The World Bank has approved a $100 million financial grant from the International Development Association (IDA) for a project of the Mozambican government to support companies in the country, he announced today in a statement.

The project entitled Links for Economic Diversification aims to support micro, small and medium-sized enterprises to be suppliers to larger companies, the WB explained.

The support is also intended to serve the growing cities in central and northern Mozambique, "thus promoting connections and economic diversification," he adds.

"Mozambique's growth has been driven by Foreign Direct Investment (FDI) in capital-intensive industries, which does not translate into adequate levels of job creation," Idah Z. explained in the statement. Pswarayi-Riddihough, WB country director for Mozambique, explained in the statement.

Supporting smaller businesses "is a key factor in economic diversification, job creation, inclusive growth and mitigation of fragilities. This is precisely the goal of this project," he concluded.

The project's priority geographic areas include the provinces of Cabo Delgado, Nampula, and Tete, "where poverty rates are high and opportunities for economic linkages are significant." 

The WB notes that the operation is aligned with "the new conflict prevention and resilience building focus of World Bank activities in Mozambique."

The new support comes after the World Bank announced in April support of $800 million for Cabo Delgado in conjunction with the Integrated Development Agency of the North (ADIN) - which in turn said it expected an additional $300 million, totaling $1.1 billion for emergency and development support in that region.