Business
THE Board of Directors of the African Development Bank Group has endorsed the Bank’s 2023-2028 Country Strategy Paper for Mozambique on 13 June 2023. The new strategy aims to promote the country’s structural transformation by improving fiscal stability, creating decent jobs and generating inclusive growth.
The strategy has two priority areas: fostering improved economic governance and the business environment to facilitate private sector investment and mobilize resources and transforming agricultural value chains by strengthening infrastructure sustainably.
This strategy is the culmination of efforts by the government, development partners, civil society, the private sector and technical experts on the country’s most critical economic reforms to implement in the coming years.
The African Development Bank is working to support the Mozambican Government in consolidating the results of previous and ongoing reforms in economic governance and the business environment. The government is also adopting new regulations and bolstering various administrative processes to improve the country’s fiscal position and stimulate private sector inflows.
“The African Development Bank has been a critical partner in financing the development of our economy. With this new strategy, the Government of Mozambique reaffirms its commitment to work towards strengthening our cooperation considering the objectives we jointly defined for Mozambique,” said Minister of Economy and Finance Max Tonela.
Cesar Augusto Mba Abogo, African Development Bank Country Manager, said, “The approved strategy effectively addresses the challenges and opportunities for fostering inclusive and sustainable economic growth in Mozambique. The extensive consultations conducted with stakeholders, including the private sector, development partners, and civil society, have been commendable. Furthermore, the remarkable co-leadership exhibited by the Government of Mozambique throughout the process has been instrumental in shaping the strategy.”
Implementation of the strategy is expected to lead to (i) greater private sector involvement to boost international trade; (ii) improved investment flows, and (iii) job creation—especially for women and young people. This is expected to have a knock-on effect of raising foreign direct investment to 30% of GDP from 22.7%.
With support from the Bank, Mozambique will stimulate the green economy and transform agriculture to increase the number of competitive industries capable of creating jobs and reducing poverty and inequality. The Bank’s engagement will also help improve livelihoods through investments in the agricultural sector based on a holistic, cross-sectoral approach and the development and modernization of Mozambique’s energy system.
The 2023-2028 Country Strategy Paper for Mozambique envisages establishment of a productive special agro-industrial processing zone by 2028 through the creation of 50 new companies and 200 new cooperatives or groups of external producers. It also projects that new investments will total $100 million. Mozambique’s electricity exports to southern Africa are expected to equal over five gigawatt-hours.
As of 28 February 2023, the African Development Bank Group’s active portfolio in Mozambique comprised 38 operations with a total commitment of $1.21 billion.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).]
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– June 30, 2023 @ 21:45 GMT |
Tags: AfDB Cesar Augusto Mba Abogo Max Tonela.
