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

The contract was awarded to Union Portlink Capital and Zhongmei Engineering Group under a public-private partnership (PPP) model, according to Bloomberg's report. The Chinese firms will hold a 75% stake, while Mozambique's government will own 15% through its state road fund. Local businesspeople will hold the remaining 10%.

Construction is expected to begin in October at an estimated cost of $30 million, according to government spokesperson Inocêncio Impissa.

Machipanda serves as one of the region's most important trade corridors, connecting Zimbabwe and other landlocked countries to the Port of Beira, Mozambique's second-largest seaport. More than 400 freight trucks pass through the border daily, transporting goods between the port and the hinterland.

Officials expect the one-stop border post to streamline customs and immigration procedures, reduce congestion and shorten waiting times for cargo, improving the efficiency of cross-border trade.

The project aligns with broader regional efforts under the African Continental Free Trade Area (AfCFTA) to improve transport infrastructure and facilitate faster movement of goods across African borders.

The latest agreement further strengthens the presence of Chinese companies in Mozambique's transport and logistics sector. Union Portlink Capital and Zhongmei Engineering Group already have contracts to develop the Beira Port Access Road and the Dondo Logistics Terminal, projects valued at about $160 million.

Together with the Machipanda border post, the investments are expected to improve connectivity between the Port of Beira and major regional markets.

For Mozambique, the border project is expected to strengthen its position as a key logistics gateway for Southern Africa by improving cargo movement through one of its busiest trade routes. As regional trade volumes continue to grow, investments in border infrastructure will be essential to reducing transport costs, increasing trade efficiency and enhancing the competitiveness of the Port of Beira as a gateway for Zimbabwe, Zambia and other inland economies.