Government funding for Mozambican districts due to rise in 2010

17 November 2009

Maputo, Mozambique, 17 Nov – The Mozambican government next year plans to provide 1.5 billion meticals (US$54.9 million) to the country’s 128 districts, which is an overall rise of 1 million meticals, the Ministry for Planning and Development said in Maputo.

The information was provided by minister Aiuba Cuereneia at the end of a ceremony to sign a guideline document for execution of the programme to support rural development in the country, between the Mozambican government and the United Nations Development Programme (UNDP).

In 2006 the Mozambican authorities implemented a new way of funding districts as part of its government decentralisation, which gives districts more autonomy to manage their funds locally.

The funding, popularly known as “seven million” (because iniunding was set at 7 million meticals for each district), is intended to fund small development projects. Currently each district, according to the minister, receives over 8 million meticals.

The programme aims to put in place the PARPA (The Plan of Action for Reduction of Absolute Poverty) for 2006-2009 which, outlines “rural development as a process to improve living conditions and pro-rural transformation of the pattern of wealth creation and accumulation in Mozambique.” (macauhub)