World Bank announces support for Mozambique’s state budget will resume

30 March 2017

The World Bank will resume support to Mozambique’s state budget this year, and expects to provide US$2 billion over the next five years, announced the representative of the institution, cited by Mozambican daily newspaper Notícias.

Mark Lundell also told the newspaper the World Bank’s policy favors supporting the state budget, and the institution has a portfolio of 25 projects in 17 strategic areas, 11 of which related to development priorities, to carry out over five years.

Lundell said the World Bank’s assistance to Mozambique contributed to robust economic growth, having admitted, however, that it did not have the expected impact on improving the living conditions of the Mozambican population, so the next aid programme will focus on areas with impact on poverty reduction.

The World Bank suspended financial cooperation with Mozambique after the discovery in April 2016 of undisclosed loans of over US$1 billion contracted by the former Mozambican government between 2013 and 2014, without the knowledge of the country’s parliament and international donors.

The International Monetary Fund (IMF) and the major donors to the Mozambican state budget also froze their aid to the country, and asked for an international audit of the public debt before resuming support. The results of the audit are due to be delivered at the end of April. (macauhub)