The European Union has decided to offer Mozambique an additional 12 million euros to help the country deal with the rise in the prices of fuel and other goods on the international market, said the EU delegation in Maputo.
For the 2007/2013 period, the European Union approved funding of 622 million euros to boost Mozambique’s social and economic development, according to the delegation in Maputo, which noted a combination of factors that could lead to “adverse macro-economic effects for the country.”
Good governance, health, infrastructure, regional integration, food safety, rural development and social sectors are areas that most benefit from European Union aid, the delegation said, adding in its statement that the additional funding recently approved was intended to boost the country’s capacity to overcome “unexpected exogenous shocks.”
In the statement the EU delegation noted that growth of the Mozambican economy “exceeds expectations” but added there were concerns about the “slow process of reform of the Justice sector and difficulties in managing public expenditure.”
The European Union is Mozambique’s biggest external partner in terms of public development aid and one of the main contributors to the country’s state budget. (macauhub)