Fund to support decentralised financial management set up in Mozambique

19 March 2010

Maputo, Mozambique, 19 March – The Mozambican government plans to provide US$46.3 million to train local authorities to manage and apply funds on a district level, under the terms of an agreement signed Thursday in Maputo with countries and organisations that support the country.

Since 2’’6 the Mozambican government has provided funds for each district, which are managed on a local level, with several partners supporting the decision to decentralise with initiatives focused on specific provinces and districts.

Thursday in Maputo the government, the World Bank, the United Nations Development Programme and the German, Irish, Swedish and Dutch cooperation organisations signed a memorandum of understanding called, “programme for Decentralised Planning and Finance.”

Under the terms of the document, the partners will provide the said funding over five years to train local authorities to manage the funds granted to them.

Under the terms of the deal signed Friday a common fund will be created where donors will deposit their donations, which will then be distributed to the country’s 128 districts, for training and to teach how to make plans and balance accounts.

Each year the government transfers funds to municipalities from the Autarchic Compensation Fund. (macauhub)