Mozambique: More than €134 million from the World Bank for this year’s State Budget

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Mozambique: More than €134 million from the World Bank for this year’s State Budget

1:12 CAT | 10 Jun 2025

File photo: Rádio Moçambique

The World Bank will contribute 9,585 million meticais (€134.4 million) to Mozambique’s State Budget this year, equivalent to 0.6% of GDP, according to government data compiled by Lusa.

According to a government report, the World Bank will maintain support for the Mozambican State Budget at the same amounts as in 2024, but plans to increase support in the form of program financing by 1.2 percentage points, which this year, according to the government, will rise to almost 29,973 million meticais (€420.3 million), the equivalent to 1.9% of Mozambican gross domestic product (GDP).

The Mozambican government also expects a 37.8% increase in donations to be received from other institutions this year, to US$909.9 million (€802.5 million) and a total amount of US$468.3 million (€413 million) in external loans.

On 16 April last year, World Bank Group President Ajay Banga highlighted Mozambique’s role as the basis of the electricity market in southern Africa, after a meeting in Washington with then Mozambican president Filipe Nyusi, promising new partnerships with the country.

“We had a good discussion about the work being done, the results of the economic development that Mozambique is trying to achieve, the improvement in economic growth, the improvement in inflation. But most importantly, we discussed the opportunity for young people and their future and how, if we invest in young people, this will become the future of the country,” Ajay Banga told journalists after meeting with Filipe Nyusi in Washington.

At the meeting held at the World Bank headquarters in the US capital, the two leaders discussed “their [young people’s] importance for employment and how to create jobs with certain assets that Mozambique is already doing a good job with, such as energy and electricity” Banga said.

Mozambique has not only improved “access to electricity for its own population – and there is more to come – but it is also becoming a base for the electricity market in southern Africa, an excellent step forward,” he added.

The president of the World Bank Group then argued at the time that there was still “a lot that the government and the private sector can do together”, not only in electricity.

“Including tourism, infrastructure, everything is aligned to create jobs for the future of our world, which is the young people. So I want to congratulate the president and his government for the work they are doing. I look forward to more joint partnerships,” Banga said.

Source: Lusa