IDB pledges $70m to Mozambique
28 October 2011
The Islamic Development Bank (IDB) has pledged $68.3 million (42.5 million) to Mozambique over the next three years to finance various infrastructure projects.
Covering developments between 2011-13, the money will be used for improving rural water supply, sanitation and electricity infrastructures, as well as the creation of various aquaculture projects.
According to AllAfrica.com, Prime Minister Aires Ali described investment in infrastructure as invaluable. Projects to the value of $80 million, which cover the improvement of energy infrastructure and roads in Mozambique, are already underway.
The aim of the fund is to expand both public and private sector financing opportunities in order to stimulate investment in infrastructure in the country.
Mr Ali also said that investing in infrastructure can create jobs and encourage the establishment of small and medium-sized enterprises (SMEs), stimulating entrepreneurial spirit.
Mozambique currently has more than 30 biofuel projects underway, which are part of plans to save $682 million a year by reducing fuel imports.