Donors slash Mozambique budget aid

2014-06-14 06:15

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Malputo - Foreign donors have cut aid to Mozambique's government by 11% compared to last year amid concerns over corruption, an official said on Friday.

The group of donors who contribute aid directly to the southern African nation's coffers pledged $275m in aid this week, down from $309m last year.

Norway decided to stop its commitment altogether, joining Belgium, the Netherlands and Spain who all pulled out from direct budget support recently.

Italy's ambassador Roberto Vellano said "concerns over fiscal transparency, fighting corruption and other outstanding issues" had led "some partners to think they could no longer confirm their participation in this kind of support".

Germany and the United Kingdom have delayed committing funds and it is unclear whether they will do so before the end of the year. Pledges are usually calculated in May for the following year.

Mozambique, a country still struggling to rebuild its infrastructure after a devastating civil war that ended 21 years ago, has seen foreign aid dwindle steadily from over half of its government budget in 2010 to a third last year.

The latest reduction partly reflected an international trend to "decrease this modality of aid" in light of the global economic downturn, said Vellano.

But he said a spat between donors and the government last year over a controversial state-backed bond sale had contributed to donor discontent.

Donors were up in arms over the $800m bond to finance the controversial purchase of a tuna fishing fleet on behalf of a state company.

In the wake of the scandal an action plan aimed at improving fiscal transparency has been drawn up.

But aid has not dried up completely.

Some benefactors are increasing funds to earmarked sectors such as agriculture and health instead of giving it to the government directly.

Total foreign aid commitments this week added up to $560m.

Read more on:    mozambique  |  southern africa  |  aid
NEXT ON NEWS24X

SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
6 comments
Add your comment
Comment 0 characters remaining

Inside News24

 
/Sport
 

The Fast and Furious R40 million

With the Fast and the Furious 7 hitting South African cinema’s this April, all eyes are on the cars and we’re in for a treat!

 
 

Luxury living

This is the most expensive burger in the world!
Exclusive food items that WILL break the bank
Top 10 most expensive homes in the world
You can permanently live on a ship and sail the world!
Traffic Alerts
Horoscopes
Aquarius
Aquarius

You may find yourself drawn into investigating, researching or digging below the surface to get to the bottom of something. Your...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.