AfDB vows help for Malawi and Mozambique
African Development Bank pledges to fund developments in the agriculture, energy and infrastructure sectors of Malawi and Mozambique.
|||Gaborone - African Development Bank (AfDB) Group President Akinwumi Adesina on Friday concluded his visit to Mozambique and Malawi where he promised to help induce economic diversity and reduce poverty through funding developments in the agriculture, energy and infrastructure sectors.
Adesina’s visit to the two drought-hit countries followed the announcement last week of a $549-million emergency drought relief fund that will be distributed to mitigate the effects of the drought and build resilience measures in 14 East and Southern African countries.
The drought response package consists of $5 million to fund emergency relief, $361 million to fund short-to-long term support and $183 million to finance drought coping and resilience measures in countries affected by the El Nino induced regional drought.
In Malawi, Adesina met President Arthur Peter Mutharika and announced a new $35 million package to fund long-term food security projects and the development of the private sector in order to generate employment and provide momentum to social sector transformation in the country.
At least $1 million would fund the acquisition of immediate food assistance while $7 million had been earmarked for rapid-response to disasters. The remainder would be invested in long-term projects to alleviate food insecurity.
“We are here because we want to fully support you to meet the challenges facing the country. The bank will increase its support in energy, agriculture, infrastructure, regional integration. We need to transform agriculture in Malawi and get young people into agriculture,” Adesina said.
Adesina said Malawi faced a difficult macro-economic situation characterised by high inflation and slow growth which had in turn compounded the severe food shortage arising from weather shocks. He urged the Malawian government to reform its fiscal policy and public financial management to restore macro-economic stability and instill private-sector confidence.
In Mozambique, Adesina met President Felipe Nyusi and pledged to provide $1 million in emergency food assistance support for 2016 and a further $14 million to fund a broader drought mitigation plan throughout 2017.
“I am very keen to tell you that we will increase the allocation of funds in the field of energy. We will give maximum support to Mozambique for the energy sector,” he said.
According to the AfDB, Mozambique, Malawi, Ethiopia, Somalia, Lesotho, Malawi, Mozambique and Swaziland were the six African countries most severely impacted by the drought and they all required immediate assistance from the bank.
ANA