Maputo, Mozambique, 16 Dec – The Mozambican government Tuesday approved a decree to create the District Development Fund for the population with difficulties in taking out bank loans in the districts, altering the current standard for granting loans to those regions.
The Maputo government annually provides over 7 million meticals (US$300,000) from the State Budget to each of the country’s 128 districts for projects to combat poverty.
Over half of the Mozambican population, estimated at a total of 20.2 million people, lives in its poorest regions.
The District Development Fund aims to “make budget management more flexible and improve transfer mechanisms,” of the so-called “7 million”, said government spokesman Luis Covane.
Speaking to journalists, Covane said that the fund was “essentially aimed at people with a lot of difficulty accessing banks and getting loans.”
The District Development Fund is a public institution, which operated in all of the country’s districts and will continue to be managed by the Consultative Council, but “will be headed by the provincial governor” who will have decision-making powers, Covane said.
The governors of the Mozambican provinces will be responsible for “ratifying the annual plans of the fund, authorising reception of outside donations, opening accounts for the fund in retail banks, ratifying annual reports and accounts, and promoting regular inspections into the operation of the fund,” he said. (macauhub)