The World Bank plans to provide $6 billion in financing for Mozambique projects

Investing.com – A senior official at the World Bank said on Monday that the bank plans to provide $6 billion in financing for public investment projects in Mozambique over the next five years, mostly in the form of concessional loans.

Fily Sissoko, the World Bank department head responsible for Mozambique, Madagascar, Mauritius, Seychelles, and Comoros, told reporters that the institution has about $3 billion in assets and liabilities on its books and hopes to raise an additional $3 billion. Sissoko said the financing terms are very favorable, mainly consisting of grants.

The public finances of this Southern African country are under pressure. The International Monetary Fund warned last week after its annual review that debt dynamics have worsened.

The Washington-based lender also plans to raise an additional $4 billion for the private sector.

Mozambique’s Finance Minister Carla Louveira said the World Bank is developing a macroeconomic support framework worth $921 million. Louveira stated that this partnership framework aims to ensure macroeconomic stability to sustain economic recovery.

There is optimism about the resumption of operations for the large liquefied natural gas project led by French energy company TotalEnergies (EPA:TTEF). The International Monetary Fund and other agencies highlighted the economic challenges Mozambique faces, including delayed debt repayments and large, ongoing fiscal deficits.

The country frequently suffers from hurricanes and floods, and scientists say climate change has intensified these disasters.

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