Regional SDI Support Programme

Paulo Francisca Zucula - Regional SDI Coordinator

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The Regional SDI Support Programme has made steady progress in opening opportunities for private sector investment in parts of southern Africa with considerable potential for new wealth and job creation.

SDI's were launched in South Africa in 1996 as a means of attracting investment to areas of the country with under- or unutilized potential to host investment. SDI methodology involves a process in which the public sector removes constraints to growth and develops or facilitates conditions favorable to private sector investment and the development of Public-Private-Partnerships.p

Using experiences gained in implementation of SDIs, the South African government has for the past three years been supporting other governments and agencies in Southern Africa to implement similar initiatives through the Regional SDI Support Programme based at the Development Bank of Southern Africa. SDI's launched under this programme have reached various stages of implementation. The most advanced of these is the Maputo Development Corridor (MDC) which has achieved nearly all of its original objectives. p

The MDC aimed to revive regional trade and to attract new investment by restoring the historic transportation route linking South Africa's landlocked northern provinces and their nearest port in the Mozambique capital of Maputo. p

Since the launch of the MDC in 1996:

  • The N4 highway linking South Africa and southern Mozambique has been upgraded into a modern toll route by a private group.
  • Maputo port is now being operated and developed by an international consortium which is investing an initial US$70 million to upgrade the facility.
  • South Africa's rail utility, Spoornet, now runs the entire line between South Africa and Maputo, giving exporters and importers a seamless transportation route.
  • Growing numbers of South African companies are already using Maputo port, and many more are strongly considering using the facility.
  • Electricity and telecommunications links between South Africa and Maputo have been upgraded
    Maputo is industrializing, with the establishment of the Mozal Aluminium plant - the world's third largest - an industrial park, and numerous other investments in the city.
  • Nelspruit, capital of neighbouring Mpumalanga province in South Africa, has burgeoned into a regional service centre.

Only one of the MDC's original objectives remains to be fully realized. This is the establishment of an efficient, one-stop border post between Mozambique and South Africa. Various upgrades have been made to the border post, but much more needs to be done before it is able to fully meet the demands of commerce and industry. However, increasing co-operation is taking place between the South African and Mozambique governments to maintain incremental improvements to the border post and to finally establish a one-stop facility.

The historical transport route between South Africa’s landlocked northern provinces and their nearest port of Maputo has been re-established. Policies have been liberalised and infrastructure and services upgraded to improve the business environment along the Corridor.

In an extraordinary response, private sector investment to the value of US$6 billion has been crowded-in to create an economic development momentum which will impact on the area positively for many years to come.

If you are interested in investing on the Maputo Development Corridor, contact:

Centro de Promoção de Investimentos -
CPI (Investment Promotion Centre)
Tel: +258 21 780 9905
e-mail: cpi@cpi.co.mz
website: www.cpi.co.mz


Mpumalanga Economic Growth Agency, formerly Mpumalanga Investment Initiative
Tel: +27 13 752 2440
e-mail: anton@mega.gov.za

 

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