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    You are at:Home»Business»Mozambique Extends Strategic KM4 Concession, Unlocking $2.2 Billion Corridor Investment

    Mozambique Extends Strategic KM4 Concession, Unlocking $2.2 Billion Corridor Investment

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    By Evans Mumba on November 18, 2025 Business, Features, Infrastructure, Latest News, News

    The Government of Mozambique, through the Ministry of Transport and Logistics, has signed a 10-year extension of the KM4 concession with Gestão de Terminais de Serviços Aduaneiros (GTSA), the operator of the cargo terminal and border control facilities in Ressano Garcia. The agreement, finalized on Friday, November 7, is set to trigger a comprehensive investment plan encompassing both critical structural upgrades and significant social development initiatives, marking a key milestone in the modernization of the Maputo Logistics Corridor.

    The renewed concession mandates a substantial investment program focused on boosting logistical efficiency at the border. Planned interventions include the expansion of the terminal’s entry and exit roads to three lanes, the creation of a new exit to significantly improve truck management and traffic flow, the automation of control processes, and the construction of a new terminal exit towards the N4 highway. Additionally, the new concession phase will modernize management systems, digitalize processes—including the introduction of four new fast-track lanes for transit cargo—and foster greater regional integration, promoting a more secure and efficient border environment.

    Beyond the logistical enhancements, the agreement includes a significant social investment component. This features the ground-up construction of a new tourist border post and the development of a residential complex with capacity for 150 public servants assigned to the border. Works for these social projects are scheduled to commence just 30 days after official project approval. Minister of Transport and Logistics, João Matlombe, highlighted the agreement’s dual focus, stating, “This agreement is a clear demonstration that logistical concessions in Mozambique can and should generate shared value. It is not only about improving the flow of trade but also about improving the lives of those who ensure, every day, the functioning of our borders.”

    Minister Matlombe stressed the strategic importance of this extension within the broader framework of the Maputo Logistics Corridor development. He noted that this investment represents “one of the final stages” of the corridor’s development efforts. With the planned investments at the KM4 terminal, alongside ongoing projects such as the expansion of the Port of Maputo and the modernisation of the N4 highway, the total investment across the corridor is projected to reach almost $2.2 billion US dollars. Matlombe affirmed the Government’s confidence in GTSA’s technical and social capabilities.

    Sean Gent, GTSA’s manager, expressed gratitude for the Government’s renewed trust, committing to the future of the Maputo Corridor. “We will invest not only in logistical solutions but also in infrastructure that respects and values the role of public servants and the well-being of neighbouring communities,” Gent stated. This initiative is being hailed as a model of public concession, successfully combining the imperatives of logistical efficiency with a commitment to social responsibility. The extension reaffirms the Government of Mozambique’s dedication to modernising this vital regional trade artery under a cooperative public-private framework, thereby boosting regional economic efficiency and social development.

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