Malawi, 2 others to ink nacala rail deal

Malawi to Sign Landmark Nacala Rail Agreement, Revolutionizing Trade and Investment Opportunities

Post was last updated: December 18, 2025

Key Business Points

  • Regional economic integration is set to deepen with the signing of a landmark declaration on the rehabilitation of Malawi’s existing railway line and construction of a new rail link to Chipata and Serenje in Zambia.
  • The Nacala Development Corridor will be transformed into a major regional trade and transport route, extending to the Democratic Republic of Congo (DRC), and is expected to lower transport costs and boost exports for landlocked countries.
  • The expanded Nacala Port in Mozambique has the capacity to handle 10 million metric tonnes of cargo per year, with a current utilisation capacity of 40 percent, presenting opportunities for increased trade and investment in the region.

Malawi, Mozambique, and Zambia are poised to sign a landmark declaration that will deepen regional economic integration and transform the Nacala Development Corridor into a major regional trade and transport route. According to John Bosco Phiri, Malawi’s head of delegation to the Joint Technical Committee of the Nacala Development Corridor Management Committee (NDCMC), the declaration marks a decisive step towards formalising cooperation among the three countries. Kusinthana kwa njira za ubale (cooperation among countries) is expected to enhance trade facilitation, improve transport efficiency, and create economic opportunities across the region.

The Nacala Corridor, which links Malawi, Mozambique, and Zambia to the deep-water port of Nacala in Mozambique, is considered critical to lowering transport costs and boosting exports for landlocked countries. Kukonza masambatanja (increasing trade) is a key objective of the corridor, and the declaration is expected to pave the way for increased investment and trade in the region. The meeting also signals a shift in corridor governance, with oversight now escalating from technical officials to the Council of Ministers, Kuweta mtsogolo (shaping the future) of the corridor.

The Mozambican delegation head, Fernando Sebastião Ouana, noted that the corridor remains underutilised despite its potential to connect inland Southern African Development Community countries to global markets through the Indian Ocean. However, progress has been made since the last meeting in March, attributing it to utulivu wa kisiasa (political stability), regional cooperation, and support from development partners, particularly the World Bank. Ouana stated that Mozambique is committed to implementing the institutional agreement governing the corridor and promoting private sector participation in trade, transport, and agricultural value chains.

The expanded Nacala Port, which was inaugurated on October 7, 2023, has the capacity to handle 10 million metric tonnes of cargo per year, with a current utilisation capacity of 40 percent. This presents opportunities for increased trade and investment in the region, kutengera kwa biashara (business opportunities). The port can handle four million tonnes of container cargo, 2.4 million tonnes of general cargo, and 3.6 million tonnes of liquid cargo at its three terminals. The 10th Tripartite Meeting, supported by the World Bank, is expected to review progress on multi-sectoral activities, with emphasis on rail infrastructure development in Malawi and Zambia and policy harmonisation involving both public and private sector players.

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Vanessa Banda
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