The African Development Bank (ADB) argued Tuesday that "widespread poverty and inequality" are Mozambique's main challenge, stressing the need for structural transformation for development.

"Widespread poverty and inequality, especially in rural areas, where the majority of the population lives, are Mozambique's main development challenge," said ADB's representative in Mozambique, César Augusto Mba Abogo.

Abogo was speaking during a meeting to review the African Development Bank's (AfDB) strategy for Mozambique for the period 2018-2022.

In this sense, he continued, the country must drive and accelerate the structural transformation of the economy aimed at creating jobs to reduce poverty and inequality, in an effective and sustainable way.

The ADB representative said that cooperation with Mozambique over the past four years "was anchored" on the pillars of infrastructure development to enable transformative and inclusive growth and job creation.

The focus also included support for agricultural processing and value chain development, he added.

Governance, climate resilience, and gender equality were defined as areas of special strategic emphasis in the cooperation instrument between the ADB and Mozambique, said César Augusto Mba Abogo.

"Gender analysis was systematically carried out during the preparation of each new project and, where feasible, specific components targeting women were included," Abogo pointed out.

The bank supported dialogue on critical issues such as debt sustainability, through advisory services and knowledge products for policy reforms in macroeconomic management, natural resource management, and resource mobilization, noted the ADB representative in Mozambique.

At the opening of the meeting, the Minister of Economy and Finance, Max Tonela, assured an efficient management of the resources destined to the country's development, pointing out that the national economy is showing signs of recovery.

"There are still many challenges to overcome, in relation to the flexibilization of procedures conducive to the good performance of programs and projects, as well as to ensure an efficient management of the allocated financial resources," he stated.

The governor highlighted the importance of the aid that has been channeled by the ADB, pointing out the pillars of infrastructure and agricultural transformation as the main beneficiaries of cooperation between the Mozambican state and the continental financial institution.

"Mozambique and ADB celebrate 45 years of partnership, marked by a very significant financial assistance for the development of the country in excess of 2.5 billion dollars, which started with the first operation in the road sector in 1977," noted Max Tonela.