World Bank Loan for Food Security (allAfrica.com)

The Board of Executive Directors of the World Bank on Monday approved a loan of 50 million US dollars to improve food security in Mozambique.
The loan is described as the second of a series of three agriculture budget support operations that finance agricultural reform in Mozambique. A World Bank press release says that money is “to boost Mozambique’s efforts to increase access to food and better nutrition for its people, and to promote market-based agriculture and private sector investment”.
It notes that “while Mozambique’s agriculture competitiveness has increased over the years, the sector is largely characterized by low productivity.
Turning agriculture into an engine for achieving broad-based economic growth and accelerated poverty reduction will require reforms to increase private sector participation, public investments, and an enabling business environment”.
The release quotes the World Bank Country Director for Mozambique, Mark Lundell, saying that the operation “seeks to tackle some of the key policy and institutional reform priorities to address the binding constraints facing the agriculture sector”.
He claimed that “Agriculture offers scope to narrow persistent income disparities between rural and urban areas and to reduce poverty in regions that benefitted little from the economic gains of recent years”.
More specifically, the bank claims that this programme will support “reforms to improve agricultural technology, enhance access to productive assets and financial services, and improve monitoring of sector performance”.
According to the Task Team Leader for the operation, Senior Agriculture Economist Jan Nijhoff, “Stronger agricultural competitiveness, based on improved productivity and more effective markets, would potentially spur growth in exports and reduce Mozambique’s import bill for agricultural commodities. Moreover, increased productivity will enhance food security among rural households.”
The loan comes from the International Development Association (IDA), the part of the World Bank group that provides soft loans to developing countries.
Source: Business