Mozambique could receive $4 billion from the World Bank for development projects – OpEd – Eurasia Review

The World Bank, one of the five international organizations that provide leveraged loans to developing countries, began the process of public consultations last June for the adoption of a new country partnership framework with the Mozambique for the period 2023 to 2027.

The objective is to define a consensual program that reflects the strategic vision of all social strata. This involves the Maputo office of the World Bank discussing extensively and extensively with representatives of civil society, universities and trade unions in Mozambique.

After the process, Mozambique could receive $4 billion from the World Bank for development projects in targeted priority sectors, including funds for strengthening the health, education and empowerment sectors. women. It focuses on development programs aimed at reducing poverty and creating jobs.

“The amount can still be increased, depending on the resources that can be made available by the International Development Association (IDA),” said Paulo Correa, World Bank program manager for Mozambique.

Paulo Correa, however, pointed out that 75% of the approximately $4 billion previously made available for development projects by the World Bank had yet to be used. The World Bank is the largest and best-known development bank in the world and an observer in the United Nations Development Group.

In the first quarter of 2022, the International Monetary Fund (IMF) announced a package of new funded programs for Mozambique, six years after the lender halted previous deals following a financial scandal involving three linked fraudulent companies. to security and two banks. – Credit Suisse and VTB of Russia, based on illicit loan guarantees issued by the government under former President Armando Guebuza.

Popularly known as the “hidden debt” scandal involving US$2.7 billion (€2.3 million), the financial scandal happened in 2013, and the case has since left the image of a country corrupt and brought in a senior government official to testify as a witness in the controversial trial. This prompted 14 foreign donors, including the IMF and the World Bank, to cut aid to Mozambique.

As the country struggles to contain the frequent Islamic State-linked insurgency and rising kidnappings of big businessmen, the IMF has reached an agreement on a $470 million facility through 2025 and plans to implement development programs in Mozambique.

Funds from European Union members and outside organizations have been pouring into Mozambique in recent years. With the long list of external countries and international organizations (which take a long time to list them all here) active and contributing concretely to sustainable economic growth in Mozambique.

Norway is providing $3.1 million in support to strengthen sexual and reproductive health (SRH) and gender-based violence. The Swedish government cooperates with Mozambique in the areas of renewable energy and also provides access to finance through the Climate Fund.

The Mozambican government and the European Union (EU) are strengthening their commitment to ensuring economic growth in the northern province of Cabo Delgado. The Food and Agriculture Organization of the United Nations (FAO) has provided seeds to 23,000 families displaced by armed conflict in Cabo Delgado.

The United States Agency for International Development (USAID) has renewed its partnership with to implement US$1.5 billion in funding to promote what it calls a more peaceful, prosperous and healthy Mozambique.

The French TotalEnergies, at the end of January 2022, signed additional agreements which allow a rapid resumption of the natural gas project in Cabo Delgado, in the north of Mozambique. The construction of the gas liquefaction plant, extracted from the seabed (about 40 kilometers offshore) is the largest private investment currently financed in Africa.

The natural gas project was suspended in March 2021 after an armed attack devastated the province, leaving around 3,100 people dead and more than 817,000 people displaced.

Luísa Diogo, who was Prime Minister between 2004 and 2010, and previously Minister of Planning and Finance from 1999 to 2005, explained that the return of foreign actors and international donor organizations signals a reaffirmation of confidence and gives the country the possibility of resurfacing on the international scene.

Mozambique has been grappling with the impact of Covid-19 for two years (2019 to 2022), and is now suffering the consequences of the current Russian-Ukrainian crisis which began on February 24. The Russian-Ukrainian crisis has upset the world economy and created instability. With a population of around 30 million, Mozambique is endowed with rich and extensive natural resources. It is a member of the Southern African Development Community (SADC) and the African Union.

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