African Development Bank Allocates $17 Million to Support Economic Recovery in Mozambique

The African Development Bank has approved a $17 million grant aimed at supporting economic and social recovery in Cabo Delgado province, northern Mozambique, which has been affected by armed conflict and chronic crises since 2017. The funding will support the “Investing for Economic Empowerment, Peace, and Security” initiative, which targets the root causes of instability through youth and women-focused economic programs, including job creation, small business support, and community infrastructure development.

The project is expected to generate approximately 24,000 direct jobs, with 60% reserved for individuals aged between 18 and 35, and 50% allocated to women. This initiative seeks to address unemployment, which exceeds 25% among young women not engaged in education or vocational training.

Over 100,000 people are anticipated to benefit from comprehensive programs that include vocational training, grants for restarting small businesses, and the rehabilitation of 150 community facilities, including 30 schools, 45 youth centers, and 14 health clinics.

The initiative also involves the establishment of a small industrial village in the Afungi industrial area, incorporating smart and environmentally friendly solutions. The village will host 100 small and medium-sized enterprises, supported by business incubation centers and modern facilities.

The project will collaborate with global companies such as “TotalEnergies” and “ExxonMobil” to provide over 1,000 paid training opportunities, aiming to integrate youth into the labor market with a permanent employment rate of up to 70%.

Implementation is scheduled to begin in September 2025 and conclude by August 2029, amid improving security conditions and a reduction in the internally displaced population to around 635,000, which enhances confidence in development efforts and encourages both local and international investment.

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