The African Development Fund, an entity attached to the African Development Bank (AfDB), has given the green light to significant funding aimed at promoting an enabling business environment and stimulating smart agriculture in Mozambique, as announced today by the institution itself.
The funding, which marks the first of two planned phases of budget support for the 2023 and 2024 fiscal years, each of around 20 million dollars (about 19 million euros), stems from the Fund's desire to promote strategic measures that directly benefit the Mozambican economy. This action, managed through the AfDB's concessional loans, aims to establish a favourable context for the private sector, thereby stimulating economic recovery and encouraging sustainable development, together with more effective and transparent public fiscal management.
Following this funding, Mozambique will be able to improve the regulatory framework and the procedures that facilitate investment, fostering the expansion of the private sector and attracting investment into environmentally sound agriculture. This initiative will be vital not only to encourage the development of agribusiness, but also to foster the integration of strategies that prioritise gender equality and climate protection measures.
Leila Mokaddem, who holds a senior position in the bank's Southern Africa Regional Development and Business Delivery Office, pointed out that the programme places a strong emphasis on private sector development. The focus is on broadening this sector's participation in crucial areas, especially agro-industry, thereby boosting job creation, including for women and young people, with a positive expectation regarding the impact on Mozambique's future development.
At present, the African Development Bank Group's active portfolio in Mozambique is estimated at 1.19 billion dollars (approximately 1.11 billion euros), with energy, transport and agriculture standing out as priority areas for investment.
