By Fostina Mkandawire

Maputo, August 14, Mana: Malawi and Mozambique on Wednesday signed crucial Memorandum of Understandings (MOU) aimed at improving the energy sector and boosting trade of the two countries.

Speaking during the signing ceremony, which took place at the office of the President of Mozambique in Maputo, Chakwera said the signing of the trade agreements between Malawi and Mozambique is key in enhancing the economic relationship between Malawi and Mozambique.

"I am optimistic that the opening up of the Nacala Port to transport fuel and petroleum products from Mozambique to Malawi will reduce transportation costs of petroleum products and also the energy agreement will reduce black outs," Chakwera said.

Chakwera together with his counterpart President Filipe Nyusi witnessed the signing ceremony of the Memorandums of Understanding on energy being formalized by Energy Ministers of Malawi and Mozambique.

Under the agreements, Malawi seeks to negotiate for a convenient border post, simplified trade regimes, equal treatment of transporters, and tightened security to reduce the crossing of boarders using uncharted roots.

President Chakwera said it was pleasing to note that Malawi and Mozambique bilateral ties are now stronger than ever, a development that is beneficial to the people of Mozambique and Malawi.

In his remarks, President Nyusi said the two countries will collaborate to ensure these agreements become practical so that the people of the two countries benefit.

"Key sectors that are crucial to the development of our two countries have been thoroughly scrutinized such as agriculture, energy and transport, much focus has been given to the transport and energy sector," he said.

Nyusi mentioned that the Government of Mozambique will continue supporting the joint project of construction of the 218-kilometre Malawi-Mozambique Interconnector Project and Matambo Substation as part of the Mozambique-Malawi Interconnection Project (MOMA).

The Mozambican President expressed dismay at the current trade volumes between Malawi and Mozambique which are relatively low despite the proximity of major commercial and industrial hubs of the two countries.

“I can confidently say that we have allocated a space at Nacala Port for Malawi to be spearheading transportation of products to minimize traffic and cargo taking too long to reach Malawi," he said.

On this point Nyusi revealed that a one stop boarder post will be operationalized at Mwanza boarder in Malawi to further boost trading activities between the two countries.

While in Mozambique President Chakwera was taken on a learning visit to Boane district to appreciate industrial activities at Beluluane Industrial Park.