Supporting the Policy Enabling Environment for Development
USAID SPEED

The Nacala Corridor

Reducing the time and costs associated with exporting from the Port of Nacala would make exports from Mozambique and neighboring countries more globally competitive, encouraging more trade and investment. Currently, there are multiple constraints at the port and along the corridor that increase trade costs, including: inefficiencies along supply chains, fragmented production patterns, lack of logistics capacity (storage, distribution), poor transport infrastructure, and cumbersome customs/border procedures and policy / regulatory frameworks. Infrastructure constraints throughout the corridor are coupled with inefficient port operations, a lack of modern technology, which leads to low productivity, congestion (both entering the port due to the single entrance and inside the port due to storage limitations).

SPEED+ has secured the commitment of the Ministry of Transport and Communication (MTC) and Mozambique company Northern Development Corridor (CDN) to jointly conduct an analysis of ports, rail, roads and infrastructure along the corridor using the FastPath 2 (FP2) methodology. SPEED+ engaged a team of specialists to assess the current operations of, and bottlenecks along, the Nacala Corridor, and make proposals for improving the transport and logistics system along that Corridor. The team conducted a field work in Maputo, Nacala, Nampula, Lichinga, Cuamba, Lilongwe, Blantyre, and Chipata.  In Year 2, SPEED+ will continue to support the MTC and the operator of Nacala Port, CDN to complete the analysis and show how reducing costs and increasing efficiency along the corridor can help generate increase in investment and jobs throughout the region. A reform roadmap will be developed in conjunction with stakeholders and SPEED+ may support the implementation of selected actions. 

The mandatory use of Nacala Special Export Terminal (TEEN) imposed unnecessary time, bureaucracy and costs that reduced the competitiveness of Mozambique’s exports, and pushed down prices paid to smallholder farmers as exporters struggled to succeed in global markets. SPEED+ technical assistance to CTA and other business associations, such as Conselho Empresarial Antena Norte and ACIANA (Commercial and Industrial Association of Nampula), helped them to successfully advocate for change.  In May 2017, the Minister of Finance issued a decision to eliminate the mandatory use of TEEN, and the Director General of Customs issued a declaration for implementation of the reform in July 2017.  The reform is expected to save $400 USD per container for exporters, resulting in increased competitiveness of Mozambique’s exports. 

Downloads:

Nacala Corridor Assessment Executive Summary in English (2018)

Nacala Corridor Assessment Presentation (2018)

Nacala Corridor Assessment: Strategy-Based Transport Logistics and Supply Chain Efficiency (USIAD Agrifuturo 2010)