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World Bank injects $130M in support of recovery efforts in cyclone affected communities

  • World Bank injects $130M in support of recovery efforts in cyclone affected communities
    Photo: Direct Relief

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The World Bank
The World Bank Group has two goals, to end extreme poverty and promote shared prosperity in a sustainable way

The World Bank has approved an equivalent of $130 million in grants from the Crisis Response Window of the International Development Association (IDA) in support of the government of Mozambique’s Cyclone Idai & Kenneth Emergency Recovery and Resilience Project. A complementary contribution of $60 million from the Netherlands is foreseen, and co-financing discussions with Germany are underway. These funds will be utilized in the recovery of public and private infrastructure, restore livelihoods, and strengthen climate resilience in the areas most affected by the Cyclones Idai and Kenneth.

“More than 1.7 million people were affected by both extreme weather events, with damages and losses amounting to $3 billion,” noted Mark Lundell, World Bank Country Director for Mozambique, Madagascar, Mauritius, Seychelles and Comoros. “Given the severity of the impacts, our response has been swift and multisectorial. We have mobilized more than $500 million for Mozambique between realocation of existing funds and new funding, out of which we are allocating $130 million grants for this specific project, which complements other ongoing financing.”

Climate shocks are frequent in the country, negatively impacting growth and development on a regular basis. Furthermore, the provinces cyclically most affected by disasters tend to show higher levels of poverty compared to those least affected, and the poor tend to bear the brunt of these shocks.

“A large portion of the funding will be utilized in the repair and reconstruction of housing for selected vulnerable communities, as well as to rebuild public infrastructure,” noted Michel Matera, World Bank Senior Urban Specialist and the project’s task team leader. “We will also support the recovery of economic activities through the private sector in affected provinces.”

Indeed, aproximately 15,000 housing units for an estimated 75,000 cyclone-affected beneficiaries in Sofala and Cabo Delgado will be funded by the project through a community-based and owner-driven resilient reconstruction approach. Other activities include the repair and reconstruction of markets, government buildings, public water and sanitation units; and the construction of multi-functional elevated flood evacuation sites and cyclone wind shelters. Under its private sector recovery component, the project will implement a matching grant mechanism and a credit line to support businesses recovery and enhance access to finance respectively. This component will target informal, micro and small-sized firms impacted by the disasters.

“Given the country’s vulnerability to cyclical climate shocks, we will continue our efforts of building climate resilience in the city of Beira, an important economic hub for the country,” noted Brenden Jongman, Disaster Risk Management Specialist and the project’s co-task team leader. “The project will build on existing World Bank engagements in the city and repair and significantly strengthen coastal protection, as well as expand the city’s drainage systems.”

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