The Bank Group and Mozambique ink USD21 million grant to promote inclusive and sustainable growth
The Bank Group and the Government of Mozambique, on December 15, 2015 in Abidjan, inked a protocol grant worth USD 21 million, to finance Phase II of the country's Economic Governance and Inclusive Growth Program (EGIGP II), and to improve the enabling environment for private sector development.
This operation is the second in a series of three consecutive general budget support (GBS) operations covering 2014-2016. The goal is to support government efforts at promoting inclusive and sustainable growth by consolidating transparent and accountable Public Finance Management and natural resource management frameworks. The program is also intended to improving the enabling environment for private sector development.
The program will contribute to regulating e-banking governance including mobile banking; drafting laws on state-participated enterprises or the corporate sector; and revising the Integrated Investment Plan with details of project financing published. Implementation of EGIGP II will also help the country's government draft a fiscal regime for mining and petroleum activities submitted to parliament; revise SME strategy approved by the Council of Ministers; and contribute to the country's compensation law.
Mozambique's National Director of Treasury of the Ministry of Economy and Finance, Adriano Isaias Ubisse - who signed for his country - commended the Bank Group's continued financial and technical support, which he said, "is in line with his country's development programs. The agreement will buttress the Government's resolve in promoting inclusive and sustainable growth by consolidating transparent and accountable public finance and natural resource management frameworks," he said.
African Development Bank Vice-President for Infrastructure, Private Sector Development and Regional Integration, Solomon Asamoah, stressed the excellent relations between the Bank and the Government of Mozambique, as well as the good co-operation in preparing this program. "The Bank looks forward to working with the Government and development partners to successfully implement reform programs planned under phase III in 2016, and to continuing our partnership for accelerating the country's development growth," he said.
The current Bank project portfolio for Mozambique consists of 17 projects valued at US $636 million. Since its first project in 1977 in Mozambique, the Bank Group has regularly provided significant and diversified support to the country's development efforts. The Transport sector has received most with 48% of the approved amount, followed by agriculture (15%), power (9%), mining/quarrying (6%), water supply and sanitation (6%), finance (2%) and social development (1%). The general budget support approved for the period 2011 to 2013 represents 14% of the portfolio, valued at US $93.6 million.