Chinese firms awarded contract to build and operate Machipanda border post

Mozambique has awarded a 25-year concession to two Chinese companies to build and operate a one-stop border post at Machipanda, a strategic crossing linking the country with neighbouring Zimbabwe.

The concession was awarded to Union Portlink Capital and Zhongmei Engineering Group under a public-private partnership (PPP) arrangement, according to Bloomberg. Under the agreement, the Chinese firms will hold a combined 75% stake in the project, while the Mozambican government will own 15% through its state road fund. Local investors will hold the remaining 10%.

Construction of the US$30 million project is expected to begin in October, government spokesperson Inocêncio Impissa said.

Machipanda is one of Southern Africa's busiest trade corridors, providing a vital link between Zimbabwe and the Port of Beira, Mozambique's second-largest seaport. The route also serves other landlocked countries, including Zambia, making it a key gateway for regional imports and exports.

More than 400 freight trucks cross the border each day, transporting goods between the Port of Beira and inland markets. Authorities expect the new one-stop border post to simplify customs and immigration procedures, ease congestion and significantly reduce cargo clearance times, improving the efficiency of cross-border trade.

The project supports broader regional integration efforts under the African Continental Free Trade Area (AfCFTA), which seeks to boost intra-African trade through improved transport infrastructure and more efficient border management.

The agreement also expands the footprint of Chinese companies in Mozambique's transport and logistics sector.

Union Portlink Capital and Zhongmei Engineering Group are already involved in the development of the Beira Port Access Road and the Dondo Logistics Terminal, projects worth an estimated US$160 million. Together with the Machipanda border post, the investments are expected to strengthen transport links between the Port of Beira and key regional markets.

China remains one of Africa's leading infrastructure financiers, funding roads, railways, ports and industrial developments across the continent through state-backed lenders and private enterprises.

For Mozambique, the Machipanda project is expected to reinforce its position as a logistics hub for Southern Africa by improving the movement of goods along one of the region's busiest trade routes.

As trade volumes continue to increase across the region, investments in modern border infrastructure are expected to lower transport costs, improve trade efficiency and enhance the competitiveness of the Port of Beira as a gateway for Zimbabwe, Zambia and other inland economies.