German development aid for Mozambique

The Mozambican and German governments on 3 July signed three agreements in Maputo under which Germany will donate €128 million (US$142 million) for various development projects. The agreements were signed by Foreign Minister Oldemiro Baloi and German ambassador Philipp Schauer, and cover a two year period.

The grant will support “the three priority areas in the cooperation between Mozambique and Germany, namely education, decentralisation for rural development, and sustainable economic development”.

In addition, some of the German funds have been allocated to the newly established Foundation for the Conservation of Biodiversity (BIOFUND), and for the Limpopo National Park.

After signing the agreements, Baloi said the German aid would assist, among other areas, in supporting Mozambican municipalities, promoting the financial sector, modernising the electricity network and adaptation to climate change.

Schauer explained that €30 million is Germany’s commitment to the education sector common fund (FASE).

There are also several new programmes of German support. In education, German aid will “expand the supply of technical and professional education through a partnership with some of these education institutions”. In all over a third of the aid (€50 million) will go to education, maintaining Germany’s position as one of the major donors in this area.

Some of the money will be used to improve access to electricity, through modernising and expanding the electricity grid, and to “promote good financial governance at the level of decentralised administration”.

German cooperation, Schauer said, would support the Mozambican government in achieving “the priorities set out in the five year programme: the consolidation of good governance, and inclusive economic growth with the creation of more jobs, and increased competitiveness, productivity and household income”.