 2006 SADC Protocol on transport, communication and meteorology, and SADC regional infrastructure development master plan 2012-2027.

Project Objectives

The overarching project development objectives are defined at the regional and national level. At regional level, the objective is to improve SADC sub-region transportation and trade facilitation along the North-South Corridor in Malawi, through Mozambique to the Port of Mtwara. At national level in the case of Malawi the objective of the operation is to contribute to improving transport services and in particular trade facilitation in the project area which in turn is expected to support local economic activities which include agriculture, fisheries, and tourism. The national objective for Mozambique is to contribute to improving transport services in areas that are faced with mobility challenges particularly in northern Mozambique, specifically the fragile prone province of Cabo Delgado Province. Undertaken with a prism of context-specific conflict prevention specially amongst traders, commuters and hosting communities connected via the roads, the project also contributes to strengthened stability. The expected project outcomes are: (i) improved connectivity, (ii) trade facilitation and (iii) enhanced social conditions, social cohesion and life skills. The project benefits include: (i) reducing travel time and maintenance costs; (ii) improving economic potential of the project area; (iii) improving road safety as most of the accidents occur on narrow bridges and sharp curves on the road in Malawi (iv) providing employment during construction works; and (v) reducing flooding of the road as the road is characterised by flooding at some sections. Investing in roads with a conflict sensitive approach applied throughout the project cycle is one of the Bank’s top priorities towards building resilience in situations of fragility. Building community resilience through regional infrastructure is expected to relieve long-term pressures and create positive and more inclusive development dynamics. The project will further support both government’s initiatives of improving regional connectivity on the major corridors and the condition of roads in general.

Beneficiaries

Regionally, the project target area has over 3.2 million people living along the road corridor, stretching from Dwangwa in Malawi to Negomano in Mozambique. The project’s immediate zone of influence in Malawi are the two (2) districts of Nkhotakota and Salima with a total population of 900,000 whereas in Mozambique although the project traverses Mueda district with a population of 171,000, it will benefit the entire Cabo Delgado Province with population of 2,270,000 including IDPs living in the project location. The project will provide about 150 permanent and over 600 temporary employment opportunities as well as social amenities along the corridors including water, markets, health and school structures. It will also have positive impact on skills development in technical areas and equitable benefits are expected from the capacity building activities.

Participating Organization

Funding
African Development Fund
Implementing
ADMINISTRACAO NATIONAL DE ESTRADAS (ANE)

Information

IATI identifier 46002-P-Z1-DB0-271
Last Update 26 Jan 2023

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Contact Details

Name MWILA Aaron Katambula
Email a.mwila@afdb.org

Geographic Location

Country Multinational
Coordinates Location Name
-13.7804 34.4587 Salima
-11.66237 39.5534 Mueda District
-12.92744 34.29614 Nkhotakota
-11.42833 38.49361 Negomano
-12.5667 34.15 Dwangwa
-12.5 39 Provincia de Cabo Delgado