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Zambezi Valley Development Study Columbia Law School Scholarship Archive Columbia Center on Sustainable Investment Staff Publications Columbia Center on Sustainable Investment 6-2011 Zambezi Valley Development Study Lisa E. Sachs Columbia Law School, Columbia Center on Sustainable Investment, [email protected] Perrine Toledano Columbia Law School, Columbia Center on Sustainable Investment, [email protected] Follow this and additional works at: https://scholarship.law.columbia.edu/ sustainable_investment_staffpubs Part of the Agriculture Law Commons, Environmental Law Commons, International Law Commons, Land Use Law Commons, Natural Resources Law Commons, Oil, Gas, and Mineral Law Commons, Securities Law Commons, and the Transnational Law Commons Recommended Citation Lisa E. Sachs & Perrine Toledano, Zambezi Valley Development Study, (2011). Available at: https://scholarship.law.columbia.edu/sustainable_investment_staffpubs/29 This Report/Policy Paper is brought to you for free and open access by the Columbia Center on Sustainable Investment at Scholarship Archive. It has been accepted for inclusion in Columbia Center on Sustainable Investment Staff Publications by an authorized administrator of Scholarship Archive. For more information, please contact [email protected]. Resource-Based Sustainable Development in the Lower Zambezi Basin A draft for consultation Lisa Sachs and Perrine Toledano, with Susan Maples Vale Columbia Center on Sustainable International Investment Columbia University June 1, 2011 Vale Columbia Center on Sustainable International Investment A Joint Center of The Earth Institute at Columbia University and Columbia Law School The Vale Columbia Center on Sustainable International Investment seeks to be a leader on issues related to foreign direct investment (FDI) in the global economy, paying special attention to the sustainability dimension of this investment. Its objectives are to analyze important topical policy- oriented issues related to FDI, develop and disseminate practical approaches and solutions, and provide students with a challenging learning environment. Founded in 2006 as the Columbia Program on International Investment, the Center became the Vale Columbia Center on Sustainable International Investment (VCC) in 2008. The Center is a joint center of the Earth Institute and Columbia Law School. It operates with diversified funding from a number of sources, including an operational grant from Vale S.A. The idea for this report was conceived in discussions with Vale, and Vale provided the funding for travel, research and staff time for its production. The report is entirely the independent work of the VCC, based on public information, with no access to confidential documents from companies, the Government of Mozambique, or other any other parties. This consultative draft is meant to foster discussion and multi-stakeholder collaboration and engagement on how Mozambique’s natural resources can be leveraged for sustainable development in the region. As such, it is a “living” draft and remains a work in progress. The VCC looks forward to continued discussion with all stakeholders in Mozambique on these issues, including further feedback and comments on this consultative draft. Draft for consultation- June 2011 2 Vale Columbia Center on Sustainable International Investment A Joint Center of The Earth Institute at Columbia University and Columbia Law School Table of Contents EXECUTIVE SUMMARY.................................................................................................................................... 9 SUMMARY OF RECOMMENDATIONS, BY CHAPTER....................................................................................... 12 INTRODUCTION TO THE LOWER ZAMBEZI BASIN AND THE VCC FIVE-PILLAR FRAMEWORK.......................... 17 AN AREA OF ENORMOUS OPPORTUNITY : THE LOWER ZAMBEZI BASIN ............................................................................. 17 VAST DEVELOPMENT NEEDS THAT CAN BE ADDRESSED BY A RESOURCE -BASED DEVELOPMENT STRATEGY ................................ 18 FIVE -PILLAR FRAMEWORK FOR RESOURCE -BASED SUSTAINABLE DEVELOPMENT ................................................................. 19 METHODOLOGY............................................................................................................................................ 20 A. SENIOR GUIDANCE ...................................................................................................................................... 20 B. CRITERIA FOR OBSERVATIONS AND RECOMMENDATIONS ..................................................................................... 21 C. SOURCES OF INFORMATION .......................................................................................................................... 21 D. WHY THIS REPORT ? WHY THE LOWER ZAMBEZI VALLEY ? .................................................................................. 22 E. NEXT STEPS ............................................................................................................................................... 23 CHAPTER ONE: INTEGRATED RURAL DEVELOPMENT IN THE ZAMBEZI VALLEY.............................................. 24 1. POVERTY ALONG THE BEIRA AND NACALA CORRIDORS ............................................................................................. 25 2. SMALLHOLDER AGRICULTURE : AN ENGINE OF GROWTH AND POVERTY REDUCTION ......................................................... 28 2.1 Scaling-up current and planned support to smallholder agriculture.................................................... 29 2.2 Coordinated investments to unlock small-holder agriculture .............................................................. 30 3. IMPROVING SMALLHOLDER PRODUCTIVITY ............................................................................................................. 31 3.1 Improving access to markets through feeder roads............................................................................. 31 3.2 Improving access to rural finance ........................................................................................................ 32 3.3 Establishment of a Zambezi Valley Agricultural Development Center ................................................. 33 3.3 Increasing access to agricultural inputs ............................................................................................... 34 3.4 Improved soil and land information for agricultural planning and decision-making........................... 35 3.5 Agri-business development along the corridors................................................................................... 36 4. INTEGRATING AGRICULTURAL INVESTMENTS WITH OTHER SECTORS TO REDUCE RURAL POVERTY ....................................... 37 4.1 Integrated approaches to rural development: Millennium Villages..................................................... 38 4.2 Design and implementation of IRDPs in Mozambique......................................................................... 39 4.3 Support for a national IRDP policy support secretariat in Mozambique.............................................. 40 5. PARTNERSHIPS WITH UNIVERSITIES TO DEVELOP CAPACITY IN SUSTAINABLE DEVELOPMENT PRACTICE ................................. 40 6. CONCLUSION AND SUMMARY OF RECOMMENDATIONS ............................................................................................. 42 CHAPTER TWO: LEVERAGING THE MINING INVESTMENTS FOR SUSTAINABLE DEVELOPMENT ..................... 43 1. LEVERAGING THE NATURAL RESOURCE SECTOR FOR INFRASTRUCTURE DEVELOPMENT ..................................................... 46 1.1 The Beira and Nacala corridors: a snapshot of their infrastructure..................................................... 46 1.2 Long-term planning of the corridor and coordination of players......................................................... 49 1.3 Beira corridor/Sena line: a new concessional arrangement and an opportunity for development ..... 51 1.3.1 The Sena line completion is stalled................................................................................................................ 51 1.3.2 Rail concessions and the risk of exclusive access........................................................................................... 52 1.3.3 A new concessional model: multi-user and promoting open access ............................................................. 52 1.3.4 A best practice regulatory framework: 5 principles....................................................................................... 54 1.3.5 Spillover benefits from the completion of the CESUL Energy Project............................................................ 56 1.4 Overcoming the cross-border challenge of the Nacala corridor........................................................... 57 1.4.1 Current regulatory and operational arrangements for the Nacala rail corridor ............................................ 58 1.4.2 Implementing a seamless cross-border framework....................................................................................... 60 1.4.3 Reviving the regional power interconnector along the Nacala corridor ........................................................ 62 1.4.4 Call for connecting the Nacala corridor to the SEACOM and EASSy submarine cables.................................. 64 2. LEVERAGING THE NATURAL RESOURCE SECTOR FOR ECONOMIC DIVERSIFICATION ..........................................................
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