Maputo — The Mozambican authorities have approved private sector projects budgeted at 1.2 billion US dollars to be implemented in the Nacala Corridor, in the north of the country, according to Danilo Nala, general director of the Office for the Accelerated Development Economic Zones (GAZEDA), cited in Wednesday’s issue of the Maputo daily “Noticias”.

At the same time, 500 million dollars have been mobilized for the public sector, including the rehabilitation of the Nacala dam, and of the city’s water supply system, its electricity supply and its telecommunications, creating 7,000 jobs.

The central feature of the Nacala Corridor is the railway from Nacala port to Malawi, but the term is nowadays used loosely to cover much of northern Mozambique.

Nala said that the development strategy of the corridor for the period 2013-2017, defines, as the central area, investment in agriculture to guarantee the coexistence of large publications and small scale agriculture, through a mechanism of mutual support.

He added that the transport of merchandise “will be solved through three large projects to be implemented in the area – namely the construction of Nacala International Airport, the rehabilitation of the port of Nacala, and the conclusion of rehabilitating the roads and railways”.

Studies undertaken by the government, in partnership with the Japanese International Cooperation Agency (JICA), indicate that the government should support small farmers so that they can draw greater advantage from improved access to markets and to technology, through cooperation with the growing foreign investment in the sector.

The studies stress the importance of an operational system for transporting agricultural and other merchandise, and of rehabilitating the electricity transmission lines so that Nacala and Nampula cities can receive good quality electrical power.

The studies also recommend an integrated approach to attract investment to the agricultural sector, in response to the increased demand for fresh vegetables to feed workers on the gigantic coal and natural gas projects in the north and centre of the country.