A study prepared by the consultancy firm Cooningarth Economists, in partnership with Standard Bank, estimates that the modernization and expansion of the Port of Maputo, responsible for more than 60% of the Maputo Logistics Corridor (CLM) goods traffic, will result in an annual contribution of about $345 million to the Gross Domestic Product (GDP) by 2058.

The study also says that it will have broader macroeconomic impacts on tax revenues, job creation, household income and trade flows.

The document also indicates that the government could receive $79 million annually in taxes (direct and indirect) related to the project, and more than $526 million in additional taxes associated with the increased economic activity (trade volume) resulting from the modernization and expansion of the port, with the fiscal impact being approximately $605 million on average over the project period.

The entire value chain is expected to contribute $824 million (about 5.8% of Mozambique's current GDP) and $1.2 billion on average annually, to the Mozambican and South African GDPs, respectively, with 133,000 additional jobs to be sustained in Mozambique and 67,000 in South Africa.

In addition, the investments in the Port are expected to increase the income of Mozambican and South African households by $437 million and $777 million, respectively.

The paper also points out that the above estimates are based on the current inefficiency in managing cargo flows at the Lebombo/Ressano Garcia border crossing, so significant additional benefits can be obtained once the constraints are alleviated.

The Port of Maputo is a key catalyst for trade in the Mozambican economy and in other countries in the SADC region. The Port is an integral part of the Maputo Logistics Corridor, which includes the Ressano Garcia Border Post, railway lines from Maputo to Gauteng and the National Road Number Four (N4).

The main function of the CLM is to facilitate the transport of freight from South Africa and the "hinterland" countries. The main commodities transported along the corridor are minerals (raw and processed) and agricultural products.

Although the minerals exported come mostly from South Africa, it is expected that with the modernization and expansion of the port more countries in the region (Zambia, Zimbabwe and the Democratic Republic of Congo) will use this important infrastructure to boost their economies.

Currently, the Maputo Logistics Corridor moves/handles, on average, 1600 truckloads per day, representing about 30 million tons per year, but with a growing trend.

In addition to the socio-economic impact, the study focused on the consequences of the mobility restrictions that the Ressano Garcia border crossing represents for the efficient and seamless operation of the Maputo Logistics Corridor, which feeds the Port of Maputo.

According to the study, the main constraints are related to bureaucracy in customs, tax authorities, and other government bodies and departments. It also stresses that the problems cannot be attributed only to the lack of infrastructure.

Also with regard to the Ressano Garcia border crossing, the study recommends reducing bureaucracy and investing in the modernization of technological infrastructure and the railway system, including rolling stock.

It also recommends the introduction of the one-stop station at Ressano Garcia, and the implementation of the African Continental Free Trade Agreement.

Additionally, the study suggests the introduction of a cargo pre-clearance system designed to speed up trade and reduce waiting time by pre-clearing cargo before it arrives at the border, coordinating inspections, and improving risk information sharing.