logo
African Development Bank Approves $17 Million to Rebuild Conflict-Affected Northern Mozambique

African Development Bank Approves $17 Million to Rebuild Conflict-Affected Northern Mozambique

Zawya3 days ago
The Board of Directors of the African Development Bank (www.AfDB.org) has approved a $17 million grant to support recovery and resilient-building efforts in conflict-affected northern Mozambique's Cabo Delgado province.
The funding will support the Resilient Investment for Socio-Economic Empowerment, Peace, and Security (RISE-PS) Project, a bold new initiative to tackle the root causes of fragility through targeted economic empowerment. It will directly create 24,000 jobs, with 60% of opportunities earmarked for young people aged 18 to 35, and 50% reserved for women. Cumulatively, over 100,000 people are expected to benefit from the initiative.
Since 2017, violent extremist attacks in Cabo Delgado have killed at least 4,500 people and displaced more than one million. Approximately 4,965 small businesses have been destroyed, leaving communities without livelihoods. Youth unemployment currently stands at 25% in the province, with 35% of young women neither employed nor enrolled in education or training.
"This is about more than economic recovery – it's about giving young people a reason to believe in their future,' said Babatunde Omilola, Manager for Human Capital, Youth and Skill Development at the African Development Bank's Regional Office for Southern Africa. 'The project emphasizes youth as peacebuilding agents, unlocking their potential through skills development, entrepreneurship, and decent work opportunities to drive economic stabilization efforts.'
A cornerstone of the RISE-PS project is the creation of a Peace and Security Investment Hub, coordinated by Mozambique's Northern Integrated Development Agency (ADIN).
"This hub will coordinate development work across the region and create investment opportunities for both public and private partners," said Macmillan Anyanwu, the Bank's Acting Country Manager for Mozambique. "By including local communities in planning and implementing projects — such as letting them choose which infrastructure gets rebuilt — we ensure development truly serves those who need it most."
Comprehensive Support for Vulnerable Populations
Rehabilitation of 150 community facilities, including 30 schools, 45 youth centers, 14 health posts, 10 rural markets, and 33 water systems -- providing immediate employment for 4,500 vulnerable youth and women
Training for over 9,200 individuals in market-oriented vocational skills, with 2,000 women and youth-led enterprises receiving grants to restart destroyed businesses, and 5,400 local micro-enterprises equipped to expand or consolidate operations.
Construction of a climate-smart SME village in the Afungi Industrial Hub, designed to accommodate 100 small and medium enterprises with modern facilities, including warehouses, workshops, and business incubation centers
Private sector partnerships, including TotalEnergies and ExxonMobil, to provide 1,055 youth with 6-month internships, targeting 70% permanent job placement
The total value of the project stands at $28 million, including the African Development Bank's $17 million grant through its Transition Support Facility, $4.2 million from the United Nations Development Programme (UNDP), $2.4 million from Germany, $3.1 million in parallel financing from private sector partners, and $1.3 million counterpart contribution from the Government of Mozambique.
MozParks, the national developer of sustainable economic zones, will lead the SME village construction, drawing on 23 years of experience that has attracted $4 billion in investments and created over 12,000 jobs nationwide.
The project's conflict-sensitive design specifically targets the drivers of violent extremism. Research shows that 40% of young men join rebel movements due to a lack of economic opportunities. At the same time, women face additional vulnerabilities, including limited education and high rates of gender-based violence.
Implementation begins on 1 September 2025, under the leadership of the Government, with UNDP as the implementing partner. The project will run until August 2029.
ADIN will serve as the executing agency, with enhanced institutional support to strengthen its coordination role across northern Mozambique, which is home to 11.6 million people.
Recent security improvements, and a reduction in the number of internally displaced persons from over one million to 635,000 present an opportunity for sustained development investments and renewed investor confidence.
The RISE-PS project aligns with Mozambique's National Development Strategy (2025-2044) and the African Union's Agenda 2063, contributing to Sustainable Development Goals (SDG 1 - No Poverty; SDG 4 - Quality Education; SDG 5 - Gender Equality; SDG 8 - Decent Work and Economic Growth).
It also aligns with the African Development Bank's Strategy for Addressing Fragility and Building Resilience (2022-2026), the Bank's Country Strategy Paper 2023-2028 for Mozambique, its Ten-Year Strategy 2024-2033, and many other strategies or action plans on jobs, gender, skills, private sector development and nutrition. In particular, the Bank's Jobs for Youth in Africa strategy 2016-2025 aims to create 25 million jobs and positively impact 50 million African youth by 2025.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
About the African Development Bank Group:
The African Development Bank Group is Africa's premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Doha agreement brings Democratic Republic (DR) Congo government and M23 rebels a step closer to peace
Doha agreement brings Democratic Republic (DR) Congo government and M23 rebels a step closer to peace

