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Much of the debate on South Africa’s new wave of post-Apartheid investment in Africa centres on the impact on host countries, namely, its beneficial or deleterious nature. While these concerns are important, the sub-national regional effects of this investment are less well researched. Provinces within national boundaries are affected in significant ways by the cross-border flows of South African and other investment, particularly the cross-border cities and towns that benefit from the increased interaction. The cities of Nelspruit in the Mpumalanga region of South Africa and the Mozambican capital Maputo are examples of cross-border cities whose character has been dramatically transformed by their connections with their neighbours. State-led investment in the Spatial Development Initiative (SDI) of the Maputo Development Corridor (MDC) has acted as a conduit in facilitating cross-border flows and has created a dynamic set of social processes within the cities and the sub-national region (Mpumalanga and Maputo Provinces). Even though many of the grandiose spin-offs promised in the early days of the MDC have not materialized, there is no doubt that it has acted as an economic catalyst for the local economy. For example, in December 2006 there was a 44 percent increase in passenger flows through the Lebombo/Ressano Garcia border post and a 10 percent increase in traffic volume on the MDC toll road (N4) compared to December 2005 (MCLI, 2006:1). The Spatial Development Initiative (SDI) programme between the Mozambique and SouthAfrican governments emerged from an agreement in 1995 to re-establish the transport axis between Maputo and Johannesburg as part of an attempt to revitalize southern Mozambique. The SDI concept grew to encompass a range of targeted interventions by central governments, initially within South Africa, but soon extending into the whole of southern and east Africa, with the stated intention of unlocking economic potential and facilitating private investment and job creation in a localised area or region. The Maputo Development Corridor was the prototype SDI development corridor, and to date the most advanced in the region. The Maputo Development Corridor SDI was the first of the SDIs to be implemented in 1995, following the peace agreement in Mozambique and the election of a democratic government in South Africa. The transport ministers of the two countries, Mac Maharaj and Paulo Muxanga, set in motion the MDC initiative as a

The impact of regional integration initiatives and investment in a southern African crossborder region: The Maputo Development Corridor