15 June 2009
Xai-Xai — Over 7,300 jobs have been created, from 2006 to the present, in the southern Mozambican province of Gaza, by the application of the Local Initiative Investment Budget (OIIL), according to provincial governor Raimundo Diomba.
The OIIL began in 2008 as the transfer of seven million meticais (about 263,000 US dollars) from the state budget to each of the 128 districts. Now the fund has risen to between nine and 11 meticais a year, depending on factors such as the size and population of the district.
According to a report given by Diomba to President Armando Guebuza, who ended a working visit to Gaza on Friday, so far this year 1,054 projects have been approved by the District Consultative Councils, resulting in the creation of 2,061 jobs.
The largest numbers of jobs created since the launch of the OIIL were in the districts of Massingir, Chokwe and Chibuto, with over 1,000 new jobs per district. Fewest new jobs were created in Mabalane (113), Massangena (155) and Xai-Xai (241) districts.
The OIIL provides loans to projects that should boost food production and generate employment. The money is supposed to be repaid, but across the country the reports are of very low repayment rates.
In Gaza, 299.73 million meticais have been disbursed so far, but only 10.24 million have been repaid, a repayment rate of 3.4 per cent.
During his visit, the population of all the districts where he addressed rallies told Guebuza that the OIIL has had a positive impact on their lives and on local development, and urged him to continue this form of budgetary decentralization.
Guebuza's conclusion at the end of the visit was that the OIIL is "working wonders" in Gaza. "A lot is improving. So, in terms of impact, it's positive", he told reporters.
"I think there are problems here and there ", he added, "but these problems do not call into account the positive results we have been achieved".
He cited the irrigation scheme in Chokwe, where in recent years rice has been produced on an area of only 2,000 hectares - but in the current agricultural year, the area under rice production in Chokwe has risen to 6,000 hectares.
"This shows that we are on the right path in our production plans", Guebuza said. "I believe that in the coming period we will do much better". But he admitted there were serious problems - particularly the shortage of combine harvesters for the rice harvest, and in some cases poor quality seed.
Such difficulties were to be expected, he added. For Guebuza, the most important aspect was the increase in production "for us to see whether we do in fact have the capacity to increase rice production".
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