Zawya

time7 hours ago

  • Zawya

Doha agreement brings Democratic Republic (DR) Congo government and M23 rebels a step closer to peace

An agreement signed by the Democratic Republic of the Congo (DRC) government and the Congo River Alliance/March 23 Movement (AFC/M23) has been hailed by the UN peacekeeping mission in the country (MONUSCO) as 'an important step toward sustainable peace. In a statement released on 19 July, MONUSCO said that the Declaration of Principles, signed in Doha under the mediation of Qatar, 'reflects the parties' resolve to prioritize peaceful means, establish a ceasefire, and set up a joint mechanism to define its practical implementation.' 'This important declaration marks a shift toward easing tensions and protecting civilians seriously affected by the conflict,' declared Mr. Bruno Lemarquis, Deputy Special Representative of the UN Secretary-General in the DRC and Acting Head of MONUSCO. 'We commend the commitments made and call for their timely and good faith implementation.' Those commitments include measures to facilitate the voluntary, safe, and dignified return of internally displaced persons and refugees to their places or countries of origin, and the encouragement of inclusive dialogue, seen as vital to addressing the root causes of the conflict and achieving lasting peace. Earlier this year, the M23 launched an offensive in North and South Kivu provinces, capturing cities and villages, including provincial capitals Goma and Bukavu. Thousands of civilians were killed, hundreds of thousands more were displaced, and serious human rights violations were committed. The Declaration of Principles comes less than a month after a peace agreement signed by Congo and Rwanda, long accused by the Congolese government of supporting the M23. The Mission's statement highlighted the Declaration's emphasis on civilian protection and support for the ceasefire, with assistance from MONUSCO and other partners, and reaffirmed its readiness to support the cessation of hostilities, particularly through the establishment of a credible and jointly agreed verification mechanism. MONUSCO's statement concluded by urging all parties to honour their commitments, act in good faith throughout the process, and prioritise human rights, security, and the aspirations of the Congolese people in all decisions. Distributed by APO Group on behalf of UN News.

El Sisi meets Centcom chief in Cairo and reaffirms strong US-Egypt ties
El Sisi meets Centcom chief in Cairo and reaffirms strong US-Egypt ties

