World Bank grants funding to Mozambique

29 December 2015

The World Bank has approved a loan of US$70 million to Mozambique in direct support to the State Budget for 2016 and the five-year programme of the Mozambican government, the bank said in a statement.

The funds will be provided by the International Development Association (IDA), the World Bank Group agency that grants subsidised loans to developing countries.

The funding consists of a soft loan of US$35 million and a donation of equal value, granted under the 11th poverty reduction programme.

In a statement, the World Bank noted the high growth rates of the Mozambican economy in the last two decades, with an annual average of 7.0 percent, but warned there had been few structural changes in the economy resulting from this growth.

In concrete terms, there had been little industrialisation of the Mozambican economy, with the statement noting the weight of the industrial sector in the economy rose from 13 percent in the 1990s to 16 percent in the 2000s, before it dropped back to 10 percent from 2010 to 2014. (macauhub/MZ)