The news here is the officialization, but the announcement of the amount had been made in July of this year. At the time, the World Bank said it had approved “a $300 million grant in support of the Policy Development Financing Operation and Support for Economic Transformation Institutions.”
It noted at the time that this was “the first in a series of three programmatic operations and supports a robust set of reforms aimed at strengthening institutions and laying the foundation for sustained growth and economic transformation.”
However, today, at the signing of the agreement, it was said that the amount will be allocated to the Economic and Social Plan and the 2022 State Budget and there are already areas identified for the application of the money, namely, “health, education and the increase in social protection, but also investments in sectors that will ensure the improvement of services provided to the population, such as access to energy and drinking water,” said Max Tonela.
The good news is that you don’t have to worry about public debt. This is an amount that is disbursed as a donation. Although this does not mean that Mozambique will not return the money, the maturity period is about 40 years and it is interest free.
