Maputo, 22 Jun (AIM) – The Mozambican government and the Islamic Development Bank (IsDB) have agreed to draw up a Partnership Plan, which will be focused on defining crucial financing projects in several sectors.
According to the Minister Finance, Carla Loveira, speaking at 51st IsDB Group Annual Meetings, in Azerbaijani city of Baku, the agreement is for the next three years and it is aligned with the government’s Five-Year Programme.
“This the first joint exercise with the multilateral partner aimed at developing an instrument of this nature, which is expected to serve as the basis for structuring a new financing package focused on priority projects for the country’s economic and social development”, reads a statement from the Ministry of Finance.
The, which involved Minister Loveira and the IsDB Vice-President for Operations, Rami Ahmad, included a review of the portfolio of projects currently financed by the bank’s in Mozambique.
Among the projects discussed were the 400-kilovolt power transmission line between Chimuara in the central province of Zambézia and northern province of Nampula, the power evacuation project linked to the Temane thermal power plant in the southern province of Inhambane, and the construction of a secondary school in Mueda district, northern province of Cabo Delgado.
According to the statement, the future partnership will guide the financing of priority projects aligned with the development priorities set out in the Government’s Five-Year Programme (PQG 2025–2029), “which focuses on accelerating economic growth through investment in agriculture, energy, industry and infrastructure, while strengthening social sectors such as education and health within a framework of macroeconomic stability and good governance.”
“The new financial instrument will be directed at the IsDB’s 27 least developed member countries, with the aim of mitigating the impacts of macroeconomic shocks, including debt sustainability challenges, the effects of climate change and geopolitical instability”, reads the document.
On the sidelines of the IsDB Group Annual Meetings, Loveira also held bilateral meetings with the President of the Arab Bank for Economic Development in Africa (BADEA), Abdullah Almusaibeeh, and officials from the Multilateral Cooperation Centre for Development Finance (MCDF), during which she expressed Mozambique’s interest in mobilizing financing for projects included in the National Development Strategy.
Am/
