World Bank grants Mozambique loans of more than US$100 million

22 April 2013

The Mozambican government and the World Bank have signed three loan agreements in Washington, the funding from which will be used in the mining and gas sectors, social welfare and agriculture, according to a statement from the Mozambican Ministry for Planning and Development.

The first agreement, for the mining and gas sector, worth US$50 million, will focus on improving the impact of those resources on the economy and on reducing poverty, the second, in the same amount, will be used to expand the Productive Social Assistance Programme, which provides temporary monetary assistance to families living in extreme poverty.

In the statement the ministry estimates that around 100,000 people in 40 districts and 5 municipal areas will benefit from this direct assistance.

The third loan agreement, worth US$89.4 million, includes Mozambique, Malawi and Zambia and is intended to support agricultural productivity in the region.

The project is based on the premise that agriculture is the biggest economic sector in the three countries and a great source of income for over 277 million people in sub-Saharan Africa.

In Mozambique the project will focus on rice yields by improving research, including construction of a regional research centre in Namacurra, in Zambézia province. (macauhub)