twitter Facebook Linkedin acp Contact Us

The AfDB signs US$300mm loan agreement for Nacala Corridor project

The project aims to support growth along a regional corridor shared by Mozambique and Malawi. (Image source: jbdodane/Flickr)

The AfDB has signed an agreement worth US$300mn for the Nacala Corridor project, which consists of a 912km railway and a port to unlock the western region of Mozambique and landlocked Malawi

The total cost of the integrated and transformative infrastructure project is estimated at US$5bn. The project is complex and among the most innovative that the bank has financed in the past 10 years of private sector operations.

Through the project, the sponsors, companies from two member countries of the AfDB, Vale and Mitsui & Co made the win-win collaboration.

The project is expected to have a catalytic effect in the region and create economic benefits for the various stakeholders, including sponsors, governments and the local population.

“It will enable a significant reduction in transportation costs and increase coal export volumes. Increased mine production volumes will also create employment opportunities in the region of Tete where the mine is located. Furthermore, additional capacity created in general cargo and passenger trains, along the corridor, is expected to contribute to creating economic opportunities in the local economy, notably by increasing agricultural trade in the regions,” said the bank reporting to the press.

The project has brought together four core lenders, including the AfDB, the Japanese Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI) and the Export Credit Insurance Corporation of South Africa (ECIC) for an overall package of US$2.7bn in senior loans.

In addition to this US$300m senior loan, the AfDB also approved technical assistance through the Fund for African Private Sector Assistance (FAPA), a Japan-Austria multi-donor trust fund, aiming to assist in strengthening business linkages and supporting SMEs and cooperatives in Mozambique and developing agribusiness along the corridor in Malawi.

Kodeidja Diallo, director for non-sovereign operations and private sector in the AfDB, said, “The financing of railway and port infrastructure in Mozambique and Malawi will add competitiveness to regional exports and provide an important demonstration effect for forthcoming private sector infrastructure projects in the region.”

The Bell team in Richards Bay consists of more than 800 machinists, welders, and assemblers. (Image source: Bell)

GFE Power Product’s extensive range covers generators from 10 kVA up to 3,000 kVA. (Image source: GFE Power Products)

The funding is the largest-ever equity raise in the minigrid industry according to Husk. (Image source: Adobe Stock)

The initiative will help African contractors participate in annual infrastructure investments. (Image source: Afreximbank)

ITS has evolved into a sophisticated systems approach, providing numerous opportunities to revolutionise road networks. (Image source: Adobe Stock)

Invest International’s Lara Muller; Ivory Coast Minister of Finance and Economy, Adam Coulibaly; and Ambassador Designate to Ivory Coast, Jeroen Kelderhuis. (Image source: Invest International)

The Yellow Metal Machine Rental team with some Wacker Neuson equipment. (Image source: Wacker Neuson)

Although displaying resilience, the report warns that African banks remain exposed to physical climate risks due to both sovereign and industry lending. (Image source: Adobe Stock)

WAA and VCMI will seek to establish regulatory frameworks to enable access to high integrity and fair voluntary carbon markets for WAA member countries. (Image source: Adobe Stock)

The parties will also promote the mutual exchange of information and expertise in the field of export credit policies and practices. (Image source: TBD Group)

Inside Condra’s Johannesburg factory: an overhead crane positions an electric motor during assembly of hoist and crab. (Image source: Condra)

IVECO is renewing its entire product range, all at once. (Image source: IVECO)

The MoU was signed alongside the Africa Health Business Symposium. (Image source: Africa CDC)

Both the IMF and EIU expect SSA to rank as the world’s second fastest growing economy in 2024. (Image source: Adobe Stock)

There has been a focus on the sugar industry. (Image source: Adobe Stock)

Evolving concept of energy security must address energy demand, system flexibility, technology access and infrastructure development, says IRENA. (Image source: IRENA)

World Bank & African Development Bank partner to provide electricity access to 300 million Africans by 2030, leveraging public-private investments. (Image source: Adobe Stock)

At WFES, Gotion High-tech will showcase its latest products and leading green energy solutions at its booth. (Image source: Gotion High-tech)

The new Perkins 5012 is a full-authority electronic engine optimised and purpose-built for power generation applications. (Image source: Perkins)

SSAB will begin deliveries of the new products in 2026.

The key issues restricting sub-Saharan Africa’s manufacturing sector will be unpacked at Manufacturing Indaba later this year. (Image source: Adobe Stock)

Hyphen is developing sub-Saharan Africa’s largest, most advanced and only fully-vertical integrated green hydrogen project. (Image source: Hyphen)

According to Liebherr, the Used Equipment Marketplace is extremely user-friendly. (Image source: Liebherr)

Electricity storage will be pivotal in unlocking renewable projects and meeting energy demand. (Image source: Adobe Stock)

Africa Data Centres and DPA SA have broken ground on their solar farm in the Free State. (Image source: Africa Data Centres)

A Cat PM310 Cold Planer in action. (Image source: Caterpillar)

A larger stockholding of WEG products facilitates ready access for customers. (Image source: WEG Africa)

African nations have turned to the concept of power pools to address the continent's energy deficit and foster regional cooperation. (Image source: Synergy Consulting)

Dietmar Siersdorfer is expanding his role as Middle East managing director at Siemens Energy to include Africa. (Image source: Siemens Energy)

The Msikaba Bridge has anchor blocks 17 m wide which contain around 21,000 tons of concrete. (Image source: Sanral)