MOZAMBIQUE: United States to ‘review’ aid to Mozambique

The United States are proud to be partners in the development of Mozambique and provide about US$400 million in annual assistance to the people of Mozambique – more than US$6 billion since 1984. The majority of US assistance focuses on health issues such as HIV/AIDS, TB, and malaria, followed by Agriculture, Education, and Democracy and Governance. As the largest bilateral donor, development partner and potentially largest investor, the financial stability of Mozambique is important to the United States.

The U.S. Government is concerned about the recent disclosure by the Mozambique government of millions of dollars in loan guarantees for ProIndicus and Mozambique Asset Management. We appreciate the initial steps taken by senior government officials to clarify the debt situation. These are the first important steps to restore confidence, but the government must now act quickly to account in public full and transparent manner for these loans and how the funds were used, as well as outlining a plan to mitigate its impact on the economy of Mozambique.

The United States is in constant consultation with other donors, is aware of and endorses the recent decision by the group of 14 countries (G14) providing general budget support to suspend such assistance until they are provided more clarifications and accountabilities.

It is important to note that the assistance of the USA is channelled to programs with specific focus and not to the general budget of Mozambique. Most of this assistance directly benefits the people of Mozambique, and the United States do not wish to reduce this assistance. However, in the light of the current situation and our responsibility to the American taxpayers who provide these funds, we will also review our assistance, in particular any assistance to the central government.

We have shared development goals and investments in the Mozambican people, such as the fight against HIV/AIDS, improving education, and creating opportunities for sustainable income. To achieve these objectives, it is necessary transparency, accountability, and fiscal responsibility. We echo the concerns of Mozambicans that require answers.

U.S. Embassy Mozambique