The board of directors, African Development Fund (ADF) has approved a $6.73 million grant to Mozambique to support implementation of the institutional support project for business environment and governance.

The African Development Bank (AfDB) in a statement on its website said the aim of the project was to increase resilience through institutional capacity building.

According to the statement, the project will 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.

“This is done at the Ministry of the Economy and Finance, which oversees implementation of reforms under the Programme 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,” it said.

According to the statement, the second component focuses on increasing the efficiency, accountability and transparency of public spending.

It said this involved strengthening internal and external control functions and making these an absolute priority to guarantee transparency and accountability in the use of public funds.

The statement said it would help to strengthen the public procurement function, and hence improve the effectiveness of the use of public resources.

It said this was essential for creating the right conditions to bolster economic activity and drive inclusive growth.

The statement said several ministries, departments and agencies would benefit from the project, including the Ministries of the Economy and Finance, and that of Trade and Industry.

It said agriculture, justice, mineral resources and energy, employment and social security, land and the environment, and women and social action would benefit from the project also.

It said the investment and export development agency, tax authorities, the general inspectorate of finance, the national institute of standardisation and quality control, as well as the institute for small and medium-sized enterprises would also benefit.

The statement said that the private sector would enjoy a more conducive business environment.

“Thanks to simplified administrative procedures for businesses and investments, a modernised legal framework for investment and employment, optimised tax incentives.

According to him, this is also a result of a more efficient, transparent and fairer system for awarding public-sector contracts.

(NAN)