The African Development Fund, an entity of the African Development Bank (AfDB), approved financing of US$20 million to improve the business environment and boost smart agriculture in Mozambique, the institution announced today.
“This financing is the first of two successive operations to support the general budget for the fiscal years 2023 and 2024, each worth around 20 million dollars” (almost 19 million euros), indicated the Fund, which manages ADB concessional loans, in a statement.
The support aims to create a “favorable environment for the private sector” for economic recovery and “green growth”, as well as strengthening the “efficiency, accountability and transparency of public expenditure”.
“It will allow Mozambique to rationalize the regulatory framework and investment facilitation processes that promote the development of the private sector and attract investment in climate-smart agriculture”, adds the Fund in the document.
On the other hand, with this support, the ADB wants to stimulate the development of agribusiness and finance efforts to integrate gender and climate action initiatives.
“The program has a strong focus on private sector development, with particular emphasis on increasing the participation of this sector in key areas, particularly agribusiness, and a strong potential for job creation, including for women and young people, and is expected, therefore, that it has a positive impact on development,” said Leila Mokaddem, director general of the bank’s Southern African Regional Development and Business Execution Office, quoted in the statement.
Official data indicate that the active portfolio of the African Development Bank Group in Mozambique stands at 1.19 billion dollars (1.11 billion euros), with the areas of energy, transport and agriculture being among the priority areas.