AfBD triples support to Mozambique, grants US$15 million to drought victims

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AfBD triples support to Mozambique, grants US$15 million to drought victims

8:28 CAT | 06 Apr 2016

The African Development Bank (AfDB) hopes to triple its financing of projects in Mozambique over the next two years, ADB chairperson Akinwumi Adesine announced in Maputo on Monday after an audience with Mozambican President Filipe Nyusi.

Currently the AfDB is financing a portfolio of 19 projects, in the areas of Transport, Energy and Sanitation, totalling US$585 million. But Adesine said he wants this figure to reach US$1.7 billion by 2017.

“Between 2016 and 2017 we shall increase the level of support we provide to Mozambique in the order of US$1.7 billion in various areas, particularly agriculture”, he said. He believed Mozambique’s agricultural potential is such that it could become one of the largest granaries for all of Africa.

“We want to assist Mozambique in the industrialization of its agriculture”, he said. “Our intention is to help the country diversify its economy”. Other areas of focus for the AfDB would remain energy and transport. Adesine hoped that Mozambique would increase its capacity to provide electricity to its neighbours, such as Zambia and Malawi.

US$15 million for natural disasters

Adesine told reporters that in the meeting with Nyusi he had announced the AfDB’s intention to grant US$15 million to assist the victims of the current natural disasters in Mozambique, notably the drought striking much of the southern and central provinces.

The two men had also discussed the need to create more jobs for young Mozambicans. Adesine said he had expressed the AfDB’s “passion for young people and we guaranteed that the bank will help Mozambique create projects that generate jobs for the youth”.

Adesine said that the AfDB’s soft loans carry an interest rate of only 0.6 per cent. So far Mozambique has been honouring its commitments, he added, and has been repaying the AfDB loans on schedule.

Source: AIM