ABIDJAN, Ivory Coast, September 14, 2023/ -- The Board of Directors of the African Development Fund approved a grant of US$6.73 million to Mozambique in Abidjan on 13 September 2023 to support the implementation of the Institutional Support Project for Business Environment and Governance.

The aim of the project is to increase resilience through institutional capacity building to support private-sector development and the management of public finances. Its first component is aimed at improving the business environment, including through capacity strengthening of the delivery unit at the Ministry of the Economy and Finance, which oversees implementation of reforms under the Program for Economic Acceleration.

The project will help to streamline the administrative formalities imposed on businesses and investors and foster a more conducive environment for investment and business creation. It will also support the assessment of existing tax incentives and develop a conducive framework to maximise the appeal of investment,and help to attract climate-smart investments.

The second component focuses on increasing the efficiency, accountability and transparency of public spending. This involves strengthening internal and external control functions and making these an absolute priority to guarantee transparency and accountability in the use of public funds. It will help to strengthen the public procurement function, and hence improve the effectiveness of the use of public resources, which is essential for creating the right conditions to bolster economic activity and drive inclusive growth.

Several ministries, departments and agencies will benefit from the project, including the Ministry of the Economy and Finance, and the Ministries of Trade and Industry, Agriculture, Justice, Mineral Resources and Energy, Employment and Social Security, Land and the Environment, and Women and Social Action, as well as the Investment and Export Development Agency, the tax authorities, the General Inspectorate of Finance, the National Institute of Standardisation and Quality Control, and the Institute for Small and Medium-Sized Enterprises.

The private sector will also benefit from a more conducive business environment, thanks to simplified administrative procedures for businesses and investments, a modernized legal framework for investment and employment, optimised tax incentives and a more efficient, transparent and fairer system for awarding public-sector contracts.