Maputo — The World Bank on Tuesday approved Mozambique's eligibility to the Prevention and Resilience Allocation (PRA).
The PRA is a World Bank facility intended to provide enhanced support for countries at risk of falling into high-intensity conflict or large-scale violence. A World Bank press release says that Mozambique's eligibility for this facility will "unlock up to 700 million dollars in funding to further prevent the escalation of conflict and build resilience".
At the same time, the World Bank approved a 100 million dollar grant from the International Development Association (IDA) in support of the Mozambican Government's Northern Crisis Recovery Project.
The release says this "focuses on addressing immediate early recovery activities, including restoration of livelihoods and economic opportunities, building of social cohesion, and improving access to basic services as well as the rehabilitation of selected public infrastructure intended to benefit internally displaced persons (IDPs) and host communities in targeted areas of Northern Mozambique".
Cited by the release, the Bank's country director for Mozambique, Idah Z. Pswarayi-Riddihough, said "the conflict in Cabo Delgado couldn't come at a worse moment for Mozambique, as the country faces headwinds from its fiscal woes and the combined effects of cyclones and the Covid-19 pandemic. This much needed operation as well as the unlocked funds under the PRA eligibility will support the government as it steps up its direct assistance to IDPs and host communities and deploys its strategy to prevent the escalation of conflict while building community resilience".
The release claims that the PRA "entails a fundamental shift in the engagement of the World Bank Group in Mozambique. It results in the recalibration of the Bank's portfolio to focus on addressing the risks of conflict and violence".
"This recalibration has been carried out in dialogue with the Government of Mozambique and covers the existing and forthcoming operations," saidMichel Matera, co-team leader for the PRA.
The Bank makes clear that this is not a blank cheque, and that Mozambique will be expected to take steps to reduce the risks of conflict and violence.
Senior Operations Officer and the PRA co-team leader Neelam Nizar Verjee, said "It is worth noting that the allocation comes in tranches and is subject to annual reviews of the progress made by the government as measured by attainment of milestones agreed upon with the World Bank each year".