The Board of Directors of the African Development Bank (www.AfDB.org) has approved a $17 million grant to support recovery and resilient-building efforts in conflict-affected northern Mozambique’s Cabo Delgado province.

The funding will support the Resilient Investment for Socio-Economic Empowerment, Peace, and Security (RISE-PS) Project, a bold new initiative to tackle the root causes of fragility through targeted economic empowerment. It will directly create 24,000 jobs, with 60% of opportunities earmarked for young people aged 18 to 35, and 50% reserved for women. Cumulatively, over 100,000 people are expected to benefit from the initiative.

Since 2017, violent extremist attacks in Cabo Delgado have killed at least 4,500 people and displaced more than one million. Approximately 4,965 small businesses have been destroyed, leaving communities without livelihoods. Youth unemployment currently stands at 25% in the province, with 35% of young women neither employed nor enrolled in education or training.

"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 African Development Bank’s Regional Office for Southern Africa. “The project emphasizes  youth as peacebuilding agents, unlocking their potential through skills development, entrepreneurship, and decent work opportunities to drive economic stabilization efforts.”

A cornerstone of the RISE-PS project is the creation of a Peace and Security Investment Hub, coordinated by Mozambique’s Northern Integrated Development Agency (ADIN).

"This hub will coordinate development work across the region and create investment opportunities for both public and private partners," said Macmillan Anyanwu, the Bank's Acting Country Manager for Mozambique. "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."

Comprehensive Support for Vulnerable Populations

• Rehabilitation of 150 community facilities, including 30 schools, 45 youth centers, 14 health posts, 10 rural markets, and 33 water systems -- providing immediate employment for 4,500 vulnerable youth and women
• Training for over 9,200 individuals in market-oriented vocational skills, with 2,000 women and youth-led enterprises receiving grants to restart destroyed businesses, and 5,400 local micro-enterprises equipped to expand or consolidate operations.
• Construction of a climate-smart SME village in the Afungi Industrial Hub, designed to accommodate 100 small and medium enterprises with modern facilities, including warehouses, workshops, and business incubation centers
• Private sector partnerships, including TotalEnergies and ExxonMobil, to provide 1,055 youth with 6-month internships, targeting 70% permanent job placement

The total value of the project stands at $28 million, including the African Development Bank’s $17 million grant through its Transition Support Facility, $4.2 million from the United Nations Development Programme (UNDP), $2.4 million from Germany, $3.1 million in parallel financing from private sector partners, and $1.3 million counterpart contribution from the Government of Mozambique.

MozParks, the national developer of sustainable economic zones, will lead the SME village construction, drawing on 23 years of experience that has attracted $4 billion in investments and created over 12,000 jobs nationwide.

The project's conflict-sensitive design specifically targets the drivers of violent extremism. Research shows that 40% of young men join rebel movements due to a lack of economic opportunities. At the same time, women face additional vulnerabilities, including limited education and high rates of gender-based violence.

Implementation begins on 1 September 2025, under the leadership of the Government, with UNDP as the implementing partner. The project will run until August 2029.

ADIN will serve as the executing agency, with enhanced institutional support to strengthen its coordination role across northern Mozambique, which is home to 11.6 million people.

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

The RISE-PS project aligns with Mozambique's National Development Strategy (2025-2044) and the African Union's Agenda 2063, contributing to Sustainable Development Goals (SDG 1 - No Poverty;  SDG 4 - Quality Education;  SDG 5 - Gender Equality; SDG 8 - Decent Work and Economic Growth).

It also aligns with the African Development Bank’s Strategy for Addressing Fragility and Building Resilience (2022-2026), the Bank’s Country Strategy Paper 2023-2028 for Mozambique, its Ten-Year Strategy 2024-2033, and many other strategies or action plans on jobs, gender, skills, private sector development and nutrition. In particular, the Bank’s Jobs for Youth in Africa strategy 2016-2025 aims to create 25 million jobs and positively impact 50 million African youth by 2025.