The EU support programme for Mozambique, which includes funding of 734 million euros by 2020, will help strengthen the rule of law and the quality of public finance, said ambassador Sven Kühn von Burgsdorff.
The agreement on the 11th European Development Fund, signed on 26 November 2015, provides 734 million euros by 2020, of which 200 million euros will be earmarked for the Mozambican state budget for the same period.
About half of the fund will be directed to the area of good governance which, together with rural development are the two priorities of this funding.
Sven Kühn von Burgsdorff stressed that aid for good governance was provided through General Support to the State Budget and funding “to strengthen the capacity of key institutions for economic governance,” implying a total value of 367 million euros.
The Minister of Foreign Affairs and Cooperation of Mozambique, Oldemiro Baloi, and the European Commissioner for International Cooperation and Development, Nemen Mimica, last week on the sidelines of the African Union summit in Addis Ababa, signed the Contract of Good Governance and Development, which is the legal basis for future disbursements of General Budget Support by the EU.
On average, EU financial flows represented 16.5 percent of total disbursements of General Budget Support (total contributions from 19 partners) since 2008, according to the European delegation in Maputo, totalling 328 million euros in the last six years. (macauhub/MZ)