Germany grants financial aid to Mozambique

22 April 2010

Maputo, Mozambique, 22 April – Germany has granted Mozambique financial aid of 115.5 million euros for the 2009/2011 period to be applied in education, development and budgetary aid, under the terms of two agreement signed Wednesday in Maputo.

The provinces of Inhambane, Sofala and Manica were chosen to carry out activities in the selected areas, namely education, decentralisation for rural development, sustainable economic development and direct budgetary aid.

Mozambique’s Minister for Foreign Affairs and Cooperation, Oldemiro Baloi said that most of the aid, around 2 billion meticals or 47 million euros, would be put into the Education sector Support Fund (FASE IV), and 60 percent had been earmarked for construction of schools and 40 percent to fund other components of the Strategic Plan for Education and Culture.

Around 1 billion meticals or 23 million euros will be applied to support the budget directly, with 3 million euros used to support the institutions involved in the direct budgetary aid process that is the Republican assembly (parliament), the Administrative Court and teh Tributary Authority, as well as civil society.

A further 1 billion meticals will be applied to the process of decentralisation for rural development in order to allow the administrations of the districts and municipalities of Sofala and Manica and drawing up and executing district development plans, as well as improving the planning and funding of small and medium-sized infrastructures.

700 million meticais will be applied to improving basic conditions at small and medium-sized companies and the development of the financial sector and 150 million meticals will fund the Institute for Catastrophe Management. (macauhub)