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Mozambique and the AfDB

Since its first project in 1977 in Mozambique, the Bank Group has regularly provided significant and diversified support to the country’s development efforts characterized by a well-balanced sector distribution: agriculture, US $568 million (28%); transport, US $300 million (15%); multi-sector, US $629 million (31%); water and sanitation, US $145 million (7%); power, US $128 million (6%); social, US $111 million (5%); communications, US $55 million (2%); industry/mining, US $47 million (2%); and finance, US $22 million (1%). To date, the AfDB Group (ADB, ADF and NTF) has provided and approved 81 operations. Total commitments stand at US $2 million (April 2013).

However, AfDB has also been committed to a non-lending program that has resulted in Economic and Social Work (ESWs) on topics ranging from water and sanitation (i.e. preparation of National Rural Water Program, study on decentralization in the water sector, beneficiary assessment of community perspectives), agriculture development, Extractive Industries Transparency Initiative (EITI), Public Expenditure and Financial Accountability (PEFA) Assessment, the micro-insurance for rural livelihoods protection, and the Mozambique Green Economy Action Plan.

The Government’s Poverty Reduction Strategy 2011–2014 (PARP) has a strategic focus on the promotion of inclusive growth. The strategy has two overarching themes of macro-economic stability and good governance, and is structured around three main objectives:

  • Increase in agricultural and fisheries production and productivity
  • Employment generation
  • Social and human development

The Bank Group’s Country Strategy for the period of 2011 to 2015 is aligned with the Government’s poverty reduction strategy and responds to the prevailing country’s development challenges through the following pillars: (i) Enhanced private sector competitiveness through infrastructure development and (ii) Governance in support of inclusive growth.

The current project portfolio for Mozambique consists of 17 projects valued at US $636 million, with a disbursement ratio of 30.88%. Transport is the largest sector intervened with 48% of the approved amount, followed by agriculture (15%), power (9%), mining/quarrying (6%), water supply and sanitation (6%), finance (2%) and social (1%). The general budget support approved for the period 2011 to 2013 represents 14% of the portfolio, valued at US $93.6 million. In addition to the current projects, the Bank has on the pipeline projects to be financed by the Strategic Climate Fund (SCF), the Global Agricultural Fund (GAF), Nigeria Trust Fund (NTF), and the Sustainable Energy Fund for Africa (SEFA), as well as AfDB non-sovereign projects. The Bank is preparing a Domestic Resource Mobilization and a Geological and Mineral Study for Mozambique.