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Freight & Trading Weekly

Govt running out of money to upgrade roads

23 Oct 2018 - by Staff reporter
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Mozambique is reported to have raised finance for only a small portion of the funds needed to maintain its road infrastructure. The bulk of foreign funding was withdrawn in 2016 following the discovery of “hidden” debts incurred by the previous government of Armando Guebuza.

Macauhub reports that China, the World Bank, the African Development Bank, India, South Korea and Japan are continuing to provide funding for infrastructure. Daily newspaper A Verdade has reported that the government has a deficit of more than US$3 billion this year to fund construction, recovery and maintenance of just over 5 000 kilometres of roads considered a priority.

The government has budgeted US$90.2 million, or about 2% of the total needed for the roads sector. Most in need of work are the roads in the rapidly developing Tete mining province, but the government has only been able to raise US$23 million from the World Bank of the US$773 million needed to maintain and upgrade 920 kilometres of roads.

The Mozambican road network consists of 30 345 kilometres of roads, of which 7 412 km is asphalted and the remaining 22 933 unpaved.

$3bn  The government deficit for the funding of roads.

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