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

The document examines the challenges and opportunities for local and regional firms in the construction of rail infrastructure for coal exploitation in Tete, Mozambique. It finds that lead firms typically prefer multinational corporations, which hinders local capacity building, and suggests that the Mozambican government should partner with South African firms to develop civil construction capabilities and training facilities.

• 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 to entry, including difficulties with financing, supply chain coordination regarding input costs and shortages, and meeting health and safety standards.
• Regional value chains are currently supported by South African construction companies that are price and quality competitive with international firms, including those from China.
• To improve the civil construction sector, Mozambique should establish a state procurement strategy prioritizing local and regional firms, partner with South Africa for construction training facilities, and consider building a steel plant to lower input costs for both countries.

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} }