Somali Magazine September 20,2023-African continent continues to attract global funding especially on climate smart sector which is perceived by experts as the new gold mine for investors.
Mozambique is the latest recipient of a grant of $19.98 million approved by the African Development Fund (ADF), the concessional lending window of the African Development Bank Group.
This funding is the first of two successive general budget support operations for fiscal years 2023 and 2024, each worth about $20 million.
The programme will support reforms in two broad areas, namely; improving the private sector enabling environment for economic recovery and green growth, and Strengthening the efficiency, accountability and transparency of public expenditure. It will enable Mozambique to streamline the regulatory framework and investment facilitation processes – that foster private sector development and attract investment in climate-smart agriculture.
It is expected to help stimulate the development of agribusiness and micro, small and medium-sized enterprises, as well as finance efforts to mainstream gender and climate action initiatives into economic development. It will also strengthen public financial management, particularly internal controls, public procurement, and debt management functions.
“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,” said Ms. Leila Mokaddem, Director General of the Bank’s Southern Africa Regional development and Business Delivery Office. ”
At the end of July, the African Development Bank Group’s active portfolio in Mozambique stood at $1.19 billion. Investments cover the energy (48.8 %), transport (32.6 %), agriculture (16.8 %) and social (1.6 %) sectors, as well as multi-sector operations (0.2 %).