AfDB, Portugal and Mozambique to accelerate private sector development

AfDB pThe African Development Bank (AfDB) and the governments of Mozambique and Portugal have signed a Mozambique-specific MoU to implement the Lusophone Compact

The Lusophone Compact is a financing platform, involving the AfDB, Portugal, Angola, Cabo Verde, Guinea Bissau, Equatorial Guinea Mozambique and Sao Tomé and Príncipe, which provides risk mitigation, investment products and technical assistance to accelerate private sector development in Lusophone African countries.

Teresa Ribeiro, secretary of state for foreign affairs of Portugal, said, “The Portuguese government allocated US$453.85mn in guarantees and other risk-sharing mechanisms in the 2019 National Budget to support the implementation of the Compact.”

Mateus Magala, vice-president of AfDB for human resources and corporate affairs, stressed, “The Compact marks a new emphasis on the needs of the private sector of African Lusophone countries, aiming to build a larger market and accelerate the circulation of ideas and technology as well as capital.”

Projects eligible under the Compact need to align with the AfDB’s High 5s, the relevant country strategy papers and national development plans, have the involvement of the host country and at least two other Compact signatories and be in sectors which cover renewable energies, agribusiness and agricultural value chains, water and sanitation, infrastructures, tourism and ICT.

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