World Bank gives Mozambique more aid in 2018

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World Bank gives Mozambique more aid in 2018

8:00 CAT | 03 Jan 2019

In file CoM

The World Bank last year disbursed more money to Mozambique than the previous years.

Deprived of direct external support to the State Budget since April 2016, following the discovery of the so-called “hidden debts” that pushed the country to international discredit, the World Bank Group did not shrink and decided to disburse the highest amount of aid to Mozambique in 2018.

The World Bank channeled $530 million into the country last year, five times more than the amount disbursed in 2017, when the financial commitment of this Bretton Woods financial institution was the lowest ever.

In 2019, according to the official website of the World Bank in Maputo, funding of only US $198 million has been approved to support socio-economic development projects in the country.

Apart from these financial commitments, the World Bank states that some challenges prevail for the country, with emphasis on the restoration of macroeconomic stability, confidence through better economic governance and transparency, including transparency in research on hidden debts.

In addition, structural reforms are needed to support the currently struggling private sector.

Another major challenge for the Mozambican economy is its diversification from the current focus on capital intensive and low productivity subsistence agriculture projects to a more diversified and competitive economy, while strengthening the main drivers of inclusion, quality of education and the provision of health services, which in turn may improve social indicators.

Source: O País