The National

time9 hours ago

  • The National

El Sisi meets Centcom chief in Cairo and reaffirms strong US-Egypt ties

US Central Command (Centcom) chief Gen Michael Kurilla met Egyptian President Abdel Fattah El Sisi in Cairo on Sunday, with both reaffirming the strategic partnership between their countries despite recent strained relations. A statement from the Egyptian presidency underscored the 'strategic depth' of US-Egyptian relations and highlighted that President Donald Trump's attitude towards Cairo was well-intentioned. Discussions focused on strengthening bilateral military and security co-operation, and addressing regional challenges, including efforts to achieve a ceasefire in Gaza and to allow sustained humanitarian aid to the enclave, the presidency said. The meeting, attended by Egypt's Defence Minister Abdel Meguid Saqr and US ambassador Herro Mustafa, also touched on broader regional issues, with Mr El Sisi discussing Egypt's water security and developments in the Horn of Africa. The high-level visit comes after months of uncertainty over US-Egypt relations, exacerbated by disagreements over Israel's war on Gaza. Mr Trump's controversial demand for Egypt to resettle Palestinians from Gaza in its Sinai Peninsula was met with a firm rejection from Cairo, which called the proposal a threat to national security and the Palestinian cause. The US President then ruffled feathers again in April with a demand that American vessels should transit the Suez Canal free of charge. Pro-government Egyptian media dismissed the idea as 'preposterous' and it fuelled speculation over Cairo's growing frustration with Washington's policies. At the same time, Egypt has deepened its ties with other global powers, particularly China, with which it conducted a joint military exhibition at the Giza pyramids in April and May. Cairo also purchased a number of Chinese military hardware. Chinese Prime Minister Li Qiang visited Cairo this month to expand economic and military co-operation, including infrastructure investment and joint military drills. He met government officials, including Mr El Sisi, and business leaders. Egypt's involvement in the Brics bloc and growing reliance on Chinese and Russian arms have signalled a broader shift in its foreign policy. Despite the apparent political discord, US-Egypt economic ties remain significant. In May, the US-Egypt Policy Leaders' Forum highlighted Cairo's efforts to attract American investment, including a proposed US industrial zone in the Suez Canal Economic Zone. US companies have invested more than $47 billion in Egypt in the past 20 years and the two sides continue to prioritise trade and investment, even as political tension persists. Gen Kurilla's visit may also indicate Washington's intent to preserve its $1.3 billion annual military aid package to Egypt, a cornerstone of their relationship since the 1970s. Following the perceived row, questions were raised over the continuation of the military aid package, especially in light of larger funding cuts introduced by Mr Trump's administration since he came to power again in January. His predecessor Joe Biden had halted 10 per cent of the annual aid package to Cairo over Egypt's failure to comply with human rights standards set by the aid agreement. The aid was restored the following year.

Al Baraka Bank Egypt signs two landmark agreements with ICIEC worth $100mln
Al Baraka Bank Egypt signs two landmark agreements with ICIEC worth $100mln

Zawya

time10 hours ago

  • Zawya

Al Baraka Bank Egypt signs two landmark agreements with ICIEC worth $100mln

Cairo – Al Baraka Bank Egypt has announced the signing of two key agreements with the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), with a total value of USD 100 million. The agreements include The Documentary Credit Insurance Policy (DCIP) and The Bank Master Policy (BMP), both designed to strengthen the bank's Islamic trade finance capabilities. The DCIP valued at USD 50 million, is designed to support the export transactions backed by Letters of Credit for Al Baraka Bank's Corporate & SMEs exporters. The policy provides tailored risk-mitigation instruments in de-risking the non-payment risk of overseas banks, thereby enhancing exporters' ability to expand into new markets and increase their cross-border trade volumes. The BMP is expected to support Islamic trade finance transactions worth USD 50 million. It represents a key step toward the development of Islamic finance and enhancing its role in supporting Corporate & SMEs. The signing ceremony was held between Dr. Khaled Khalfallah, CEO of ICIEC, and Mr. Ahmed Atteya, Head of Financial Institutions at Al Baraka Bank Egypt, in the presence of a group of senior international officials. In this context, Mr. Kareem Namek, Chief Financial Markets at Al Baraka Bank Egypt, stated: "These agreements reflect Al Baraka Bank Egypt's unwavering commitment to offering integrated, Sharia-compliant banking solutions that empower our clients to conduct international trade with greater confidence and security. The provision of such advanced insurance coverage is a cornerstone of our strategy to mitigate credit risk, expand our trade finance operations, and contribute to long-term sustainable economic growth. We firmly believe that innovation and transparency in our financial services are essential to strengthening our position as a leading Islamic Financial institution supporting both the national economy and the Islamic banking sector." These agreements are set to enhance the ability of Al Baraka Bank Egypt's corporate and SMEs clients to expand their export activities across global markets, through innovative financial solutions that promote financial stability, attract investment, and support sustainable development. This strategic partnership is aligned with Al Baraka Bank Egypt's vision and complements the pivotal role played by ICIEC in supporting trade and investment across the 57 member countries of the Islamic Development Bank Group. Through Sharia-compliant insurance solutions, ICIEC facilitates development projects in key sectors such as food security, energy, transportation, and infrastructure.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store