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Lusa - Business News - Mozambique: World Bank approves $100M from IDA for project to support companies

Maputo, May.13,2021(Lusa)-The World Bank has approved a financial donation of $100 million (€83 million) from the International Development Association (IDA) for a Mozambican government project to support companies in the country, the bank said in a statement on Thursday.
The project, entitled Ligações para a Diversificação Económica (Linkages for Economic Diversification), aims to support micro-, small and medium-sized enterprises in becoming suppliers of larger companies, the World Bank explained.
The support also aims to serve growing conurbations in central and northern Mozambique, "thus promoting linkages and economic diversification," it added in a statement.
"Mozambique's growth has been driven by Foreign Direct Investment in capital intensive industries, which has not translated into adequate levels of job creation," said the bank's director for Mozambique, Idah Z. Pswarayi-Riddihough.
Supporting smaller businesses "is a key factor for economic diversification, job creation, inclusive growth and mitigation of fragilities," she went on. "This is precisely the aim of this project."
The project's priority geographical areas include Cabo Delgado, Nampula and Tete provinces, "where poverty rates are high and opportunities for economic linkages are significant," according to the bank, which notes that the operation is aligned with "the new focus on conflict prevention and building resilience of World Bank activities in Mozambique."
The new support comes after the World Bank in April announced $800 million in support for Cabo Delgado in liaison with the government's own Northern Integrated Development Agency (ADIN) - which in turn said it expected a further $300 million, bringing the total to $1.1 billion for emergency and development support for that region.
Armed groups have terrorised Cabo Delgado since 2017, with responsibility for some attacks claimed by the local affiliate of Islamic State, in a wave of violence that has claimed more than 2,500 lives, according to the ACLED conflict registration project, and displaced 714,000 people, according to the government.
An attack on the town of Palma on 24 March, near a major natural gas processing complex that is under construction, left dozens of people dead and more injured, with no official tally so far announced.
The authorities have since said that they have taken back control of the town, but the attack prompted Total, the France-based multinational overseeing the project, to abandon the compound. The complex was scheduled to start production in 2024, with much of Mozambique's expectations for economic growth over or the next decade tied to it.

LFO/ARO // ARO.
Lusa

Agency : LUSA
Date : 2021-05-14 10:05:00

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