The World Bank argues that promoting agriculture is the fastest way to overcome poverty in Mozambique, given the economic potential and the global scenario in which there are several threats to growth, reads the institution's latest report.

"Agricultural growth would reduce poverty and inequality three times faster than growth in any of the other sectors," the organization highlights in the eighth edition of the Mozambique Economic Update report, released Thursday.

The statement comes at a time when - for at least a decade - the country's expectations are for a growth based on the Rovuma gas reserves - which begin to be explored this year.

Agriculture remains to be developed, notes the World Bank. "Despite its potential, agricultural productivity remains low by regional standards, with Mozambique having one of the lowest grain yields per hectare, for example," it said in the document cited by Lusa.

In other words, "with the right support, agriculture can be a sustainable source of growth, poverty reduction, and food security."

The World Bank suggests taking four steps.

For one thing, "shifting agricultural support to public goods and services such as rural infrastructure, animal and plant health services, and agricultural research" that can provide greater income to the sector.

It also advocates "full participation in regional free trade agreements" in order to stimulate the sector's competitiveness.

The World Bank also considers it necessary to "reduce implicit taxation on food and increase support for food insecure households" along with the creation of "smart subsidies" by rewarding innovative projects.

The World Bank predicts that economic growth will "accelerate in the medium term" in Mozambique, "reaching an average of 5.7% between 2022 and 2024" and considers that the scenario could be even more sustainable if there was the agricultural investment it suggests.

For now, the growth the institution foresees is based on "the start of liquefied natural gas (LNG) production" off Cabo Delgado, scheduled for this year, and "the expected restart of larger LNG projects" onshore - suspended a year ago after armed attacks in the province.

The report points to a "recovery in global demand and commodity prices" in order to "support export growth" in Mozambique.

This growth associated with the entry of foreign capital, mainly linked to LNG, "will sustain investments," he says.

The agreement with the International Monetary Fund (IMF) announced this year to run until 2025 and "budgetary support from other development partners, will further help strengthen economic recovery while addressing debt and financing constraints."

On the risk side there are three "substantial" threats.

Rising import prices due to the conflict in Ukraine, new waves of covid-19 and the insurgency in the northern part of the country could put the brakes on growth, the World Bank warns.