Mozambique expects to get $10bn in World Bank support – Bloomberg

The state will receive $6 billion through 2031, Finance Minister Carla Loveira said in Maputo, the capital, on Monday. A further $4 billion will come from the World Bank’s private-sector arm, the International Finance, she said after meeting with Fily Sissoko, the bank’s country director for Mozambique, and President Daniel Chapo. The funding arrives at a critical time for the southern Africa nation.

Even as the government pins its hopes on billions of dollars in annual natural gas revenue around the end of the decade, the International Monetary Fund cautioned last week that the country is grappling with an acute fiscal squeeze and mounting arrears to bilateral and multilateral creditors. The World Bank’s new country partnership framework — which underpins the financing — is centred on job creation in one of the world’s poorest nations, where about half a million people enter the labor market each year but only 30 000 formal positions are created, according to the lender. Mozambique is also among the most climate-vulnerable countries globally, facing increasingly frequent and severe cyclones, floods and droughts, prompting the bank to pledge additional support to bolster resilience.

Mozambique will also receive $921 million to help with fiscal consolidation and to restore economic growth, Loveira said. This funding will support the overall Country Partnership Framework over its first three years and isn’t linked to a single framework or to macro‑fiscal support specifically, according to the bank.