Mozambique to receive $6 billion from the World Bank over 5 years
A senior official at the World Bank said that it aims to provide Mozambique $6 billion in mostly concessional financing over the next five years for its public investment projects.
Last week, the International Monetary Fund warned of the worsening debt dynamics in Southern Africa following an annual review.
Fily Sissoko is the World Bank's?division manager for Mozambique. Madagascar, Mauritius. Seychelles, and Comoros.
Sissoko stated that the World Bank's?financing allocated to support the Government's Development Strategy was "very concessional", and mainly grants.
The Washington-based lender hopes to mobilize an additional $4 billion in funding for the private sectors. Mozambique may receive $921 millions as part of the World Bank’s 21st replenishment International Development Association.
Carla Louveira, Mozambique’s Finance Minister, said: "This partnership framework is essentially designed to ensure macro-fiscal consolidating in order to sustain economic recovery."
The IMF, among others, has highlighted the significant economic challenges facing Mozambique. These include?debt service delays and large, persistent fiscal deficits.
Scientists say climate change has exacerbated the cyclones, and flooding that have hit the country.
(source: Reuters)
