Maputo – Mozambique’s Minister of Finance Carla Loveira signed five financing agreements with the World Bank on Tuesday, covering projects worth around US$455 million across agriculture, education, social protection, minerals, water resources and sanitation.
Speaking on the sidelines of the signing ceremony with a World Bank delegation in Washington, Loveira said the agreements were designed to address economic pressures the southern African country has faced in recent months.
“One of the key aspects the World Bank is essentially seeking to address is the concern over the recent macroeconomic shocks Mozambique has faced, namely the climate shock of the floods experienced at the beginning of this year, but also the impact of the Middle East conflict on our economy,” she said. 
Loveira said a memorandum worth US$155 million was signed for the social protection sector as an addition to an existing partnership programme in the country. A US$300 million grant was also signed, split equally between education and social protection, while a separate US$100 million memorandum was signed to support the minerals sector.
On agriculture, she said the agreements included a US$50 million reinforcement to boost production and productivity in the face of the ongoing economic pressures.
“In the face of the crisis and the impact of the Middle East conflict, one of the responses the government must provide is how to improve production and productivity. The partner responded accordingly, providing a reinforcement of US$50 million for agriculture and agribusiness,” she explained.
Loveira said a fast-track disbursement mechanism had been designed outside the traditional circuit to channel funding more quickly into agriculture, sanitation, social protection and education.
“This is the major milestone being marked today with the arrival of this mission, which culminated in the signing of these five memoranda, representing four areas of intervention, which will guide our cooperation with the World Bank in a joint effort to contribute to macroeconomic stability and improve the lives of Mozambicans,” she said.
World Bank Managing Director Paschal Donohoe said the agreements were aimed at building the skills Mozambicans need and supporting the country’s farming sector.
“The agreement includes additional financing to support Mozambican farmers, whom I recognise as a crucial part of your economy, helping them gain better access to markets and investing in their productivity and future,” Donohoe said.
A day earlier, Mozambican President Daniel Chapo told officials in Washington that investment was central to overcoming the fragility and major challenges facing the country, including climate change and terrorism in the north. Following talks with World Bank President Ajay Banga, Chapo said peace and development were key to attracting private sector investment, which he described as crucial for financing Mozambique’s development.
The World Bank Group has said it expects to mobilise US$2.5 billion for Mozambique over the next five years under a new Country Partnership Framework, focusing on job creation through economic corridors and sectors with high employment potential such as energy, agribusiness and tourism.
