High Commission of the Republic of Mozambique

World Bank will provide US$300 million

Maputo, 12 May (AIM) – The World Bank could disburse, by June, US$300 million in support for the Mozambican state budget.

The World Bank country director for Mozambique, Idah Pswarayi-Riddihough, announced the figure at a Maputo press conference on 11 May, immediately after a meeting with the Mozambican Minister of Economy and Finance, Max Tonela.

She said the priority areas for World Bank investment would be health, education, energy and agriculture. The funding proposal will be presented to the World Bank board by June.

“We are talking about a first instalment of US$300 million, which we hope to take to our administration for approval by 30 June this year. Then we can consider other windows of financing for 2023 and 2024”, said Pswarayi-Riddihough.

The priority areas for those years, she added, would depend on the reforms undertaken by the government.

Mozambique’s new programme with the International Monetary Fund (IMF), she added, could give “a strong signal to the market. Indeed, it will send a strong signal to all of Mozambique’s partners”.

The agreement between Mozambique and the IMF, approved by the IMF Executive Board on Monday, will make US$456 million available to the country. US$91 million will become available immediately.

At the time, Tonela said the agreement with the IMF marked the start of a new phase, leading to the resumption of sustainable growth of the Mozambican economy.