World Bank provides $100m for Mozambican roads

09 Jul 2007 14:44 - Charles Mangwiro

The World Bank agreed on Monday to give Mozambique $100-million in credit to help upgrade its road network, most of which was damaged and neglected during a 17-year civil war that ended in 1992. Mozambique will be exempt from interest and have 40 years to pay back the funds.

The World Bank agreed on Monday to give Mozambique $100-million in credit to help upgrade its road network, most of which was damaged and neglected during a 17-year civil war that ended in 1992.

Mozambique will be exempt from interest and have 40 years to pay back the funds to the World Bank’s International Development Association, said Michael Baxter, the Bank’s director for Mozambique, Zambia and Zimbabwe.

Mozambique’s government sees road and bridge construction and modernisation as key to boost economic growth in the Southern African nation, which relies on agriculture and tourism for the bulk of its foreign exchange earnings.

The government recently launched a $1-billion international tender to rebuild a national highway linking the rural northern provinces with the more developed southern region.

The winning bid is expected to be announced this month.

Improved roads could allow Mozambique to lure foreign tourists who visit neighbouring South Africa for the 2010 Soccer World Cup. Mozambique’s capital Maputo is a few hours drive from Nelspruit, one of the host cities for the tournament.

“We have the 2010 soccer event in South Africa in just three years, therefore, roads and bridges are very important if we want to reap the benefits,” Fecilio Zacarias, Mozambique’s minister of public works, told Reuters.