On June 10, the World Bank approved a US $ 150 million grant from the International Development Association (IDA) to support the first phase of Mozambique’s sustainable rural economy program. According to the World Bank, this program will “improve the income and resilience of rural communities”.
The Bank states that the project “will provide support to smallholder agricultural producers and fisheries to increase their productivity and market access and help micro, small and medium-sized enterprises improve their sales, while promoting the adoption of smart farming practices. facing the climate ”.
According to Diego Carballo, chief agricultural economist and head of the operation’s task force, “it is evident that the economic expansion of agriculture has the greatest impact on poverty reduction in Mozambique. low adoption of technology, limited provision of agricultural services, associated with high seasonal production, as well as increasing climate vulnerability. This project seeks to address some of these challenges ”.
The project will be implemented by the Ministry of Agriculture and Rural Development and is in line with the country’s priorities outlined in the government’s five-year plan, the Bank’s partnership framework with Mozambique for 2017-21, as well as the new emphasis on building resilience through World Bank activities in Mozambique.
IDA is the part of the World Bank that provides grants and concessional loans to projects and programs in the world’s poorest countries aimed at stimulating economic growth, reducing poverty and improving living standards. .