New Partnership Strategy for Mozambique Discussed and Cities Climate Change Program Approved

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The FINANCIAL — The World Bank Group’s Board of Executive Directors today endorsed a new Country Partnership Strategy for Mozambique covering the period 2012 through 2016 and designed to promote inclusive, broadly-shared economic growth.


“The Country Partnership Strategy discussed today is fully aligned with Mozambique's own development aspirations,” said Aiuba Cuereneia, Minister of Planning and Development. “We are confident that the new Strategy will make a major contribution to achieving our shared goals of accelerated growth that benefits all citizens.  We look forward to strengthening the Government of Mozambique-World Bank partnership for lasting development impact.”
The new Strategy is backed by a US$1.04 billion financing plan with a significant grant content from the International Development Association (IDA, the Bank’s fund for the poorest countries) that will target key, growth-inducing areas of the economy including agriculture, climate change, energy, environment, health and transport among others.
“The new Strategy comes at a momentous time in the country’s impressive journey of post-conflict recovery that has led to two decades of robust growth,” said Laurence Clarke, World Bank Country Director for Mozambique, Angola and SaoTome and Principe.  “By all accounts, the discovery of resources including natural gas will be a ‘game changer’ for Mozambique’s future.  Now is the time to grasp the opportunities offered by the growth momentum and resource discoveries and deploy the revenues for transformative, sustained growth that benefits all sections of Mozambican society.”
The CPS will support the development of policies, programs and projects that unleash growth and provide a road map for strategic investments for achieving maximum development impact for the next four years.  The strategy commits to delivering the full suite of the World Bank Group’s service offerings – partnerships, knowledge, financing, investment guarantees, and greater synergies with the private sector – for launching the next round of transformational development interventions that catalyze growth, create jobs and increase investment in the social sectors.
According to the World Bank, in a related development, the Board approved US$120 million in  financing to support the Government of Mozambique’s “Cities and Climate Change” project  benefiting 20 municipalities in the center and southern regions of Mozambique that are prone to climate-induced extreme weather events.
Mozambique ranks third among African countries most exposed to climatic risks and coastal cities are particularly vulnerable to flooding and erosion that have devastating impacts on poor people, who represent the human face of urban poverty.
“In Mozambique, the urban population is growing fast and is expected to double by 2030. Unfortunately, high urban population growth has not been accompanied by corresponding investments in basic infrastructure, thereby increasing vulnerability,” said Paula Pini, World Bank Task Team Leader for the climate change and cities project.  “The project will tackle many of the challenges facing coastal cities and we look forward to speedy project implementation for optimal development impact.”
The project will strengthen municipal capacities for launching sustainable urban infrastructure and environmental management projects that will increase resilience to climate-related risks. New infrastructure investments under the project will finance rehabilitation of drains, conduits, embankments, levees, and surface water storage facilities that are all impacted by a changing climate. Institutional investments will include improved urban environmental planning and land use management; increased own-source revenue capacity, more effective and transparent municipal financial management; and a sustainable service delivery model for operation and maintenance of urban sanitation and drainage systems.
This project is consistent with the Government of Mozambique’s Poverty Reduction Action Plan (PARP) that seeks to foster human and social development and good governance, and will be instrumental in helping the Government to attain the MDGs linked to environmental sustainability.
The CPS and climate change projects are both anchored in “Africa’s Future and the World Bank’s Support to It,” the World Bank’s regional strategy for the African continent which has two pillars, promoting competitiveness and employment and reducing economic vulnerability and improving resilience by reducing the number of climate shocks and limiting damage when it occurs.  The strategy rests on a foundation of strengthened governance and support for building public sector capacity.  Partnerships, knowledge, and financing are key priorities of the strategy.
The World Bank has invested US$ 4.1 billion in Mozambique to date, and its current portfolio comprises 18 projects in all major sectors, including budget support, agriculture, business environment, decentralization, education, energy, governance, health, municipal development, support for small and medium enterprise development including spatial planning, transport infrastructure, and water and sanitation.

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