Mozambique: Mozambique seeks to keep aid from Denmark

31 October 2008

Copenhagen, Denmark, 31 Oct – Mozambique wants to maintain its position as the second biggest beneficiary of development aid from Denmark, the Mozambican ambassador to Scandinavian countries, Pedro Comissário said in Copenhagen.

Speaking to Mozambican news agency AIM, Comissário said that currently Denmark annually provides 400 million Danish kroner (around US480 million) to Mozambique.

Of this amount, 60 million kroner are applied to the State Budget and the remaining 340 million are split amongst other sectors of activity.

But this relationship has been weakened for some time due to the discovery, in 2005, of the mis-application of US$84 million for the Education sector in the 2002/2006 period.

This situation led to Denmark suspending its funding for this area. After this problem, the government of Denmark decided to reduce its direct budgetary support, of 60 million kroner in 2007 to 50 million in 2008.

Denmark had said it intended to increase its budgetary aid for 2009, but later renaged on its decision, leaving its aid level unchanged at 50 million kroner. Meanwhile, Denmark has promised to increase its aid to the East African country over the next three years.

The main areas of cooperation for Denmark with Mozambique are direct budgetary support, agriculture and rural development, governance and justice, gender and HIV/AIDS. (macauhub)