The Southern Africa Trade and Connectivity Project

The project development objective of the Malawi and Mozambique - Southern Africa Trade and Connectivity Project is to support Malawi and Mozambique in increasing regional trade coordination, reducing trade costs and time, developing regional value chains, and improving access to infrastructure. The project adopts the RICAS (FY18-23) infrastructure “plus” approach. The project’s components directly respond to the strategic pillars of the Regional Integration Strategy Update (FY21-23) which are aligned with the WBG COVID-19 approach to supporting recovery, namely: (a) “building regional infrastructure connectivity” through focusing on developing economic corridors; and, (b) “promoting trade and market integration” through focusing on accelerating intra-regional trade, development of regional value chains and addressing diseconomies of small financial markets. This approach is also supported by empirical evidence. The project has four components: (a) reduce trade costs; (b) strengthen regional coordination and project implementation; (c) strengthen value chains for regional integration; and (d) strengthen transport infrastructure to improve market access. These components address key gaps and bottlenecks to strengthen the targeted corridors (Nacala, Beira, and Maputo). Jointly, the components can address complementary constraints that hinder trade, investment, and economic opportunities. Combining investments in border posts, trade systems, road upgrading, and value chain development in the same spatial locations allows for synergies in coordination and delivery in time. These are critical for successfully delivering poverty reduction impacts in the spatial areas of work.