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Data Collection Survey on Nacala Corridor Integrated Development in Southern Africa

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Data Collection Survey on Nacala Corridor Integrated Development in Southern Africa REPUBLIC OF ZAMBIA REPUBLIC OF MALAWI DATA COLLECTION SURVEY ON NACALA CORRIDOR INTEGRATED DEVELOPMENT IN SOUTHERN AFRICA FINAL REPORT MARCH 2018 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) ORIENTAL CONSULTANTS GLOBAL CO., LTD. MITSUBISHI UFJ RESEARCH AND CONSULTING CO.LTD. 6R EIGHT-JAPAN ENGINEERING CONSULTANTS INC. CR(3) 18-009 REPUBLIC OF ZAMBIA REPUBLIC OF MALAWI DATA COLLECTION SURVEY ON NACALA CORRIDOR INTEGRATED DEVELOPMENT IN SOUTHERN AFRICA FINAL REPORT MARCH 2018 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) ORIENTAL CONSULTANTS GLOBAL CO., LTD. MITSUBISHI UFJ RESEARCH AND CONSULTING CO.LTD. EIGHT-JAPAN ENGINEERING CONSULTANTS INC. Exchange Rate (March 2018) US Dollar (USD) 1.00=Japanese Yen (JPY) 106.79 Zambian Kwacha (ZMW) 1.00= (JPY) 10.99 Malawian Kwacha (MWK) 1.00= (JPY) 0.15 Data Collection Survey on Nacala Corridor Integrated Development in Southern Africa Final Report TABLE OF CONTENTS Page List of Tables .......................................................................................................................................... vi List of Figures ........................................................................................................................................ xi List of Abbreviations .............................................................................................................................. xv Executive Summary Chapter 1 Introduction ................................................................................................................. 1-1 1.1 Background of the Study .................................................................................................... 1-1 1.2 Objectives of the Study ...................................................................................................... 1-1 1.3 Study Area .......................................................................................................................... 1-2 1.4 Counterpart Agencies for the Study ................................................................................... 1-3 1.5 Study Schedule ................................................................................................................... 1-3 Chapter 2 Corridor Development in Zambia and Malawi and Current Status of Nacala Corridor Development ............................................................................... 2-1 2.1 Clusters of Transport Corridors .......................................................................................... 2-1 2.1.1 Propulsion Frameworks: Transport Corridors as Economic Corridors ......................... 2-1 2.1.2 Transport Corridors Relevant to Malawi and Zambia ................................................... 2-3 2.1.3 Current Status of Major Transport Corridors Excluding Nacala Corridor .................... 2-5 2.1.4 Institutions for Transport Corridors ............................................................................... 2-6 2.2 Current Conditions and Status of Nacala Corridor ............................................................. 2-8 2.2.1 Background of Nacala Corridor .................................................................................... 2-8 2.2.2 Status and Conditions of Nacala Corridor ..................................................................... 2-9 2.3 Current Usage of Nacala Corridor vis-a-vis Major Corridors .......................................... 2-15 2.3.1 Distance between Major Cities and Main Ports .......................................................... 2-15 2.3.2 Traffic Volume in Zambia and Malawi ....................................................................... 2-16 2.3.3 Freight Traffic at Border ............................................................................................. 2-17 2.3.4 Freight Share per Corridor .......................................................................................... 2-19 2.3.5 Freight Movement on Nacala Corridor ....................................................................... 2-22 2.3.6 Capacity of Major Ports .............................................................................................. 2-23 2.3.7 One Stop Border Posts (OSBPs) ................................................................................. 2-25 2.3.8 Transit Time and Cost ................................................................................................. 2-27 2.4 Comprehensive Evaluation of the Corridors .................................................................... 2-29 2.4.1 Hearing Survey Results on Nacala Corridor ............................................................... 2-29 2.4.2 Comprehensive Analysis on Transport Corridors Related to Zambia and Malawi ..... 2-31 Chapter 3 Present Condition of Zambia ..................................................................................... 3-1 3.1 Agriculture.......................................................................................................................... 3-2 3.1.1 Overview of the Agriculture .......................................................................................... 3-2 3.1.2 Agriculture Condition ................................................................................................... 3-2 3.1.3 Structure of Agriculture Producers ................................................................................ 3-5 i Data Collection Survey on Nacala Corridor Integrated Development in Southern Africa Final Report 3.1.4 Current Situation on Agriculture Production and Distribution ...................................... 3-5 3.1.5 Agribusiness Clusters and Players ................................................................................ 3-9 3.1.6 Related Policies, Programmes and Projects ................................................................ 3-13 3.1.7 Development Potential and Challenges of Agriculture and Agribusiness Sector ........ 3-19 3.2 Industry ............................................................................................................................. 3-55 3.2.1 Overview of the Industry ............................................................................................. 3-55 3.2.2 Current Condition and Potential of Industrial Development Along Nacala Corridor ....................................................................................................................... 3-56 3.3 Mining .............................................................................................................................. 3-58 3.3.1 Overview of the Mining .............................................................................................. 3-58 3.3.2 Mineral Production in Zambia .................................................................................... 3-58 3.3.3 Export of the Mineral Commodities ............................................................................ 3-60 3.3.4 Export Destinations of Mineral Commodities ............................................................. 3-60 3.3.5 Government Policy of Mining Sector ......................................................................... 3-63 3.3.6 Development Potential of the Mining Sector in the Nacala Corridor Region ............. 3-64 3.4 Trade ................................................................................................................................. 3-64 3.4.1 Overview of the International Trade ........................................................................... 3-64 3.4.2 Traded Commodities ................................................................................................... 3-65 3.4.3 Trade Along Nacala Corridor ...................................................................................... 3-68 3.4.4 Development Potential and Challenges of the Trade Sector in the Nacala Corridor Region .................................................................................... 3-72 3.5 Tourism ............................................................................................................................. 3-73 3.5.1 Overview of the Tourism ............................................................................................. 3-73 3.5.2 Tourism Sector of the Nacala Corridor Region ........................................................... 3-76 3.5.3 Policy Direction and Challenges of Tourism Sector ................................................... 3-78 3.5.4 Development Potential and Challenges of the Tourism Sector in the Nacala Corridor Region .......................................................................................................... 3-79 3.6 Energy .............................................................................................................................. 3-80 3.6.1 Current Situations of the Electricity Sub-Sector ......................................................... 3-80 3.6.2 Current Situations of the Petroleum Sub-Sector ......................................................... 3-83 3.6.3 Development Potential and Challenges of the Energy Sector ..................................... 3-85 3.7 Foreign and Domestic Investment .................................................................................... 3-87 3.7.1 Investment in Zambia .................................................................................................. 3-87 3.7.2 Investment in Eastern Province ..................................................................................
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