19 Apr Interview with H. E. Mateus Magala, Minister of Transport and Communications, Mozambique
What is the ministry’s priority and biggest challenge as it approaches its two-year milestone in June?
The strategic location of Mozambique in southern Africa, which includes a vast coastline and plays a significant role in facilitating access to neighboring countries, has been a top priority for our ministry. We delineated five areas of focus: first and foremost, ensuring the mobility of people and goods and enhancing road safety. Secondly, facilitating access to markets, production routes and consumption routes within the country and the region to stimulate economic growth and job creation. Thirdly, leveraging digitalization to connect communities, markets and the global economy, recognizing the transformative potential of technology in fostering inclusivity and efficiency. Our fourth priority is bolstering connectivity and collectivity, harnessing digital infrastructure to bridge geographical and socioeconomic divides. Lastly, we are committed to reforming state-owned enterprises to enhance productivity and financial sustainability, aligning their performance with that of private sector counterparts.
These five priorities represent the cornerstone of our governance framework, with the potential to catalyze broader development initiatives across Mozambique. We aim to build a prosperous and inclusive future through resilient infrastructure, digital innovation and public-private partnerships.
How has cyclone Freddy affected the country’s transport and communication infrastructure and what has been done since then to restore it?
Mozambique’s geographical vulnerability to climate change, characterized by cyclones, floods and other extreme weather events, necessitates proactive measures to mitigate their impact. The devastation wrought by Cyclone Freddy, with wind speeds reaching 180 kilometers per hour, underscored the urgent need for resilience in our infrastructure and disaster preparedness.
While the cyclone inflicted significant damage, resulting in 314 casualties and affecting 1.2 million people, the toll was comparatively lower than previous disasters like Cyclone Idai. Economic losses, including those within the transport and communications sector, totaled approximately $200 million, highlighting the sector’s susceptibility to such events.
Despite the destruction of railway lines, bridges, lighthouses and port infrastructure, the implementation of early warning systems and disaster preparedness protocols mitigated the extent of the damage. With investments in radar tech and support from the African Development Bank, we are better equipped to forecast and respond to disasters. Plans to expand this radar network further signify our commitment to enhancing early warning capabilities nationwide.
However, while mitigation efforts are crucial, our focus remains on adaptation – building resilient infrastructure capable of withstanding future catastrophes. Collaboration among government, private sector and international partners is crucial for rebuilding and fortifying infrastructure.
As we continue to confront the reality of climate change, we must emphasize building resilience to minimize the impact of inevitable disasters. We must adapt alongside mitigation measures to protect our communities and infrastructure from future climate challenges.
Is Mozambique developing any major transport infrastructure that could attract the interest and financial support of the US government or US companies?
We acknowledge the increasing involvement of the American government in regional investments, which underscores the significance of understanding the needs within the Lobito corridor in Angola. The Lobito corridor presents an opportunity to integrate African economies with the global market, facilitating the seamless movement of value chains and logistics essential for sustaining our digital economy. Countries like Congo, Zambia, Angola and Mozambique possess vast reserves of strategic minerals crucial for future development.
Our focus lies in creating development corridors, recognizing the pivotal role of efficient transportation in fostering economic growth by facilitating the movement of goods and people. Corridors such as Maputo, Beira and Nacala, recognized by the African Union, are vital for Mozambique’s and the region’s economic expansion and international trade relations.
Mozambique boasts strategic resources such as graphite, essential for batteries, and holds the largest graphite reserves globally. Additionally, the Nacala corridor, closer to the Indian Ocean, serves as a gateway to Asian and Middle Eastern markets experiencing significant economic growth. Integrating Mozambique’s corridors with the Lobito corridor presents opportunities for trade expansion with the United States and regional partners.
Trade exchanges via the Nacala corridor include countries like Zambia, Malawi and Congo, highlighting the existing potential for collaboration with the United States. American companies have opportunities to leverage Mozambique’s infrastructure developments, such as the modernized Nacala port, which is now the most advanced in southern Africa.
The World Bank supports projects to modernize border infrastructure and enhance local commerce and trade facilitation in Mozambique. The country’s open economy and history of guaranteeing capital repatriation make it a favorable investment environment for American businesses.
Infrastructure enhancements, such as the increased capacity of railway lines and rehabilitation of routes like Machimpanda, strengthen our transportation networks and provide avenues for increased trade and investment. US rail and maritime transportation offer business and investment opportunities. We can leverage Mozambique’s strategic position and infrastructure developments for a better and more prosperous future.
What investment opportunities are available in Mozambique’s airline sector for American investors?
Our airline was founded in 1936, it was the fourth commercial airline established worldwide. Throughout our journey, Boeing has played a crucial role as a partner, supplying materials and providing maintenance for our aircraft.
Given our longstanding partnership with Boeing, we are keen to further strengthen cooperation, particularly in aircraft procurement, pilot and crew training and enhancing airport infrastructure to ensure top-notch air safety and navigation systems. We remain open to forging new partnerships and expanding existing ones to improve our operations.
We operated DC-10 aircraft, enabling us to serve more distant destinations. We aspire to revive these routes and extend our reach even further, underscoring our commitment to growth and expansion in the airline sector.
