Mozambique received US$499.64 million in external donations during the first nine months of the year, according to data from a government execution report, Lusa reported on Thursday, 27 November.
According to figures from the Ministry of Finance, the country received US$438.2 million in the period under review from six agreements with the World Bank. In addition, another US$61.44 million came from two grant agreements with the African Development Bank (AfDB).
This volume compares with the donation agreements concluded by the end of June, which then amounted to US$110.8 million, according to the previous budget execution report.
The most recent donation agreements, according to the Government, were signed in August with the World Bank for the Transport Corridors for Economic Resilience project, worth US$129 million, and with the AfDB for the Boane–Namaacha Transmission Line (US$43.3 million) and for the Resilient Investment for Socioeconomic Empowerment (RISE) Project (US$18.14 million).
The World Bank will move forward with a five-year partnership with Mozambique, focusing on tourism, energy, and youth skills development, according to an announcement made on 20 July in Maputo by the institution’s president, Ajay Banga, who stressed the urgency of stabilising the country’s finances.
“The first thing Mozambique must do is make an effort to stabilise its macro-fiscal situation. Because if it does not, it will be very difficult to bring stability to the people and attract the private sector. You have a young and growing nation. And that is your advantage,” Banga said, emphasising the priority of ensuring “dignity” in employment and youth training: “We do not have 30 years to get this right. Because if young people have no hope, they will do things we do not want, including migrating elsewhere and causing instability.”
Banga, who met with the President of the Republic, Daniel Chapo, argued for the need to “give an opportunity” to young people and to the private sector, which creates jobs.
“I think there are four or five things that we, as an institution, can do with Mozambique. Create a new country partnership framework, a five-year vision, help with energy, with the corridors [three, which link ports to the interior and neighbouring countries], with agriculture and small businesses, with skills development and with tourism,” he said, reinforcing the call for Mozambique to organise its macro-fiscal situation.
“You have sun, gas, hydroelectric potential. You have the capacity to generate electricity; you are one of the biggest suppliers to the Southern African energy grid. There is huge demand for electricity in other countries, and in most cases there is a shortage. Therefore, the possibility of earning foreign currency and at the same time becoming a regional electricity integrator is enormous,” the World Bank president stressed.
In addition, Ajay Banga highlighted Mozambique’s investment in tourism and the contribution the World Bank can make in this new partnership, describing the country as “blessed” with beaches and “good people.”
