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· The World Bank approved recently a US$100 million grant from the International Development Association (IDA) in support of the Government of Mozambique’s Economic Linkages for Diversification Project
· This project is aimed at supporting micro, small, and medium enterprises (MSMEs) to develop the capacitates to provide goods and services to larger businesses
· The project will also serve the growing cities in the center and north of Mozambique, for their economic expansion
The World Bank approved recently a US$100 million grant from the International Development Association (IDA) in support of the Government of Mozambique’s Economic Linkages for Diversification Project. This project is aimed at supporting micro, small, and
medium enterprises (MSMEs) to develop the capacitates to provide goods and services to larger businesses. The project will also serve the growing cities in the center and north of Mozambique, for their economic expansion.
Experts feel that Mozambique’s growth has been driven by foreign direct investments (FDI) into capital-intensive industries. This has not translated into adequate levels of job creation. Supporting MSMEs is a key factor of economic diversification, job creation, inclusive growth, and fragility mitigation, etc. envisaged by the government.
Against this, the project will help develop MSMEs’ abilities to provide goods and services to large investments along their value chains, through skills development, expanding access to finance and markets, and quality upgrading of their processes and products. The project will also focus on the development of digital solutions that will increase firms’ access to markets and financial services.
The priority geographic areas of the project include the provinces of Cabo Delgado, impacted by the conflict, as well as Nampula and Tete, where poverty rates are high and opportunities for economic linkages are significant. Besides, the project will also support green industry firms.
