Maputo, Mozambique — The government of Mozambique and the Norwegian Development Fund have signed two agreements under which the latter is to make available 10 million Euros (about 8.8 million US dollars), and four million SDRs (Special Drawing Rights).

The assistance is destined for institutional capacity building in the country's mining sector and for municipal development.

Contemplated in institutional capacity building is decentralisation and legal reform towards an enabling environment for private sector development.

Equally sought is a sustainable contribution of the mining sector to the country's economic growth through the establishment of a data base and development of geological maps for potential investors.

Funds envisaged for municipal development would finance legal and institutional reform in town councils alongside the training of staff and councillors.

It would also subsidise investments in small and medium scale projects in infrastructure, equipment and consultancy.