President Daniel Chapo reiterated on Monday, June 8, that the energy sector in Mozambique has been strongly focused on expanding the grid and attracting investments to achieve universal access by 2030, noting that it stands out as one of the most promising sectors.
Speaking during the opening of the World Bank Forum on Fragility in Washington, D.C., the president outlined the major reforms underway in the country aimed at improving the business environment, arguing that energy is crucial not only for fostering industrialization but also for exports to regional partners.
“We have assets in the energy sector, with a focus on natural gas, but in 20 or 30 years, this could come to an end, so we must diversify. It is important to note that gas is not just a fuel; it can also be used to produce fertilizers and boost tourism, logistics, and industrialization,” he stated.
The head of state also argued that investment is the key to overcoming the country’s fragility and major challenges, such as climate change and terrorism, stressing the importance of funding development and promoting peace. “People in Mozambique want to know how to address fragility; Mozambique has many unemployed young people who need skills,” he said.
On the same occasion, World Bank Group President Ajay Banga emphasized the need to better structure the concept of development aid in a more comprehensive manner, focusing on ecosystems rather than large-scale investments in a single sector or industry.
He noted that the World Bank is developing a fragility index to help countries anticipate problems, emphasizing that it is easier to invest in preventing serious issues than to bear the higher costs of financing the resolution of the consequences of fragility.
The World Bank Group plans to mobilize $2.5 billion for Mozambique over the next five years under the new Country Partnership Framework (CPF), focusing on job creation to drive economic growth.
“By focusing on economic corridors and sectors with high job creation potential, such as energy, agribusiness, and tourism, we aim to mobilize approximately $2.5 billion over the CPF period to help Mozambique transform its natural wealth into tangible opportunities and better jobs, especially for young people and women,” the financial institution stated in January.
The World Bank’s new strategy for the country focuses on energy, agribusiness, and tourism, while developing a skilled workforce, strengthening macroeconomic stability, and addressing fragility—to bolster macroeconomic and fiscal stability, improve workforce skills, expand access to energy, revitalize economic corridors, and increase private-sector-led jobs.
