PEMBA: The World Bank on Wednesday granted $100 million for an emergency recovery project in northern Mozambique, where hundreds of thousands of people have been displaced by a jihadist insurgency.

An agreement for the funding - part of a three-year $700-million project - was signed by the government and the United Nations Office for Project Services (UNOPS) which oversees the project.

Gas-rich Cabo Delgado province has been battered by a bloody jihadist insurgency since 2017 by a group known locally as al-Shabab.

In a major intensification of the violence, Islamic State-linked militants raided the coastal town of Palma on March 24, killing dozens of people and driving more than 25,000 out of the town.

Three years of violence have killed at least 2,800 people according to Acled, a non-governmental organisation (NGO).

President Filipe Nyusi, who attended the signing ceremony in Pemba, the provincial capital, said the agreement would help deal with a "humanitarian catastrophe".

He vowed that "together we shall overcome and win" the battle with extremists, by focusing the national agenda on development.

"The heart of this plan is to remove families from situations of vulnerability through socio-economic inclusion," the president said.

The government also sought "to restore normality to affected areas" where around 700,000 people have been displaced, he added.

The project aims to provide social services along with agricultural aid and infrastructure such as schools and mobile hospitals.