The World Bank will provide $450 million (28.8 billion meticais) to support Mozambique’s economic recovery in the face of recent macroeconomic shocks, including the floods that occurred in January and the effects of the conflict in the Middle East. The support will be channeled to the agriculture, education, social protection, mineral resources, water resources, and sanitation sectors, under five memorandums signed this Tuesday, June 9, between the government and the international financial institution.
Finance Minister Carla Louveira explained that the additional financing falls under the existing cooperation mechanisms between Mozambique, the World Bank, and the International Monetary Fund (IMF), aimed at strengthening the country’s capacity to respond to recent economic and social challenges.
“One of the main objectives of this support is to address the macroeconomic shocks that Mozambique has faced in recent months, particularly the impacts of climate change, including the floods that affected the country earlier this year, as well as the effects of the conflict in the Middle East on our economy,” the minister stated.
The minister also announced that a grant of $300 million (19.2 billion meticais) had been approved, to be distributed equally between the education and social protection sectors. At the same time, a memorandum worth $100 million (6.4 billion meticais) was signed to support the development of the mineral resources sector.
According to Carla Louveira, the agreements also include a mechanism for faster disbursement of funds, allowing for the acceleration of project implementation and the stimulation of economic activity, particularly in the agriculture and sanitation sectors, while simultaneously strengthening the population’s access to education and social protection.
“This is an important milestone in the joint effort to promote macroeconomic stability and contribute to improving the living conditions of Mozambicans,” she emphasized. For his part, Paschal Donohoe, Managing Director of the World Bank, stated that the agreements reflect a strategy focused on skills development and strengthening the country’s productive sectors.
“The additional financing will support Mozambican farmers, who play a key role in the national economy, by improving market access and investing in increased productivity and their future,” he said.
During a meeting with World Bank President Ajay Banga, President Daniel Chapo argued that increased investment is essential to address challenges such as climate change and terrorism, emphasizing that “peace and development are key factors in attracting private-sector investment.”
In addition to this financing package, the World Bank plans to mobilize $2.5 billion (160 billion meticais) for Mozambique over the next five years, with investments directed toward strategic sectors such as energy, agribusiness, and tourism, which are considered fundamental for stimulating economic growth and job creation.
Source: Lusa
