The African Development Fund (ADF), the African Development Bank’s (AfDB’s) concessional lending arm, has approved a grant of $19.98-million to finance the implementation of Mozambique’s Economic Acceleration and Governance Support Programme.
This funding is the first of two successive general budget support operations for fiscal years 2023 and 2024, each worth about $20-million.
The programme will support reforms in two broad areas. The first of these is improving the private sector enabling environment for economic recovery and green growth. The second is strengthening the efficiency, accountability and transparency of public expenditure.
The programme will enable Mozambique to streamline the regulatory framework and investment facilitation processes that foster private sector development and attract investment in climate-smart agriculture.
It is expected to help stimulate the development of agribusiness and small, medium-sized and microenterprises (SMMEs), as well as finance efforts to mainstream gender and climate action initiatives into economic development. It will also strengthen public financial management, particularly internal controls, public procurement and debt management functions.
Numerous reform measures are supported by the programme. This includes securing the government’s approval of the 2030 Agricultural Development Strategy and 2022 to 2026 Investment Plan.
The programme also supports new legislation designed to strengthen the legislative regime of the cashew nut value chain by adapting it to the current requirements of national and international markets.
“The programme has a strong private sector development focus, with particular emphasis on enhanced private sector participation in key sectors, particularly agro-industry, and strong job creation potential, including for women and youth, and is therefore expected to positively impact on socioeconomic development in Mozambique,” says AfDB Southern Africa regional development and business delivery office director-general Leila Mokaddem.