United Kingdom ends direct support for Mozambique’s state budget

16 June 2014

The government of the United Kingdom has decided to end direct support of Mozambique’s state budget, the UK’s ambassador in Mozambique, Joanna Kuenssberg, confirmed on Friday.

Kuenssberg said her country had donated more than a billion US dollars to Mozambique over 10 years, an amount which does not include donations via multilateral organisations such as the World Bank and the European Union. She reiterated that the decision to end direct budget support does not mean the UK aims to abandon Mozambique.

Further support granted by the UK to Mozambique will be dependent on good governance indicators, she specified.

The UK’s future support for Mozambique will favour economic growth projects involving training, sustainable agriculture and support for women, for example, in partnership with the Mozambican government though always associated to those indicators, Kuenssberg said.

A source from the British government’s International Development Department cited by the Mozambican news agency indicated that the decision is not directly related to the loan of US$850 million contracted by the Empresa Moçambicana de Atum (Ematum) and guaranteed by the Mozambican government.

That guarantee took the international countries and bodies comprising the so-called Group of 19 by surprise, as it had never been mentioned by the Mozambican government and was both a major loan and a flagrant violation of the state budget for 2013.

Although negotiations between the UK and Mozambique continue regarding the future support mechanism, the AIM agency indicated that Britain’s contribution will fall from US$71.1 million in 2012 to US$65.5 million this year. (macauhub/MZ)