- Mozambique hopes to join the Africa50 platform to secure funds for infrastructural projects.
- Africa50 is a platform with the goal of assisting and facilitating the development of infrastructure projects in Africa.
In order to make it easier for Mozambique to secure funds for infrastructure projects, the country is in the process of joining the Africa50 platform.
The African Development Bank and African states created the Africa50 platform, which has its headquarters in Casablanca, Morocco, to assist and facilitate the development of infrastructure projects across the continent by mobilizing public and private sector finance.
A source from the Ministry of Economy and Finance expressed the desire to participate in this financing mechanism in the Maputo daily “Noticias,” explaining that, in the context of tax restrictions and infrastructure gaps that remain in the nation, Africa50 can be an effective catalyst to address the country’s development challenges.
The source claims that Mozambique’s participation in this platform will enable the nation to commercialize its current infrastructure assets by leasing them to the private sector, with the money made being invested in other high-priority projects.
Presently, the African Development Bank, which also serves as manager, has two central banks, and 30 African nations comprise Africa50’s investment base.
The platform is strongly committed to advancing and adhering to the guiding principles of combating climate change, which is in line with the country’s priorities for the energy transition, according to the government source. Mozambique intends to take advantage of this opportunity to obtain a financial return on its investment.
The nation must maintain high rates of economic growth in order to make development sustainable, lessen poverty, and increase the availability of infrastructure.
According to the source, one of Mozambique’s most enormous problems would be its inability to build adequate infrastructure, particularly in rural areas. The main cause of this deficiency is the country’s restricted access to suitable finance options.
Funding activities in the private sector can promote economic growth by boosting output, fostering enterprise, and raising tax revenues.