Partners provide Mozambique with funding of US$500 million for 2015

13 June 2014

The group of countries and institutions that support Mozambique, known as the Group of 19, Thursday in Maputo pledged minimum funding of US$500 million for 2015, according to the Mozambican press.

Some of that amount – US$274.5 million – will be channelled into the General State Budget and the other US$289.7 million will be used for specific programmes and sectors.

Mozambican daily newspaper Notícias said that the figure was not definitive and could increase as two of the partners were not currently in a position to give a figure for the funding they will provide.

According to the Italian ambassador, Roberto Vellano, who stood down as president of the G-19, this was due to issues of a bureaucratic nature, particularly internal procedures of each country.

The agreed funding is mainly provided as donations and accounts for around 3.27 percent of Mozambique’s current Gross Domestic Product (GDP).

The funds provided will be used to execute the Plan of Acton for Reducing Poverty (PARP) through budget spending on priority sector such as education, health, agriculture and infrastructure, as well as funding reforms to improve the business climate, good governance and macroeconomic management. (macauhub/MZ)