The African Development Bank (ADB) announced Wednesday a $47 million grant for the first phase of the Pemba-Lichinga Integrated Development Corridor, a Special Agro-Industrial Processing Zone in northern Mozambique.

"The African Development Fund grant will help improve agricultural productivity and agribusiness development in Niassa province by promoting institutional capacity, skills and entrepreneurship to stimulate the growth of the agricultural value chain," reads a note from the institution.

Quoted in the statement, Mozambique's Minister of Industry and Trade, Carlos Mesquita, said the project represents a "game changer" with the potential to transform the economy, promote social inclusion, and foster peace by addressing important industry enablers such as infrastructure for development.

As this is the first phase of the project, it is intended to assess the coordination of policy and development activities between Niassa province and the national departments, with a greater focus on the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development.

The idea of the project is to unite agro-industrial processing activities in areas with high production capacity to increase local potentials, productivity, integrate production, processing, and marketing of selected commodities.

According to the document, the operators of these zones will be able to work together in the same neighborhood "to reduce transaction costs and share business development services to increase productivity and competitiveness. Likewise the zones will be points of attraction for investment from agribusiness/private entrepreneurs to contribute to the economic and social development of rural areas.

The note goes on to say that this donation represents an effort by the country, and commitment by the international community, to improve the living conditions of the Mozambican people, with a greater focus on "building peace in the north.

The project will build on a long list of ADB interventions in Northern Mozambique to provide infrastructure and unlock the agricultural potential of the host corridor. The most recent of these ADB-supported projects are the N13 Cuamba-Muíta and N14 Montepuez-Ruaca roads connecting Cabo Delgado and Niassa provinces.