A report by the African Development Bank (AfDB) reveals that Mozambique must move forward with a large-scale mobilization of the private sector in order to achieve its climate action and "green growth" ambitions.

In a report entitled "Mobilizing Private Sector Finance for Climate and Green Growth"In a report released on Thursday, quoted by Terra magazine, the institution recognizes that Mozambique has demonstrated a strong political commitment to the growth of the green economy and has made great progress in prioritizing climate actions, however, it highlights funding limitations as one of the major challenges.

"Despite the strong commitment to 'green growth', financing these efforts has been challenging," writes the report, pointing to "limitations in access to international credit at competitive rates" as one of the factors.

According to the organization, the country needs an amount equivalent to just over 19% of its GDP (Gross Domestic Product) for programs to adapt to the effects of floods and drought.

In view of the funding shortfall, the report states that "if the country is to achieve its climate ambitions, private sector funding must be mobilized on a large scale".

In a context in which the vast majority of private sector financing in the country goes to the extractive industry, the bank advocates a paradigm shift.

"Although private sector investments have been observed in Mozambique, their focus is predominantly on sectors that do not directly support green growth, such as extractive industries. Therefore, there is a pressing need to redirect and expand private sector investment to meet the growing demand for sustainable initiatives and contribute to green growth objectives," the report suggests.

On the other hand, the financial institution once again highlights the need to diversify the economy, promoting links, for example, between the natural gas industry and the agriculture and fisheries sectors.