Washington D.C., April 23, 2003—The
International Finance Corporation (IFC), the private sector arm of the
World Bank Group, will provide a grant of $305,000 to the Mozal Community
Development Trust in Mozambique. The grant will help expand outreach
to existing and new communities around the $2.1 billion Mozal Aluminum
Smelter, to which IFC
has provided debt financing.
The Mozal Community Development Trust was created to improve living conditions
in communities within a 10 km radius of the Mozal aluminum smelter. Mozal
has a yearly budget of $2 million to fund initiatives through the trust
in small business development, education and training, health and environment,
culture and sports, and community infrastructure. The trust aligns its
development initiatives with the national, provincial, and local government.
In carrying out these initiatives, it involves relevant stakeholders from
all levels of government, NGOs, community organizations, private sector
partners, and Mozal’s own employees.
IFC’s grant will focus on expanding four initiatives:
· Small business
In small business training, the grant will enable the trust to increase
training in carpet making, general business management, chicken broiler
production, and cashew tree maintenance to more participants, predominantly
poor women. The goal is to create more opportunities outside the
farming sector for a population characterized by subsistence farming.
The trust has already helped farmers in the Mozal area increase their production
sixfold through agricultural development assistance. In an effort to assist
other farmers, the grant will allow an expansion of training to a cooperative
of farmers in a neighboring community.
To improve health services to local community residents, the grant will
upgrade existing health clinic facilities, specifically improving testing
for diseases as well as increasing the physical capacity of the facilities
to meet the growing numbers of users. This activity builds on the trust’s
previous success in reducing malaria by 50 percent in three years as well
as AIDS awareness and prevention initiatives, supported in part by IFC.
Further collaboration with the IFC
Against Aids program is planned.
Finally, to enable the local community to gain access to jobs at the smelter,
the grant will partially fund the construction of the area’s first secondary
school facility. Mozal requires applicants to have a minimum of a tenth
grade education and existing facilities offer education only to the seventh
“IFC’s grant to the Mozal Community Development Trust builds on the success
of our previous work with Mozal, in which IFC has invested and with which
we have worked through the Africa Project Development Facility since 2001,”
said Harold Rosen, the World Bank Group’s Director for Small and Medium
Observing that APDF organized training for over 20 local small businesses
resulting in more than $4 million worth of contracts from Mozal, Mr. Rosen
added, “We look forward to providing additional assistance to reach a
broader range of stakeholders.”
The mission of IFC is to promote sustainable private sector investment
in developing countries, helping to reduce poverty and improve people's
lives. IFC finances private sector investments in the developing
world, mobilizes capital in the international financial markets, helps
clients improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. Since its founding
in 1956 through FY02, IFC has committed more than $34 billion of its own
funds and arranged $21 billion in syndications for 2,825 companies in 140
developing countries. IFC's worldwide committed portfolio as of FY02 was
$15.1 billion for its own account and $6.5 billion held for participants
in loan syndications.
IFC's small business linkages team works closely with the Corporation's
clients and partners worldwide to expand their local supply and distribution
chains, create more opportunities for smaller businesses, and assist in
sustainable community development efforts.