World Bank Approves $300m Grant for Mozambique
The World Bank has signed off a $300m (£255m) grant to Mozambique.
The grant marks the resumption of aid to the country since 2016 after the hidden debt scandal.
Mozambique Finance Minister, Max Tonela said the money will be used to improve living conditions in areas such as health, education, social protection, access to energy, and drinking water.
“This $300m will be used to finance infrastructure projects that help to boost our economy and improve the living conditions of our population,” said Mr. Tonela.
Transparency
The World Bank’s country director in Mozambique, Idah Raddihough, said the funding was made possible by the government’s efforts to improve transparency in the public sector.
Report says the agreement follows a $456 million deal with the International Monetary Fund, IMF Signed in May.
Read Also: Mozambique and IMF Agree New Loan As Ban Ends
However, the hidden debt scandal triggered Mozambique’s worst financial crisis since independence from Portugal.
It involved more than $2.7bn (£2bn) of undisclosed state debts money that the government borrowed to set up a sophisticated tuna industry to buy trawlers and military patrol boats, but much of it was allegedly diverted to corrupt officials.
The son of Mozambique’s ex-president and 18 others have gone on trial over the “tuna bonds” affair. They deny any wrongdoing.
Read Also: Son of Mozambique ex-leader denies role in ‘tuna scandal’
BBC/CO
