Mozambique is reducing its dependence on foreign aid

6 September 2012

Mozambique is on the way to meeting its target for reducing its dependence on foreign aid, said the country’s Finance Minister, Manuel Chang, at the opening of the 6th Coordinating Council of the Finance Ministry, according to Mozambican daily newspaper Notícias.

At the meeting held in the city of Matola, in Maputo province, the minister explained his optimism by noting the results of tax collection in 2011, which totalled 81.01 billion meticals (US$1.815 billion), accounting for growth of 27.6 percent against 2010.

Chang also noted that total accumulated public debt, at the end of the 2011 financial year, had totalled 141.794 billion meticals, or 38.2 percent of the country’s gross domestic product (GDP).

Of that amount, 119.464 billion meticals are foreign debt and 22.330 billion meticals are domestic debt.

“This change is associated to new pay outs for funding infrastructure projects in the areas of Education, Health, Agriculture, and Energy, but public debt remains with sustainable parameters,” he noted.

The 6th Coordinating Council is intended to analyse and assess the activities carried out in 2011 and in the first quarter of 2012, with special focus on results achieved in collecting revenues and the rational distribution of resources to areas that promote improved quality of life.

The event, involving government officials and high ranking staff from the Ministry for Finance, the Bank of Mozambique and state stake-holding company IGPE, also proposes to outline a framework for intervention throughout the last quarter of 2012. (macauhub)