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Corridor brings investment, jobs

The Maputo Development Corridor, one of five infrastructure projects undertaken through the regional Spatial Development Initiatives (SDIs), has thus far attracted private sector investment worth US $400 million and generated more than 6,000 jobs since work began in 1998, development experts told IRIN on Thursday. The corridor was an already existing route from Johannesburg to Maputo. Rehabilitating it, according to Dave Arkwright of the Maputo Corridor Company (MCC), "has used a combination of private and public sector financing to leverage capital improvements to create an integrated infrastructure network." Arkwright said the first phase of the project was the improvement of the existing road and rail links between Witbank in South Africa's northern Mpumalanga province, and Maputo port. "About 75 percent of these jobs, mainly in the construction sector, have been created in Mozambique and the Witbank to Maputo toll road has already been concessioned for 30 years to the private sector," Arkwright said. "The long-term advantages to business and industry along the corridor include the increased access and decreased transportation costs and delivery time associated with improved infrastructure," he added. The other four rehabilitation projects are in Mozambique and aimed at the port of Maputo, the Ressano Garcia railway network, the Ressano Garcia/Komatipoort border post and the Mozal Aluminium Smelter plant in Matola. Arkwright said all five infrastructure projects have the potential to create about 20,000 jobs by the year 2000 and a projected investment totalling some US $26 billion. The SDI programme, initiated by South Africa's trade and industry department, is a short-term investment strategy that aims to unlock economic potential in specific spatial locations in southern Africa and utilises public resources to leverage private sector investment.

This article was produced by IRIN News while it was part of the United Nations Office for the Coordination of Humanitarian Affairs. Please send queries on copyright or liability to the UN. For more information: https://shop.un.org/rights-permissions

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