Emmanuel OchayiIn a move set to catalyze Mozambique’s economic resurgence and foster sustainable development, the African Development Fund (ADF) has greenlit a grant of nearly $20 million.
The funds are earmarked to breathe life into Mozambique’s Economic Acceleration and Governance Support Programme, a comprehensive initiative aimed at jumpstarting the nation’s economy and enhancing governance.
Join our WhatsApp ChannelIn a statement following the approval, Ms. Leila Mokaddem, Director General of the African Development Bank’s Southern Africa Regional Development and Business Delivery Office, emphasized the program’s pivotal role in driving private sector growth and creating opportunities for women and youth:
“The program has a strong private sector development focus, with particular emphasis on enhanced private sector participation in key sectors, particularly agro-industry, and a strong job creation potential, including for women and youth, and is therefore expected to positively impact socioeconomic development in Mozambique.”
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This funding marks the first of two successive general budget support operations, spanning fiscal years 2023 and 2024, each valued at approximately $20 million.
The program will concentrate on two overarching areas of reform: first, enhancing the private sector environment to promote economic recovery and green growth, and second, bolstering the efficiency, accountability, and transparency of public expenditure.
The ambitious initiative aims to streamline regulatory frameworks and investment facilitation processes, with a particular focus on fostering private sector development and attracting investment in climate-smart agriculture.
It is projected to stimulate the growth of agribusiness and micro, small, and medium-sized enterprises while advancing gender and climate action initiatives within the economic landscape.
Additionally, it will strengthen public financial management, with a keen eye on internal controls, public procurement, and debt management functions.
The program’s comprehensive reform measures include securing government approval for the Agricultural Development Strategy (2030) and Investment Plan (2022-2026), enacting a new cashew law to fortify the cashew nut value chain’s legislative framework, implementing legislation to support micro, small, and medium-sized enterprises through tax incentives, and revising the draft investment law to encourage responsible investment practices and streamline investment processes.
As of July 2023, the African Development Bank Group’s active portfolio in Mozambique amounted to $1.19 billion, spanning various sectors, including energy, transport, agriculture, and social initiatives. This investment underscores the bank’s commitment to fostering sustainable development and economic growth in the country.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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