US and Canada suspended direct aid to Mozambique

10 May 2016

The United States will wait for the Mozambique authorities to inform its programme support partners, the so-called Group of 14, about total loans taken and the destination of the funds, said the US embassy in a statement.

The statement released Monday in Maputo said that the US government was concerned about the recent disclosure by the Mozambique government of millions of dollars in loan guarantees for companies ProIndicus and Mozambique Asset Management.

The embassy the US was one of the largest bilateral donors, with direct support exceeding US$6 billion since 1984 focused on health, agriculture, education and promotion of democracy.

Similarly to the USA, the Government of Canada announced Monday it had decided to join the other members of the G14 and suspend aid to Mozambique following the disclosure of State guarantees on loans amounting to US$1.4 billion that were contracted in 2013/2014.

The High Commissioner of Canada in Mozambique, Shawn Barber, announced on Twitter that direct support to the Mozambican general state budget had been suspended although other aid to both non-governmental organisations and specific projects would remain in place. (macauhub/MZ)