The World Bank has adopted a new strategy for Mozambique that provides indicative funding of US$1.7 billion to be disbursed at an average of US$410 million over four years, according to a statement issued on Friday.
The strategy focuses on a set of objectives reflecting the five-year plan of the Mozambican government, the development priorities identified in the World Bank Group’s diagnosis and the comparative advantages of the institution.
The statement issued in Maputo reports that the resumption of support for the State Budget, interrupted as a result of the discovery of hidden debts, will depend on Mozambique’s progress in restoring debt sustainability and an adequate budgetary and macroeconomic framework.
The document quoted by the AIM news agency said that the strategy was developed in dialogue with the Mozambican authorities and validated through a series of consultations with stakeholders such as the private sector, development partners and civil society.
The World Bank’s director for Mozambique, Mark Lundell, is quoted in the statement as saying that this new strategy is approved at a crucial time for Mozambique, as it needs to prepare and position itself as a resource-rich country and begin to develop a more diversified and productive economy.
The focus of the World Bank is now on how to help Mozambique deal with the macroeconomic consequences of the undisclosed debt and restore confidence, and it will do so in coordination with the International Monetary Fund (IMF), making use of budgetary consolidation and debt management advisory services, among other instruments.
The statement said that the International Development Association, which will provide the announced funds, and the International Finance Corporation will work together to stimulate and foster the private sector, particularly in key sectors such as agriculture (and its value chain) and energy. (macauhub)