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AfDB Commits $27 Million Grant to Develop Mozambique City


The African Development Bank (AfDB) Group Board of Directors during a meeting in Abidjan, Ivory Coast on Tuesday, November 14 approved a grant of $27 million to Mozambique under Pillar I of the Transition Support Facility to develop Chimoio, a city in Mozambique.

The grant comes exactly five days after African Development Bank, President Akinwumi Adesina  pledged greater commitment to the development of cities  as engines of the continents economic growth.

AfDB President had hinted that the new collaboration between cities, states and municipalities together with financial institutions will accelerate development and growth of Africa.

The Bank Group’s financial support is for the implementation of the Inclusive Urban Sanitation Project in Chimoio, Mozambique’s. Chimoio is the fifth-largest city in Mozambique, with a population of over 400,000 people.

Also Read: AfDB, leaders commit to catalyse investment in cities

AfDB objectives of the project

The objective of the project is to enable the people of Chimoio to access improved sanitation services. The project will gradually help to reduce the incidence of water-borne diseases and reduce land and river pollution.  Likewise, it will also promote business and creation of value along the sanitation service chain including the reuse of water and treated sludge for agricultural purposes.

The project provides for the construction of several items of sanitation infrastructure. They include 76 kilometres of sewers network and interceptors, two pumping stations.

Additionally, it will include a nature based sewage treatment plant with a faecal sludge treatment unit, 30 public sanitation facilities and support to vulnerable members of the community. These will include household sanitation facilities including a hygiene and sanitation promotion campaigns.

The project will also provide technical assistance to enhance the capacity of Chimoio’s Municipality with respect to the management of the facilities. At the same time, It will provide sustainable sanitation services involving small sanitation businesses or operators.

The project’s target area is the municipality of Chimoio, the capital of the province of Manica. Chimoio is an economic and logistics hub in the centre of the country. It is located 1,100 kilometres north of the national capital, Maputo and 95 kilometres from the border with Zimbabwe.

It is on the Beira transport corridor that serves the region, and is an important hub for rail, road and air transport.

Also Read: AfDB Unveils Capacity Building to Enhance Trade in East Africa

AfDB commitment to cities and urban areas

The AfDB disburses $2 billion per year to projects and programs. The project’s that have a direct positive impact on urban areas across Africa.

Additionally, these projects cover a wide range of areas. The include housing, transportation, access to clean water and improved sanitation and sewage systems.

However, It also has an Urban and Municipal Development Fund (UMDF), which supports 15 cities.

The support ranges from technical assistance, capacity building for integrated urban planning, governance and project preparation. Likewise, it will also support broader urban management, including municipal fiscal management.

Currently, the UMDF, has mobilized $50 million funds for the period 2023-27, that will be directed to support cities and municipalities.

The funds will be divided in a ratio of 60% for urban project, 20% for urban planning. The remaining 20% for municipal access to financial support ecosystems.

The AfDB will provide projected lending of approximately $2 billion in 2024 toward cities and municipalities.

Last week, during the Africa Investment Forum  in Marrakech, Morocco AIF officials noted that it will priorities bankable projects. The project’s will help to secure investments for cities.