World Bank provides Mozambique with fund for poverty reduction

The World Bank has approved a credit of 120 million US dollars to Mozambique, in order to support the implementation of the government's Action Plan for the Reduction of Absolute Poverty (PARPA), local media reported on Thursday

This is the second Poverty Reduction Support Credit (PRSC-II) of the institution to support the Mozambican government's initiatives to strengthen governance and public sector management to improve the delivery of basic public services particularly in health, education, and rural water and sanitation; attract investors by improving the business environment; accelerate human resource development; and improve donor coordination to increase the effectiveness of assistance.

The first disbursement of 60 million dollars is for the Mozambican government's 2005 budget year and the second disbursement of an equal amount is expected to be released in January for the 2006 budget year.

"With the continuance of Mozambique's good economic performance, the second credit will deepen support for the government's reform agenda to accelerate growth and reduce poverty, and achieve the Millennium Development Goals," said Gregor Binkert, the World Bank task manager for the program.

The official statistics indicate that Mozambique's GDP growth was estimated at 7.8 percent and 7.2 percent in 2003 and 2004 respectively, and the improvement of the country's economy has contributed in reducing the number of Mozambicans living below the poverty line from 69 percent in 1997 to 54.5 percent in 2003.

The World Bank is part of a group of 17 donors providing direct budget support for progress in implementing actions and achieving government monitored indicators identified in the Performance Assessment Framework which was first adopted by the government in April 2004 and is updated every year.

Source: Xinhua