23 November 2012

Mozambique: Germany Pledges Further Aid

Maputo — The German government has pledged a further 80 million euros (103 million US dollars) in aid to Mozambique for the period 2013-2014, according to a Friday press release from the Mozambican Foreign Ministry.

The sum was agreed at bilateral negotiations between Mozambique and Germany in Maputo on Thursday and Friday. The Mozambican delegation was headed by Berta Cossa, Director for Europe and the Americas in the Foreign Ministry, while the German team was led by Ulla Mikota, Director for Africa in the Federal Ministry for Economic Cooperation and Development.

This aid will be channelled to the three focal areas for German Cooperation, namely basic education and technical-professional education; decentralization for rural development and; sustainable economic development.

Germany will also continue to grant direct support to the Mozambican state budget for the next two years, "if the conditions and basic principles of budget support are fulfilled, and if the agreed targets have been reached".

During the negotiations five million euros of German aid was pledged in budget support for 2013, and the German side said it was willing to provide a further 15 million euros, in instalments over the two year period, if progress is shown in good governance.

A further eight million euros will be provided to support the Administrative Tribunal (the body that oversees the legality of state expenditure), the Mozambican Tax Authority (AT), the country's parliament, the Assembly of the Republic, and the Mozambican media.

Germany has also pledged 3.5 million euros for a new technical cooperation programme in the area of mineral resource governance and management.

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