31 May 2014

Mozambique: Guebuza Praises Growth in Maputo, Calls for More Work

Maputo — Mozambican President Armando Guebuza on Friday recognized that there has been significant economic growth in Maputo City over the past decade, but called for more work to ensure that higher levels of development can be reached.

At the start of a three day tour of the capital, as part of Guebuza's “open and inclusive presidency”, the city government presented a report showing that state revenue raised in the city has risen from 102.7 million meticais (3.36 million dollars, at current exchange rates) in 2005 to 227.9 million in 2013, an increase of 121.8 per cent in an eight year period.

“Growth of 121 per cent between 2005 and 2013 is very satisfying”, said Guebuza.

“But I believe you can do still more”.

City governor Lucilia Hama praised the positive impact of the District Development Fund (FDD) on Maputo. This fund is still known as “the seven million”, since it began, in 2006, as an allocation of seven million meticais from the central state budget to each of the districts, that would be lent to people with viable projects which could boost food production and create jobs.

Hama said that the FDD has allowed the construction of eight small scale water supply systems in the outlying districts of KaTembe and KaNyaka, with 115 home connections. “This development has reduced the distance people must go for water and has increased the numbers benefitting from a safe water supply”, said Hama.

As for the Urban Poverty Reduction Strategic Plan, Hama said that between 2011 and 2013 a total of 62.21 million meticais had been allocated to finance 740 projects, which had created 2,366 jobs. As with the FDD, the money takes the form of loans, and, also as with the FDD, repayment rates are low. Hama said that so far 3.92 million meticais has been repaid (6.3 per cent).

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