How determined is the government of Mozambique to embrace low-carbon transportation, particularly in urban areas, or support the electrification of public transport and incentivize private transport?
Our foremost priority is mobility, with a clear focus on placing citizens at the center of our transportation initiatives. Rather than simply expanding infrastructure, we aim to facilitate easy access to opportunities for citizens at competitive costs and with high-quality service standards. Recognizing the global challenges posed by climate change, Mozambique has embraced a green transition strategy, positioning itself as a leader in clean energy production. All energy generated in Mozambique is sourced from clean, renewable sources such as water, solar and gas, with no reliance on fossil fuels.
We are investing in additional solar, wind and hydroelectric projects to enhance energy self-sufficiency. Our upcoming gas energy plant and the planned hydroelectric facility in Mphanda Nkuwa signify significant strides towards achieving energy independence. Concurrently, we are exploring cleaner mobility solutions including mass transportation systems like trains and buses, as active contributors to decarbonization efforts.
Electrifying our transportation infrastructure is a crucial part of our strategy. We have several initiatives in place, such as promoting the use of electric vehicles and developing electric train systems. Our collaborative efforts with the Dutch embassy to promote electric mobility highlight our commitment to sustainable transportation solutions. Additionally, our partnership with the World Bank to implement the Bus Rapid Transit project, now transitioning to electric buses and surface trains, highlights our dedication to modernizing transportation infrastructure while minimizing environmental impact.
In the realm of cargo transport, we are incentivizing the use of rail transportation, particularly for the transport of coal and other ores from South Africa. These efforts align with our broader goal of promoting environmentally friendly transportation methods and reducing reliance on fossil fuels.
Currently, 67% of materials transported to the Port of Maputo are done by trucks, with only 33% by train. We aspire to reverse these numbers, encouraging the progressive use of green transport alternatives. Digitalization plays a crucial role in this endeavor, facilitating the movement of buses, trains and passengers while contributing to emissions reduction and decarbonization efforts.
We have already taken clear actions on this front and are developing a legal framework to incentivize investment, operation and importation of electricity in Mozambique. Legislation to encourage the import, assembly and manufacture of battery-powered or electric vehicles is also in progress. Our commitment to decarbonization is unwavering, leveraging our abundant renewable energy sources such as rivers, sun and winds. The development and implementation of renewable energy master plans, guided by the Mozambique Renewable Energy Atlas, further solidify our commitment to harnessing clean energy for sustainable development.
How important has the US contribution and support, including private sector initiatives, been for the development of Mozambique’s transport and communication infrastructure and services?
Mozambique values its relationship with the USA and sees potential for greater collaboration between the two countries. The private sector in Mozambique, especially in segments like mining, rail and air transport, offers significant opportunities for the USA to engage further. There is already cooperation in various areas and Mozambique hopes to continue fostering a relationship built on mutual respect and understanding. However, with the introduction of new development corridor initiatives, we envision expanding this collaboration to new heights.
We see potential for increased involvement from the United States in areas such as enhancing connectivity in Africa and leveraging their expertise and investments in mobility solutions. We recognize the importance of the experience and resources available in Mozambique. If Mozambique is perceived as a secure destination for investment, opportunities will be available across various sectors. These include the digital economy, infrastructure development (such as bridges, roads and air transport) and energy – where investors have expressed interest in our gas resources.
Gas represents a viable solution for our current needs and should not be overlooked as a transitional option. As we look to the future, there is ample room for investors to engage in Mozambique’s development journey, capitalizing on the conducive environment for collaboration.
While recent cooperation between our countries has primarily focused on improving governance and institution-building, it’s time to put these institutions to the test through tangible investments. By partnering with the United States in real investment ventures, we can ascertain the efficacy of our institutions and pave the way for the creation of robust foundations for sustainable development in Mozambique.
Can you provide some closing remarks for our readers?
The world is evolving into a global community where interconnectedness is the norm and our collective actions profoundly impact everyone’s well-being. Climate change stands out as one of the most pressing challenges we face and it is imperative to acknowledge the undeniable human contribution to its acceleration. Our planet is our only home for now and we must prioritize its preservation through coordinated, humane and socially conscious actions.
While raising awareness through programs is essential, it’s equally critical to seize the opportunity to transform crises into opportunities. Initiatives like value chains, development corridors and the digital economy promise to unite the world on a single platform, revolutionizing our understanding of global economics. The digital economy, in particular, can provide real-time access to international markets, transcending geographical limitations and fostering unprecedented connectivity.
Embracing digital technology is paramount for our progress, as is championing the energy transition towards a safer and more sustainable planet. Moreover, the notion of “Made in” labels is evolving; instead of focusing on geographical origins, the new paradigm should emphasize collaboration and partnership, encapsulated by “Made With” partnerships. Africa’s abundant raw materials are poised to drive the fourth industrial revolution, highlighting the need to think ambitiously and inclusively about global manufacturing processes.
In this interconnected world, geographical boundaries should not limit opportunities. Everyone, regardless of location, should have access to the benefits of progress and innovation. It’s our collective responsibility to determine how we can best serve humanity and contribute to a better future for all. This mindset underscores the essence of our duty to the world – a duty that requires us to think globally and act collaboratively.