Africa-Press – Mozambique. Mozambique secured external donations of US$110.8 million in the first six months of the year, according to data from a government implementation report accessed by Lusa this Thursday.
According to data from the Ministry of Finance, US$100 million was mobilized during this period from the World Bank for the Accelerating the Transformation of Access to Sustainable and Clean Energy in Mozambique (ASCENT) program, which closed in May.
In addition, another grant of US$10.8 million (€9.1 million) from the African Development Bank (AfDB) for the Climate Resilient Food and Nutrition Security for Women, Youth, and Smallholder Farmers (CREFONS) program, closed in January.
“During this period, no [external] credit agreements were signed,” the document adds.
The World Bank will move forward with a five-year partnership with Mozambique, focusing on tourism, energy, and youth training, the institution’s president announced on July 20 in Maputo, reiterating the urgent need to stabilize the country’s financial situation.
“The first thing Mozambique must do is make an effort to stabilize its macro-fiscal situation. Because if we don’t do that, it will be very difficult to provide stability to a population and attract the private sector,” said World Bank Group president Ajay Banga, in response to questions by Lusa at the end of a two-day visit to the country.
“You have a young and growing nation. And that is your dividend,” he emphasized, highlighting the priority of “dignity” in providing employment for the population and training young people: “We don’t have 30 years to do this correctly. Because if young people don’t have hope, they will do things we don’t want, including migration to other places and instability.”
Banga, who had held a meeting on the previous day in Maputo with Mozambican President Daniel Chapo, argued that it was necessary to “give an opportunity” to young people and the private sector that creates jobs.
“I think there are four or five things we, as an institution, can do with Mozambique. Create a new national partnership framework, a five-year vision, help with energy, with the corridors [three, which connect the ports to the interior and neighboring countries], with agriculture and small businesses, with training, and with tourism,” he detailed.
“You have sun, gas, and hydroelectric power. You have the capacity to generate electricity (…), they are one of the largest suppliers to the southern African energy grid. There is a huge demand for electricity in other countries, but in most cases, there is a shortage. Therefore, the possibility of earning foreign exchange and, at the same time, becoming a regional electricity integrator is enormous,” emphasized the World Bank president.
Ajay Banga highlighted Mozambique’s commitment to tourism and the contribution the World Bank can make in this new partnership, stating that it is “a country blessed” with beaches and “good people”.
“Tourism is the biggest job multiplier for every dollar invested. And I think he [Daniel Chapo, the Mozambican president] is very focused on that, and rightly so. They already have a good tourism industry. I’m talking about multiplying that value. We’ll work with him on a tourism plan that encompasses business and conference destinations, social and wedding destinations, and, finally, high-value sustainable tourism. Once again, they have all the necessary attributes for that: wildlife, beaches and golf courses,” he said.
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