By June, Mozambique had concluded 12 donation agreements

The Arab Bank for Economic Development in Africa (BADEA) will provide Mozambique with a €17.8 million loan, while the government has signed 12 more donation agreements with the World Bank and the African Development Bank (AfDB).

According to the budget execution report for the period from January to June of this year, which Lusa had access to this Wednesday, “in line with the trend towards stabilizing the external debt ‘stock’, throughout the second quarter the government concluded only one loan agreement with BADEA for the amount of 20 million dollars (17.8 million euros), specifically to finance the ‘One District, One Hospital’ initiative.”

“Meanwhile, seven donation agreements totaling US$431 million were signed with the World Bank. [385 milhões de euros]and five with ADB worth $134.9 million. [120,5 milhões de euros]”, the document says.

In the case of the World Bank, the largest funding goes to the Climate Resilient Roads in the North project – $125 million (€116.7 million) and the District and Local Health Services Revitalization Program – $115 million (€102.7 million), as well as the Green Energy Corridors project, worth $100 million (€89.4 million).

In the case of the ADB, the largest share of funding goes to PROCAVA – the Programme for the Integrated and Sustainable Development of Agro-Industrial Zones in Southern Mozambique – $51.48 million (€46 million), followed by the Songo-Matambo Transmission Line Project at $39 million (€34.8 million).

The document adds that the total “stock” of central government debt “is US$1,016,485,790,000.” [14.211 milhões de euros]”by the end of June”, “recording growth of 5% compared to the fourth quarter of 2023”.

“Despite the increase in the public debt “stock”, external debt decreased by 1%, which is justified by the maturity and installment plan for the repayment of existing debt in the context of severe restrictions on attracting new external financing. Domestic debt increased by 17%, which is mainly due to the issuance of new treasury bonds. [de] 23.778 million meths [332,5 milhões de euros]”, the message says.

The document also highlights that “key actions” are being taken in the area of ​​public debt management, such as “finalising a procedures manual that will provide debt managers with practical guidance on debt management procedures in line with international best practices”.

In addition, he adds, the process of migrating and validating the database used to record and manage public debt “has already reached 95% for external debt, and the same process has begun for domestic debt.”