Nacala corridor revival boosts tax collection
…MRA collecting K2 billion monthly at Liwonde Inland Port
Malawi Revenue Authority says the increase of traffic of cargo on the Nacala Development Corridor has enabled it to collect about K2 billion monthly in tax revenue this fiscal year, up from K500 million recorded in the previous year.
Speaking on Thursday during a media tour of the Liwonde Inland Port in Machinga, MRA marketing communications manager Wilma Chalulu said so far shipments such as fertiliser, fuel, wheat and other bulky raw materials that used to be ferried from the port of Nacala in Mozambique by road are being transported into the country by rail.
She said: “The revival of rail transport has been significant to MRA as revenue collection at our Liwonde Station has increased.
“For instance, last year, we used to collect about K500 million monthly, but from January this year, we collected about K2 billion.”
Chalulu said the Liwonde Inland Port so far receives on average about 10 000 metric tonnes (MT) of fertiliser monthly, 12 000 MT of wheat and 20 000 MT of clinker for cement mix.
“The port also handles transit coal from Moatize to Nacala of about 1.5 MT monthly. About 2 000 MT of coal for Malawi was shipped last month and we are expecting 22 000 MT this month,” she said.
In terms of fuel imports, Chalulu said Liwonde port was so far handling about- 3 million litres monthly while some 300 containers monthly pass through it to inland stations in the country.
On October 6 2023, Malawi signed a trilateral agreement with the governments of Zambia and Mozambique to revive the Nacala rail corridor and transport their cargo along the route to create economic opportunities for people in the three countries.
The country’s President Lazarus Chakwera and his counterparts Filipe Nyusi of Mozambique and Zambia’s Hakainde Hichilema signed the agreement at Nacala on behalf of their governments.
Chakwera said he believed the port is a solution to landlocked countries and would offer substantial economic benefits.
“Such benefits include reduced transportation time and costs, considering Nacala’s proximity to Malawi. The port is also expected to stimulate economic activity among the three countries,” he said.
The Nacala Port is the closest port to Blantyre (about 700 kilometres-km) and Lilongwe (about 1 180 km) and the most cost-effective in principle, but was largely overlooked by businesses and transporters because of the extended turnaround time caused by a dilapidated railway line.
The media visit seeks to broaden the editor’s understanding of MRA operations and systems.
Editors Forum secretary general Gracian Tukula said the tour is timely since it provides the necessary insights and foresight for editors to fully understand MRA operations and taxation issues.
“That knowledge is important because it helps us make informed decisions when conceiving aand pitching stories related to tax administration in the country,” Tukula said.
