WASHINGTON, April 27, 2021 — The World Bank approved today Mozambique’s eligibility to the Prevention and Resilience Allocation (PRA), unlocking up to $700 million in funding to prevent the further escalation of conflict and build resilience in Mozambique.
The World Bank approved in parallel a $100 million grant from the International Development Association (IDA) in support of the Government of Mozambique’s Northern Crisis Recovery Project, which focuses on addressing immediate early recovery activities, including restoration of livelihoods and economic opportunities, building of social cohesion, and improving access to basic services as well as the rehabilitation of selected public infrastructure intended to benefit internally displaced persons (IDPs) and host communities in targeted areas of Northern Mozambique.
“The conflict in Cabo Delgado couldn’t come at a worse moment for Mozambique, as the country faces headwinds from its fiscal woes and the combined effects of cyclones and the Covid-19 pandemic,” noted Idah Z. Pswarayi-Riddihough, World Bank Country Director for Mozambique, Madagascar, Comors, Mauritius, and Seychelles. “This much needed operation as well as the funds unlocked under the PRA eligibility will support the government as it steps up direct assistance to IDPs and host communities and deploys its strategy to prevent the escalation of conflict while building community resilience.
The PRA entails a fundamental shift in the engagement of the World Bank Group in Mozambique. It results in the recalibration of the Bank’s portfolio to focus on adressing the risks of conflict and violence. “This recalibration has been carried out in dialogue with the Government of Mozambique and covers existing and forthcoming operations,” noted Michel Matera, Sector Leader and co-team leader for the PRA.
“It is worth noting that the allocation comes in tranches and is subject to annual reviews of the progress made by the government, measured through the attainment of milestones agreed upon with the World Bank each year,” added Neelam Nizar Verjee, Senior Operations Officer and the PRA co-team leader.
“The conflict in the North has resulted in a mounting humanitarian crisis. It disrupted the provision of basic services and destroyed livelihoods and the social fabric of affected and hosting communities,” noted Lizardo Narvaez Marulanda, World Bank Senior Disaster Risk Management Specialist and the team leader for the Northern Crisis Recovery Project. “The Northern Crisis Recovery Project is the first project to be funded under the PRA, and it will support the provision of basic services in selected relocation sites; fund livelihoods activities, such as cash for work programs for youth and women; and provide agriculture and fisheries inputs for IDPs, amongst others.” In addition, the project will support jobs creation and professional skills development through training and temporary employment opportunities for the same target groups. Other activities supported under the project include support to victims of gender-based violence; support to child foster care initiatives for child-headed families; establishment of community-level social cohesion and peace building committees; revitalization of civic engagement through youth associations; and support to healing activities, including through arts, sports, dance and tournaments.
The PRA and the resulting operations are in line with the country’s priorities, outlined in country’s strategies, and the World Bank Group’s institutional strategy on Fragility Conflict and Violence. As such, this operation seeks to promote approaches that can renew trust between citizens and the state, as well as provide support to those displaced by the conflict and to members of their host communities.
* The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 76 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.6 billion people who live in IDA countries. Since 1960, IDA has supported development work in 113 countries. Annual commitments have averaged about $21 billion over the last three years, with about 61 percent going to Africa.