Mozambique: US$120 m credit approved

JOHANNESBURG – The World Bank says its board of directors had approved a US$120 million (N$768 million) credit to Mozambique to support poverty reduction programmes.

It said in a statement late on Tuesday that the credit would “support government initiatives to strengthen governance and public sector management to improve the delivery of basic public services particularly in health, education, and rural water and sanitation.” The global lender also said the credit would fund programmes to attract investors by improving the business environment.The first disbursement of US$60 million will go to the government’s 2005 budget year and the second tranche will be released in January for the 2006 budget year.It is the second poverty-reduction support credit that the World Bank has granted to Mozambique.”With the continuance of Mozambique’s good economic performance, the second credit will deepen support for the government’s reform agenda to accelerate growth and reduce poverty,” said Gregor Binkert, World Bank Task Manager for the programme.The former Portuguese colony has enjoyed over a decade of brisk growth since the end of a ruinous civil war but that has been off an extremely low base and it remains one of the world’s poorest countries.”Since the end of the civil war in Mozambique in 1992, the country has maintained an annual average economic growth of eight per cent.Real GDP growth was robust in 2003 and 2004, when it was estimated at 7,8 per cent and 7,2 per cent respectively,” the World Bank said.Key areas of growth include tourism as outsiders discover its unspoilt beaches and stunning coral reefs.But widespread corruption remains a huge concern.- Nampa-ReutersThe global lender also said the credit would fund programmes to attract investors by improving the business environment.The first disbursement of US$60 million will go to the government’s 2005 budget year and the second tranche will be released in January for the 2006 budget year.It is the second poverty-reduction support credit that the World Bank has granted to Mozambique.”With the continuance of Mozambique’s good economic performance, the second credit will deepen support for the government’s reform agenda to accelerate growth and reduce poverty,” said Gregor Binkert, World Bank Task Manager for the programme.The former Portuguese colony has enjoyed over a decade of brisk growth since the end of a ruinous civil war but that has been off an extremely low base and it remains one of the world’s poorest countries.”Since the end of the civil war in Mozambique in 1992, the country has maintained an annual average economic growth of eight per cent.Real GDP growth was robust in 2003 and 2004, when it was estimated at 7,8 per cent and 7,2 per cent respectively,” the World Bank said.Key areas of growth include tourism as outsiders discover its unspoilt beaches and stunning coral reefs.But widespread corruption remains a huge concern. – Nampa-Reuters