World Bank to disburse US$40 million for agriculture and natural resources development in Mozambique

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World Bank to disburse US$40 million for agriculture and natural resources development in Mozambique

6:08 CAT | 01 Jul 2016

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The World Bank (WB) has approved spending totalling US$40 million (EUR36 million) for agriculture and the management of natural resources in Mozambique, according to a statement sent to Lusa.

The press release indicates that the sum, of which US$26 million (EUR23 million) is a donation, is intended to contribute to the sustainability of natural resources and help improve the living conditions of families in rural communities in Mozambique.

“I am pleased with the approval of this project today, since Mozambique has much to gain from its potential in the agricultural and forestry sectors,” World Bank director for Mozambique, Mark Lundell, is quoted in the statement as saying.

According to Lundell, low productivity, marginal use of improved inputs and labour-saving technologies, poor use of agronomic knowledge and limited infrastructure are some of the factors that hinder the development of rural areas in Mozambique.

Through the project, more than 20,000 households, including women, will benefit directly from increased access to markets, new technology and mechanisation, production inputs and infrastructure as well as land title, the World Bank press release says.

About 100 commercial farmers, including those considered small and emerging, along with 25 small, medium and large enterprises will have access to grants and commercial funding as well as technical support in business development and expansion, the statement adds.

According to the World Bank, two decades of economic growth with few links to the local economy have had a limited impact on poverty in Mozambique. The current economic challenges of the country, it says, highlight the need for further growth in labour-intensive sectors such as agriculture and forestry, which have the potential to ensure more inclusive economic growth.

Source: Lusa