The World Bank on 10 June approved a grant of US$150 million from the International Development Association (IDA) in support of the first phase of Mozambique's Sustainable Rural Economy Programme. According to the World Bank, this programme will "improve the incomes and resilience of communities in rural areas".
The Bank states that the project "will provide support to small agriculture producers and fisheries to increase their productivity and access to markets and help Micro, Small, and Medium Enterprises improve their sales, while promoting the adoption of climate-smart agricultural practices".
According to Diego Carballo, Lead Agriculture Economist, and the operation's task team leader, "it is evident that economic expansion in agriculture yields the highest impact on poverty reduction in Mozambique. However, the sector's potential continues to be challenged by low productivity, mostly due to low technology adoption, limited provision of agricultural services, coupled with high seasonality in 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 conflict-prevention and resilience-building focus of World Bank activities in Mozambique.
The IDA is that part of the World Bank which provides grants and soft loans to projects and programmes in the world's poorest countries intended to boost economic growth, reduce poverty, and improve living standards.