The African Development Bank (AfDB) has announced the approval of a $6.73 million grant to Mozambique to support the implementation of the institutional support project for business environment and governance.

Development Diaries reports that the project aims to increase resilience through institutional capacity building to support private-sector development and the management of public finances.

Numerous problems confront Mozambique, including a continuing conflict in the northeast of the country and growing climatic crises.

Also, the country’s internal migration, food systems, and economy are all threatened by climate change.

Despite having one of the fastest-growing economies in sub-Saharan Africa between 2000 and 2015, employment creation, poverty reduction, and the accumulation of human capital in the country are still limited, with the majority of the significant wealth created benefiting just some segments of the economy, a World Bank report reveals.

According to AfDB, the project will help to streamline the administrative formalities imposed on businesses and investors and foster a more conducive environment for investment and business creation.

The bank also noted that the project will support the assessment of existing tax incentives and develop a conducive framework to maximise the appeal of investment and help to attract climate-smart investments.

Source: AfDB

Photo source: AfDB