Mozambique: $47.09 million grant from African Development Fund for special agro-industrial processing zone.
ENPNewswire-January 12, 2022--Mozambique: $47.09 million grant from African Development Fund for special agro-industrial processing zone
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Release date- 11012022 - The Board of Directors of the African Development Bank Group has approved a $47.09 million grant for the first phase of Mozambique's Pemba-Lichinga Integrated Development Corridor, a Special Agro-Industrial Processing Zone.
The grant, from the African Development Fund, will help improve agricultural productivity and agribusiness development in the Niassa province by advancing institutional capacity, skills, and entrepreneurship to spur agricultural value chain growth.
The project will pilot improved policy and development coordination between the Niassa province and national departments, especially with the Ministry of Industry and Commerce and the Ministry of Agriculture and Rural Development.
Special Agro-Industrial Processing Zones are integrated development initiatives designed to concentrate agro-processing activities within areas of high agricultural potential to boost productivity, integrate production, processing, and marketing of selected commodities. These zones will enable agricultural producers, processors, aggregators, and distributors to operate in the same vicinity to reduce transaction costs and share business development services for increased productivity and competitiveness. Coupled with bringing adequate infrastructure (energy, water, roads, ICT, etc.) to rural areas of high agricultural potential, SAPZs will attract investments from private agro-industrialists/entrepreneurs to contribute to the economic and social development of rural areas.
The initiative is in line with the Mozambique National Development Strategy 2015-2035, which seeks to improve the living conditions of the population through structural transformation of the economy and expansion and diversification of the production base. It is consistent with the concerted efforts of the international community to support Mozambique to promote inclusive economic growth and peacebuilding in the north.
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