Maputo, 12 May (AIM) – The Mozambican Finance Minister, Carla Louveira, has revealed that the damaging impact of extreme climatic events caused economic losses and reconstruction needs estimated at about 48.6 billion meticais (760.7 million US dollars at the current exchange rate)
According to the minister, who was speaking on Monday, in Maputo, at the national dialogue on resilience, the extreme climatic events affected approximately 1.7 million people and destroyed over 210,000 houses, in addition to causing significant losses in agriculture, food insecurity, disruption of essential services, and reduced economic revenue.
The natural disasters also affected income chains, transportation, and social infrastructure, exacerbating vulnerabilities and increasing pressure on public finances.
“That is why when we talk about resilience, we talk about a national agenda, we talk about a national development agenda, plans to protect life, but also to protect investments in resilient infrastructure with the capacity to withstand shocks and ensure the continuity of essential services”, he said.
According to Louveira, extreme weather events have created urgent needs for response, recovery, and reconstruction outside the initially planned budget, with direct impacts on public debt and the country’s fiscal sustainability.
She pointed out the Financial Protection Plan against Disasters 2022-2027 as an instrument aimed at ensuring rapid, focused, and resilient interventions in disaster situations.
“The Disaster Management Fund will also guarantee a minimum annual allocation corresponding to 0.14 percent of the tax revenues included in the State Budget. Sovereign insurance allows for compensation and quick access to settlement in critical moments for our population”, she said.
According to the minister, the recent approval of the National Climate Finance Strategy 2025-2034 represents an important milestone in mobilizing resources to make the country’s economy and society more resilient to climate change.
For his part, Fily Sissoko, World Bank director in Mozambique, said that the floods recorded at the beginning of the year caused significant damage in a country already affected by multiple crises.
According to Sissoko, the country’s recovery plan is budgeted at one billion dollars.
“The country has faced several crises, notably the impact of shocks, floods, successive cyclones, pandemics, post-election demonstrations, and the Middle East crisis. By 2050, more than half of Mozambique’s population will live in cities, many of them located in coastal areas vulnerable to extreme weather events”, he said.
The dialogue on resilience brings together representatives from the government, cooperation partners, the private sector, and civil society.
(AIM)
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