Maputo — The Mozambican government intends to farm out part of the northern port of Nacala to Malawi in order to facilitate and boost commercial ties between the both countries.

In order to implement this initiative Mozambican President, Filipe Nyusi, and his Malawian counterpart, Lazarus Chakwera, who is in the country for a two-day working visit, signed agreements on Wednesday in Maputo.

Nyusi explained that the agreements will benefit both countries, since they are instruments that aim to enable initiatives that are already underway, such as the Mozambique-Malawi Regional Interconnection Project, MOMA.

"We have a joint electrification project, which we call MOMA. In terms of the line, 52 per cent has progressed on the Mozambican side, and for the substation it's almost 72 per cent, which means it's a concrete project that our two countries are developing', he said.

According to Nyusi, the Port of Nacala is strategic for both countries. Mozambique has made space available in the Port, which Malawi can use as a specific terminal for its trade. "The process has been finalized in both countries, in terms of concession procedures', he said.

For his part, Chakwera said that the agreements signed will boost Malawi's development strategies.

"We will soon be signing air transport agreements, which will bring us closer together as peoples in our region. And I welcome the fact that we will increase our electricity supply capacity and thus reduce the levels of power cuts. I'm also pleased that we will soon be able to reduce the overland costs of fuel transport, which will translate into lower fuel prices in Malawi', he said.

He also added that trade relations between Mozambique and Malawi will improve, with a positive impact on tourism.