 TRANSPORT |
Constraints in the transport sector also hinder Malawi’s private sector performance especially in the light of the country’s landlockedness. Improved transport services are an essential catalyst for production and low transport costs would lower production costs. Policy reforms in the transport sector have been enacted with the aim promoting competition and efficiency. These include reduction of duties and surtaxes on spare parts as well as removal of restrictions on entry and exit into the passenger and freight transport services. Government further recognises that, given the landlocked nature of the country, major strides in the transport sector can only be achieved with the use of shorter routes to the ocean. What comes out clear therefore is that the Nacala Railway Line to the Indian Ocean still remains Malawi’s best choice. Estimates indicate that if fully developed and utilised the Nacala route would reduce costs in Malawi by at least 20%.
| However, the utilisation of the route by the private sector to-date has been at best luke warm, the major concern being the 77 km stretch from Entre Lagos to Cuamba which still remains unrepaired. To this extent government is pursuing avenues of getting the railway repaired. Government also continues to pursue a policy of deregulation in the transport sector to enhance competitiveness. The concession of the Malawi Railways to Central and East African Railways therefore is a demonstration of government’s commitment to this cause.
| DEVELOPMENT CORRIDORS |
In addition to developing Nacala as a transport Corridor, the governments of Malawi and Mozambique are involved in the Nacala Development Corridor initiative which is aimed at attracting investment into the area of the corridor both in Mozambique and Malawi. In this regard, the two governments are committed to ensuring that the Nacala Development Corridor is developed and that the private sector should be in the forefront of investing in the corridor.
Likewise the Mtwara Development Corridor which is an initiative amongst Tanzania, Mozambique, and Malawi also aims at attracting investment into the area of the corridor. Investment for these Corridors will be organised by member states with a view to exposing the potentials of the Corridors to the international business community. |
