Africa-Press – Mozambique. The President of the Republic, Daniel Francisco Chapo, and the President of the World Bank, Ajay Banga, held a working meeting in Washington, D.C., this Tuesday, which reaffirmed the Bank’s commitment to supporting Mozambique’s economic transformation, with an emphasis on energy mega-projects, the development of regional corridors, and the implementation of crucial macro-fiscal reforms.
The meeting, held following Ajay Banga’s visit to Mozambique earlier this year, focused on materialising concrete investments and creating a new partnership framework with the country.
The central focus of the discussions, according to President Chapo, lies in the energy sector, where Mozambique aims to position itself as a “hub for electricity supply in the region.” The Head of State highlighted the 1,500 MW Mphanda Nkuwa hydroelectric project on the Zambezi River, for which the country is seeking support from the World Bank.
In addition to hydroelectricity, the Mozambican President mentioned the exploration of natural gas for the construction of power plants, such as the Temane power plant, which is being built with a capacity of approximately 450 MW. The Temane infrastructure is essential not only for strengthening the quality of energy in Greater Maputo, but also for exports to South Africa, aligning with the vision of regional energy leadership.
The Head of State also emphasised the importance of development corridors, namely the Maputo Corridor, the Beira Corridor, and, with particular emphasis, the Nacala Corridor. He considers the latter—linking Mozambique, Malawi, and Zambia—crucial for regional connectivity, as well as being the only viable logistics route for Zambia to export its growing mineral production.
A contribution considered “very important” by the Mozambican leader came from the President of the World Bank, who suggested that the concept of a corridor should be integrated and comprehensive, going beyond roads and railways. The vision involves including the development of agriculture, agro-processing, and the construction of clusters, such as investments in cities, to guarantee genuine economic development along these axes.
The World Bank is a traditional partner of Mozambique, and the meeting also addressed budgetary support and the continuity of financing to the Mozambican state. This support, according to the President of the Republic, will depend on the approval of a new programme with the International Monetary Fund (IMF), a process in which the government team is working “day and night.”
Regarding this partnership, the President of the World Bank Ajay Banga confirmed the progress on the Mphanda Nkuwa hydroelectric plant, and the international financial institution is preparing the guarantees and financing instruments.
Ajay Banga highlighted that the new partnership framework between the World Bank and Mozambique will emphasise the creation of quality of life and jobs in agribusiness, energy, and infrastructure.
President Banga congratulated Mozambique on its progress in utilising its vast energy resources (including sun, water, and gas) and acknowledged the macroeconomic challenges that the President and his government are addressing, particularly the coordination of macro-fiscal balances. The World Bank leader expressed his conviction that Mozambique is “a very beautiful country with many opportunities,” and that what is needed is the opportunity for “strong leadership to realise those opportunities.”
To ensure economic sustainability and continued support, President Daniel Chapo indicated that the World Bank has made recommendations on essential reforms, especially regarding the management of state budget expenditures, broadening the tax base to increase revenue, and investing in digitalisation as a crucial tool for transparency, good governance, and combating corruption.
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