Despite pulling out of the group of donors who provide assistance directly to the Mozambican state budget, Germany plans to grant Mozambique 37 million euros (about 42 million US dollars) for the fight against poverty and the development of districts.
German ambassador Philipp Schauer announced this programme on Friday in Maputo after an audience with Prime Minister Carlos Agostinho do Rosario.
“We have a decentralization project and we intend to channel 37 million euros to the development of the districts, since we have found that often the districts have no capacity”, Schauer told reporters.
The German aid is focused on three provinces, he added – Manica and Sofala in the centre of the country, and Inhambane in the south. The money is already available, but the districts must draw up local development projects.
Asked about Germany’s withdrawal from the Programme Aid Partners (PAPs), the group which provides direct budget support, Schauer said “our withdrawal is due to a decision by our parliament. Currently, we do not have many countries that are benefitting from this form of support”.