Mozambique - Sustainable Rural Economy Program Project : Additional Financing

Overview & Synopsis

The objective of the Additional Financing of the Sustainable Rural Economy Program Project for Mozambique is to improve the performance of targeted small agriculture producers and Agri MSMEs and improve natural resources management practices in selected project areas. The AF responds to the Government request, dated February 20, 2026, to support recovery efforts following the early-2026 floods in southern and central provinces which severely disrupted the agriculture sector. Mozambique’s Country Climate Development Report (CCDR) underscores that Mozambique is among the world’s most climate-vulnerable countries and faces rising frequency and intensity of cyclones, floods, and drought hazards that repeatedly erase rural gains and push poor households into food insecurity. The CCDR calls for expanding adaptation in agriculture, providing resilient rural infrastructure, and building risk-informed institutions as priorities for climate resilient development.