African Development Bank grants Mozambique US$240 million

15 February 2006

Maputo, Mozambique, 15 Feb – The African Development Bank (ADB) is set to grant Mozambique US$240 million in the next few years, to boost the country’s state budget and support projects to encourage private enterprise, the ADB’s president, Donald Kaberuka said Tuesday.

Kaberuka, speaking after a meeting with Mozambique’s prime minister, Luísa Diogo, said that the support was a reflection of, “the good progress in the ADB’s operations in Mozambique,“ and that, “it would make it possible to expand them,” in the next few years.

Kaberuka’s visit was also used to sign a memorandum of understanding with Mozambique, under the terms of which the ADB has become the 18th institution to join the common financing mechanism for the Mozambican state budget.

Last week, Mozambique signed a memorandum of understanding with Norway for US$50 million in funding every year until 2010, for cooperation projects.

Norway also said it had formally granted US$13.5 million to relieve some of Mozambique’s debt to international lenders, as part of an agreement with the World Bank. (macauhub)