Secretary of State Colin L. Powell Observes Nacala Signing Ceremony

Secretary of State Colin L. Powell observed the signing of a Memorandum of Understanding of Joint Cooperation on June 27th among the governments of Mozambique, Malawi, and Zambia, and the Overseas Private Investment Corporation.

President Joaquim Chissano of Mozambique, President Levy Mwanawasa of Zambia, and Vice President Justin Malewezi of Malawi observed for their respective countries. Dr. Peter Watson signed for the Overseas Private Investment Corporation.

The Overseas Private Investment Corporation will provide nearly $30 million in financing to rehabilitate the port and rail facilities of the Nacala Corridor. The rail line runs from the deepwater port of Nacala on the Indian Ocean in northern Mozambique through Malawi to eastern Zambia.

This will be the first integrated port and rail operation to be operated by the same concession in Africa and represents a new era for U.S. investment in Africa. The efficient operation of the Nacala line will have a substantial multiplier effect as transportation costs and times will fall, encouraging investment in diverse areas such as agriculture and mining to the three countries.