Pretoria — The signing of the Memorandum of Understanding between South Africa and Mozambique yesterday is a practical implementation of the commitment between the two governments to regional cooperation within Southern Africa.

Speaking during the signing ceremony in the Mozambican capital, Maputo, transport minister Dullah Omar said it indicated that the two governments were proactive in facilitating investment in the private sector.

Minister Omar said the signing means that there are various types of partnerships at different levels which have been identified and to which both governments are committed.

Government to government partnerships will provide an environment in which investors can feel confident to invest.

'The two governments are currently proactively engaging the private sector and potential investors in the development of the vision and concept for the Maputo Development Corridor (MDC) including projects like the one we celebrate tonight', he said.

Mr Omar said the MDC was a growth and development initiative in the African region aimed at promoting global competitiveness and sustainable economic growth.

He said the MDC initiative is part of the project that comprises seven spatial development initiatives in the region, each with its own catchments of economic potential.

Minister Omar said the initiative was also aimed at increasing private sector investment, enhanced productivity, job creation and socio-economic development.