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The World Bank Group’s Board of Executive Directors approved an International Development Association (IDA) credit in the amount of US$50 million to boost Mozambique’s efforts to increase access to food and better nutrition for its people, and to promote market-based agriculture and private sector investment. This financing is the second of a series of three agriculture budget support operations that finance a medium-term agriculture sector reform program in Mozambique.
While Mozambique’s agriculture competitiveness has increased over the years, the sector is largely characterized by low productivity. Turning agriculture into an engine for achieving broad-based economic growth and accelerated poverty reduction will require reforms to increase private sector participation, public investments, and an enabling business environment.
This operation represents a dialogue platform to engage in a medium-term reform program with the Government and other sector stakeholders in alignment with the country’s agriculture development program and policy priorities. It specifically supports reforms to improve agricultural technology, enhance access to productive assets and financial services, and improve monitoring of sector performance.
The reform agenda supported by this operation is consistent with the objective of the country’s poverty reduction strategy to reduce rural poverty by developing the agriculture sector, and is aligned with the National Agriculture Sector Investment Plan (PNISA) developed under the African Union’s Comprehensive Africa Agriculture Development Program (CAADP) agenda, which provides a common framework for agriculture sector development on the continent.
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