The first action Mozambique should take is to stabilize its macro-fiscal situation, emphasized World Bank Group President Ajay Banga during a visit to the African nation. Without this stability, attracting the private sector and ensuring population stability becomes challenging, he noted.
Banga remarked on Mozambique’s young and growing population, highlighting it as a vital asset. He stressed the importance of securing employment for dignity and focusing on youth development, stating, “We don’t have 30 years to do this right. If young people lack hope, they will engage in activities we don’t want, including migration and creating instability.”
While in Maputo, Banga met with Mozambican President Daniel Chapo and advocated for providing opportunities for the youth and private sector, which is essential for job creation. He cited the company Nacional, which he visited, as an example, noting its direct employment of 450 people and support for 4,000 smaller poultry producers nationwide.
The World Bank president outlined several initiatives that the bank could engage in with Mozambique: establishing a new national partnership framework, a five-year vision, supporting energy development, infrastructure corridors linking ports to other regions and countries, agriculture, small enterprises, skill development, and tourism. He emphasized the need for macrofiscal organization.
“You have sunlight, gas, and hydroelectric power. Mozambique has the capacity to generate electricity and is a major supplier in southern Africa’s energy grid. There’s a significant demand for electricity in neighboring countries, which presents an opportunity to earn foreign exchange and integrate regionally as an electricity provider,” Banga stated.
He further commended Mozambique’s focus on tourism, acknowledging the potential support from the World Bank. “Mozambique is blessed with beautiful beaches and welcoming people,” he said.
“Tourism generates the highest number of jobs per dollar invested. The President [of Mozambique] is rightly focused on this sector. By multiplying current tourism efforts, Mozambique can benefit. We plan to collaborate on a tourism plan that includes business and conference destinations, social and wedding tourism, and high-value sustainable tourism. Mozambique has all needed attributes – wildlife, beaches, golf courses,” Banga added.
Concluding his two-day visit, Banga acknowledged the necessity for the World Bank to increase the speed of its operations, while admitting some projects inherently require time, such as the construction of dams. “These projects are complex and lengthy, needing thoughtful consideration of people’s and environmental impacts, as well as technical and equipment requirements,” he said. He assured that facilitating growth for small entrepreneurs could proceed faster than infrastructure projects.
“We need to expedite processes. This new national partnership framework will reflect a five-year vision and define prioritized areas,” Banga stated.
