African Bank’s $17M Bet on Jobs Over Guns in Mozambique’s Cabo Delgado

The Board of Directors of the African Development Bank (AfDB) has approved a $17 million grant to support recovery and resilience-building efforts in Cabo Delgado province, northern Mozambique, which has been deeply affected by years of violent conflict.

The funding will support the Resilient Investment for Socio-Economic Empowerment, Peace, and Security (RISE-PS) Project, a new initiative designed to address the root causes of instability through targeted economic empowerment.

The project is expected to directly create 24,000 jobs, with 60% of those opportunities reserved for young people aged 18 to 35, and 50% for women. Overall, more than 100,000 individuals are projected to benefit from the initiative.

Since 2017, Cabo Delgado has been ravaged by violent extremist attacks that have killed at least 4,500 people and displaced over a million others. Approximately 4,965 small businesses have been destroyed, stripping communities of their livelihoods. Youth unemployment in the province currently stands at 25%, with 35% of young women neither in employment nor in education and training.

Economic Recovery

“This is about more than economic recovery, it’s about giving young people a reason to believe in their future,” said Babatunde Omilola, manager for human capital, youth and skill development at the AfDB’s regional office for Southern Africa. “The project emphasises youth as peacebuilding agents, unlocking their potential through skills development, entrepreneurship, and decent work opportunities to drive economic stabilisation efforts.”

A central component of the RISE-PS initiative is the creation of a Peace and Security Investment Hub, coordinated by Mozambique’s Northern Integrated Development Agency (ADIN). This hub will serve as a coordination centre for regional development and will foster investment opportunities for both public and private sector partners.

“By including local communities in planning and implementing projects, such as letting them choose which infrastructure gets rebuilt, we ensure development truly serves those who need it most,” said Macmillan Anyanwu, the Bank’s acting country manager for Mozambique.

The project will focus on rehabilitating 150 community facilities, including schools, youth centres, health posts, rural markets, and water systems. These efforts will provide immediate employment for 4,500 vulnerable youth and women.

In addition, over 9,200 individuals will receive training in market-oriented vocational skills, while 2,000 women and youth-led enterprises will be awarded grants to restart businesses destroyed by conflict. Around 5,400 local micro-enterprises will also be supported to expand or consolidate their operations.

The RISE-PS Project will also include the construction of a climate-smart SME village in the Afungi Industrial Hub. This facility will house 100 small and medium enterprises and will feature modern infrastructure such as warehouses, workshops, and business incubation centers.

IV ZEAL VITAMIN

Private sector partners, including TotalEnergies and ExxonMobil, will offer six-month internships to 1,055 youth, with a target of 70% permanent job placement.

Conflict Sensitive Approach

The total value of the project is $28 million, funded through a combination of sources. The AfDB is contributing $17 million through its Transition Support Facility, while the United Nations Development Programme (UNDP) is providing $4.2 million, Germany $2.4 million, private sector partners $3.1 million, and the Government of Mozambique $1.3 million.

MozParks, the national developer of sustainable economic zones with 23 years of experience, will lead the construction of the SME village. To date, MozParks has attracted $4 billion in investments and created over 12,000 jobs across the country.

Mozambique’s war-torn Province of Cabo Delgado

The project has been designed with a conflict-sensitive approach, targeting the root causes of violent extremism. Research indicates that 40% of young men join rebel groups due to a lack of economic opportunities. At the same time, women face additional challenges, including limited access to education and high rates of gender-based violence.

Implementation of the RISE-PS Project will begin on September 1, 2025, under the leadership of the Government of Mozambique, with the UNDP serving as the implementing partner. The project is scheduled to run until August 2029. ADIN will be the executing agency, supported with strengthened institutional capacity to coordinate development efforts across northern Mozambique, home to 11.6 million people.

Recent improvements in security and a reduction in the number of internally displaced persons, from over one million to 635,000, offer a promising window for sustained development investments and renewed investor confidence.

RISE-PS

The RISE-PS Project aligns with several national and regional development frameworks, including Mozambique’s National Development Strategy (2025–2044), the African Union’s Agenda 2063, and the Sustainable Development Goals, particularly SDG 1 (No Poverty), SDG 4 (Quality Education), SDG 5 (Gender Equality), and SDG 8 (Decent Work and Economic Growth).

It also supports the African Development Bank’s Strategy for Addressing Fragility and Building Resilience (2022–2026), its Country Strategy Paper 2023–2028 for Mozambique, and its 10-Year Strategy 2024–2033.

The initiative is further aligned with the Bank’s broader action plans on jobs, gender, skills development, private sector growth, and nutrition, particularly the Jobs for Youth in Africa strategy (2016–2025), which aims to create 25 million jobs and positively impact 50 million African youth by 2025.