European Union and World bank boost aid to Mozambique

1 June 2007

Maputo, Mozambique, 1 June – The European Commission said Thursday in Maputo that it would grant Mozambique aid of an extra 50 million euros as part of the ninth European Development Fund, which has been in place since 2001.

The increased aid is the result of a recent final review of the cooperation program, according to a statement from the European Commission issued in the Mozambican capital.

“This decision is the result of evaluating the needs of the country, of an overall positive performance in carrying out the aims of the Annual (government) Plan to Reduce Absolute Poverty (PARPA) and the capacity to absorb the resources in the programs already underway,” the statement said.

Thus, the overall amount financed by the ninth European Development Fund for the bilateral cooperation program with Mozambique, in the 2001-2007 period totaled 558.6 million euros.

The additional funding is targeted at a new budgetary aid program for next year, a decision which also “illustrates the coherence and predictability of community aid,” the statement said.

In its turn, the World Bank Wednesday announced in Washington that it would provide Mozambique annual aid of US$155 million until 2011, as part of a new strategy to support the country, which aims to strengthen the role of citizens and institutions.

In the statement issued Wednesday, the World Bank noted the need for the Mozambican government to carry out reforms and investment, in order for the benefits of growth posted by the country in recent years to be felt by the poorest members of the population.

The World Bank plans to support Mozambique via several instruments including direct budgetary financing and for specific projects as well as supplying loans and guarantees to encourage private investment. (macauhub)