US$6.2 Million Grant to Mozambique

The World Bank Board of Executive Directors approved today (August 28) a US$6.2 million grant from the Global Environment Facility (GEF) to Mozambique in support of the Market Led Smallholder Development Project in Zambezi Valley.The GEF funds are in addition to the International Development Association (IDA) credit of US$20 million approved by the Board on June 20, 2006.The main objective of the new GEF contribution is to support activities that limit land degradation, provide predictive capacity for assessing vulnerabilities to climate change, and improve the ecosystems’ resilience towards climate change in the Central Zambezi Valley.

The Market Led Smallholder Development Project aims to increase the incomes of smallholder farmers in selected districts of the Zambezi Valley Region in central Mozambique. This will be achieved by direct support to smallholder groups and other supply chain participants, and also through the strengthening of local level capacity to undertake and manage agricultural services within the context of the Government’s decentralization policy.

The World Bank is one of GEF’s implementing agencies. The World Bank also supports countries in preparing GEF co-financed projects and supervises their implementation. The World Bank draws upon its investment experience in eligible countries to promote investment opportunities and to mobilize private sector, bilateral, multilateral, and other government and non-government sector resources that are consistent with GEF objectives and national sustainable development strategies. Since 1991, the World Bank has committed US$1.972 billion in GEF resources and US$3.037 billion in World Bank co-financing for GEF projects in 80 countries. In addition to GEF and World Bank resources, it has mobilized additional co-financing of US$6.952 billion from other donors. -The World Bank