Evaluating local and regional supplier inputs to mega-infrastructure projects: lessons from the Moatize Railway, Mozambique

This case study examines the capacity of natural resource exploitation to foster local and regional value chains in the construction industry, specifically focusing on the rail infrastructure developed for coal discoveries in Tete, Mozambique.

• Lead firms in mineral exploitation, such as Vale in Mozambique, typically procure from large multinational construction suppliers with existing relationships, which restricts the growth of local capacity. Local Mozambican construction firms face significant barriers, including difficulties with financing, supply chain coordination regarding input costs and shortages, and meeting health and safety standards.
• Regional value chains are currently being developed through the presence of South African construction companies, which are competitive in price and quality compared to international and Chinese firms. The document suggests that the Mozambican government should form regional partnerships with South Africa to assist Mozambican firms in capacity building and establish construction training facilities within Mozambique, as training currently often takes place in South African facilities.
• To improve the localisation and regionalisation of construction value chains, the Mozambican government needs a strategy to develop civil construction capabilities, a state procurement strategy that prioritises local and regional providers, and the use of development financing and resource rents. Additionally, the high cost of inputs indicates that building a steel plant in Mozambique would provide local benefits and lower steel prices for South Africa.

APA

South African Institute of International Affairs (2016). Evaluating local and regional supplier inputs to mega-infrastructure projects: lessons from the Moatize Railway, Mozambique. https://saiia.org.za/saiia-toolkit/evaluating-local-and-regional-supplier-inputs-to-mega-infrastructure-projects-lessons-from-the-moatize-railway-mozambique/

Chicago

South African Institute of International Affairs. Evaluating local and regional supplier inputs to mega-infrastructure projects: lessons from the Moatize Railway, Mozambique. 2016. https://saiia.org.za/saiia-toolkit/evaluating-local-and-regional-supplier-inputs-to-mega-infrastructure-projects-lessons-from-the-moatize-railway-mozambique/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Evaluating local and regional supplier inputs to mega-infrastructure projects: lessons from the Moatize Railway, Mozambique |date=2 June 2016 |url=https://saiia.org.za/saiia-toolkit/evaluating-local-and-regional-supplier-inputs-to-mega-infrastructure-projects-lessons-from-the-moatize-railway-mozambique/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2016evaluating, author = {{South African Institute of International Affairs}}, title = {{Evaluating local and regional supplier inputs to mega-infrastructure projects: lessons from the Moatize Railway, Mozambique}}, institution = {South African Institute of International Affairs}, year = {2016}, month = jun, url = {https://saiia.org.za/saiia-toolkit/evaluating-local-and-regional-supplier-inputs-to-mega-infrastructure-projects-lessons-from-the-moatize-railway-mozambique/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }