ADB Plans to Triple Loans to Mozambique

Maputo – The African Development Bank (ADB) hopes to triple its financing of projects in Mozambique over the next two years, ADB chairperson Akinwumi Adesine announced in Maputo on Monday after an audience with Mozambican President Filipe Nyusi.

Currently the ADB is financing a portfolio of 19 projects, in the areas of Transport, Energy and Sanitation, totaling 585 million US dollars. But Adesine said he wants this figure to reach 1.7 billion dollars by 2017.

“Between 2016 and 2017 we shall increase the level of support we provide to Mozambique in the order of 1.7 billion dollars in various areas, particularly agriculture”, he said. He believed Mozambique’s agricultural potential is such that it could become one of the largest granaries for all of Africa.

“We want to assist Mozambique in the industrialization of its agriculture”, he said. “Our intention is to help the country diversify its economy”. Other areas of focus for the ADB would remain energy and transport. Adesine hoped that Mozambique would increase its capacity to provide electricity to its neighbours, such as Zambia and Malawi.

Adesine told reporters that in the meeting with Nyusi he had announced the ADB’s intention to grant 15 million dollars to assist the victims of the current natural disasters in Mozambique, notably the drought striking much of the southern and central provinces.

The two men had also discussed the need to create more jobs for young Mozambicans. Adesine said he had expressed the ADB’s “passion for young people and we guaranteed that the bank will help Mozambique create projects that generate jobs for the youth”.

Adesine said that the ADB’s soft loans carry an interest rate of only 0.6 per cent. So far Mozambique has been honouring its commitments, he added, and has been repaying the ADB loans on schedule.

Source: All Africa