Mozambique receives financial support of US$273 million for 2015-20

22 September 2015

The Programme Aid Partners (PAP) in Mozambique this year will provide US$273 million to support the General State Budget for the 2015-2020 period, under the terms of a memorandum of understanding (MoU) signed Monday in Maputo.

The MoU was signed by the Mozambican Minister of Economy and Finance, Adriano Maleane along with the ambassador of Portugal, José Duarte, on behalf of the partners, who are no longer the G19 and have now become the G14, following the exit of Germany, Belgium , Denmark, the Netherlands and Norway.

Duarte said that in 2004, the first year an MoU was signed, the amount donated was US$159 million, according to Mozambican news agency AIM.

Based on the previous MoUs, Mozambique about US$4 billion in General Budget Support, with average annual disbursements of US$400 million, equivalent to an annual average of 4 percent of gross domestic product (GDP) and 12 percent of total revenue.

The Portuguese ambassador said the latest MoU was clearer and easier to use, both for Mozambique and the partners, whose responsibility is to manage its operation.

“It is now a simpler structure that is more agile and light and that will force everyone to be more efficient and should result in work that is more focussed on substance rather than the process itself,” said Duarte. (macauhub/MZ/PT)