World Bank Provides $150 Million in Swift Aid to Boost Mozambique’s Recovery from Tropical Cyclone Freddy

The World Bank Group Responds Speedily with $150 Million to Aid Mozambique’s Post-Cyclone Freddy Recovery

The World Bank Group has swiftly approved the disbursement of $150 million through the Contingent Emergency Response Component (CERC), aimed at bolstering the Government of Mozambique’s early recovery efforts in the wake of the devastating Tropical Cyclone Freddy.

In response to the Ministry of Economy and Finance’s plea for assistance in addressing the emergency, which affected over 1.18 million individuals, the allocated funds will facilitate the rapid restoration of vital transport infrastructure. Furthermore, the funds will enable the provision of crucial services such as education, healthcare, energy, water supply, and sanitation, along with revitalizing agricultural activities in hard-hit rural areas and municipalities across the country. Notable locations in need of support include the capital city of Maputo, secondary cities Matola and Quelimane, as well as key towns in the provinces of Inhambane, Tete, Niassa, and Nampula.

Xavier Agostinho Chavana, World Bank Disaster Risk Management Specialist in Mozambique, emphasized, “Our utmost priority is to expedite the government’s response to this emergency and ensure the swift recovery of those affected by yet another cyclone. We are pleased to have provided this funding promptly, at a time when the country and its people need it the most.”

Out of the $150 million, $100 million will be granted as non-repayable funds, while the remaining $50 million will be allocated as soft credit. These financial resources will be directed towards key sectors, with $51 million allocated for transportation, $19 million for agriculture, $26.1 million for water supply and sanitation, $8 million for water resources management, $2.8 million for education, $11.6 million for healthcare, $17.7 million for energy, and $13.3 million for urban infrastructure.

These funds are sourced from existing World Bank projects in Mozambique and complement the additional grant of $300 million previously approved by the World Bank in April under the Crisis Response Window (CRW). Among these funds, $125 million will be allocated to secondary road improvements in Cabo Delgado, $50 million will be directed towards upgrades in the drainage system in Maputo, and $100 million will support enhancements in water storage systems nationwide. The allocations made through CERC and CRW follow the World Bank’s Global Rapid Post-Disaster Damages Estimation conducted in April, which estimated the damages caused by Cyclone Freddy at $1.53 billion.

Since 2019, the World Bank has been actively supporting Mozambique in responding to climate-related shocks. This assistance includes the Disaster Risk Management and Resilience Program for Results, which provides direct financing to the Government’s Disaster Management Fund, ensuring that funds are utilized in a predictable, accountable, and transparent manner, based on agreed-upon results.

Lizardo Narvaez Marulanda, Senior Disaster Risk Management Specialist in Mozambique, highlighted the World Bank’s efforts in providing sovereign risk insurance for the first time to protect against cyclone winds and excessive rainfall. This insurance policy provides coverage for maximum losses of $46 million across Mozambique, including Maputo, during the cyclone and rainy season of 2022/2023.

Source: World Bank / Press Release

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