World Bank grants Mozambique 16 million-euro loan

22 June 2006

Maputo, Mozambique, 22 June – The World Bank said Wednesday it had granted Mozambique a 16 million-euro loan to support projects for developing agriculture for smallholders in the Zambezi Valley, in Central Mozambique.

The loan, which was approved by the executives of the World Bank, will be provided under the terms set by the International Development Association (IDA), with a commitment fee of 0.35 percent, a service charge of 0.75 percent over a 40-year period.

A statement from the World Bank in Maputo said that the project, which aimed to increase income for smallholders in selected districts of the Zambezi Valley, would be carried out by providing direct support for those groups and other members of the supply chain.

The project aims to be the driving force behind some development programs in the region financed by the World Bank, namely the second road and bridges project for the Beira railway line, which “will contribute to opening up access to the Zambezi Valley an this improve conditions for the project to succeed,” said the World Bank.

The loan also includes a component for community agricultural and environmental investment to provide financial resources and technical assistance to support public and private investments related to agriculture, particularly communications and storage facilities.

It will also provide assistance to small-scale investment and producers in the agricultural, animal husbandry, aquaculture, and agro-processing sectors and investments in improved management of natural resources (macauhub)