Mozambique: Donors review aid due to financial crisis

4 March 2009

Maputo, Mozambique, 4 March – The Mozambican government said Tuesday that at least two of the country’s 19 donors, which each year fund around 50 percent of the Mozambican budget, are reviewing their participation “due to the financial crisis.”

“We have some information from two countries that have said they are reviewing aid in general, due to the financial crisis, and based on that, will confirm their payment, or not, of what they committed to providing last year,” Mozambique’s minister for Planning and Rural Development Aiuba Cuereneia, without saying which partners were involved.

A group of 19 countries and organisations provides direct aid to the Mozambique General State Budget (OGE), and this is one of the biggest joint programmes in Africa, both in terms of volume and in terms of the number of partners involved.

The OGE for 2009, which was approved in parliament in December, outlines that 55 percent of the US$3 billion needed for public accounts, will be provided by the country’s foreign partners, with the remaining 45 percent provided by internal revenues.

Cuereneia gave assurances, however, that despite doubts, the individual commitments of each of the 19 donors would be respected.

Last year some donor countries, including Norway and Sweden, threatened to freeze or even reduce their budgetary aid, due to a lack of progress made in fighting corruption. (macauhub)