Mozambique: US financing for infrastructure or farming

Login

Register

http://www.clubofmozambique.com/

Mozambique: US financing for infrastructure or farming

8:35 CAT | 17 Apr 2023

in file CoM

Mozambique’s government has chosen the infrastructure, climate change and agriculture sectors as a priority for funding secured by the US external support agency Millennium Challenge Corporation (MCC).

At stake is an amount of US$500 million (€459 million) promised in January by MCC to Mozambican authorities.

Speaking in Washington, Mozambique’s Economy and Finance Minister, Max Tonela, noted the promotion of investment in commercial agriculture, connectivity and rural transport and climate change and coastal development.

“The important and strategic investments to be made in Mozambique under Compact II will certainly be reflected in the agenda of growth, economic and social development and combating poverty, objectives on which Mozambique and the United States of America are in tune,” Tonela said, according to a statement released on Friday.

The support to building resilience, facing the impact of climate change, is an area with a greater need for intervention, Tonela said.

Max Tonela said that “the growing trend towards a more cyclical occurrence of natural phenomena, more destructive and severe”, requires urgent funding actions.

Mozambique’s minister of economy and finance pointed out Zambézia province, in the centre of the country, as the main recipient of projects that will be developed under the MCC funding.

Kennet Miler, MCC director in Mozambique, said that the process of final approval of the funds provided by the MCC is underway.

“Everything is going very well [for final approval of the funds], we have a US$500 million package that is under discussion and we are in the final stages of approval,” Miler said.

Source: Lusa