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PEDEC-NACALA the Republic of Mozambique the Republic Ministry of Economy and Finance of Economy Ministry IN THE REPUBLIC OF MOZAMBIQUE IN STRATEGIES CORRIDOR ECONOMIC DEVELOPMENT FOR NACALA THE PROJECT Ministry of Economy and Finance The Republic of Mozambique THE PROJECT FOR NACALA CORRIDOR ECONOMIC DEVELOPMENT STRATEGIES IN THE REPUBLIC OF MOZAMBIQUE PEDEC-Nacala PEDEC-NACALA Main Text: Volume 1 Volume Text: Main Final Study Report Final Study Report Main Text: Volume 1 April 2015 Japan International Cooperation Agency (JICA) April 2015 Oriental Consultants Global Co., Ltd. RECS International Inc. International Development Center of Japan Kokusai Kogyo Co., Ltd. Eight-Japan Engineering Consultants Inc. EI JR 15-079 Ministry of Economy and Finance The Republic of Mozambique THE PROJECT FOR NACALA CORRIDOR ECONOMIC DEVELOPMENT STRATEGIES IN THE REPUBLIC OF MOZAMBIQUE PEDEC-NACALA Final Study Report Main Text: Volume 1 April 2015 Japan International Cooperation Agency (JICA) Oriental Consultants Global Co., Ltd. RECS International Inc. International Development Center of Japan Kokusai Kogyo Co., Ltd. Eight-Japan Engineering Consultants Inc. Currency Exchange Rates USD 1.00 = JPY 89.21 MT 1.00 = JPY 3.060 MT 1.00 = USD 0.034 Averages during the period between April 2012 and December 2013 The Project for Nacala Corridor Economic Development Strategies Main Text, Final Study Report The Project for Nacala Corridor Economic Development Strategies in the Republic of Mozambique Final Study Report Main Text TABLE OF CONTENTS Main Text: Volume 1 Page Executive Summary ............................................................................................................................... [ 1 ] PART I INTRODUCTION Chapter 1 Introduction .......................................................................................................................... 1-1 1.1 PEDEC-Nacala ........................................................................................................................................ 1-1 1.2 Background of PEDEC-Nacala ............................................................................................................. 1-1 1.3 Goals and Objectives of PEDEC-Nacala .............................................................................................. 1-3 1.4 Guiding Principles of PEDEC-Nacala ................................................................................................... 1-4 1.5 Approach of PEDEC-Nacala ................................................................................................................. 1-6 1.6 Study Area (Nacala Corridor Region) .................................................................................................... 1-7 1.7 Project Framework and Organisations ................................................................................................... 1-8 1.8 Process and Schedule for Formulating PEDEC-Nacala Strategies ..................................................... 1-9 1.8.1 Phases of PEDEC-Nacala ................................................................................................................ 1-9 1.8.2 Steering Committee Meetings and Working Group Meetings .................................................... 1-10 1.9 Organisation of the Final Report .......................................................................................................... 1-10 PART II PRESENT CONDITIONS Chapter 2 Existing Conditions of Mozambique and Neighbouring Countries ........................... 2-1 2.1 Existing Conditions of Mozambique ..................................................................................................... 2-1 2.1.1 Socioeconomy ................................................................................................................................... 2-1 2.1.2 Existing Development Plans at National Level .............................................................................. 2-2 2.2 Mozambique and Neighbouring Countries ........................................................................................... 2-4 2.3 Spatial Characteristics of Mozambique, Malawi and Zambia along the Nacala Corridor ................ 2-5 2.3.1 Malawi and the Nacala Corridor ...................................................................................................... 2-5 2.3.2 Zambia and the Nacala Corridor ...................................................................................................... 2-5 2.3.3 Urban Centres along the Nacala Corridor ....................................................................................... 2-6 2.4 Existing Conditions of Malawi along the Nacala Corridor .................................................................. 2-7 2.5 Existing Conditions of Zambia on the Nacala Corridor ....................................................................... 2-9 2.6 Development of International Corridors .............................................................................................. 2-12 i The Project for Nacala Corridor Economic Development Strategies Main Text, Final Study Report Chapter 3 Existing Conditions and Emerging Opportunities of the Nacala Corridor Region . 3-1 3.1 Natural Conditions and Water Resources of the Nacala Corridor Region .......................................... 3-1 3.2 Socioeconomy of the Nacala Corridor Region ..................................................................................... 3-5 3.2.1 Population .......................................................................................................................................... 3-5 3.2.2 Past Trend of Economic Growth ...................................................................................................... 3-6 3.2.3 Labour Force ..................................................................................................................................... 3-8 3.2.4 Poverty and Inequality ...................................................................................................................... 3-9 3.3 Urban Centres in the Nacala Corridor Region .................................................................................... 3-11 3.4 Spatial Pattern of the Nacala Corridor Region .................................................................................... 3-14 3.4.1 Land Use .......................................................................................................................................... 3-14 3.4.2 Settlement Distribution ................................................................................................................... 3-16 3.4.3 Transport Network .......................................................................................................................... 3-16 3.4.4 Accessibility .................................................................................................................................... 3-18 3.4.5 Mineral and Forest Concession Areas ........................................................................................... 3-18 3.5 Characteristics of Five Provinces ......................................................................................................... 3-20 3.5.1 Overview of Major Indicators ........................................................................................................ 3-20 3.5.2 Outlines of the Five Provinces ....................................................................................................... 3-22 3.6 Emerging Development Opportunity for the Nacala Corridor Region ............................................. 3-25 3.6.1 Coal Mining and Coal Transport for Export ................................................................................. 3-25 3.6.2 Natural Gas Exploitation and LNG Production for Export ......................................................... 3-25 3.6.3 Increasing Investments and Development in Nacala Special Economic Zone (SEZ) ............... 3-25 3.6.4 Key Transportation Projects as Driving Forces to Regional Development ................................ 3-26 Chapter 4 Existing Conditions of Economic Sectors ........................................................................ 4-1 4.1 Agricultural Sector .................................................................................................................................. 4-1 4.1.1 Existing Conditions of Agricultural Sector ..................................................................................... 4-1 4.1.2 Policies and Programmes for Agriculture Sector ............................................................................ 4-4 4.2 Forestry Sector ......................................................................................................................................... 4-6 4.2.1 Existing Conditions of Forestry Sector ............................................................................................ 4-6 4.2.2 Policies and Programmes for Forestry Sector ................................................................................. 4-6 4.3 Mining Sector .......................................................................................................................................... 4-9 4.3.1 Existing Conditions of Mineral Resources in Mozambique .......................................................... 4-9 4.3.2 Existing Conditions of Mineral Resources in the Nacala Corridor Region ................................ 4-10 4.4 Natural Gas ...........................................................................................................................................
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