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EU announces new support for Mozambique

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Tuesday, 01 December 2015

EU announces new support for Mozambique

Under the National Indicative Programme for Mozambique, today European Commissioner for International Cooperation and Development, Neven Mimica on behalf of the European Union, with Ms. Nyeleti Brooke Mondlane, Mozambique's Vice-Minister for Foreign Affairs and Cooperation, signed an agreement which will provide €734 million to Mozambique. Commissioner Neven Mimica said: "There have been significant and positive political and economic developments in Mozambique over the last decades since the end of the civil war in 1992. It is important to build on this progress whilst making the best use of Mozambique's impressive economic potential, notably in the sectors of gas, mining, hydro-energy and agriculture. Mozambique could also benefit enormously from its strategic position in Southern Africa. The key issue today is therefore how to make economic growth inclusive and sustainable, while maintaining political stability."
The €734 million in support under the National Indicative Programme for Mozambique for the period until 2020, will support a range of areas, including the promotion of the democratic system in the country, transparency, accountability and the rule of law and support for public institutions, in line with the Government of Mozambique's priorities.
Two areas will have a particular focus:
- Good governance and development. Overall support will be provided to national public policy and its priorities, through a 'Good Governance and Development Contract '(General Budget Support instrument) as well as via complementary measures.  EU support in this area will aim at strengthening the capacity of core government systems, control mechanisms, domestic accountability and macroeconomic management. The support from the EU will also help promote a conductive environment to support political and economic governance.
- Rural development. In this regard, the EU's support is two-pronged in its approach, to address both inclusive growth and poverty reduction in rural areas. The EU will help to improve food security and nutrition, and on the other hand, to enhance competitiveness amongst producers (through rural electrification and roads for example), in order to foster the conditions for sustainable growth of small and medium-sized enterprises in rural areas.

Source: European Commission