Mozambique & Zambia Ink $1.5 Billion Pipeline Deal To Boost Fuel Transport

Mozambique and Zambia have signed a memorandum of understanding (MoU) to construct a landmark pipeline between the two countries to transport refined petroleum products.  

The agreement, announced on May 7 by the Mozambican President Daniel Chapo, was signed on the sidelines of the Mozambique Mining and Energy Conference (MMEC), an event gathering industry experts, regional government officials, and other stakeholders, will see the two countries jointly build a major pipeline project estimated to cost $1.5 billion.

When completed, the project is expected to significantly reduce the reliance on truck transportation for fuel to landlocked Zambia, a move anticipated to ease road traffic and potentially lower transport costs.

Speaking at the opening of the 11th Mozambique Mining and Energy Conference in Maputo, President Chapo stated the pipeline will have an annual capacity of 3.5 million metric tons, connecting the Mozambican port city of Beira to Ndola, a major urban center in Zambia.

The comprehensive plan for the pipeline includes the development of necessary storage infrastructure at both the origin and destination points.

President Chapo highlighted the project as a testament to Mozambique's "credibility, security, and reform" efforts in attracting private sector investment to stimulate the nation's economy. He added that such milestones underscore the strength of Mozambique's natural resource reserves.