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AfDB and Mozambique Sign US$ 90 Million Budget Support Loan
Maputo, 17 November 2008 – The African Development Bank (AfDB) Group and the government of Mozambique have signed a US$90 million budget support loan agreement to finance the country’s second Absolute Poverty Reduction Support Program (PARPA II).
The agreement was signed on Monday, 17 November 2008, in Maputo by Mozambique’s Planning and Development Minister, Aiuba Cuereneia, and the AfDB’s Resident Representative in Mozambique, Alice Hamer.
The loan will support the Mozambican government’s efforts in ensuring macro-economic stability, improving governance through public sector reforms and decentralization, and in the establishment of a favourable environment for economic and private sector development. The AfDB’s support complements that of 18 other cooperating partners who provide the country with direct budget support.
The approval of the loan follows the government’s successful implementation of the first PARPA. "The Bank has the confidence that the government will perform even better in the implementation of the second Poverty Reduction Support Loan (PRSL II)," Ms Hamer explained.
She said "this loan should be seen within the context of the other projects and programs financed by the AfDB in Mozambique whose ongoing commitments amount to UA 414,485 million, around USD 620 million."
For his part, the minister noted that there were still many challenges that remain, adding, however, that the country’s leadership and support from cooperation partners, especially the AfDB, "will enable us to continue improving people’s lives and to establish a platform to achieve the Millenium Development Goals."
The AfDB’s operations in Mozambique began in 1977. Since then, the Bank has financed more than 70 operations in the country cumulatively estimated at US$ 1.7 billion. The on-going portfolio comprises of 23 projects of worth approximately US$ 620 million.
* 1 UC = USD 1.48830 as at 17/11/2008