Maputo, Mozambique, 1 Nov – The African Development Bank (ADB) plans to provide Mozambique with a US$90 million loan to finance the State Budget over the next three years, the agreement for which was signed Monday in Maputo.
According to Mozambican daily newspaper Notícias, the funding will be applied to the programme for growth and efficiency of the public sector and the ADB committed to providing the funding in three annual tranches of US$30 million in 2011, 2012 and 2013.
At the ceremony to sign the agreement the Minister for Planning and Development, Aiuba Cuereneia said that the funding would allow the government to implement governance reforms to support decentralisation and provide district and provincial services, to continue with the Programme to Support Poverty Reduction focused on improved transparency and efficiency in the management of public funds.
“With the execution of this programme the government hopes to make the use of public resources more efficient and transparent and to encourage a climate that is more propitious to the creation of employment, with a view to more inclusive growth and reducing poverty,” Cuereneia said.
The resident director of the ADB, Joseph Ribeiro, said that the aim of the funding was to continue supporting Mozambique’s efforts to carry out its reforms with a view to stimulating a widened base for growth and reducing poverty by creating new employment opportunities for vulnerable groups. (macauhub)